How the FBI's fake cell phone company put criminals into real jail cells
May 31, 2024
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FBI's undercover operation creating fake encrypted phones for criminals, intense negotiations with CEO, development of fake cell phones with unique features, exploring pricing strategies in criminal world, successful large-scale arrest of criminal figures
The FBI's creation of Anam phones demonstrated the use of innovative marketing strategies to infiltrate the criminal underworld.
The collaborative takedown of Anam highlighted the challenges and successes in disrupting organized crime through encrypted communication interception.
Deep dives
The Creation of Anam and Its Features
The podcast discusses the unique story of Andrew Young's venture into the tech world. In a hotel room in Las Vegas, Andrew, a former federal prosecutor, confronted the CEO of Phantom Secure, a company supplying encrypted phones to criminals. Instead of arresting him, they negotiated a deal for access to the company's servers, kicking off the creation of Anam. Anam phones were designed with sophisticated encryption, hidden behind features like a fake calculator, to attract criminals into using them.
Marketing and Expansion of Anam
The episode delves into the marketing strategies employed for Anam to gain traction in the criminal underworld. The FBI devised influencer marketing by seeding the phones with prominent criminals, offering commissions and even ownership in the company. Criminals trusted Anam due to its exclusive communication with other Anam devices, creating a network effect. This approach led to a surge in demand and the rise of Anam as a popular choice in criminal circles.
Downfall and Impact of Anam
As Anam's success grew, so did its challenges. With escalating threats to life detected on the platform, the FBI struggled to manage the vast amount of data and interventions needed. The episode highlights how the FBI, in partnership with global law enforcement, orchestrated a coordinated takedown of Anam, resulting in over a thousand arrests and significant seizures of illicit goods. Despite not securing permission to spy in the US, the operation disrupted organized crime, leaving a lasting impact on encrypted communication in criminal activities.
There is a constant arms race between law enforcement and criminals, especially when it comes to technology. For years, law enforcement has been frustrated with encrypted messaging apps, like Signal and Telegram. And law enforcement has been even more frustrated by encrypted phones, specifically designed to thwart authorities from snooping.
But in 2018, in a story that seems like it's straight out of a spy novel, the FBI was approached with an offer: Would they like to get into the encrypted cell phone business? What if they could convince criminals to use their phones to plan and document their crimes — all while the FBI was secretly watching? It could be an unprecedented peek into the criminal underground.
To pull off this massive sting operation, the FBI needed to design a cell phone that criminals wanted to use and adopt. Their mission: to make a tech platform for the criminal underworld. And in many ways, the FBI's journey was filled with all the hallmarks of many Silicon Valley start-ups.
On this show, we talk with journalist Joseph Cox, who wrote a new book about the FBI's cell phone business, called Dark Wire. And we hear from the federal prosecutor who became an unlikely tech company founder. Help support Planet Money and hear our bonus episodes by subscribing to Planet Money+ in Apple Podcasts or at plus.npr.org/planetmoney.