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How the FBI built its own smartphone company to hack the criminal underworld

How the FBI built its own smartphone company to hack the criminal underworld

Released Thursday, 23rd May 2024
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How the FBI built its own smartphone company to hack the criminal underworld

How the FBI built its own smartphone company to hack the criminal underworld

How the FBI built its own smartphone company to hack the criminal underworld

How the FBI built its own smartphone company to hack the criminal underworld

Thursday, 23rd May 2024
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Episode Transcript

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1:21

Hello and welcome to Decoder. I'm Neil I. Patel,

1:23

Editor-in-Chief of The Verge, and Decoder is my show

1:25

about big ideas and other problems. Today,

1:27

I'm talking with Joseph Cox, who is one

1:30

of the best cybersecurity reporters around. He spent

1:32

a long time working at Vice's tech vertical

1:34

motherboard, but last year, after Vice imploded, he

1:36

and three other journalists co-founded a new site

1:39

called 404 Media, where they are

1:41

doing some really great work. Somehow, on

1:43

top of that, Joseph also found the time

1:45

to write a new book, which is coming

1:47

out in June. It's called Dark Wire, the

1:49

incredible true story of the largest sting operation

1:51

ever. I can't recommend it enough. It's

1:53

basically a caper, but it involves the

1:56

FBI running a phone network. For real,

1:58

that's the story. See, crime... Like

2:00

drug traffickers represent a market for encrypted

2:02

secures mutations away from the I want

2:04

for Smith's Illegally Arrows novel that gave

2:07

rise to a small industry specialized is

2:09

your phones as the back there is

2:11

that criminals used to conduct business scarcest

2:13

on a lot of reporting on the

2:15

seventy years and the book ends up

2:17

telling a really extraordinary story after breaking

2:20

into a few these encrypted smartphone companies.

2:22

The. Sp I ended up running one itself

2:24

so we could spy and Seminoles around the

2:26

world. And that means the

2:29

F B I had to run a

2:31

start up from company with all of

2:33

the problems of any other tech startup.

2:35

cloud service management, manufacturing and Shipping Aziz

2:37

Customer service expansion scale. The. Company was

2:39

called annum in for about three years,

2:42

he gave law enforcement agencies around the

2:44

world a crystal clear window into the

2:46

criminal underworld, but it ended because it

2:48

was too successful and all ended with

2:50

a massive worldwide raid on criminal organizations.

2:53

Get. The story is while. Now.

2:55

In the modern era, with the rise of

2:57

apps like Signal, most criminals no longer need

3:00

specialized hardware is dedicated services, But that raises

3:02

a whole new set of issues. The.

3:04

Really are bad people out there use

3:06

Intact to help them do bad things.

3:08

but the same tools to keep their

3:10

communications private help give everyone else to

3:13

privacy. To whistleblowers, dissenters, people like you

3:15

and me, there's a deep tension between

3:17

privacy and security. The constantly runs through

3:19

tech industry. And. Use your joseph and I

3:21

really dig into the way tech companies and governments are

3:24

forever going back and forth on. There's.

3:26

A lot going on this one of the affair on

3:28

the front of the the other. Jessica. Joseph

3:43

cost you any cofounder and reporter at

3:45

for for media and incredibly great new

3:47

tech website And you're off the offer

3:49

of a cold dark wire or can

3:51

to Dakota. Thank you so much for

3:53

having me. And. When asked you questions

3:55

I for for and I once i my dark

3:57

wire which is an incredible keeper of a book.

4:00

Highly recommend it. It's of it took out. It's a

4:02

beach read about. Encrypted smartphones. Other

4:04

houses thrive. It's great. It's a it's

4:06

a great read. I once had a

4:08

lot. It's very quickly want to cycle

4:10

up for of for of the new

4:13

Tuck outside the U Cofounder the Sponge

4:15

people tell me what that and starts

4:17

going really quickly so so as some

4:19

listens may know this company called nice

4:22

owner was as episode went bankrupt because

4:24

of a series as pool executive decisions

4:26

and me and my cofounders san Jose

4:28

since hapless a Minute maid or we

4:31

decided to leave. I'm a top own

4:33

primarily. Subscriber: Treason Technology Investigations

4:35

website. We just wanted to make a

4:37

sustainable vehicle for journalism Is we just

4:39

want to keep exposing stuff? We want

4:41

to keep writing stories of all of

4:44

these layoffs in the media industries that

4:46

is getting harder and harder and harder.

4:48

So why not just control sort of

4:50

the website ourselves? A business ourselves like

4:52

other people have done like to sector

4:54

or Case Newton a platform us and

4:57

Spy. But those people we decided to

4:59

take the plunge ourselves is going for

5:01

the really well. What's the most

5:03

important thing you've learned running around Me To misses. The

5:06

gyms and has to come first and as

5:08

always the case. But if you actually put

5:11

the journalism first people respect that and they

5:13

will come and they will pay for your

5:15

words like we just did a piece about

5:17

the exploitation of Ss Seven in the house

5:19

Phones are being tracked in the U S.

5:22

Very complicated story took me a long time

5:24

of people want to pay for that and

5:26

people want to subscribe me want to support

5:28

that work. So since the gyms and and

5:31

stuff will follow fastest novels and media companies

5:33

are doing the not putting the journalism front

5:35

and center. Or you know start

5:37

generating a I previous for Google search sooner

5:39

said we look for time next year I

5:41

encounter that's the first time and is may

5:44

be allergic to Google and I I literally

5:46

may know use a search engine anymore is

5:48

is that a parent or hate it. I

5:51

will have you back since I got for for maybe

5:53

with some here cofounders because I'm very instant hi. this

5:55

is going offices you know and I'm rooting for us

5:57

I think to orchestrate but where does have a book.

