Sydney crime and bikie gangs are using uncrackable mobile phones to arrange murders, shootings and drug deals – hampering the ability of police to solve the crimes.
Law enforcement agencies have warned about the increased use of encrypted mobile phones, with the devices being used to arrange at least two recent murders and hampered investigations into at least two others.
Detectives from the organised crime squad this month arrested and charged a Sydney man who allegedly had 55 encrypted devices in his CBD flat. It is understood the man had up to 800 clients on his books from a range of criminal networks.
The phones with the encryption software and a US SIM card can be bought in Sydney for between $2300 and $2800 for a six-month subscription. Users can then pay upwards of $1000 to extend their subscription for another another six months.
A number of mobile phone applications are also available for download.
It is understood representatives from the NSW Police have travelled to BlackBerry's headquarters in Canada in a bid to get advice on how to retrieve information from the encrypted devices.
The NSW Crime Commission's latest annual report states that uncrackable phones have hindered at least two murder investigations in Sydney.
The commission reported a "steady increase in the use of encrypted communication methods, such as Phantom Secure BlackBerry devices and free downloadable applications for smartphones, over the last two years".
Phantom Secure is a Canadian firm whose website states its software is a "high-end communication service designed for sophisticated and exclusive executives" who need an "effective and proven solution for their mobile concerns".
The software, loaded on to a BlackBerry, enables messages to be sent and ledgers kept on a device which investigators cannot crack or intercept.
Phantom Secure then sells franchises, and authorities' conservative estimates are that there are dozens of Phantom Secure dealers operating across the country.
"In addition to facilitating drug trafficking and fraud, the Commission is aware that encrypted BlackBerry devices have been used to arrange at least two murders. In these cases, the devices were used to lure victims to meetings where they were killed. The level of encryption on these devices has hampered investigation into the murders," the NSW Crime Commission states.
Phanton Secure were unavailable for comment.
It is understood in one of those homicides, an encrypted phone was found with the victim, a Chinese national, in western Sydney, but investigators have been unable to determine who lured him there because they cannot crack his device.
The second homicide is believed to relate to the execution of Hells Angel member Tyrone Slemnik at Eastlakes in July 2013.
The phones are also believed to have hampered investigations into the shooting death of drug cook Roy Yaghi at Wentworthville in August 2012, and the fatal shooting of Kirrawee security guard Gary Allibon, killed in the armed hold up of a cash-in-transit van on Sussex Street in Sydney's CBD in June 2010.
Investigators have also recently identified criminals using BlackPhones – a Swiss-designed product similar to Phantom Secure but which uses the Android operating system and also allows users to make encrypted calls.
Head of the Organised Crime Squad Detective Superintendent Scott Cook said encrypted devices were popular with drug dealers and money launderers and it was posing a challenge for police.
"The software is used by all and sundry," Detective Superintendent Cook said. "There are people who are using this for a legitimate business, it is not limited to gangsters. That said, the software is over-represented in criminal networks."
Detective Superintendent Cook said police are working on breaking the encryption.
"We are having some success. I'm not sure how much longer these devices will be the go; we are confident we can erode their impact."
He said police were still managing to catch those using the devices.
"Drug dealers are using encrypted devices, money launderers are using encrypted devices but they are still being caught, we are still making arrests," he said.
