Incident: EncroChat Secure Phone Network Shutdown Due to Law Enforcement Hacking

Published Date: 2020-07-02

Postmortem Analysis
Timeline 1. The software failure incident involving EncroChat happened around June 2020 [102242].
System 1. EncroChat encrypted platform [102242] 2. Encrochat's 'X2' devices [102242]
Responsible Organization 1. Criminals using the EncroChat encrypted platform for illegal activities [102242] 2. Law enforcement agencies conducting hacking operations against the EncroChat network [102242]
Impacted Organization 1. Organized crime groups involved in illegal activities [102242] 2. EncroChat company, which had to shut down its operations and wipe its websites [102242]
Software Causes 1. The failure incident was caused by a breach in the phone network's infrastructure, leading to the shutdown of EncroChat and the wiping of websites [102242]. 2. Malware was discovered on Encrochat's 'X2' devices, designed to disable factory reset, record passwords, and clone application data, prompting the company to send out warnings to users to dispose of their devices [102242]. 3. Tech support issues were reported around Encrochat phones not wiping correctly, indicating potential software flaws in the device's data wiping functionality [102242].
Non-software Causes 1. The company behind EncroChat shut down and wiped websites, indicating a decision made by the company itself [Article 102242]. 2. The company sent out text messages to clients warning them to dispose of their phones due to a breach in the phone network's infrastructure, suggesting a security breach [Article 102242]. 3. EncroChat received tech support issues around phones not wiping correctly and discovered malware installed on one of their devices, indicating a security vulnerability [Article 102242]. 4. The company faced attacks from a foreign organization originating in the UK, leading to the decision to shut down the service permanently [Article 102242].
Impacts 1. The software failure incident led to the shutdown of the company and the wiping of its websites, impacting its 60,000 users in over 140 countries, including 10,000 in the UK [102242]. 2. The failure resulted in the capture of 746 suspected criminal kingpins and the charging of 99 individuals in the UK [102242]. 3. The incident exposed the criminal activities facilitated by the platform, including drug operations, human trafficking, and ordering of murders [102242]. 4. Users were advised to dispose of their devices due to a breach in the phone network's infrastructure, indicating a loss of trust and credibility in the service [102242]. 5. The failure led to the discovery of malware on the devices, compromising user data and security [102242].
Preventions 1. Implementing stronger security measures to prevent unauthorized access to the platform, such as multi-factor authentication and regular security audits [102242]. 2. Conducting thorough testing and quality assurance processes to identify and address any vulnerabilities or malware on the devices [102242]. 3. Enhancing encryption protocols and ensuring regular updates to protect against potential attacks [102242]. 4. Monitoring and responding promptly to any reported tech support issues related to data wiping on the devices [102242]. 5. Educating users on best practices for device security and data protection to prevent misuse of the platform for criminal activities [102242].
Fixes 1. Implementing stronger security measures to prevent unauthorized access to the platform, such as enhancing encryption protocols and regularly updating security patches [102242]. 2. Conducting thorough testing and quality assurance checks on the software to identify and address any vulnerabilities or malware that could compromise the system [102242]. 3. Enhancing device security by ensuring that all data on the device can be securely wiped in case of a security breach, including remote wiping capabilities [102242]. 4. Improving customer support and response to tech issues, such as addressing reported problems with data wiping on devices promptly and effectively [102242]. 5. Enhancing monitoring and detection capabilities to identify and respond to potential security threats or attacks in real-time [102242].
References 1. EncroChat company itself [102242] 2. Investigators involved in the case [102242] 3. National Crime Agency [102242] 4. Metropolitan Police [102242] 5. Vice.com [102242]

