http://www.abc.net.au/news/2014-03-05/phones-stymie-police-efforts-to-prevent-underworld-crime/5301256

> Australian law enforcement agencies are increasingly unable to monitor the 
> communications of some of the country's most powerful criminals due to the 
> rising prevalence of uncrackable encrypted phones.
> 
> The phones are linked to a series of the underworld killings that rocked 
> Sydney, several senior law enforcement officials told the ABC on condition of 
> anonymity.
> 
> The phones are sold by dozens of companies worldwide and have legitimate uses.
> 
> But the law enforcement officials say thousands of the phones have been 
> obtained by Australian criminals and they are using them to commit serious 
> crimes, including murder.
> 
> One company is Phantom Secure, a Canadian-based seller of encrypted 
> Blackberries.
> 
> The ABC does not suggest the company itself is aware its products are being 
> used by criminals, only that criminals have become aware of the phone's 
> utility and have taken advantage.
> 
> Phantom Secure did not respond to requests for an interview or to questions 
> sent by the ABC.
> 
> The Phantom Blackberries cost up to $2,760, which includes a six-month 
> subscription to the company's data service.
> 
> At the end of that subscription a user can spend a further $2,000 to renew 
> their six-month subscription.
> 
> The Phantom phones have the microphone and camera removed and cannot be used 
> to surf the web, send emails or texts or make calls. The only thing they can 
> do is send messages using a private messaging system.
> 
> That system is protected by military-grade encryption and cannot be hacked 
> even by Australia's electronic spy agency, the Australian Signals 
> Directorate, said a Government official who declined to be named.
> 
> "Our intelligence would suggest that the most serious of crimes are being 
> facilitated by... encrypted communications," Paul Jevtovic, the acting head 
> of the Australian Crime Commission (ACC), said.
> 
> "We're talking about acts of violence; we're talking about a range of serious 
> crime."
> 
> Phantom phone use suspected in hits on Hells Angels bikies
> 
> In particular, the ABC has learned that a well-known member of the Comanchero 
> Motorcycle Club is suspected of ordering at least two high-profile killings 
> in recent years using his encrypted Phantom Secure phone.
> 
> Those murders were of Zoltan Slemnik, a newly minted Hells Angel member 
> gunned down during a drive-by in Sydney's south in July last year, and Roy 
> Yaghi, a Hells Angels associate and convicted drug cook who was shot dead in 
> 2012 while sitting in a ute in Sydney's west.
> 
> NSW police are aware of a connection between the well-known Comancheros and 
> the two killings, but have been stymied in their investigations due to the 
> suspected use of the Phantom phone.
> 
> The ACC has launched several investigations into the use of encrypted 
> communications and told the ABC the issue is a growing problem.
> 
> It's estimated that that in the next two years the [global encryption] market 
> will double in size, which means there's a strong demand out there.
> 
> Paul Jevtovic
> "Organised crime [has] seen that encrypted communications can allow them to 
> plan and execute their criminal activities and prevents law enforcement 
> detection. So clearly that's of concern to us; it has been for some time," Mr 
> Jevtovic said.
> 
> "It's estimated that that in the next two years the [global encryption] 
> market will double in size, which means there's a strong demand out there.
> 
> "Now whilst that demand is from legitimate industry and citizens who are not 
> involved in crime, our concern is that organised crime will further avail 
> themselves of this technology."
> 
> Two federal parliamentary committees recently recommended the Government 
> undertake wholesale reform to the legislation that regulates how police and 
> intelligence agencies can monitor people's phones, the 1978 
> Telecommunications (Interceptions and Access) Act, in the hope of clawing 
> back some ground from criminals using the high-tech phones.
> 
> "The rapid uptake of new communication technologies and encryption by 
> organised crime and terrorist groups is a significant concern and the 
> Attorney-General's Department is currently pursuing reforms to the 
> telecommunications interception legal framework," Justice Minister Michael 
> Keenan said.
> 
> ASIO and the federal police declined to comment about the issue. The 
> Australian Signals Directorate told the ABC they were aware of Phantom Secure 
> but also turned down an interview.




-- 
Kim Holburn
IT Network & Security Consultant
T: +61 2 61402408  M: +61 404072753
mailto:[email protected]  aim://kimholburn
skype://kholburn - PGP Public Key on request 




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