Disturbing History - The Watchers We Invited In

Episode Date: July 22, 2026

How many calls from unknown numbers did you get today? The one about your car's extended warranty, the text about a package that couldn't be delivered, the voice on the line claiming your grandson is ...in jail and needs bail money right now.In this episode of Disturbing History, I trace how those strangers came to know so much about you, and the answer is a two-hundred-year story that starts long before the internet ever existed. We go back to the eighteen forties, when a sealed letter had stronger legal protection than your email does today and anonymity was as simple as buying a train ticket, then follow the trade decade by decade as every new miracle of communication quietly demanded a piece of your private life in payment.The telegraph put your words in corporate files that Lincoln's government read at will. The Kodak camera sparked America's first privacy panic and inspired Louis Brandeis to name the right to be let alone, a fight he was still losing on the Supreme Court forty years later. Party lines trained a generation to assume the neighbors were listening, and then we forgot the lesson right when it mattered most.Along the way we meet the Atlanta company that built secret moral dossiers on tens of millions of Americans before renaming itself Equifax, the FBI programs that read every telegram leaving the country for thirty years, the twenty-three-year-old engineer whose humble shopping cart cookie became the tracking backbone of the modern web, and the auction house where you're bought and sold in the tenth of a second it takes a page to load.I dig into what those endless user agreements actually say, why the cookie banner exists and what clicking accept really means, how a personality quiz harvested eighty-seven million Facebook profiles, and how supposedly anonymous phone data unmasked a priest, mapped secret military bases, and told a Minneapolis father his teenage daughter was pregnant before she did. And I take on the question everyone asks me, whether the phone in your pocket is actually listening to your conversations, with an evidence-first answer that I promise is more disturbing than a hidden microphone.From the Spanish Prisoner con of the eighteen hundreds to AI voice cloning scams targeting grandparents today, this is the history of the biggest trade America ever made, the one where we sold our privacy one convenience at a time and never once asked the price.If you've ever wondered what you really gave up for that tiny supercomputer you carry everywhere, this episode is for you.Email BrianJoin Our FREE NewsletterGet Brian's Books Leave Us A VoicemailVisit Our WebsiteHave a forgotten historical mystery, disturbing event, unsolved crime, or hidden conspiracy you think deserves investigation?Send your suggestions to brian@paranormalworldproductions.com.Disturbing History is a dark history podcast exploring unsolved mysteries, secret societies, historical conspiracies, lost civilizations, and the shadowy stories buried beneath the surface of the past.Follow the show and enable automatic downloads so you never miss a deep dive into history’s most unsettling secrets.Because sometimes the truth is darker than fiction.

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Starting point is 00:00:01 Some stories were never meant to be told. Others were buried on purpose. This podcast digs them all up. Disturbing history peels back the layers of the past to uncover the strange, the sinister, and the stories that were never supposed to survive. From shadowy presidential secrets to government experiments that sound more like fiction than fact,
Starting point is 00:00:23 this is history they hoped you'd forget. I'm Brian, investigator, author, and your guide through the dark corner of our collective memory. Each week I'll narrate some of the most chilling and little-known tales from history that will make you question everything you thought you knew. And here's the twist.
Starting point is 00:00:42 Sometimes the history is disturbing to us. And sometimes, we have to disturb history itself, just to get to the truth. If you like your facts with the side of fear, if you're not afraid to pull at threads, others leave alone. You're in the right place. History isn't just written by the victors.
Starting point is 00:01:00 Victors. Sometimes it's rewritten by the disturbed. Your phone rings at 2.17 in the afternoon. You don't recognize the number, but it's got your area code. So maybe it's the pharmacy. Maybe it's the school. Maybe it's something that actually matters. You answer it. There's that half second of dead air. That little digital hiccup that tells you a computer somewhere just realized a live human picked up. And then a recorded voice comes on to tell you that this is the final notice regarding your car's extended warranty. You hang up. You mutter something I can't repeat on this show.
Starting point is 00:01:45 And 20 minutes later, it happens again from a different number. Now let me paint you a darker version of that same call, because this one happens every single day in this country, too. The phone rings at a house in Ohio, and an 81-year-old woman answers it, and a young man's voice says, Grandma, it's me. I'm in trouble. He sounds shaken.
Starting point is 00:02:07 He sounds scared. Maybe he sounds a little off, but he explains that away, says he broke his nose in the accident. That's why his voice is strange. He was in a wreck, he says. He's in jail. He needs $1,000 for bail, and he's begging her not to tell his parents. Then another voice comes on the line, calm and official, identifying himself as a lawyer or a sergeant or a bail bondsman. And he walks grandma through exactly how to withdraw the cash, exactly how to buy the gift cards,
Starting point is 00:02:38 exactly how to read the numbers off the back. She does it. Of course she does it. Her grandson is in trouble, except her grandson is fine. Her grandson is at work two states away, and he has no idea that a stranger in a call center on another continent just used his name, his hometown, the name of his college, and the fact that he drives a gray pickup truck to steal his grandmother's savings.
Starting point is 00:03:03 And here's the question I want you to sit with for the next hour. How did that stranger know all of that? The answer is the story I'm telling you today. Check your email while you're at it. Somewhere in your inbox right now. I'd bet money on it. There's a message telling you that a package couldn't be delivered. There's a tracking number that looks real and a link that most definitely is not. There's another one from your bank or something dressed up like a bank, warning you about suspicious activity on your account and inviting you to click here to verify your identity. The grammar is better than it used to be.
Starting point is 00:03:39 The logos are perfect now. Some of them address you by your full name, and some of them mention the last four digits of a card you actually own, and if you've ever wondered how a criminal you've never met came to know the last four digits of your visa, stick around, because we're going to get there too. We are the most watched, most measured, most catalogued human beings who have ever lived.
Starting point is 00:04:01 Every purchase, every search, every pause of your thumb over a photo. every wrong turn you make driving to a restaurant, every hour of sleep your watch counts for you. Somewhere all of it is written down. Not by a government agent in a fedora, though we'll meet plenty of those today, but by machines that never sleep, owned by companies whose names you've never heard, sold and resold in markets you didn't know existed. All of it justified by agreements you clicked without reading. And I want to be fair right up front, because that's how we do things on this show.
Starting point is 00:04:34 Nobody put a gun to our heads. We traded our privacy away one convenience at a time, one free app at a time, one accept all cookies button at a time, and most of us would make the same trade again tomorrow. The tiny supercomputer in your pocket is a miracle. I use mine constantly. It's also the most sophisticated surveillance device ever created by human hands, and you paid for the privilege of carrying it, and you charge it faithfully every night like a little glowing God. I spent 16 years in law enforcement. I've seen what information in the wrong hands does to people.