Software Taxonomy of Faults

Category Option Rationale
Recurring unknown The software failure incident related to EncroChat shutting down due to a breach in its infrastructure and subsequent law enforcement hacking operation is a unique case that does not directly indicate a similar incident happening again at one specific organization or multiple organizations. Therefore, the articles do not provide information on similar incidents happening again within the same organization or with its products and services.
Phase (Design/Operation) design, operation (a) The software failure incident related to the design phase is evident in the case of EncroChat, an encrypted platform used by criminals. The platform was designed with specific features such as encrypted chat apps, stripped-out GPS sensors, microphones, and cameras to ensure security and anonymity for criminal activities [102242]. The platform was marketed as providing an 'end-to-end security solution' with a guarantee of anonymity, positioning itself as a legitimate company with users in over 140 countries [102242]. However, despite these design features, the platform was ultimately used for criminal purposes, including drug operations, human trafficking, and ordering murders, highlighting a failure in the design phase to prevent misuse [102242]. (b) The software failure incident related to the operation phase is seen in the issues faced by EncroChat users with their devices not wiping correctly. In May, there were reports of tech support issues around EncroChat phones not wiping correctly, and a month later, malware was discovered on one of Encrochat's 'X2' devices that disabled the phone's factory reset and recorded the screen lock password [102242]. This indicates a failure in the operation phase, where users encountered difficulties in properly operating and maintaining the security of their devices, leading to vulnerabilities and potential breaches [102242].
Boundary (Internal/External) within_system (a) within_system: The software failure incident related to EncroChat can be categorized as within_system. The failure was due to contributing factors that originated from within the system itself, such as the presence of malware on the devices, tech support issues, and the panic wipe feature that could delete all data on the device [102242]. These internal factors led to the decision to shut down the service permanently.
Nature (Human/Non-human) non-human_actions, human_actions (a) The software failure incident in this case can be attributed to non-human actions, specifically the presence of malware on the Encrochat devices. The articles mention that in May, there were tech support issues with Encrochat phones not wiping correctly, and later, malware was discovered on one of the devices. The malware was designed to conceal itself, disable factory reset, record passwords, and clone application data [102242]. (b) Additionally, human actions played a role in the failure incident as well. The articles highlight that the company behind Encrochat sent out text messages to users warning them to dispose of their phones due to a breach in the phone network's infrastructure. Furthermore, there were reports of a former soldier and criminal from Belfast under police investigation for selling encrypted phones to criminals [102242].
Dimension (Hardware/Software) hardware, software (a) The software failure incident occurring due to hardware: - The EncroChat encrypted platform used specially-designed handsets that had their GPS sensors, microphones, and cameras stripped out [Article 102242]. - The handsets had no camera, USB data port, GPS, or microphone to enhance security [Article 102242]. (b) The software failure incident occurring due to software: - Encrochat faced issues with tech support around phones not wiping correctly [Article 102242]. - Malware was discovered on one of Encrochat's 'X2' devices, designed to conceal itself, disable factory reset, record passwords, and clone application data [Article 102242]. - Encrochat sent out a text message to users warning them of attacks and advising them to dispose of their devices [Article 102242].
Objective (Malicious/Non-malicious) malicious (a) The software failure incident related to the EncroChat platform can be categorized as malicious. The platform was designed for criminal purposes, allowing criminals to communicate securely and engage in illegal activities such as setting up drug deals and hiring hitmen [102242]. The platform was used by organized crime groups for illegal operations, and the company behind EncroChat positioned itself as a legitimate business while facilitating criminal activities [102242]. The platform's messaging system was used by hitmen to carry out assassinations [102242]. Additionally, there were reports of malware being installed on EncroChat devices to conceal itself, disable factory resets, record passwords, and clone application data [102242]. (b) The software failure incident was non-malicious in the sense that the failure itself was not illegal. The platform was designed to be secure against unwanted outside access, and in the UK, it was used purely for criminal purposes by top-level criminals [102242]. The failure was not due to a flaw or mistake in the software itself but rather the criminal intent behind its usage.