6:00

Which is also great. I have no idea

6:02

how you started saw me the company. And.

6:05

Wrote a true crime book at the

6:07

same time. You. Must be very sleepy,

6:09

but the book is Dark Wire. The Incredibles:

6:11

The story of the largest sting operation ever.

6:13

There's a lot of reporting that went into

6:15

it on both sides, on through as the

6:17

high side of the criminal sides. Let's start

6:19

at the beginning and lamp that timeline. It.

6:22

Feels like the the book begins with

6:24

smartphones in the two thousands. Criminals.

6:27

Are exceptions are great but the government can

6:29

read with on them. What? Happened

6:31

sir. It starts mostly with Blackberry

6:33

Like criminals. started using Bbm Blackberry Messenger

6:36

because it was seen as being more

6:38

secure and for a while it was.

6:40

It was better than ordinary text messages,

6:43

but you know the far as started

6:45

looking at that including the Royal Canadian

6:47

Mounted Police said it is very large

6:49

operations where they managed to read a

6:52

ton of Bbm messages. So. Some.

6:54

Sort of like geeks or drug traffickers.

6:56

A combination of those they saw making

6:58

customized blackberry is where they taken the

7:01

microphone out, the Gps out the cameras

7:03

well and it basically basically changes the

7:05

Blackberry Winter really secure encrypted device they

7:07

as encrypted email on the on to

7:09

their as well. That's not the end

7:11

of it though, of course cop starts

7:14

to catch up. With that said in

7:16

the criminals have to make more advancements

7:18

as well and what you basically have.

7:21

Is why I see is like a

7:23

shadow tech industry where where are usually

7:25

obsessed with you know the new Aslan,

7:28

out some of the new Google announcement,

7:30

whatever is and then you have these

7:32

top two drug traffickers who are excited

7:35

for the voice scrambling feature on a

7:37

new encrypted smartphones and the really is

7:39

brand loyalty. In the same was a

7:41

lot of us a loyal to Apple

7:44

or Google, whoever all loyal to an

7:46

encrypted messaging apps. There really is this

7:48

massive industry that really drives foods. Not

7:51

only. Book criminals are

7:53

able to do logistically as

7:55

in plants, most high tongue

7:57

cocaine shipments basically very easily.

8:00

They also radically change the conversation

8:02

around privacy encryption in law enforcement

8:04

as well. So. There's a

8:06

market for these products. Like he said,

8:08

brand loyalty. The first companies that start

8:10

are really doing that most. Basically you

8:12

can do which is the running their

8:14

own Blackberry messaging server which allows them

8:17

to control the encryption keys. These.

8:19

Companies quickly run follow the law

8:21

because they're providing services criminals. They

8:23

get arrested. Other competitors arise.

8:25

The big one that is introduced early

8:27

on the book is a coming up.

8:30

Phantom Secure. How did Phantom Secure avoid

8:32

the problems that. For the first

8:34

when the company's ran into. Some. What

8:36

they did was bother than just

8:38

customizing the blackberry, all adding their

8:40

own Blackberry server. They added the

8:42

encrypted email feature which is why

8:44

Sluggish of A see the time.

8:47

they allows these drug traffickers including

8:49

the Cinema Cartel the used sentenced

8:51

to communicate securely but they also

8:53

did something interesting. Buses that they

8:55

use a network of resellers who

8:57

know the criminals that a finite

8:59

customer base I would say of

9:01

traffic isn't going to buy the

9:03

science and these sellers know who

9:05

those. People are another element of trust

9:07

that is not like you just walk into

9:10

a shot and by when the sun's a

9:12

least not Ordinarily if the no one sees

9:14

resellers he has to trust them And of

9:16

course a stay. Messy. Woven sell

9:19

you a bad phone for drug traffickers

9:21

this give somebody a target to go

9:23

to complain about it says it's already

9:25

same with Apple like it or if

9:27

address as a cast aside I gonna

9:29

go Mona Tim Cook course and an

9:31

angry emails to Microsoft or whatever the

9:33

somebody here to to be held accountable

9:36

fans. That. Does it benefit? I'm a

9:38

curse a source of these companies because those people

9:40

ended up being targeted by the Sp Ice as

9:42

a way to get into these companies as well.

9:44

To he of honestly as a franchise

9:46

follow your your local franchise owner and

9:48

that person is to say some local

9:51

customer support for the drug dealer but

9:53

also the place where law enforcement can

9:55

apply pressure on the that last because

9:57

eventually you know does fall apart but

9:59

it's. Like that was the dominant.

10:02

Method. For quite awhile. and Phantom Secure

10:04

is really when the book opens without a

10:06

long story. it was Phantom Secures. At

10:09

the heart of the whole story. Yeah.

10:11

I mean I think these hardens and for

10:13

to phones as source will this be I

10:16

cause I'm have been around basically for a

10:18

decade before that was about both us and

10:20

then you have these customers phones. Now you

10:22

have complicated stuff that I'm sure we get

10:24

into with criminals actually turning to signal and

10:26

more consumer apps but that was the sources

10:29

timeframe do you had of these companies and

10:31

that's basically how long it took the the

10:33

F B I and other law enforcement agencies

10:35

to get a handle on it and ten

10:37

years is like ancient history when it comes

10:40

to the F B. I or or

10:42

law enforcement or surveillance techniques right

10:44

sites for a while. Criminals.