Starting point is 00:05:10 And I've also seen how information catches predators who would have walked free in any other era. And I'm going to show you both sides of that blade today. This is not a show about how technology is evil. This is a show about a trade. The biggest trade in modern history. And the disturbing part is not that somebody stole our privacy. The disturbing part is that we sold it. And most of us never even asked the price. So let's go back. Way back, before the phone in your pocket, before the phone on the wall, before the wire, before the signal, back to a world where a thought could stay in your head and a letter could stay sealed. And let's watch. Decade by decade. Invention by invention. How we got from there to a world where you think about buying hiking boots. And hiking boots
Starting point is 00:05:57 start following you around the internet, like a lost dog. This is disturbing history. And this one is about you. Picture America in the 1840s. If you wanted to send a message from Atlanta to Boston, that message traveled at the speed of a horse, and then a train if you were lucky. And it took days, sometimes weeks. Your words were ink on paper, folded and sealed,
Starting point is 00:06:21 and when you dropped that letter at the post office, something remarkable protected it. Not technology, law, and culture, and a wax seal that would show its scars if anybody broke it. The founders had strong feelings about mail. They'd lived under a British postal system that opened colonial correspondence as a matter of routine. And men like Benjamin Franklin, who ran the colonial post himself, understood exactly how much power sits in the hands of whoever carries your words.
Starting point is 00:06:51 So the young United States built a postal service on the radical idea that a sealed letter was private. And in 1878, the Supreme Court made it official in a case called Ex parte Jackson, ruling that the government needed a warrant to open first-class mail. Think about that. 150 years ago, your grandmother's grandmother had stronger legal protection for a piece of paper than you have today for the email sitting on a server in Virginia. Now, I don't want to sell you a fantasy. Privacy in the 1800s was complicated, and it depended entirely on where you stood.
Starting point is 00:07:26 If you lived in a small town and most Americans did, everybody knew your business. The neighbors knew what time you came home, the shopkeeper knew what you bought, the preacher knew who wasn't in the pews on Sunday, and the town gossip network moved information with an efficiency that would impress a fiber optic cable. If you were an enslaved person in the South, you had no privacy at all, not in your movements, not in your family, not in your own body. And I want that on the record before anybody gets misty-eyed about the good old days. But here's what that world had that ours doesn't.
Starting point is 00:08:00 Forgetting. The town knew your business, but the town's memory was human memory. It faded. It stayed local. If you wanted a new life, you could get on a train, ride 500 miles, step off the platform, and become whoever you said you were. No database followed you. No record chased you down. Millions of Americans reinvented themselves exactly that way. Debtors and deserters and women fleeing bad marriages and young men fleeing dead-end farms. and the frontier absorbed them all. Anonymity wasn't a feature you toggled in your settings. It was a place you could physically go.
Starting point is 00:08:40 And your thoughts, your actual interior life, belonged to you completely. Nobody on earth knew what you wondered about at night. There was no search history. If you were curious about something shameful or strange or dangerous, that curiosity lived and died inside your skull, unless you chose to speak it. I want you to hold on to that idea because the modern search engine is when you strip away the branding, a machine that records human curiosity,
Starting point is 00:09:09 and it turns out human curiosity is the single most revealing thing about us, more revealing than our letters, more revealing than our diaries. The 1840s farmer confessed to God. We confess to a text box, and unlike God, the text box keeps receipts. Then, on May 24th, 1844, a man named Samuel Morse sat in the chamber of the Supreme Court in Washington and tapped out a message on an experimental line running 40 miles to Baltimore. Four words pulled from the book of numbers. What hath God wrought? He had no idea.
Starting point is 00:09:47 The telegraph did something no technology had ever done. It separated information from physical matter. For all of human history, a message could only move as fast, as the object carrying it. A runner. A horse. A ship. A pigeon.
Starting point is 00:10:03 Now words moved at the speed of lightning down a copper wire and the world shrank overnight. News that once took two weeks to cross the country took two minutes. Markets synchronized. Armies coordinated. It was a miracle. And everybody said so. But notice what else changed. Because this is the moment the trade begins.
Starting point is 00:10:23 And almost nobody saw it at the time. When you handed your message to the text, telegraph office, a stranger read it, had to. The operator translated your words into clicks, and another operator at the far end translated the clicks back into words, and your private communication now existed in the minds of at least two people you'd never met, and crucially, in the written records of a private corporation. Western Union kept copies of telegrams, message traffic piled up in company files, and for the first time in American history, An ordinary citizen's private correspondence sat in a corporate archive that the government could visit.
Starting point is 00:11:01 And visit it did. During the Civil War, the federal government seized telegraph lines outright, and Abraham Lincoln practically lived in the War Department Telegraph Office, reading dispatches as they came off the wire. His Secretary of War, Edwin Stanton, went further, exercising sweeping control over the telegraph network, which meant control over the nation's news, and reporters' dispatches, under government eyes before they passed anywhere else. In 1863, when the administration wanted to find the source of a leak, it simply demanded copies of telegrams. The telegraph companies handed them over.
Starting point is 00:11:38 There's your template. Write it down because you're going to see it again and again today until it makes you sick. A new technology creates a convenience. The convenience requires a middleman. The middleman keeps records. The government, or a thief, or an advertisement. or all three, eventually comes for the records. The Telegraph did it with Copper Wire in 1860. Google does it with server farms today. The physics changed. The pattern never did.
Starting point is 00:12:08 By the 1870s, Western Union had a near monopoly on American telecommunication. One company sitting astride the nation's nervous system. And people worried about it in language that sounds eerily familiar. Newspapers fretted about a private corporation with the power to read the country's business dealings, tip its friends, and favor its allies. During the disputed presidential election of 1876, Western Union quietly funneled copies of coded Democratic campaign telegrams into friendly hands, and the resulting scandal, when those dispatches were decoded and published, blew up into one of the great political embarrassments of the era, a private communications
Starting point is 00:12:48 company, playing favorites with the private messages of the people who trusted it. Sound familiar? We invented the problem before we invented the light bulb. Now let me introduce you to the first privacy panic in American history and I promise you it's going to sound like it was written last week. In 1888 George Eastman released a camera called the Kodak. Before Eastman, photography was a professional's game, glass plates and chemicals and long exposures and getting your picture taken meant sitting rigid in a studio while a man under a black cloth counted the seconds. You knew you were being photographed. You consented by definition because you had to hold still for it. The Kodak changed everything. It was small. It was handheld. You pressed a button and the company did the rest. And suddenly any
Starting point is 00:13:36 amateur with $100 and soon just a few dollars could take your picture without your knowledge, without your permission, without you ever holding still. The press called them camera fiends. Kodakers lurked at beaches to photograph women in bathing costumes. They snapped people on the street at picnics through windows. Some resorts in bathhouses banned cameras outright. Newspapers ran editorials about this menacing new breed of man who pointed a box at strangers and stole their image. And if you swap the word Kodak for smartphone, you could run those editorials tomorrow morning without changing another word. And then the panic produced something remarkable. In December of 1890, two Boston lawyers named Samuel Warren and Louis Brandeis,
Starting point is 00:14:23 published an article in the Harvard Law Review titled The Right to Privacy, and legal scholars will tell you it's the most influential law review article ever written. Warren was a Boston Blue Blood who was sick of the gossip press, swarming his family's social events. Brandeis would go on to the Supreme Court. Together they argued that the law needed to recognize something it had never named before, a right they described with a phrase that still rings, the right to be let alone.