Intent (Poor/Accidental Decisions) poor_decisions (a) The intent of the software failure incident: - The software failure incident related to EncroChat, an encrypted platform used by criminals, was primarily due to poor decisions made by the company. The platform was designed to be secure against unwanted outside access and was used purely for criminal purposes, such as drug operations, human trafficking, and ordering murders [102242]. - EncroChat marketed itself as a legitimate company with promises of end-to-end security and guaranteed anonymity, but it was later revealed that the platform was being used for illegal activities. The company's decision to provide encrypted phones to criminals and position itself as a secure communication network for criminal enterprises ultimately led to its shutdown and the arrest of numerous individuals involved in criminal activities [102242].
Capability (Incompetence/Accidental) development_incompetence, accidental (a) The software failure incident related to development incompetence can be seen in the case of EncroChat, an encrypted platform used by criminals for communication. The platform was designed to be secure against unwanted outside access and was used purely for criminal purposes in the UK. Despite positioning itself as a legitimate company with promises of end-to-end security and anonymity, it was ultimately shut down after law enforcement hacking operations against its customers [102242]. (b) The accidental aspect of the software failure incident can be observed in the discovery of malware on Encrochat's 'X2' devices. In May, there were tech support issues reported around Encrochat phones not wiping correctly, and a month later, malware was found on one of the devices. The malware was designed to conceal itself, disable factory reset, record passwords, and clone application data. This accidental introduction of malware led to the decision to shut down the service permanently [102242].
Duration permanent The software failure incident related to the EncroChat platform can be categorized as a permanent failure. The company made the decision to shut down its service and business permanently due to attacks carried out by a foreign organization originating in the UK [102242]. This decision indicates that the failure was not temporary but rather a permanent shutdown of the service.
Behaviour crash, omission, timing, value, other (a) crash: The software failure incident related to the EncroChat platform can be categorized as a crash. The platform abruptly shut down after a law enforcement hacking operation against its customers, leading to the system losing its state and not performing any of its intended functions [102242]. (b) omission: The failure can also be attributed to omission as the platform failed to perform its intended functions at an instance. EncroChat sent out text messages to clients warning them to dispose of their phones due to a breach in the phone network's infrastructure, indicating a failure to continue its operations as intended [102242]. (c) timing: The timing of the failure can be considered as a factor in this incident. EncroChat realized the game was up three weeks before shutting down and messaged all users to throw away their devices, suggesting that the system performed its intended functions correctly but at a delayed time, leading to its eventual shutdown [102242]. (d) value: The failure can also be linked to the system performing its intended functions incorrectly. EncroChat, which positioned itself as a legitimate company with an 'end-to-end security solution' and 'guaranteed anonymity,' was actually used for criminal purposes, such as drug operations, human trafficking, and ordering murders, showcasing a discrepancy between the intended value and the actual use of the platform [102242]. (e) byzantine: The behavior of the software failure incident does not align with a byzantine failure, which involves inconsistent responses and interactions. The EncroChat platform's shutdown and the subsequent actions taken by law enforcement and the company were more in line with a crash and omission rather than erratic or inconsistent behavior [102242]. (f) other: The other behavior exhibited in this software failure incident could be described as a deliberate shutdown due to external pressure. EncroChat made the decision to shut down permanently following attacks by a foreign organization originating in the UK, indicating a strategic move rather than an unintentional failure [102242].

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence death, harm, property (a) death: People lost their lives due to the software failure - The messaging system of EncroChat was used by a hitman who shot and killed individuals, including Paul Massey and another gang associate [102242]. (b) harm: People were physically harmed due to the software failure - The hitman who used EncroChat's messaging system caused physical harm by shooting and killing individuals [102242]. (d) property: People's material goods, money, or data was impacted due to the software failure - The software failure incident led to the shutdown of the company and the wiping of websites, impacting users who relied on the encrypted platform for criminal activities [102242].
Domain government The failed system in question was related to the industry of crime and criminal activities, specifically supporting organized crime groups in their illicit operations. The software failure incident involved the shutdown of EncroChat, an encrypted platform used by criminals for communication and coordination of illegal activities such as drug trafficking, arms dealing, and contract killings [Article 102242]. The platform provided a secure messaging system that allowed criminals to operate without fear of law enforcement interception, leading to the successful capture of numerous criminal kingpins and the disruption of criminal enterprises worldwide. The incident highlights the critical role of technology in facilitating criminal activities and the subsequent law enforcement efforts to dismantle such networks.

Sources

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