10:47

Were using these phones not openly, but they

10:49

basically didn't have to worry about the yes

10:51

to think about it. They bought one of

10:53

these phone for hundreds or thousands of dollars

10:55

for six months subscriptions and then they could

10:58

go to a cocaine deal like it really

11:00

was and. Yeah,

11:02

you gotta as a story. The beginning Where. And

11:05

the sort of consumer messaging platform

11:07

is the criminals. He's codewords, animate,

11:09

Say. Okay, switch to the secure phones

11:11

and now I have as if the

11:13

kilos of cocaine straight out know hedging

11:15

and this product works for. Major.

11:18

Drug traffickers? What led to the downfall of

11:20

this First Way, which I think Phantom secures

11:22

kind of the major symbol of the first

11:24

wave. What led to the down for. The.

11:27

Sp I started Target Sense insecure by

11:29

well a couple of different ways for

11:31

the end up doing is slipping a

11:33

distributor he says he signs and they

11:36

oppose You need to get close to

11:38

the Ceo, the Phantom secure with some

11:40

ankles in some ram Us that happens.

11:42

Ramos make some very incriminating statements to

11:45

the S B I and undercover operations

11:47

and they arrest him and they say

11:49

you need to put back to into

11:51

Phantom secure and let us read all

11:53

of the messages as the ten thousand

11:56

users or whatever. Samson or we're going to

11:58

arrest you. For various. M

12:00

C F B I don't get

12:02

that back to Ramos tries to

12:04

escape, he merely gets away. I

12:06

won't spoil exactly what happened. this

12:08

is very dramatic and and they

12:10

arrest the militia doesn't I'm secure

12:12

spots yes although the sp I

12:14

did not get that back to

12:16

then he ushered in this way

12:18

ease of paranoia in cook the

12:20

phone industry where the sellers realized

12:22

oh. We. Can't do this

12:24

anymore. The gold rush of selling

12:27

encryption to drug traffickers is basically

12:29

over. Always gonna be over soon.

12:32

Yeah. You describe out certain like lavish

12:34

parties for their swords and honestly drugs

12:36

these resellers were throwing for themselves. Of

12:38

these companies that mostly men who ran

12:40

all these companies were throwing because this

12:42

was the easiest money that any of

12:44

them. Her roommate and at. Thirty.

12:47

Cents. Yeah and some

12:49

people go on the run, some

12:51

of them made to use with the

12:53

authorities. A century later, some of

12:55

them to shut down the company's entirely

12:57

because they presumably decide this is

12:59

not worth it. Like we cannot provide

13:02

these tools to criminals anymore As

13:04

you just say, like he, most places

13:06

in the world is is not a

13:08

crime to sell and encrypted phone

13:10

Know to make a piece of encryption

13:13

software uncontroversial. Guessing that's a good

13:15

thing as Mississippi illegals to make encryption

13:17

technology. it gets complicated. Legally

13:19

and ethically when you are deliberately

13:21

facilitating criminal networks and selling to

13:24

those crime that works and that's

13:26

what a lot of these companies

13:28

that. We. Have

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encrypted. To

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set the snakes, just describe how the

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Feds classes a public health center secure

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which ran an encrypted for network at

16:46

Blackberries and that mud hole in the

16:48

model. So

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this raises to about twenty eight him

16:54

that gold rushes over that ten years

16:56

of parties come to an end and

16:58

somehow. Instead. Of another

17:00

company or another strategy coming

17:02

out of the criminal world,

17:04

the F B I launches.

17:07

The. Next Generation encrypted messaging platform

17:09

for drug dealers and called

17:12

Adam. How is it

17:14

that the F B I launches the big competitors?

17:16

Your lead to just that's the heart of the

17:18

book. and it to me, it's just the funniest

17:20

thing and the entire world. So when

17:22

Sansom is set down, there is

17:25

something as a vacuum there for

17:27

ten thousand customers. They need to

17:29

get back of an encrypted messaging

17:31

platform as soon as possible. When

17:33

you're a drug trafficker, time is

17:35

money, oversee, and if you're not

17:38

moving drugs, you are losing many.

17:40

so somebody who call themselves ask

17:42

you. Makes. A deal with the

17:44

Spr and they say already making my

17:46

own and crypto phone company would you

17:49

like to use it in your own

17:51

investigations And I cannot stress enough what

17:53

an incredible Eisa is Both ask you

17:55

cause it's not just like hey I'm

17:58

going reform on this one criminals. Patients

18:00

like: I'm giving you a tech startup and

18:02

you can grow it like I've done a

18:04

Strapping Us A Lucky Way pulling it sends

18:06

you can now growers and you can get

18:08

your hockey stick grow for whatever Silicon Valley

18:10

time you want to use and you can

18:12

put in your back to in return. Please.

18:15

Don't prosecute me to crimes are you may

18:17

or may know to in the seats and

18:19

is just an incredible deal and one this

18:22

is absolutely. Tantalizing. To

18:24

the sp I me a p they

18:26

miss their backs on sentence kids now

18:28

become mates their own back to door

18:30

in any way to they want to

18:32

censor. Search. Just. Would.

18:35

Just stick with asked who has the so up

18:37

to the F B I and say I have

18:39

this product would you like to take it over

18:41

and and we will sell it to the criminal

18:43

underworld. The F B

18:45

I has to see. yes. right?

18:48

Bit they have it agree they're gonna

18:50

do this. There's vastly some process. What

18:52

is that process of the a feeling

18:54

of thirst? Did Ceo Jamie as be?

18:56

I don't think the Americans, the senior

18:58

Tuesday a gonna get on board and

19:01

Leslie proves there's actually real So. Working.

