ICE Homeland Security Investigations Signs $3 Million Contract for Advanced Phone-Hacking Technology
The U.S. Immigration and Customs Enforcement (ICE) division Homeland Security Investigations (HSI) has entered into a $3 million agreement with Magnet Forensics to acquire software licenses for advanced phone-hacking and forensic tools. The contract, recently disclosed in a federal procurement database, aims to bolster HSI’s capabilities to recover digital evidence, process multiple devices simultaneously, and generate forensic reports critical to national security and public safety missions.
Although the contract does not explicitly name the product, it is widely understood to refer to Graykey, a forensic system originally developed by Grayshift. Graykey specializes in unlocking smartphones and extracting data for law enforcement investigations. In 2023, Magnet Forensics acquired Grayshift following a private equity takeover by Thoma Bravo, consolidating the technology under its portfolio.
Additional Contracts Highlight Expanded Use of Forensic Tools
Beyond the $3 million deal, ICE and HSI have secured multiple other contracts with Magnet Forensics and its partner Panamerica Computers. These include:
- A $145,000 subscription for Magnet Griffeye Enterprise, a platform designed to collect, organize, and analyze digital evidence.
- A $90,000 renewal of GrayKey Premier software licenses for iOS and Android device extraction, specifically for HSI operations in Detroit.
- A $57,000 purchase of Graykey software licenses aimed at recovering digital evidence from multiple devices for investigative purposes.
- A $12,000 contract for unspecified Magnet Forensics software licenses supporting HSI activities in Charlotte.
Requests for comment from Magnet Forensics and ICE representatives were not answered by publication time. A spokesperson for ICE acknowledged outreach but declined to provide further details. The Department of Homeland Security (DHS) also did not respond to inquiries.
Context: ICE’s Expanding Digital Surveillance Arsenal
ICE has been steadily enhancing its technological capabilities to support enforcement and deportation activities. Its tools now include facial recognition software from Clearview AI, cell phone spyware developed by Paragon, and data analytics platforms provided by Palantir. Last year, ICE awarded Magnet Forensics a $5 million contract for Graykey, underscoring the agency’s commitment to leveraging cutting-edge forensic technologies.
Launched in 2016, Graykey entered the market as a competitor to Cellebrite’s UFED system, a leading phone-hacking and data extraction platform widely used by law enforcement globally.
FinOracleAI — Market View
The recent $3 million contract award to Magnet Forensics reflects sustained government demand for advanced digital forensic tools, reinforcing the company’s position in the law enforcement technology sector. The consolidation of Grayshift under Magnet Forensics further strengthens its product offering against competitors like Cellebrite. However, ongoing privacy concerns and regulatory scrutiny over surveillance technologies pose potential risks. Market watchers should monitor further government contracts and any legislative developments impacting digital forensic tool deployment.
Impact: positive