Starting point is 00:14:53 Listen to what they wrote in 1890 because I want you to hear how little has changed. Stay tuned for more disturbing history. We'll be back after these messages. They warned that instantaneous photographs and newspaper enterprise had invaded the sacred precincts of private and domestic life, and that numerous mechanical devices threatened to make good on the prediction that what is whispered in the closet shall be proclaimed from the housetops. Mechanical devices proclaiming your whispers from the house tops.
Starting point is 00:15:26 They were 130 years early and dead on target. Here's the disturbing part, though. Warren and Brandeis lost. The article was celebrated, sure. And over the following decades, courts slowly recognized bits and pieces of privacy law. But America never enshrined a general right to privacy the way it enshrined free speech or gun ownership. The Constitution never mentions the word.
Starting point is 00:15:52 Privacy in this country got built like a shack in a windstorm, one plank at a time. Always after the damage. Always one technology behind. Keep score as we go today. Every single time the invention comes first, the invasion comes second, and the law limps in years or decades later, if it shows up at all. While the lawyers argued, the telephone was already in the walls.
Starting point is 00:16:17 Alexander Graham Bell patented it in 1876, and by the early 20th century, it was spreading into American homes. And it brought with it a privacy problem that anybody over 60 listening to this show will remember personally. The party line. Running copper wire was expensive, especially in rural America. So telephone companies put multiple households on a single shared line, sometimes two families, sometimes ten or more out in the country. Each home had its own distinctive ring, two longs and a short for the Johnsons.
Starting point is 00:16:51 Three shorts for the Bayleys. But here's the thing. Every phone on the line rang or could be quietly lifted, no matter whose ring it was, which meant that at any moment of any call, your neighbor could be, and let's be honest, absolutely was, listening on the line. They called it rubbernecking, and it was a national pastime. Etiquette columns begged people not to eavesdrop. Phone companies ran shame campaigns.
Starting point is 00:17:18 Nothing worked because the temptation was superhuman. Every scrap of gossip, every family fight, every whispered romance in the county flowed through that shared wire, and Mrs. So-and-so down the road just happened to lift the receiver real gentle with her hand over the mouthpiece. People developed codes. Couples arranged calls at odd hours. Some families drove to town to use a private line for anything that mattered, and party lines persisted in rural America into the 1970s and beyond. I bring up the party line for a reason beyond, nostalgia. It trained an entire generation of Americans to assume the channel was not secure, to speak carefully, to save the real conversation for face to face. And then technology got better, and the lines went private, and we forgot. We started assuming the channel was secure. That assumption,
Starting point is 00:18:11 that lazy, comfortable, catastrophically wrong assumption, is the foundation everything else in this episode is built on, because I'm here to tell you the party line never went away. It just got quieter, and the neighbors listening in got a lot more organized. Want proof? Let's talk about the first time the United States government got caught with its hand on the wire. Almost as soon as telephones existed, the police started tapping them. It was easy. Clip a couple of wires to the right pair on a telephone pole,
Starting point is 00:18:41 and you could sit in a basement with a headset and listen to anybody. During prohibition, wiretapping became a standard tool against bootleggers, and one of those bootleggers, a former Seattle police lieutenant named Roy Olmsted, ran one of the biggest liquor operations in the Pacific Northwest. Federal agents tapped the phones of his home and office for months. No warrant filled 775 pages with transcripts and used them to convict him. Olmsted appealed all the way to the Supreme Court arguing the taps violated the Fourth Amendment's protection against unreasonable search.
Starting point is 00:19:17 And in 1928, the court ruled against him. Five to four. The majority's logic was almost charmingly literal. The Fourth Amendment protects persons, houses, papers, and effects, they said, and the agents never entered his house. They just listened to the wires outside it. No trespass. No search. No problem. But the dissent in that case became more famous than the ruling, because the dissent was written by an old man named Louis Brandeis. The same Brandeis from 1890, now a Supreme Court justice, still five fighting the same fight nearly four decades later. And Brandeis wrote a warning that I want to read into the record of this show, because it may be the single most prophetic paragraph in American
Starting point is 00:20:01 legal history. He wrote that the progress of science in furnishing the government with means of espionage was not likely to stop with wiretapping. Ways may someday be developed, he said, by which the government, without removing papers from secret drawers, can reproduce them in court, and by which it will be enabled to expose to a jury the most intimate occurrences of the home. Someday, he wrote that in 1928 and he was describing your phone. He was describing cloud storage and subpoenaed text messages and a smart speaker's recordings played for a jury. The man saw it all coming down a copper wire, and it took the Supreme Court 39 more years to admit he was right, when a case about a gambler in a Los Angeles phone booth, Katz v. United States and
Starting point is 00:20:48 1967, finally ruled that the Fourth Amendment protects people, not places, and that the government needs a warrant to capture what you reasonably expect to be private. 1967. Hold that date. Because by 1967, as we're about to see, the watching had already moved far beyond anything a warrant could reach, and the most efficient surveillance apparatus in the country didn't belong to the government at all. It belonged to a company in my old stomping grounds.
Starting point is 00:21:16 Atlanta, Georgia. In 1899, two brothers named Cator and Guy Wolford started a business in Atlanta called the Retail Credit Company. The idea was simple and on its face, reasonable. Merchants extending credit wanted to know who paid their bills, so the Wolfords compiled lists of customers with notes on their creditworthiness and sold the lists to grocers and shopkeepers. Prompt payers, slow payers, deadbeats. Fair enough.
Starting point is 00:21:46 But the files grew and grew. And by the middle of the 20th century, the retail credit company had become something the Wolford brothers could never have imagined, a private intelligence agency with dossiers on tens of millions of Americans, feeding reports not just to merchants, but to insurance companies, employers, and landlords. And the files were not just about whether you paid your bills. Retail credits investigators, and they employed armies of them, knocked on doors and interviewed your neighbors, your landlord, your co-workers.
Starting point is 00:22:19 They collected information on your drinking habits, your housekeeping, your marriage, whether you kept bad company, whether there were rumors about your morals, and yes, that included whispers about your sex life, because insurance companies in that era considered homosexuality a reason to deny coverage. And the file said what the neighbors said, true or not. Your file might contain hearsay, grudges, and and flat-out errors. And here's the beautiful part. You were never allowed to see it. You'd apply for a job or an insurance policy. Get denied. And never know that somewhere in Atlanta,
Starting point is 00:22:54 a folder with your name on it, said you were rumored to drink, because a neighbor you'd feuded with over a fence line said so to a stranger with a clipboard in 1958. No warrant built those files. No law constrained them for decades. This was a purely private enterprise, funded by businesses that wanted to know you before they trusted you. And it thrived because every individual transaction seemed reasonable. Of course an insurer wants to know its risks. Of course an employer wants to check references. Nobody voted to create a shadow file on every adult American.
Starting point is 00:23:29 It just accumulated, the way sediment accumulates, one reasonable business decision at a time, until the country woke up in the late 1960s. Thanks largely to a Columbia professor named, Alan Weston and a series of scalding congressional hearings and discovered the sediment was a mountain. Congress responded in 1970 with the Fair Credit Reporting Act which for the first time gave you the right to see your file and dispute what's in it and the retail credit company's name was so thoroughly dragged
Starting point is 00:24:00 through the mud in those hearings that in 1975 the company rebranded picked a nice clean forgettable new name. Equifax the one that in 277 let hackers walk off with the social security numbers, birth dates, and personal details of roughly 147 million Americans, which is to say nearly every adult in the country, in one of the worst data breaches in history. The company founded on watching you failed at the one job that mattered, guarding the watching. We'll come back to what that breach cost. For now, just appreciate the arc. The file that a door knocker in Atlanta started on your grandfather never closed.