19:04

With the Australian Federal Police, the I

19:06

Have p do something of a beta

19:08

test and they sought to roll out

19:10

the phones ask you does in Australia

19:12

to starting with five and then slowly

19:14

ramping up the ice tea stars, intercept

19:16

messages. And very quickly they

19:18

see that one hundred percent of

19:20

the messages at the time or

19:22

criminal internet access affairs know people

19:24

like it's a paranormal chats a

19:26

suicide okay cocaine deal okay methamphetamine

19:28

deal was as us so he

19:30

shows is that is a success

19:32

rates but at that moment. Bsp.

19:35

Eyes and breeding the messages for legal reasons

19:37

and they need to figure out the approval

19:40

process. And there's a really great scene in

19:42

the book where one of the prosecutors Andrew

19:44

Young is trying to get everybody else in

19:46

San Diego on his side to approve us

19:48

and they go round the table and as

19:51

only season drug prosecutors to be doing this

19:53

he isn't is years and he cites know

19:55

this is ridiculous I did Supers you can't

19:57

do this and eventually gets to. Brewer

20:00

the my senior official there and a simple

20:02

pointy and he says i need to see

20:04

the look on their face when I say

20:06

we're going to do this and he approves

20:08

it and interestingly he's an outsider. He's never

20:10

really been and the O J until he

20:12

was appointed so he has his outside perspective

20:14

of but why don't we just run around

20:16

Tech Company has a great idea that I'd

20:18

say go for it's I don't as it

20:20

would have got off the grounds. If.

20:22

I wasn't the outside. Perspective.

20:24

Necessarily to study, O J is

20:27

not the best place to run

20:29

a move fast and break things

20:31

text up. Obviously. So. Did this

20:33

is a my next lesson is the may have to run it. Them.

20:36

Have customers and resellers and I'm assuming they

20:38

need to fix things when they break a

20:40

mate. Need to have uptime. How did the

20:42

F B I run a phone company The

20:44

phone companies are bad at running some companies

20:46

out of the F B I run a

20:48

sensible has ever seen you since he was

20:50

have to do for a legitimate company the

20:53

sp I had to do here so he

20:55

has a higher higher developers some of which

20:57

I spoke to and they had no idea

20:59

they were actually working for the Us be

21:01

I stare to fix bugs introducing seats as

21:03

was that sources saying the F B I

21:05

had to pay for. The technical infrastructure

21:07

that was inclusion of Sim cards or

21:09

servers or anything like that they had

21:11

to deal with. Sipping the phone says

21:13

one point where stock is running low

21:16

in one part of the world's the

21:18

F B I flies a Gulfstream Jet

21:20

packs was duffel bags of Google pixels

21:22

to introduce more stocks or something or

21:24

Google pixels and ever been sets in

21:26

the history of Texas is exactly which

21:28

could have been a slight risk I

21:30

mean for other see all of those

21:33

batteries are playing but other source of

21:35

another thanks But every. Problem you imagine

21:37

a tech company was have they had

21:39

to deal with as well including hat

21:41

is paying people running every single aspect

21:43

of it, the marketing. trying to get

21:45

a grip on some of these criminal

21:47

markets where the resellers with say well

21:49

if you switch to our platform will

21:52

give you a discount this three hundred

21:54

dollars or something like that. and it

21:56

was also a little bit of mystique

21:58

in that when you went. Company's website

22:00

you couldn't get in unless you enter

22:02

the coast you got from a result

22:04

A kind of reminds you the early

22:06

days of was a google Plus weather

22:08

like you have to know somebody to

22:10

get an analyst. I came together to

22:12

the point where the sp I. Mean

22:16

they are running in a successful take Company

22:18

eventually grows the something I twelve thousand devices

22:20

Which doesn't sounds like a lot in the

22:22

grand scheme of things, but I speak of

22:24

them. Sansom Secure was somehow the F B.

22:26

I said it better than some of the

22:29

the criminal companies. Who was

22:31

in charge of Adam was it does have a

22:33

Ceo was or public face was at a committee

22:35

homework. Ask. You. Was.

22:37

In charge of the day to day

22:39

operations of the company, There were various

22:42

people insides the company to try to

22:44

take it over. Basket was the one

22:46

who basically pools assaults for most things.

22:48

Yeah, I'm gonna push this update with

22:51

us. Those things I think we should

22:53

hire this person's but. Behind.

22:56

Every single decision says the constant.

22:58

Sadly we presence of Cspi offices

23:00

developers have no idea the criminals

23:02

have no idea and neither did

23:04

the people saying the phones bus

23:06

a kind of think of it

23:08

as like. A V C or

23:10

like an investor who likes isn't really in

23:12

the public for the kind of pulling the

23:14

strings on the banks. That's how I see

23:16

the F B I and this is in.

23:18

they does get final approval on when I

23:20

don't put that in the phone because I

23:23

will actually make a job harder to put

23:25

that in two thousand improve our back door

23:27

and it was stuff like but who gives

23:29

them. A reduction image feature

23:31

both boos secretly make it's

23:33

the phone copies the recently

23:35

and business and success. So

23:37

Cspi is like V C

23:39

Last Tax Northstar Flasks Ultimate

23:41

Products Manager I guess but

23:43

ask you is the faces

23:45

at least credibly else? That's.

23:48

The most complicated decoder structure answer I

23:50

think we've ever seen. Why did the

23:52

Sci Trust ask who are? Here's here's

23:54

a central player Take him to them

23:56

in their the face. Did.

