Digest

This episode of Planet Money delves into the unusual story of how the FBI created and ran a fake encrypted phone company called "a nom" to infiltrate criminal networks and gather intelligence. The episode begins with the FBI's attempt to get a backdoor into the servers of Phantom Secure, a company that made phones specifically for criminals. When the CEO of Phantom Secure, Vincent Ramos, escaped from FBI custody, the FBI decided to take a different approach. They partnered with a confidential human source who had been working on his own encrypted phone for criminals and created "a nom." The FBI designed the phone to be both feature-packed and super secure, and they even went so far as to lie about its capabilities in their advertising. They also priced the phone at a premium to make it seem more desirable to criminals. The FBI then used influencer marketing to get the phones into the hands of real kingpins, who then encouraged their underlings to use the phones. This created a network effect, and soon hundreds of people across many countries were using "a nom" phones. The FBI was able to intercept messages about massive drug deals, money laundering, and even threats to life. However, the success of "a nom" also created a problem for the FBI. They had to read every single message that went across their network, and as the number of phones grew, this became increasingly difficult. The FBI also had to intervene in threats to life, which led to a cycle of violence and paranoia among criminals. Eventually, the FBI decided to shut down "a nom" because it had become too unsustainable and dangerous. The operation resulted in more than a thousand arrests and the seizure of tons of drugs and weapons. The FBI's goal was to sow doubt in the minds of organized crime about the security of encrypted phones. The episode concludes with the FBI's hope that "a nom" has made it just a little bit harder to do the business of crime.

Outlines

00:00:00

Introduction

This Chapter introduces the episode's topic: the FBI's creation and operation of a fake encrypted phone company called "a nom" to infiltrate criminal networks and gather intelligence.

00:01:03

The FBI's Unusual Tech Startup

This Chapter details the FBI's decision to create "a nom" after their attempt to get a backdoor into Phantom Secure failed. It describes the FBI's partnership with a confidential human source, the design and marketing of the phone, and the challenges of scaling the operation.

00:21:03

The Downfall of "a nom"

This Chapter explains how the FBI's success with "a nom" ultimately led to its downfall. The FBI's need to read every message and intervene in threats to life created a cycle of violence and paranoia among criminals. The FBI also found it increasingly difficult to manage the massive amount of data coming in from the phones. The episode concludes with the FBI's decision to shut down "a nom" and the impact of the operation on organized crime.

Keywords

Q&A

• How did the FBI create and run a fake encrypted phone company called "a nom"?

  The FBI partnered with a confidential human source who had been working on his own encrypted phone for criminals. They designed the phone to be both feature-packed and super secure, and they even went so far as to lie about its capabilities in their advertising. They also priced the phone at a premium to make it seem more desirable to criminals. The FBI then used influencer marketing to get the phones into the hands of real kingpins, who then encouraged their underlings to use the phones.

• What were the challenges of scaling the "a nom" operation?

  The FBI had to read every single message that went across their network, and as the number of phones grew, this became increasingly difficult. The FBI also had to intervene in threats to life, which led to a cycle of violence and paranoia among criminals.

• Why did the FBI eventually shut down "a nom"?

  The FBI decided to shut down "a nom" because it had become too unsustainable and dangerous. The operation had become too large and complex to manage, and the FBI was concerned about the potential for violence and paranoia among criminals.

• What was the impact of the "a nom" operation on organized crime?

  The operation resulted in more than a thousand arrests and the seizure of tons of drugs and weapons. The FBI's goal was to sow doubt in the minds of organized crime about the security of encrypted phones.

• What is a Veblen good?

  A Veblen good is a product or service that becomes more desirable as its price increases. The FBI priced "a nom" phones at a premium to make them seem more desirable to criminals.

• What is the network effect?

  The network effect is a phenomenon in which the value of a product or service increases as more people use it. The FBI used the network effect to their advantage by getting kingpins to use "a nom" phones, which then encouraged their underlings to use the phones as well.

• What is influencer marketing?

  Influencer marketing is a marketing strategy that involves partnering with influential people to promote a product or service. The FBI used influencer marketing to get "a nom" phones into the hands of real kingpins, who then encouraged their underlings to use the phones.

• What is Phantom Secure?

  Phantom Secure is a company that made encrypted phones specifically for criminals. The FBI attempted to get a backdoor into the servers of Phantom Secure, but the CEO of the company, Vincent Ramos, escaped from FBI custody. This led the FBI to create "a nom" as an alternative way to infiltrate criminal networks.

• Who is Joseph Cox?

  Joseph Cox is a journalist who covers technology and crime. Cox is the author of the book "Dark Wire," which tells the story of the FBI's creation and operation of "a nom." Cox also co-founded a new news organization called 404 Media.

• What is "Dark Wire"?

  "Dark Wire" is a book by Joseph Cox, a journalist who covers technology and crime. The book tells the story of the FBI's creation and operation of "a nom." The book provides detailed information about global organized crime, drug money laundering, and the FBI's unusual tech startup.

Show Notes