Starting point is 00:24:40 It just went digital. merged with a billion other files and eventually leaked into the hands of criminals on the other side of the planet. And that, in part, is how the man on the phone knows the last four digits of your card. Meanwhile, as the credit bureaus were perfecting the private file, broadcasting arrived and taught America a brand new relationship with information. Radio in the 1920s, television in the late 40s and 50s. And here's what I want you to notice about both of them. They were one way.
Starting point is 00:25:10 The signal came into your home, and nothing went back out. You could sit in your living room in 1955 watching gun smoke, and CBS had no idea you existed. The set didn't report you. It couldn't. For a few decades in the middle of the 20th century, Americans consumed more information than any humans in history, while revealing almost nothing about themselves in return.
Starting point is 00:25:35 And we came to think of that as the natural order of things. It wasn't natural. It was an accident of physics, and business hated it. Because if you're selling advertising, the one-way street is agony. Advertisers were spending fortunes on radio and TV spots, with no way to know who is actually listening. So a market researcher named Arthur Nielsen went looking for a solution, and in the 1940s his company began attaching a device called the automator to radios in a sample of American homes. A little box that recorded what stationed the dial was tuned to,
Starting point is 00:26:10 minute by minute. Later came television meters and the famous Nielsen Diaries, and suddenly the industry had ratings, numbers that decided what shows lived and died. I want to flag the autometer as a genuine turning point, maybe the most underrated one in this whole story, because it's the birth of an idea. The idea that your attention is a commodity, that what you watch and when you watch, it can be measured, packaged, and sold to people who want to sell you things. Nielsen did it with a sample of a few thousand willing households and a box they knew about and agreed to. Hold that thought for about 30 more minutes of this show
Starting point is 00:26:49 until we get to the smart TV in your living room right now, which does the exact same thing, except it does it to everybody. It does it by default, and it watches the screen itself, frame by frame to identify everything you play on it. The automator asked permission. Its grandchildren don't bother.
Starting point is 00:27:07 And what about the government all this? time. While business built the files and measured the audiences, what was Washington doing? It was reading the telegrams, all of them. Starting in August of 1945 in the name of catching foreign spies, the major telegraph companies, Western Union among them, began quietly handing the government daily copies of international telegram traffic moving in and out of the United States. The program was code named Shamrock, and it ran for 30 years. Every day, couriers collected the tapes and analysts sifted through the private messages of American citizens. No warrants, no court, no law authorizing any of it.
Starting point is 00:27:48 And at its peak, the program's successor operations were processing thousands of messages a month against watch lists. A companion program, codenamed Minaret, kept lists of Americans whose communication should be flagged. And by the late 60s and early 70s, those lists included civil rights leaders, journalists, senators, and celebrities, and celebrities who'd annoyed the wrong people by opposing the war in Vietnam. Martin Luther King was on the lists. So was Muhammad Ali. And the FBI under J. Edgar Hoover ran its own domestic program with a name that still tastes like Ash, Cointel Pro, short for Counterintelligence Program.
Starting point is 00:28:28 This went beyond watching. The Bureau wiretapped, bugged, burglarized, and blackmailed American citizens whose politics Hoover disliked, infiltrated their organizations, wrote poison pen letters to break up their marriages, and in the case of Dr. King, mailed him a package containing surveillance tapes and an anonymous letter that King and his associates understood as an invitation to kill himself. Your government did that, not a foreign government, ours in my lifetime shadow, to a Nobel Peace Prize winner. None of it came out through official channels, and I want to be honest about that as a former cop, because oversight didn't catch this.
Starting point is 00:29:08 Burglars did. In March of 1971, a group of anti-war activists broke into a small FBI office in Media, Pennsylvania, stole every file in the place, and mailed the incriminating documents to newspapers. That crime, and I'm not going to pretend it wasn't one, cracked the dam. The revelations fed into the post-Watergate reckoning, and in 1975, a Senate committee under Frank Church of Idaho, hauled the whole mess into daylight, shamrock, minaret, coin tell pro, and CIA mail opening. All of it. And Senator Church, having seen what the National Security Agency's technology could do in 1975, with vacuum tubes and magnetic tape,
Starting point is 00:29:52 went on national television and said something I want every listener to hear. Stay tuned for more disturbing history. We'll be back after these messages. He said that the government's technological capacity to monitor communications could at any time be turned around on the American people, and that if it ever were, no American would have any privacy left, such as the capability to monitor everything. Telephone conversations, telegrams, it doesn't matter, he said, there would be no place to hide. 1975, no place to hide. File that next to Brandeis, because we're about to enter the era that made both of them look like optimists. Congress passed reforms. The Foreign Intelligence Surveillance Act of 1978 created a secret court to approve national
Starting point is 00:30:43 security wiretaps, and everybody congratulated themselves that the system had worked. The files were regulated, the spies were leashed, the party lines were disappearing, and America headed into the 1980s feeling like privacy was a solved problem. And then somebody connected the computers together. The internet, in its original form, was actually pretty private, almost by accident. The early web of the 1990s was a library of linked pages, and the software that fetched those pages had a design quirk that drove businesses crazy. It had no memory. Every time your browser requested a page, the website saw a stranger. You could visit a hundred times and be a hundred different nobodies. A famous New Yorker cartoon from 1993
Starting point is 00:31:30 summed up the whole era. A dog sitting at a computer telling another dog that on the internet, nobody knows you're a dog. That world lasted about five minutes and I can tell you the exact moment it died. In 1994, a 23-year-old engineer at Netscape named Lou Montoulli had a practical problem to solve. An online store wanted a shopping cart and a shopping cart requires the website to remember you from one page to the next. So Montulli invented a small file that a website could store on your computer. A little note that said, in effect, this is visitor number such and such.
Starting point is 00:32:07 He called it a cookie, after an old programming term, and it was genuinely useful and basically innocent. It let you stay logged in. It let your cart hold your stuff. To this day, cookies in that original sense make the web work, but it took the advertising industry
Starting point is 00:32:24 almost no time to spot the loophole. A cookie could only be read by the site that said it, sure, But here's the trick. Web pages are assembled from pieces served by different companies, and if the same advertising company serves the ads on thousands of different websites, then that one company can set its own cookie and recognize you on every single one of those sites. You leave the shoe store and go read the news, and the ad company sees you in both places,
Starting point is 00:32:52 and now it knows a person who shopped for running shoes reads this newspaper, follows that sports team, browse these hotels. That's called a third-party cookie, and a company founded in 1995 named DoubleClick, built an empire on it, quietly assembling profiles of browsing behavior across the web, while the people being profiled had no idea it was even possible. By the late 90s, privacy advocates were screaming about it, and there was a genuine scandal in 2000 when DoubleClick bought a huge offline catalog marketing database and floated the idea of connecting your anonymous browsing profile to your actual name and address. The backlash was so hot the company backed off, and everybody relaxed. Then in 2007, Google announced it was buying DoubleClick for $3.1 billion,
Starting point is 00:33:41 and nobody threw a scandal at all, because by then we'd been boiled so slowly, we didn't notice the temperature. Let's talk about Google, because Google is where the trade gets its modern shape. Two Stanford graduate students, Larry Page and Sergey Brin, built the best search engine anyone had ever seen, and in their original 1998 academic paper describing it, they included an appendix warning that advertising-funded search engines would be inherently biased toward the advertisers and away from the needs of consumers. That's not me editorializing.
