Not having an Electronic Surveillance Detection Audit program can cripple your company. Just ask...
• Société Générale, who last January, revealed that unauthorised dealing by Jérôme Kerviel, a futures trader in Paris, resulted in losses of €4.9 billion ($6.6 billion) for the French bank. This is the biggest rogue trading scandal in history. (more)
Tool of choice: A tiny cell phone, using text messaging!
Preventable? Yes.
How? We would have pointed out this vulnerability during a regular Electronic Surveillance Detection Audit (TSCM sweep). The solution... a special 24/7 radio-monitoring system. The system would have nailed the very first unauthorized text message from the trading floor. Via computerized triangulation mapping, a big red dot would have popped up, right over Mr. Kerviel's desk – indicating he was the culprit!
Total Solution Cost? Less than .000016 % of this loss (or about $100,000.00).
Status: Until a solution is put into place, this type of loss can happen again! Smart money protects... before the problem occurs. They use Electronic Surveillance Detection Audits to uncover hidden vulnerabilities.
Other cases, this year, where Electronic Surveillance Detection Audits could have prevented the loss...
• Jim Damman thought somebody was looking over his shoulder for months. Little did he know that his office was routinely broken into and more than 150-million dollars worth of trade secrets were stolen without a visible trace according to a federal lawsuit. The President of Exel Transportation Services says his suspicion grew so strong that he took the unusual step of sweeping the company's Addison offices for electronic bugs. (Had the "step" not been "unusual" the problem would not have turned into a 150-million dollar loss.)
Preventable? Yes.
• The BexarMet Board of Directors voted Thursday evening to terminate the contract of its embattled general manager, Gil Olivares. Olivares was suspended in August days after a Bexar County jury indicted him on charges of official oppression and illegal wiretapping, among other charges. (The cost: of attorney's fees, lost productivity and employee moral easily makes periodic inspections a no-brainer.)
Preventable? Yes.
• A federal judge denied a motion by a group of ex-securities brokers and former A.B. Watley Inc. executives to dismiss a criminal case against them in an alleged scheme to misuse brokerage firm "squawk" boxes. Prosecutors have alleged that three ex-brokers placed open telephone lines next to the internal speaker systems at their companies so that Watley day traders could secretly eavesdrop on block orders by institutional clients. (The costs here include: stockholder suits, public relations, company attorney fees, lost productivity and employee.)
Preventable? Yes.
• A state lawmaker said Thursday night he attached a digital recorder under an aide’s desk as “just a prank,”... (he) recalled setting the device up on Tuesday, said he forgot about putting the recorder there until Thursday. (Just having an Electronic Surveillance Detection Audit program would have been a deterrent in this case.)
Preventable? Yes.
• Bechtel National has taken disciplinary action against four managers at the Hanford vitrification plant for reportedly eavesdropping on a meeting between safety representatives and the Department of Energy.Preventable? Yes.
• 15 new GSM bugs - eavesdropping devices which can be listened to from anywhere in the world by simply dialing their cell phone number - are featured here, and on ebay here.
(Letting you know about new problems like this is the job of your Electronic Surveillance Detection Audit consultant. This person should also have solutions, too.)
Preventable? Yes.
The list goes on, but the point remains the same.Electronic Surveillance Detection Audits are cheap insurance, only better!
Insurance can't prevent the disaster.
