Organized Crime - 1

Introduction to a taxonomy of organized crime that is useful for understanding modern cyber security and future cyber warfare.

Organized Crime - 1

Businesses and Organized Crime both tend towards monopoly.

Over time, organized crime, seeking to invest their excess profits, can slowly acquire or "take over" legitimate businesses. Only so much money can be plowed into real estate or spent on luxury goods. Also being seen as an individual who has made a name for themselves in "legitimate" businesses will always have a pull for those who first rose up the ranks of organized crime.

Today most organized crime is at an advantage against nation states. The criminal networks are transnational, and those who investigate and prosecute them are effectively not.

As organized crime grew in such power that it at times rivaled militaries (think of the insurgencies mounted in Iraq in. 2004-2006) governments would eventually find ways to "take over" these networks. This cyclical shift of power back and forth, of one organization capturing another only to be recaptured by those it thought had been another common  pattern.

Today organized crime can be broken down into two groups, at least for our purposes.

Player #1 - The Hedge Funds

Any corporation today of importance, particularly tech companies, either have major investors who are hedge funds, or large percentages of their stocks owned by investors who are hedge funds.

These hedge funds are typically Western or Chinese aligned at this point. This makes sense, the only ones currently still standing with major Central Bank firepower since the GFC are Washington and Beijing.

There are about 6,000 hedge funds currently. If a company is aligned with Washington, then every company in its portfolio is typically good and something we would...mostly trust. If a company is aligned with Beijing, like ProvEquity, we would really try to avoid buying any service from them or exposing parts of our internal infrastructure.

Player #2 - The REITs

Think of technology as software and hardware. If hedge funds are the software, the REITs are the hardware. Whoever controls the data centers, the colo centers, the ICXs, and the tall office buildings also wields major power. While the profits of software have always beat hardware, a hardware zero day always beats a software zero day, so the scales are more balanced than most might think. Regus, Hines, Equinix, Gaw Capital Partners, even WeWork all fit in here.