Starting point is 00:34:15 That's the founders of Google, in writing, warning the world about the business model of Google. because here's what they figured out a couple of years later, when the investors came asking for revenue. A search engine is a machine that people tell the truth to. You lie to your spouse. You lie to your doctor. You lie to yourself. But at two in the morning,
Starting point is 00:34:35 you type your real fears and your real desires into that box. Your symptoms. Your debts. Your obsessions. Your doubts about your marriage. The thing you're too embarrassed to ask a human being. And every query got logged. And the logs, it turned out, were a map of human intention.
Starting point is 00:34:54 And a map of human intention is the most valuable advertising asset ever created. Because you don't have to guess what a person wants. They just told you. Search ads made Google one of the richest companies in history. And the model, show ads against what people reveal about themselves, became the gravitational center of the entire internet. A Harvard professor named Shoshana Zuboff would eventually give it a name, surveillance capitalism, the business of claiming human experience as free raw material,
Starting point is 00:35:25 refining it into predictions about what you'll do next and selling those predictions. And once that model existed, every free service you've ever loved got rebuilt around it. Free email, free maps, free video, free social networking, none of it free, all of it paid for with the same currency. You. In 2004, Google launched Gmail with a then-a-success. astonishing gigabyte of free storage, and buried in the deal was the mechanism. The system read your email by machine to target ads against its contents. There was an outcry. A California state senator tried to ban it, and then 30 million people signed up anyway, then 100 million,
Starting point is 00:36:07 then more than a billion, and the outcry died of loneliness, and Google didn't stop scanning inbox contents for ad targeting until 2017. For 13 years, the deal was in place. plain site. Free mailbox in exchange for a machine reading your mail. We took it. I took it. Most of you listening took it, and most of us never read the terms. Which brings me to the fine print.
Starting point is 00:36:31 And folks, the fine print deserves its own chapter in the disturbing history of the human race. Here's a number that ought to be carved over the door of every app store on earth. In 2008, two researchers at Carnegie Mellon, Elyche McDonnell, and Lori Craner calculated how long it would take an average American to actually read the privacy policies of the websites they visit in a typical year. Just read them. Not understand them. Not negotiate them. Just read the words. The answer came out to roughly 244 hours a year. That's about 76 full working days. Per person, per year, just to read what we're agreeing to. As a nation, the researchers estimated, the reading time alone was worth hundreds of billions of dollars in lost hours. The system is not designed to be
Starting point is 00:37:22 read. It is designed to be clicked through, and everybody on both sides of the click knows it. Want proof? Nobody reads. On April Fool's Day of 2010, a British video game retailer called Game Station slipped a clause into its online terms and conditions stating that customers granted the company a non-transferable option to claim, for now and forevermore, your immortal soul. 88% of that day's customers, 7,500 people clicked agree and legally offered up their souls to a video game store. The company later graciously waived its claim, and everybody had a laugh, and then everybody went right back to clicking agree on everything forever. And what's actually in there in the walls of text we scroll past? Perpetual licenses to content you upload. Consent
Starting point is 00:38:12 to collect your location, your contacts, your device identifiers. Permission to share with partners and affiliates and service providers. Words that can mean essentially anyone. Binding arbitration clauses that quietly sign away your right to sue or join a class action, which means when the company loses your data, your day in court was traded away in a scroll box years earlier. Consent to future changes of the terms themselves, meaning you've agreed in advance to deals not yet written. I carried a badge for 16 years, and I'll tell you plenty of. If a suspect got someone to sign away that much in a document designed not to be read,
Starting point is 00:38:53 we'd have a word for it, and the word would not be commerce. And the cookie banners. In 2018, Europe enacted a sweeping privacy law called the General Data Protection Regulation, and one of its ripple effects, combined with earlier European rules, is the reason every website on Earth now greets you with a pop-up begging you to accept cookies. The law's intent was noble, force companies to get real consent. The industry's response was a masterpiece of malicious compliance. Make the accept all button big and bright.
Starting point is 00:39:26 Make the reject option gray, or hidden behind a link called manage preferences, or buried under toggle switches for hundreds of individual partners. Researchers call these designs dark patterns, interfaces engineered to steer you towards surrender, and they work because you didn't come to the website to operate a consent control panel. You came to read one article, and the banner is a toll booth, and clicking the big bright button is the toll. So we click, and the banner goes away, and somewhere between a handful and several hundred companies you have never heard of, begin recording your visit.
Starting point is 00:40:02 That's what the banner means, by the way, since you asked. It means this page is wired and the wire runs to an auction house, because here's the machinery under the modern web, and I find most people have genuinely never heard this. In the 10th of a second between clicking a link and the page appearing, information about you, your rough location, your device, your browsing profile, gets broadcast to an automated marketplace where advertisers bid against each other in real time for the right to show you their ad. It's called real-time bidding. It happens billions upon billions of times a day, and every one of those auctions sprays data about you to dozens or hundreds of participating companies, most of whom lose the auction,
Starting point is 00:40:47 but keep the data. You're being described, appraised and auctioned in the time it takes the page to load, and it happens so smoothly you've never once felt the gavel come down. We stopped being the customer somewhere in there. The advertisers are the customer. We're the inventory. And then there's the social network, where the trade got personal, because Facebook figured out something even Google hadn't. You didn't have to infer what people were like from their searches. You could just build a place where they'd tell you. Their name, their face, their birthday, their hometown, their school, their job, their relationship status, their family tree, their politics, their religion, 500 photos, and a running diary of their opinions. All volunteered,
Starting point is 00:41:35 all labeled, all free. Facebook's history is a drumbeat of the same rhythm. Pushed, the line apologize keep the ground gained in 2007 a feature called Beacon started broadcasting users purchases on outside websites into their friends feeds and people found out about it when Facebook announced their Christmas presents to the recipients buy a ring and the network tells your girlfriend before you do the outrage killed Beacon Mark Zuckerberg apologized and the underlying idea tracking what you do on other websites and feeding it into your profile, quietly survived and grew into one of the pillars of the business. Those little like
Starting point is 00:42:16 buttons scattered across the entire internet. Every page that carries one can report your visit back to the mothership, whether you click it or not, whether you're logged in or not. And for years, the company even built shadow profiles from the address books that users uploaded, files on people who had never joined Facebook at all. You can't opt out of a system your friends opted you into. Then came the one you probably remember. In 2018, the world learned about Cambridge Analytica, a political consulting firm that had gotten its hands on the profile data of as many as 87 million Facebook users,
Starting point is 00:42:52 and the mechanism is the part that should bother you. A researcher had built a little personality quiz app, and about 270,000 people installed it. And under the rules, Facebook itself had written at the time. The app could harvest not just the quiz take place, data, but their friends data too. 270,000 consents unlocked 87 million files. Your buddy took a quiz called something like,
Starting point is 00:43:18 This is Your Digital Life, and your information walked out the door with his, and it ended up fueling psychological profiling for political campaigns. Facebook paid a $5 billion fine to the Federal Trade Commission, which sounds enormous until you know the company booked more than that and profit the same quarter, and the stock went up on the news because the market understood the fine as what it was. A parking ticket. Now stack up everything we've covered, the credit files, the browsing profiles, the search logs, the social graph, and understand that none of it compares to what happened on June 29, 2007,
Starting point is 00:43:56 the day Apple started selling the iPhone. Because the file was always missing one thing, your body, where you physically are hour by hour, and the phone solved that because the phone comes with you. It has to know where it is to work. It checks in with cell towers constantly. It carries a satellite positioning chip accurate to a few yards. And it's stuffed with sensors, microphones, cameras, a compass, an accelerometer that knows whether you're walking or driving or lying still.
