NSO Group, however, claims that it only sells the spyware to “vetted and legitimate government agencies.” It is used to hack smartphones and other devices to gather data and serve it to third-party sources. NSO is an acronym based on the names of the group’s founders – Niv Carmi, Shalev Hulio and Omri Lavie. Pegasus Spyware is malicious software that has been created by Israel-based cyber intelligence firm NSO Group. Now, in case you are wondering what is it, how does it work and is your smartphone too in danger? Fret not, as in this article, we will be sharing with you all the details about the Pegasus Spyware. Pegasus Spyware – you must have heard this name as it has been doing the rounds on the internet since the past few days.