23:58

Seem like there's a lot excessively. Know who

24:00

that was yes they knew who

24:02

was and you're right this is

24:04

absolutely trust their i think he

24:07

was that is ask you did

24:09

anything to sources go behind yes

24:11

the icebox their agreement would be

24:13

voice you know be remove fall

24:15

apart and a to potentially face

24:17

prosecution in the future. I feel

24:19

like Ascii was probably in a

24:21

corner and when you a part

24:23

of this very violence underground industry

24:25

this is sort of your last

24:28

resort and this is your way

24:30

out so you don't get kills

24:32

by somebody and you can hopefully

24:34

remain free as well. Sir.

24:36

Ask who has this hilarious see

24:38

a job. Where. They

24:40

report to the as behind a Fps driving lot of.

24:43

Literally. Tax features but they have to

24:45

grow the company right that there's a vacuum

24:47

after Phantom Secure goes away and M could

24:50

potentially take over. Is actually does succeed but

24:52

in the middle the in the at to

24:54

as I was call it they've gotta go

24:56

when and they. Act like a

24:58

text, Aren't there a third? Their disruptive

25:01

squeezer competitors. How did they actually win?

25:04

So they won in a couple of

25:06

ways. The first is that by they

25:08

simply made a better products then seven

25:10

got a lot of the F B.

25:12

I made a better product as assess

25:14

certain Yes, they made a better encrypt

25:16

a smartphone for criminals of all of

25:18

these fancy interesting features, a hat and

25:20

people loved it. People flock to At

25:22

and they would tell their friends about

25:24

this and they would encourage some other

25:26

criminals to get on board as well.

25:28

The other part of how it really

25:30

grew with that symbol Controversially the F

25:32

B I and. His partners investigated another

25:35

company for Sky. This was very

25:37

similar sense and secure both stimulus

25:39

when of uncle encourage shots. The

25:41

plan was deliberately the sp or

25:44

has their company sitting in the

25:46

wings. And. Then we're going

25:48

to shut down Sky. Those users

25:50

are gonna have to go somewhere.

25:52

why don't we have them run

25:54

over to are trapped essentially or

25:56

honey pots? And that was the

25:58

most transformative moment before. The company

26:00

he grew i think free times

26:02

and. The F B I agents

26:05

die heard from they were saying like

26:07

it was like starting all over again

26:09

and they really did have hockey stick

26:11

growth where they now had in tiny

26:13

countries on the they were getting new

26:16

criminal syndicates every few days and it

26:18

was the slightest exponential growth source of

26:20

in the same way when use police

26:22

and app and he goes viral only

26:24

hear the sp I did some flights

26:26

I dunno maybe to dear Jay says

26:29

investigates said the i'm anti competition philosophically

26:31

shut down the compositor essentially yeah I.

26:33

Will you be told Marseille Gov Tim for to

26:35

they could go arrest to their competitors they would

26:37

do it and the F B I was allowed

26:40

to go are a second nutters. that's emotions nobody

26:42

that as massive growth. Or

26:44

they run. and eight of us really handle this growth out

26:46

of his skill. Sourcing network infrastructure

26:48

diagrams of the company and yet

26:50

the used a W S as

26:52

as a salary success That was

26:55

you. who does Google infrastructure as

26:57

well. They use commercial providers and

26:59

yeah I'm also see that was

27:01

been security concerns as well but

27:03

that kind of hammers the point

27:05

home. This they couldn't just runs

27:07

like the Sb Eyes tech company

27:09

because when make sense they really

27:11

really had to emulate the successful

27:13

players and the space. And that

27:16

includes these. Very expensive. Unlimited

27:18

data centers includes using a to be West

27:20

to accelerate your traffic and try to get

27:22

move reliable and have a lot of up

27:24

time. It was literally as they were just

27:26

trying to run the most successful tech company

27:29

they could. With a back

27:31

door to law enforcement with a bite or so

27:33

that was. I'm a very small capita is a

27:35

success because they are won four cents. A strange

27:37

thing about all this is the as as running

27:39

this phone network that encrypt us on our of

27:42

an old. They're. Not

27:44

allowed to just use the stuff

27:46

either. To be careful in when

27:48

they burn the customers actually prosecute

27:50

them. They have to officer knighted

27:52

states. We. Have a constitution, their rules

27:55

about what you can use and when you can

27:57

use it if the and warrants. In some ways,

27:59

it feels like other countries able to use this

28:01

information much more effectively than the F B I

28:03

was. Yeah, there's a constant tension

28:05

in which the authorities and I mean

28:07

more the Europeans or the ones in

28:09

other countries they really want to ask.

28:11

They want to see this drug shipments.

28:13

They want to stop this assassination. And

28:16

able to see these weapons and especially

28:18

for the threats to life. Psp I

28:20

know it's just have to act is

28:22

when they see somebody is going to

28:24

kill was they call Essex We just

28:27

sit there legally a wasn't White House

28:29

for Se Cleats Day. I'm treated it

28:31

as such and he can that tension

28:33

of well if we go too far

28:35

too quickly people are gonna realize as

28:37

a backdoor and something very unusual happens

28:39

where they would be a threat to

28:41

life. maybe a biker gang want to

28:44

kill somebody the authorities would intervene. And

28:46

improv an unsuspecting the phone. The criminals

28:48

would suspect somebody else in their own

28:50

organization and I want to kill them

28:52

and site is endless by where the

28:54

violence the Sp Ice has to deal

28:56

with and is basically getting out of

28:58

control. Towards. The end. How.

29:00

Do they keep any of this a secret? I hear

29:02

what you're saying. No one ever suspects their phone. But.

