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#Encrochat FBI Assessments & Code of Silence

Given the intelligence collected, the FBI assesses that TCOs in the Western hemisphere “very likely will attempt to move much of their communications regarding criminal activity to some level of publicly available encrypted applications in the near term.”

In the long term, the FBI assesses Western hemisphere TCOs will likely “recruit their own technical experts to develop in-house encrypted systems for their exclusive use, including devices and servers,” according to the report.

Going in-house will enable crime organizations to “maintain complete operational security over their communications, rendering traditional law enforcement interception capabilities ineffective,” said the FBI.

The FBI also cites the significant decline in transactional data from “traditional communications judicial returns or positive responses to judicial inquiries” for encrypted messaging companies indicating accounts are held by crime organizations, as signs that Western TCOs are migrating to end-to-end encrypted platforms.

Following the EncroChat takedown, Vice notes that upstart, Scottish cryptophone company Omerta, which is the word used to denote the Southern Italian code of silence, and which advertises the “military-grade encryption” of its devices on its website homepage, has been advertising directly to Encrochat’s old customers.

Craig Buchan, the 42-year-old founder and CEO of Omerta and a British special forces veteran, is critical of EncroChat’s ‘mediocre’ handset and toolset, “which are rather normal within enterprise IT environments.”

The Omerta chief also cites relatively higher EncroChat employee headcount as a reason for the network’s downfall. Buchan speculates that their inability to keep tabs on all of their personnel enabled French police to compromise the network with the help of an insider.

Despite being a family-run operation consisting solely of himself and his partner, Sharon, which heightens key-man risks for Omerta’s operational resilience, Buchan believes his ‘tight-knit unit’ will actually help his company avoid EncroChat’s possibly internal governance meltdown.

“Our future plans involving headcount growth involve family members and even then, this still makes us a small outfit of four. So, in short, I’d notice an undercover agent by merit of headcount,” said Buchan.

But cybersecurity expert Stiennon noted that solutions like Omerta and EncroChat have proven unattractive for clandestine networks because they inherently represent a single point of failure.

Buchan disputes this categorization of his product. “When you describe a single point of failure, I feel you either do not understand the concept or have failed to understand Omerta,” he said. “We operate a strategy of ‘distributed risk and reduced impact,’ as our approach to product delivery. I am very satisfied it works.”

Specifically, Buchan cites a key difference in his ‘approach’ to security relative to EncroChat. While Buchan’s team itself is highly concentrated, Omerta’s “business model is more akin to Dell,” operating more like an IT provider, as opposed to a telecoms specialist, he said.

“We provide hardware pre-configured with third-party applications. Using my experience in and knowledge of IT and encryption, I curate applications which enable our customers to benefit from a secure handset and secure communications.”

“This approach benefits our customers because applications are built by specialist providers, so, based on the division of labour, we pick the best company to deliver the best application,” said Buchan.   

Regardless, Stiennon cautions: “No matter the level of security, never trust a system that caters to a large population of bad actors. Such target-rich environments will be inevitably be targeted by law enforcement and the intelligence community.”

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