AST April 2018 Magazine AST April Magazine (3.30.18) | Page 4

Volume 22 April 2018 Edition Vincent Ramos, CEO of Canada-based Phantom Secure & four associates were indicted on charges they knowingly and intention- ally participated in a criminal enterprise that facilitated the importation & distribution of narcotics through the sale & service of encrypted communications to evade law enforcement and obstruct justice while committing transnational drug trafficking. Phantom Secure Takedown: Selling Unhackable Phones to Drug Cartels Phantom Secure Helped Drug Traffickers, Organized Crime Worldwide International organized crime and drug traffick- ing groups were dealt a blow by the takedown of an encrypted communication service they used to plan and commit their crimes, the FBI and its international partners announced on Thursday, March 15, 2018. Canada-based Phantom Secure was a criminal en- terprise that provided secure communications to high-level drug traffickers and other criminal organi- zation leaders. The group purchased smartphones, removed all of the- typical functionality—calling, texting, Internet, and GPS— and installed an encrypted e-mail system, so the phones could only communicate with each other. If a customer was arrested, Phantom Secure destroyed the data on that phone, which is ob- struction of justice under U.S. law. In an attempt to thwart law enforcement efforts, the company required new customers to have a reference from an existing user. Given the limited functionality of the phones and the fact that they only operate within a 2