29:05

I feel like the reason they have the found this

29:07

because I suspect the regular phones. Is

29:10

it's just that. They. Have a false

29:12

confidence and annum Phones. What?

29:14

How to? Honestly? how do they keep a secret? I'm.

29:17

Genuinely shocked they delete as an really

29:19

really genuinely salts this didn't go out

29:21

early. Earth Yes. Be I ran this

29:24

for like basically for years more and

29:26

one way they did to that is

29:28

by only bringing agencies that they've really

29:30

really trust is there are countries who

29:32

would not linked in. I mean countries

29:35

like Serbia for example where understand a

29:37

lot of the violence took place. Missing

29:39

some of the corruption as well. Yes

29:41

Be I did not Loops I'm in

29:44

to the secret on one side. It

29:46

was a very large. Operation with sixteen

29:48

countries or something like that towards

29:50

the end. On the other it

29:52

was only very very very trusted

29:54

agencies and basically people at a

29:56

loss as these. Relationships.

29:59

They would in. Each other from sort of

30:01

other operations. They receive friends a lot

30:03

of cases and if they weren't friends

30:05

are the start. they were the encino.

30:07

They were telling me how they're going

30:09

to the pub in the bars together

30:12

a and getting drunk and celebrating. So

30:14

it really was this big mutual decision

30:16

to keep it under wraps. Which is

30:18

not to say the criminals did not

30:20

get suspicious because they absolutely did towards

30:22

the end and was other operations in

30:24

to anchor chatting sky those two other

30:26

companies. Some criminals did learn about those

30:28

beforehand so leaks do happen. Based

30:31

basically a miracle to this one. We

30:35

have six out of it breaks and Rebecca. Hi

30:46

This is got our I'm at Elson

30:49

and Where The House Ago house. It's

30:51

kind of unfair to call his cohorts.

30:53

I'm really The Houses is my Robin

30:55

Givhan for Sissy, Clear on what the

30:58

says, when? Anyways, where The House of

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31:42

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31:51

Week on the pets were back to pitches.

31:54

And. This one's. Coming. From my

31:56

job. Of plants

31:58

as a I does is. It

32:00

led to podcasts producers become

32:03

ten times more productive. How

32:05

much are you charging the pets? Were

32:07

charging ninety nine dollars and Josh

32:09

came in right before we double

32:11

their prices. What's

32:14

keeping something like? A restrain from just gone

32:16

like yes we do all the say

32:18

i now stuff killed So there's a

32:20

lot of these older companies that are

32:22

tacking on a i had that kind

32:24

of the issue they're talking it on

32:26

You Built this really quickly is the

32:28

seventy miles was was the most. How

32:33

do you build a moat when you're

32:35

building with a I? Guess. This

32:37

week on the pitch. Go. Right now

32:39

and subscribed to The Pits wherever

32:41

you listen to podcasts. Well.

32:44

As last time, you noticed a

32:46

federal comments period. You. Know the

32:48

type federal government is passing a law, are

32:50

changing the rules and they want to hear

32:52

what you think about it. Well.

32:55

One of those com and periods just kicked

32:57

off and runs for the next two months

32:59

and it's a big one. The

33:03

Federal government wants know what you

33:05

think about their plan to reschedule

33:07

marijuana, not what time you take

33:10

the smoke breaks for Coli? Sorry

33:12

of like this. New schedules totally

33:14

confuses. The Federal government is basically

33:16

trying to read categorized week and

33:19

it could happen as soon as

33:21

election day. The President says it's

33:23

a big deal. This is monumental,

33:25

but we reached out to a

33:28

cannabis policy reporter at Politico task

33:30

if she thought it was monumental,

33:33

And she said yes, but

33:35

also not. Our

33:39

conversation is waiting for you. Add today

33:41

explained. We're

33:47

back I'm talking for for media source

33:49

of talkspace Absolutely Wilds restored sp I

33:51

running six months from company for criminals

33:54

that was not in fact to secure

33:56

his it's Massive project Adam How together

33:58

for a few years. Then things

34:00

get tricky. You've

34:03

got all the problems. A regular start up,

34:05

we had a period of yourself. Then you

34:07

have all these other sailed already problems that

34:10

are services getting bigger and it's leading to

34:12

an escalating cycle of violence that we have

34:14

to keep stopping and we have to. Keep.

34:17

It a secret. And. Things are

34:19

wreaking by Twenty Twenty One. People are starting

34:21

to get the sense this isn't and work

34:23

described sort of the beginning of the and

34:25

here. Towards the sounds of

34:27

Twenty Twenty One, it becomes pretty clear

34:30

to the F B I agents I've

34:32

spoken to another officials physicists a site

34:34

and tenable there are more more masters

34:36

coming in every single day. The F

34:38

B I can't keep. I think Momentum

34:41

is the term that was used. With

34:43

the influx of messages and uses they

34:45

are too successful to the point where

34:47

what happens if a message for through

34:49

the cracks and your and a com

34:52

soccer threat to life or something like

34:54

that I'm actually did happen at one

34:56

point. As in one person was

34:58

killed on the sp. Eyes up.

35:00

Now what happens if we let

35:02

that continue? So they decide that.

35:05

The. Date is going to be June Seventh.

35:07

Twenty Twenty One. Saw.

35:09

The reason that stuff is growing

35:11

to an enormous size. Small safer

35:13

A Legal Logistical reasons that that's

35:15

when the to court order the

35:17

obtains was gonna run else anyway.

35:19

So they start this massive. Flurry

35:22

of activity leading up to June Seventh.