Starting point is 00:44:26 We took the most powerful surveillance instrument ever designed, and we didn't install it in the town square. We put it in our pockets. We bring it into the bathroom. We set it on the nightstand while we sleep. And when the battery gets low, we feel a little spike of genuine anxiety. And there are more of these devices on Earth right now
Starting point is 00:44:45 than there are human beings. And the apps came. And the apps wanted permissions. The flashlight app wanted your location. The Solitaire game wanted your contacts. And buried in the free apps thousands of them were little pieces of code from location data companies. Software development kits.
Starting point is 00:45:03 paying app makers pennies per user to sit quietly inside the app and beacon out your coordinates. Stay tuned for more disturbing history. We'll be back after these messages. That data flowed to an industry most Americans still have never heard of. The location data brokers. Companies that buy, package, and resell the daily movements of hundreds of millions of phones. The industry's defense has always been the same word, anonymized. The dots on the map have no names.
Starting point is 00:45:36 just advertising ID numbers. Let me show you what anonymized is worth. In 2021, a Catholic news outlet obtained a batch of this commercially available app data, the kind anyone with money can buy, and analyzed the signals coming from the dating app Grindr. They watched one anonymous dot, and the dot slept most nights at a particular residence, and the residents belonged to a Monsignor named Jeffrey Burrill,
Starting point is 00:46:02 one of the highest ranking administrators in the United States' Catholic Church. The dot traveled where he traveled, conferences, family lakehouse, and the dot lit up grinder along the way, and visited certain bars, and the reporters published it, and the man's career ended within days. Now, whatever your feelings about the man or the church or the outing, hold on to the mechanics. Nobody hacked him. Nobody tapped a wire. A private citizen with a checkbook bought supposedly anonymous commercial data and unmasked a specific human being's most private life. Any dot in that data set could be unmasked the same way. Any dot could be you, because there's really only one person on earth who sleeps at your house every night and commutes
Starting point is 00:46:48 to your desk every morning. Your location history is your name, written in coordinates. Or take the fitness map. In 2018, an exercise app called Strava published a beautiful global heat map, billions of jogging and cycling routes from its users glowing across the planet, and a 20-year-old Australian student looked at the empty deserts of Syria and Afghanistan, and noticed little glowing rectangles in the middle of nowhere. Soldiers. Jogging laps inside bases. The heat map traced the perimeters of secret and forward military installations, patrol routes and all, because troops wore fitness trackers,
Starting point is 00:47:27 and the trackers phoned home, and the company published the aggregate. The Pentagon had to rewrite its rules over a jogging app. The most security-conscious organization on the planet got mapped by a fitness feature, so tell me again how the rest of us are staying off the grid. And sometimes the file doesn't just record your life. It predicts it, before your own family knows. The famous case comes from Target, the retailer, which years ago set its statisticians a genuinely creepy goal,
Starting point is 00:47:58 identify pregnant shoppers early from their purchases alone because parents to be are a gold mine, and the company that reaches them first wins years of spending. The statisticians found the tells, the switch to unscented lotion, the vitamin supplements, the big bags of cotton balls, and Target began mailing coupon books full of cribs and diapers to women. It had mathematically diagnosed. And as the story was reported in the New York Times, a furious father in Minneapolis walked into a store demanding to know why the company was sending his teenage daughter baby coupons. Was she supposed to get pregnant now?
Starting point is 00:48:35 The manager apologized. The manager called days later to apologize again, and the father, subdued this time, said there'd been things going on in his house he hadn't known about. She was due in August. The corporation knew his daughter was pregnant before he did, because the corporation was paying closer attention. And Target's response to the discomfort, again per the reporting,
Starting point is 00:48:58 wasn't to stop. It was to camouflage, mixing the baby coupons in among lawnmowers and wine glasses, so the predictions felt like coincidence. Remember that trick. It matters for where we're headed, because the industry learned early that the surveillance works best when it's dressed as luck. So the private sector built all this, the profiles, the auctions, the location trails, and you might reasonably ask where the government's been since the church committee spanked it back in 1975, and the answer arrived in a hotel room in Hong Kong in June of 2013, carried in the laptops of a 29-year-old contractor named Edward Snowden. You know the name. Here's what the documents actually showed, stripped to the parts that matter for our story. The National Security
Starting point is 00:49:45 Agency had been collecting the telephone metadata of essentially every American, every call, from every number to every number. At what time? For how long? Vacuumed up in bulk, from the phone companies under a secret interpretation of a law, most of Congress didn't realize stretched that far. The first published document was a secret court order compelling Verizon to hand over all of it, daily, wholesale, not suspects, everybody. And a program called Prism gave the agency streamlined access to user content from the biggest names in American technology. And other programs tapped the fiber optic cables between data centers overseas, And an analyst tool called X-Kee score let operators query enormous stores of internet activity.
Starting point is 00:50:34 Senator Church's 1975 warning, the one about the capability being turned around on the American people, leaving no place to hide that stopped being a warning and turned out to be a description. And here's the part I want to underline as a law enforcement guy, because it's the part that ties this whole episode together. The government didn't have to build the panopticon. We built it, voluntarily, one account sign up at a time, and the agencies tapped in. The metadata existed because phone companies bill buy it. The photos and messages existed because we uploaded them.
Starting point is 00:51:10 The location trails existed because the map app is genuinely useful. Collection went corporate, and government surveillance increasingly became a matter of access. A subpoena here. A secret order there and lately something even easier. A purchase order. Multiple federal agencies have simply bought commercially available phone location data from those brokers we talked about. Data that would arguably require a warrant to collect directly, and the courts are still chewing on whether checkbook surveillance counts as a search. The Supreme Court did draw one bright line in 2018, a case called Carpenter,
Starting point is 00:51:48 ruling that police generally need a warrant to demand your historical cell tower location records, and the Chief Justice wrote that a phone's location trail provides an intimate window into a person's life. He's right. It's the window we're all living in front of. Which brings us, at last, to the question I get asked more than almost any other, the one from the top of the show. You're sitting at dinner and you simply mention out loud, to the person you're eating with, that you've been thinking about a trip to Portugal, or your knees have been aching, or the dog needs a new harness, and you swear you, you haven't typed a word of it anywhere.
