How the FBI built its own smartphone company to hack the criminal underworld
May 23, 2024
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Cybersecurity reporter Joseph Cox discusses the FBI's creation of a phone network startup to infiltrate criminal networks, the evolution of secure messaging from BlackBerry Messenger to Signal, and the fascinating tale behind the largest sting operation in cybersecurity history. The discussion dives into the ethical dilemmas of selling encryption technology to potential criminals, the challenges of running a covert phone company, and the ongoing battle between tech firms and surveillance companies.
FBI's innovative use of Anem to gather insights into criminal activities while navigating privacy challenges.
Shift in criminal behavior towards mainstream platforms like Signal post-Anem, challenging law enforcement's encryption tactics.
Deep dives
The Rise of Anem: The FBI's Covert Operation
The FBI embarks on a covert operation by launching Anem, an encrypted messaging platform for criminals after the shutdown of Phantom Secure. AFGU, a key player, offers the FBI their platform and operates it under FBI direction. The innovative strategy leads to rapid growth with resellers leveraging trust with criminal customers. This unique endeavor allows the FBI insights into criminal activities and challenges surrounding privacy and law enforcement.
Anem's Downfall and Global Raids
As Anem becomes unmanageable due to the increasing volume of messages and users, the FBI plans a massive global operation ending on June 7, 2021. Simultaneous raids lead to the arrest of 800 individuals across 100+ countries, signifying the collapse of Anem's covert operations. Authorities deploy traditional investigative tactics, leveraging Anem's data as evidence, marking a dramatic conclusion to the FBI's innovative but controversial initiative.
Consumer App Transition and Encryption Debate
Post-Anem, criminal distrust in encrypted devices grows, shifting them towards mainstream platforms like Signal. Tech companies resist creating backdoors for law enforcement despite increasing pressure. Heightened encryption challenges lead to newer tactics like state-sponsored hacking and malware, with the FBI navigating legality and ethics in balancing privacy and security in the digital realm.
The Intriguing Criminal 'Microsoft' Saga
A standout narrative within 'Dark Wire' involves criminal 'Microsoft' and his involvement in expanding Anem's use among criminal networks. Microsoft's downfall through various illegal activities and evasion tactics underscores the cat-and-mouse game between law enforcement, criminals, and tech infrastructure. His intriguing story adds depth and entertainment to the larger narrative of the FBI's covert operations and the challenges of encryption in the digital age.
Today, I’m talking with Joseph Cox, one of the best cybersecurity reporters around and a co-founder of the new media site 404 Media. Joseph has a new book coming out in June called Dark Wire: The Incredible True Story of the Largest Sting Operation Ever, and I can’t recommend it enough. It’s basically a caper, but with the FBI running a phone network. For real.
Joseph walks us through the fascinating world of underground criminal phone networks, and how secure messaging, a tech product beloved by drug traffickers, evolved from the days of BlackBerry Messenger to Signal. Along the way, the FBI got involved with its very own startup, ANOM, as part of one of the most effective trojan horse operations in the history of cybersecurity. Joseph’s book is a great read, but it also touches on a lot of things we talk about a lot here on Decoder. So this conversation was a fun one.