35:24

where's like, well now we're going to

35:26

switch this from intelligence tool into like

35:29

an evidence Judicial Tools and we going

35:31

to start investigating these people really, really

35:33

aggressively. So I've read tens of thousands

35:35

of pages of police reports related to

35:38

an arm and Mrs. When you start

35:40

to see the cops on the ground

35:42

in Europe following cause, dissing the normal

35:44

text messages, getting hotel bills, getting the

35:47

criminals credit card information, source of school

35:49

a normal. Investors techniques we

35:51

all know about. but now that ramp

35:53

those up, applying them to these messages

35:56

with the hope of pressing. Eight

35:58

hundred people is our list. Towards the big

36:00

day which is just like an unfathomable amounts

36:02

of better to is to have a one

36:05

day that you think of a big grade

36:07

or well as greats literally multiply that by

36:09

a hundred. And so eight

36:11

hundred people actually got arrested. Her And how many countries.

36:14

I. Actually don't know how many countries

36:16

but he was eight hundred people arrested

36:18

and a nom was act is in

36:20

more than a hundred different countries and

36:23

of the end they had something like

36:25

twenty two million messages and. Nearly.

36:27

Ten thousand police acted on

36:29

that one single day and

36:32

like this global relay race.

36:34

Other arrests embrace. To.

36:36

And what was their go signal to the

36:38

side Email being like Tuesday I think of

36:40

that was basically a meeting where where the

36:42

a Felix however bodies this is a date

36:44

when not going to negotiate it when organ

36:46

the changes this is a day you have

36:48

to figure out. What? You're going to

36:50

do now to arrest the people the you want to

36:53

target. How did they keep that secret?

36:56

Ah I mean this is when stuff

36:58

does start to get a little bit

37:00

wobbly as well as the last size

37:02

of the company. Some users to start

37:05

to get a little bit suspicious because

37:07

more more customers are coming on board.

37:09

has some of them even start to

37:11

cool the phones Cursed because I give

37:13

one to a friend's he joins it.

37:16

he measly guess Raiders Simple as you

37:18

start to get paranoid about will. maybe

37:20

something is wrong with these phones. Fortunately

37:22

for the sp eyes this is around

37:24

sources the May Twenty Twenty. One time

37:26

period and they're ready to go in early

37:29

June. So. They have

37:31

the raids everyone gets arrested out of a

37:33

set it down to they'd put up like

37:35

out laughing skull imagery on the web page

37:38

to they tell everyone as as go us.

37:40

Is. Actually not too dissimilar from that. Neighbour

37:43

thinks they put a big message on the

37:45

website saying we seem running this company the

37:47

entire time. He's a little form where you

37:49

to submit your information for us to tell

37:51

you this your implicated in this investigation of

37:54

the Sleep. If I was a criminal I

37:56

would not allow that form as yeah V

37:58

re re stupid did anyone. Before I

38:00

don't know but why did by why

38:03

did see his ass A day or

38:05

two after that came up I see

38:07

signs. It's a random tweet from somebody

38:09

saying hey my phone is not working

38:12

I didn't include And the book social

38:14

Sciences pumped misguided know get the memo

38:16

says cities on Reddit looking for customer

38:18

support that's incredible. Assess the and news

38:21

and I'm right. It's the end of

38:23

this moment where the Sci runs a

38:25

phone company for criminals you mentioned earlier

38:27

in episode. Now there's must consume ritual

38:29

specially. Offer this. Summer. John practice

38:32

signal which is and encrypted the some

38:34

other ones is that weren't all moves

38:36

as a replacement for these companies as

38:38

it is the absence of hardware as a

38:40

move to suffer. So. After

38:42

the company was shut down I spoke

38:45

to people who sell if of defense

38:47

to criminals and one said is basically

38:49

impossible to build a customer base now

38:51

because customs don't trust their lights are

38:53

not going to buy this phone. Guess.

38:56

What's to say? no to Cspi been

38:58

suggested as one assists and the consequences

39:00

that is. A lot of these criminals

39:03

are moving to Signal, they are moving

39:05

to consumer apps and I just think

39:07

that brings up. A really

39:09

urgent question, which is that what

39:11

happens Now the Sp: I is

39:13

not going to stop investigating encrypted

39:15

communications. they told me as much.

39:18

I snuck into a Law Forefront

39:20

Only conference and one of the

39:22

agents on stage says I'm looking

39:24

forward to the next escalation of

39:26

this operation in Europe. We have

39:28

European authorities say they want to

39:30

scan the contents of encrypted messaging

39:32

see Sam initially, but I could

39:34

easily expands. This is just a

39:36

warning salt for what potentially could

39:38

happen. Now because. Yes,

39:40

The eyes and gonna pass itself on the

39:42

back and go home There and aggressive agency

39:45

has a law enforcement agencies they're going to

39:47

go was a criminals are and in some

39:49

cases as can be Consumer apps. We've

39:51

covered encryption from the consumer side for

39:53

long time. You've obviously covered it. cements

39:55

for one for some criminals. I for

39:57

one time the pressure. On. All of that.

40:00

The where companies to have backdoors around the

40:02

world to break open I message for break

40:04

open signal were the least provide a key

40:06

to the law enforcement agencies. The pressure waxes

40:08

and wanes for the answer for most of

40:10

the companies has been the same trap. Know

40:12

where does not gonna do it Apple says

40:14

the F B I were not gonna a

40:16

mock the for the I phone of the

40:19

shooter in California. The time out and. The.

40:21

Pressure is increasing, especially with things I see,

40:23

Santa, all this other stuff that is obviously

40:26

bad and kind of in the public consciousness

40:28

and a real way now. It

40:30

It's essential tech companies will crack

40:32

The decency wraps will eventually forced

40:34

open our inception. The law enforcement.

