Specifically, the DEA identified a Mexican transnational criminal organization (TCO), linked to the Sinaloa Cartel, that was acquiring EncroChat phones in Europe for its internal communications and to correspond with a “Canada-based trafficking associate, according to a human source with direct access.”
As of August 2019, this Mexican TCO was engaged in the “trafficking of precursor chemicals from China and India and fentanyl to the United States, according to a human source with direct access.”
And according to intelligence collected in October 2019, the FBI report again cited the use of EncroChat in an investigation involving a senior Sinaloa Cartel leader “to communicate and facilitate criminal activity, according to a human source with direct access.”
EncroChat Decrypted
In a report footnote, the FBI describes EncroChat as an “encrypted device and platform that maintains two operating systems on the phone and operates like a typical phone that advertises complete anonymity, with options for a panic wipe by entering a one-time personal identification number from the log-in screen, tamper proofing, messages that self-destruct, and additional security features.”
Operational since at least 2015, per Whois website domain registration records, the EncroChat network enabled some 60,000 users worldwide to acquire modified Android devices, with no device or sim card association to their customer accounts, according to the National Crime Agency, the U.K.’s top law-enforcement body.
The NCA press release says they had been sharing intelligence with international law enforcement agencies to target EncroChat since 2016. EncroChat’s flagship product, the ‘EncroPhone,’ was a retrofitted BQ Aquarius X2 Android model. This handset was released in 2018 by a Spanish electronics company, according to leaked investigation documents obtained by Vice.
Sim cards used in these phones were made by Dutch telecom firm KNS, according to Vice reporting. EncroChat also stripped these handsets of their camera, microphone, GPS, and USB terminals, and installed proprietary encrypted messaging programs on them, which routed texts through their own servers, “located offshore” in their datacenter, according to an archived EncroPhone webpage.
EncroChat’s web marketing collateral also claimed their servers “never create, store, or decrypt keys, message conversations or user data
.” Once stripped and reengineered, EncroChat sold these cryptophones for roughly EUR 1,000 each “at international scale” and offered subscriptions with worldwide coverage for EUR 3,000 a year.
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