Prescient Consulting, Inc. - That Pesky Fly on the Wall

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That Pesky Fly on the Wall

By Rodney J. Johnson, Prescient Consulting, Inc.

Eavesdropping is commonly perceived by the corporate world as the sole purview of state intelligence agencies attempting to gain the upper hand on their diplomatic rivals. The reality is something altogether different, however. Eavesdropping by states or corporations on other corporations, often referred to as industrial espionage, has become an economic weapon of choice by businesses large and small. Today, more than ever, industrial espionage - on your company - by both electronic and human means, is a threat your company should take seriously. Shrinking budgets, big mergers and acquisitions, quickly developing technology, pressures to compete, concern for market share—to name a few—provide the motives. There are literally thousands of legitimate companies, besides current underground sources, who sell electronic eavesdropping devices (commonly called bugs) in a price range that can fit any budget. In Seoul, Korea, alone, for example, there are 200 stores who boast a sales output of 20,000 devices a year. In Hong Kong, during calendar year 2002, more than 6 million “spy” devices were sold. Even though some were exported, that is nearly one for every man, woman and child residing in the SAR.

In spite of news articles and reports highlighting the discovery of bugging devices found in high profile cases, the majority of people, including the organizations they work for, assume that no one is interested in targeting them for the collection of industrial intelligence. Unfortunately, this assumption is far from the truth.

“This bathroom is reserved from 2:00 PM for a board meeting.”
Devices offered on the market today are more sophisticated, much smaller, and more facile, such as those depicted in the movies. Electro‑optical devices can fit inside the area of an average shirt button. Microphones the size of a pin can be placed anywhere and do not need wires to transmit collected information short distances. Telephones can be bugged without the perpetrator ever entering your building and/or office. And, the typing of information onto a computer keyboard can be monitored, stored, and then emailed to the perpetrators without the knowledge of the user.

It should come as no surprise that industrial espionage is on the rise. What’s in the newspapers is spectacular. What is not in the newspapers are cases of industrial espionage so commonplace as to not be considered news. This is all a result of the new realities of global competition. Companies are being pushed like never before to create the unimaginable and execute the impossible. The demand for cutting‑edge technology, excellent service, and immediate turn-around creates fickle customers ready to change suppliers with a moment’s notice. Businesses pushed to the competitive edge may feel they need to exhaust every avenue of competitive strategy to create or maintain a position in the market. These pressures, combined with the plethora of readily available methods create an obvious ethical dilemma. Do you currently trust your competition to successfully overcome that dilemma?

See you later. Not if I see you first.
Companies the world over are starting to take notice of the exploding problems and issues associated with industrial espionage. With the increasing importance of intellectual property and proprietary information in the competitive equations of firms in virtually all industries, overlooking a single source of inside information can be disastrous. More companies today are choosing to take an aggressive stance in defending themselves.

There are a variety of defenses that are employed, including Technical Surveillance Countermeasures (TSCM) sweep for “bugs." A TSCM is typically an inspection by a specialized team, of a designated item or location, such as an office or conference room. The objective is to locate possible covert surveillance devices, technical security weakness, and technical security hazards. During the course of a TSCM, the team will also assess other, but related weaknesses like access control systems, CCTV placement, locks, alarms, and other systems of physical and electronic security or controls.

Unfortunately, taking confidential conversations and surveillance free areas for granted is a thing of the past.