Starting point is 00:52:25 And the next morning your phone is showing you Lisbon hotels, knee braces, and dog harnesses. It happens to everybody. It's happened to me. So, the million dollar question. Is the phone listening? Here's what the record actually shows. The companies deny it, and Zuckerberg denied it under oath before Congress in 2018. Security researchers have gone hunting for it repeatedly, and the best-known study came out of
Starting point is 00:52:52 Northeastern University that same year, where academics ran more than 17,000 popular apps through instrumented phones for months, watching every bite the apps transmitted, specifically looking for secret audio going out. They found no evidence of any app covertly recording conversations and shipping the sound home. And there are practical reasons to believe that finding, because constant audio interception at that scale, would burn battery, chew bandwidth, and leave for forensic fingerprints that thousands of very motivated researchers, employees, and regulators have never conclusively produced, and a company caught doing it would face a legal apocalypse. But before you relax, that same Northeastern study found something the researchers weren't
Starting point is 00:53:39 even looking for. Some apps were quietly recording the screen, capturing video of what users did inside the app, taps and keystrokes and all, and shipping it off to analytics companies, sometimes with personal information visible in the frames. So no, they probably aren't listening through the microphone. They're doing something I'd argue is stranger. They don't need the microphone. You mentioned Portugal at dinner. Okay, who were you at dinner with? Because their phones were there too, and your phones have been in the same rooms a hundred times, and the systems know you're connected. Maybe your buddy searched flights to Lisbon that afternoon, which is probably why it was on his mind,
Starting point is 00:54:18 which is probably why it came up at dinner. And the machine, knowing you two are linked, knowing people who eat together, travel together, started showing you Portugal because of his behavior, not your words. Or run the arrow the other way. Why did you bring up Portugal? Did an article float past you last week? Did the algorithm nudge the topic into your feed days ago,
Starting point is 00:54:41 plant the seed, and is the ad now harvesting a thought it helped create? Add the base rates. The thousands of ads you scroll past unremembered every week. The certainty that the one in a thousand coincidence hits you a few times a month by math alone, and the picture resolves. The truth isn't that the phone overheard you. The truth is the model predicted you from your location history and your purchase history
Starting point is 00:55:06 and your search history and your friend's histories, with enough accuracy that it feels like eavesdropping. And I'll be honest with you, I find that considerably more disturbing than a hot mic. a microphone I could tape over. A model of my own mind, built from 20 years of my digital exhaust, accurate enough to anticipate my dinner conversation, that's a different kind of thing to share the world with.
Starting point is 00:55:30 The company spent billions to be mistaken for magic, and the magic trick is that there is no trick, just the file, your file, deeper than you've ever imagined, doing exactly what it was built to do. And while we argued about the phone's microphone, We went ahead and filled our homes with actual, literal, always-on microphones, on purpose, at retail. The smart speaker on your counter is, by design, listening at all times for its wake word. And the companies say, mostly truthfully, that recordings only leave the house after the wake word trips. But wake words trip by accident constantly.
Starting point is 00:56:08 A snatch of television dialogue, a similar sounding name, and those accidental captures, seconds of your kitchen. your argument, your business, get stored. And for years, the industry quietly employed human beings to listen to samples of those recordings to improve the software, which the public learned about not from the packaging, but from reporters. And the recordings are records,
Starting point is 00:56:32 and records get subpoenaed. In 2015, in Bentonville, Arkansas, a man was found dead in a backyard hot tub after a night of football and drinking. And when police charged the homeowner, They served a warrant on Amazon for anything the echo speaker in that house might have captured. Amazon resisted. The defendant eventually said, use whatever you've got. Prosecutors ultimately dropped the case. And none of the legal wrangling is the point.
Starting point is 00:57:00 The point is that the question now exists. There's a witness in the kitchen, and the courts and the cops know it. And I can tell you from 16 years on the job that investigators go where the evidence lives, and the evidence now lives everywhere. The doorbell watches the street, and for years, entire networks of those doorbells fed neighborhood footage toward police through cozy partnership programs with thousands of departments until the backlash forced changes. The television watches you back, and I mean that literally, because in 2017, the smart TV maker Vizio settled with the Federal Trade Commission over software in 11 million sets
Starting point is 00:57:40 that identified second by second, whatever was on the screen, cable streaming your own DVDs, and sold that viewing history, linked with household details to data buyers, all switched on by default under a feature soothingly named Smart Interactivity. Arthur Nielsen needed volunteers in a meter box. The modern living room volunteers itself. The robot vacuum maps your floor plan. The thermostat knows when the house is empty. The car, and this one deserves its own episode someday.
Starting point is 00:58:13 The modern car logs your locations, your speeds, your braking, and in some documented cases, footage and data that manufacturers shared or sold onward, and researchers who've audited the industry rate new vehicles among the worst privacy offenders in any product category. You're not driving a car anymore. You're driving a phone with cup holders. And your face. Around 2020, reporting revealed a car. the small company called Clearview AI, had quietly scraped billions of photos from social media
Starting point is 00:58:44 and the open web, no permission asked, and built a facial recognition engine that let a client upload a picture of a stranger and get back everywhere that face appears online, names, profiles, friends, and it sold access to police departments and private outfits alike. The photos you posted a decade ago, the tagged wedding shots, the profile pictures, all of it got harvested into a lineup you never agreed to stand in. Your face is a barcode now. It can be scanned from a lamp post, and in city after city, it is alongside license plate readers that log every passing car into searchable databases, and cell site simulators, briefcase-sized devices that impersonate cell towers and trick every phone in a neighborhood into reporting in. Tools so secret that prosecutors have
Starting point is 00:59:33 dropped cases rather than explain them in open court. Even your blood keeps a file. now. When a cousin you've never met males her spit to a genealogy company, she uploads a quarter of your genome along with hers, and in 2018, investigators used exactly that kind of family matching on a public genealogy site to finally put a name to the Golden State Killer, a monster who'd raped and murdered his way across California in the 70s and 80s, and then vanished into a quiet suburban retirement. They caught him through relatives' DNA, and I cheered. And I cheer again. And I also understand what it means,
Starting point is 01:00:12 that a database can now find nearly anyone through the choices of their kin, and that consent has gone genuinely collective, and that in 2023, hackers walked out of one of those genealogy companies with ancestry data touching nearly 7 million people. Stay tuned for more disturbing history. We'll be back after these messages. The most intimate file that can exist, the code that builds you,
Starting point is 01:00:39 and it's already been breached, already been sold, already been searched. Before I bring this home, I owe you the biography of that fishing email in your inbox because it has a family tree going back further than you'd think, and the tree tells you something important about what actually changed. The con itself is ancient. In the 1800s, Swindlers ran a scheme called the Spanish prisoner,
Starting point is 01:01:03 and it worked like this. You'd receive a letter, beautifully written, confiding that a wealthy gentleman lay wrongly in prison, in a Spanish fortress, and that a fortune awaited whoever helped free him, and all that was needed was a small advance for bribes and travel, after which you'd be repaid many times over and probably get the man's beautiful daughter's hand in the bargain. You sent the money. There was no prisoner. There was never a fortune. The New York Times was warning readers about this exact letter before the 1890s were out, and if the shape of it sounds familiar, it should, because the Nigerian