40:37

I don't think necessarily the can

40:39

see maps will crack. I don't

40:41

see signal. Changing.

40:43

It's very robust position on so we

40:45

provide minimal data to law enforcement when

40:48

know can. upper back stories will coach

40:50

or anything like that and I trust

40:52

that are you signal every single day

40:54

and I think that says interesting things.

40:56

What I think it will do is

40:59

create incentives for the sp I'd to

41:01

keep trying these highly novel or audacious

41:03

operations and like we to see them

41:05

trying to compromise another encrypted shop platform

41:08

consumer or criminal run or whatever or

41:10

the another alternative. If these apps

41:12

are not going to provide data to

41:14

law enforcement is more target is hacking

41:16

right? you know generally stuff like unopposed

41:18

Pegasus malware which goes on to your

41:20

phone's I think that broader society nice

41:22

have a conversation about those options because

41:24

the status quo is not an opposite

41:26

like that. we can't sell this assign

41:28

him way it was just no can

41:30

do anything because the F B I

41:32

and his partners are going to keep

41:34

doing things and is sort of up

41:36

to all of us and the tech

41:38

companies especially where that. Pressure and

41:40

assets is gonna be placed by this

41:43

be I potentially. We've

41:45

been in. A. Pretty novel period

41:47

where the tech companies has been very willing

41:49

to stand up to governments that does feel

41:51

like it's changing. Just in a

41:54

variety of ways. It's heels against

41:56

censoring distinct that stings like state

41:58

sponsor Takei or Pegasus by. There

42:00

any of other approaches it are getting

42:02

more and more novel. Getting.

42:04

The tech companies are going to allow them

42:07

to have any reason for going to try

42:09

to shut them down. As aggressive as they

42:11

have the past. but when we look at

42:13

not sat right and metre they are suing

42:15

center so groups because they didn't really like

42:18

the fact that and who for some people

42:20

know what's up but that say a sort

42:22

of process as a court case I'm as

42:24

it ebbs and flows rice and I think

42:26

it's race similar to the cat and mouse

42:28

game between law enforcement's the criminals they target

42:31

and sort of the vendors the provide sources.

42:33

clickability, the price of I phone. Exploits. I

42:35

don't have the latest but when I've

42:37

reported by talking to people who make

42:39

these exploits the government's is always going

42:41

up and then Apple makes and will

42:43

secure and then they find any work

42:46

round and he keeps going. keeps going,

42:48

keeps going. I personally the sir that

42:50

option where okay this be assembled Money

42:52

I can I don't know just signs

42:54

of money for something rather than compromising

42:56

entire chat tussle. The tech companies don't

42:58

like the side of his constant has

43:01

to six from abilities I'm as a

43:03

mess very annoying for them. Cspi. Don't

43:05

like the facts that's asking is not

43:07

sort of a turnkey solutions yes, annoying

43:09

for both parties is probably the best

43:11

solution right now. As messy as as

43:14

is. right? Because it protects the

43:16

hassle Consumers who are not doing anything

43:18

on what is the book is amazing

43:20

how they're from the it's It is

43:22

a fun read. Summer retreat A Crown

43:24

Books What's your favorite story in the

43:26

book? My favorite Stories: Absolutely the art

43:29

of a Criminal Court. Microsoft real name

43:31

Maximilian Risk it's I don't know my

43:33

skull Microsoft is had a friend in

43:35

prison to use the nickname Linux as

43:37

well. Listen, computer stuff going on there

43:39

are I would much rather be called

43:41

minute from Microsoft because he basically helps

43:43

expands these phones around. The world getting

43:46

all of his criminal network to use

43:48

them. He's planning his own crimes on

43:50

the platform as well. And then something

43:52

starts happening. His. Assets to

43:54

me laps guess raiders some of

43:56

his to came in ocean their

43:58

Hong Kong also. These ruins and

44:01

lots of things along the way

44:03

and he consistently blames other people

44:05

are other phones it is Nasa

44:07

the is a non phones and

44:09

is just this incredible artists this

44:11

criminal gangs his comeuppance which when

44:13

I came across that in these.

44:16

Masks of documents I've read in. the

44:18

people I've spoken to him know Microsoft,

44:20

the the are like fall into my

44:22

lap. I just could not as been

44:25

more lucky or happy This this this

44:27

person expresses. this is a bookmark writer

44:29

that's amazing again a character in the

44:31

book. Enough it's Dark Wire the incredible

44:33

true story of the largest thing operation

44:35

ever. Also cannot recommend for for media

44:37

enough to reach as work farid the

44:39

whole site is great really ring for

44:42

gastro thank you so much nicer thank

44:44

you so much. Really pisses. Thanks.

44:49

Again to just concentrate on the show his

44:51

book is Dark Wire the incredible true story

44:53

of the largest sting operation comes out on

44:55

June fourth by and were revivals you're into

44:57

decoder or the verbs this is your some

44:59

of these just pick up your thoughts or

45:02

this episode or what you like to hear

45:04

more of you can see mouse as he

45:06

twitter of overstock com we really do real

45:08

the in spree canadian directly on for on

45:10

that reckless troubling we also have such as

45:12

far as officers to fact check out it's

45:14

at each other part it's a lot sure

45:16

to sort of we share with your friends

45:18

subscriber your part us. Through that

45:20

process and is professor The Speakers

45:22

Oppression The Verge Pretty awesome. Deposit

45:24

network as episode is for news

45:26

because it's that is edited like

45:28

supervising producer to leave James Economies

45:30

and Christmas.

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