Starting point is 01:01:39 print's email of the 2000s is the Spanish prisoner with the serial numbers filed off. Same con, same advance fee, same appeal to greed dressed as compassion. The con never needed upgrading, only the postage did. Here's what the postage upgrade meant, though, and this is the part that matters. The Spanish prisoner crew had to handwrite every letter, buy every stamp, and guess at every mark, which meant a crew might work a few hundred prospects a year. The email version costs nothing per copy and reaches 100 million inboxes before lunch. Fraud didn't get smarter with the internet. It got industrialized, and when a crime's cost per attempt drops to zero,
Starting point is 01:02:21 the crime stops needing to work often. It only needs to work occasionally, and at 100 million attempts, occasionally is a fortune. The word fishing itself was born on America Online in the mid-1990s, spelled with a pH in the style of the old phone hackers, who called themselves freaks. Teenagers on AOL, some using a notorious little program called A-O-Hell, would fire off messages posing as AOL staff, telling users there was a problem with their account
Starting point is 01:02:52 and asking them to verify their password and billing information. And people typed it right in, because the message looked official and the Internet was new, and nobody had ever been burned before. Every phishing email you've received since, the package that couldn't be delivered, The bank verification, the streaming account on hold, the toll road bill, is that same AOL instant message wearing better clothes. The costume improves every year. The hook never changes, urgency
Starting point is 01:03:23 plus authority plus a link, and the reason the costumes fit so well now, the reason the email knows your name and your bank and sometimes your card digits is everything we covered in the last hour. The breach economy dresses the con, and make no mistake, it is an economy, a real one, with wholesalers and retailers and customer service. When a company gets breached, Equifax with its 147 million, the genealogy files, the hotel chains, the health insurers, the retailers, the credentials and card numbers and social security numbers, flow into underground markets where they're sold in bulk lots like commodities, because that's what your identity is on those markets, a commodity,
Starting point is 01:04:08 with a spot price. Full identity packages, name, birth date, social security number, enough to open credit in your name. Trade under the almost affectionate industry nickname Fools, and they sell for less than you'd pay for a pizza. The complete administrative key to your life, the number your parents were told to guard with their lives. Retails on the criminal market for pocket change.
Starting point is 01:04:33 Not because it's worthless, but because the supply is bottomless. Breach after breach after breach, year after year, until nearly every adult American's core identifiers are in circulation somewhere. And the honest answer any security professional will give you is to assume yours already are. The phone side industrialized the same way. The scam caller isn't a lone grifter dialing from a kitchen table. table. It's a call center, often overseas, running auto dialers that pump out thousands of calls a
Starting point is 01:05:06 minute, and the technology of internet calling lets them stamp any number they want onto your caller ID, which is why the call looks like it's coming from your own area code, your own prefix, sometimes your own neighbor's number, sometimes the actual number of your actual bank. That's called spoofing, and it costs essentially nothing, and it turned caller ID a feature we adopted specifically to screen strangers into a weapon pointed back at us. At the peak of the robocall flood, Americans were absorbing on the order of four or five billion of these calls a month. Congress passed laws. Regulators find shell companies that dissolved and reformed like puddles. The carriers rolled out authentication protocols, and the calls
Starting point is 01:05:51 kept coming, because the economics are unbeatable. When a con costs a fraction of a cent per attempt and one victim in $100,000 pays out $1,000. The math funds the whole operation with change left over. And the grandparent scam, the one we opened with, sits at the top of this pyramid because it's the one that fuses every stream we've traced today into a single phone call. The obituary of Grandpa posted online tells the caller, Grandma lives alone now. The social media accounts supply the grandson's name, his face, his college, his gray pickup truck. His spring break photos that explain why he might plausibly be far from home. The data brokers supply her landline and her address.
Starting point is 01:06:36 And lately. And I need you to hear this part clearly, because it's not coming. It's here. The technology supplies his voice. A few seconds of audio, scraped from a video the kid posted publicly, is now enough for cheap, widely available software to clone a voice well enough to fool the person who loves it most. and law enforcement and federal regulators have been warning about exactly these calls.
Starting point is 01:07:00 The voice on the line crying for help belonging to no one at all stitched together by a machine from a birthday video. The Spanish prisoner needed a good pen. His descendants have your grandson's larynx. That's the through line of two centuries, and it's worth saying plainly. The cons never changed, because people never changed. What changed is that we spent 30 years
Starting point is 01:07:23 lovingly assembling the world's most detailed, Instruction Manual for manipulating ourselves, our names and faces and voices and habits, and family trees and fears. And then we lost control of the manual. So here we are. Back at that phone call from the top of the show. And now you can see the whole machine behind it. The scammer running the grandparent con isn't a mind reader. He's a shopper. The breaches, Equifax and the genealogy files and a thousand smaller ones, stock the shelves. And the data broker industry, organized the inventory, and social media filled in the family tree and the hometown, and the gray pickup truck. And for a few dollars, a criminal buys a better dossier on your
Starting point is 01:08:05 grandmother than a 1970s police detective could have assembled in a month. The fishing email knows your name and your card digits for the same reason. The robocalls found you because your number has been sold and resold down a chain of legitimate businesses into illegitimate at once, billions of such calls a month washing over this country. The con men of the 1800s ran the Spanish prisoner scam with handwritten letters and had to guess about their marks. Their great, great grandchildren don't guess. They simply pay attention to what we willingly post publicly for all the world to see.
Starting point is 01:08:42 And the deep answer to the question I asked at the start, how did the stranger know, is that we told him. Not directly. and not on purpose, but cumulatively, click by click, agreement by agreement, convenience by convenience. Across 30 years of a bargain, nobody ever stated out loud. Here's the bargain, stated out loud. Everything free is paid for with information. The information never expires, never stays put, and never stops being copied. And the file built to sell you sneakers is the same file that unmasks a priest, finds a serial killer, exposes a military base, informs a father,
Starting point is 01:09:23 and arms a con man, because a file doesn't have loyalties. It only has readers. Are you ever truly alone anymore? Physically sure. Informationally, I'd argue the honest answer is no. Not if the phone's in the room, not if the speaker's on the counter, not if the TV's on the wall. And here's the thing that keeps this from being a simple horror story. I'm not throwing my phone in the river, and neither are you. The map has saved me hours on back roads. The camera has preserved moments I'd trade almost anything to keep, and that same web of data has pulled kidnapped kids out of moving cars and put men like the Golden State killer in a cell, and an honest episode has to hold both truths at once. The technology is genuinely miraculous, and the price was genuinely
Starting point is 01:10:12 enormous. And the disturbing part, the part I'll leave you with, is that it was never presented as a price at all. Brandeis saw it coming in 1928. Frank Church stood in front of the cameras in 1975 and said that if the machinery were ever turned on the American people, there would be no place to hide. Nobody turned it on us in the end. Not really. No jackboots, no decree. We turned it on ourselves and we called it signing up and the terms and conditions are still scrolling past and tomorrow morning somewhere in america a phone is going to ring with a local number and a voice on the line is going to know things it shouldn't and now at least you'll know how until next time stay curious stay skeptical and maybe just this once read the fine print

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