According to Crispin Sturrock, there are yet no statistics available about the scale of corporate espionage in the UK, the recent studies in the US and other countries indicate that it may range to ’billions and billions of dollars’. “We have seen a dramatic increase from countries such as China and Russia, a high volume of new techniques come from these countries into our market, and we get a lot of reports and statistics saying that there are attacks coming from this direction,” Mr Sturrock explains.

He also indicates that while the sectors struggling with industrial espionage are traditionally high-tech start-ups, banks and pharmaceuticals, there is a massive increase of such cases in the legal sector. “It is about protecting the conversations between clients and their lawyers, which may have a great deal of value for the third party, and we are seeing an immense growth in this sector”, says Mr Sturrock.

Daily Business states that although corporate espionage has become increasingly common, companies tend to forget that simple old-fashioned eavesdropping and bugging are still the most popular ways to gather confidential information. Mr Sturrock explains that spying equipment has become much cheaper, more accessible and easier to deploy. “In the UK, a small GSM bug can cost only GBP150 and it works incredibly well. Most companies spend a lot of money on IT systems and firewalls to protect themselves against corporate espionage, where as they spend very little money protecting their key conversations,” says the founder of a company that counters unauthorized surveillance, information leaks and other forms of commercial espionage. 

BBC World Service interviewed Crispin Sturrock, the Founder and CEO of WhiteRock, for the Daily Business program. (audio interview available until 1/1/11)

Business Espionage: Insiders Sell Out

CA - A key cooperator aiding a major federal investigation into insider trading admitted this month to obtaining and selling confidential information about Marvell Technology Group Ltd. and other companies, according to documents unsealed in federal court.

The documents unsealed Thursday relate to Karl Motey, a California-based investment consultant, and they provide insight into how he was ensnared in the investigation and within months began to help authorities in their probe into the activities of analysts, hedge funds, mutual funds and investment bankers, among others. The extent of Mr. Motey's activity suggests that the insider-trading probe could expand in coming months. More arrests are expected next year. (more)

Voicemail Hacking Pays $3,270.00 Per Week?!?!

Actress Sienna Miller is seeking damages from the U.K.’s News of the World newspaper for hacking the voice mail on three of her phones to get personal information, according to court documents.

Miller claims the newspaper, owned by Rupert Murdoch’s News Corp., paid private investigator Glenn Mulcaire 2,500 pounds ($3,270) a week to eavesdrop on personal messages between her, her friends and business associates. The actress, who also works as a model and fashion designer, claims news editor Ian Edmondson approved the work contract. (more)

Business Espionage: Hhonors

Hilton Worldwide Inc. will be banned for two years from creating a luxury "lifestyle" hotel chain under an agreement to settle a corporate-espionage lawsuit.

The settlement stems from a suit filed last year by rival Starwood Hotels & Resorts Worldwide, which accused Hilton officials of stealing confidential Starwood documents to develop a new boutique-style chain that would appeal to modern tastes...

The lawsuit alleged that Ross Klein and Amar Lalvani, two former Starwood executives who had joined Hilton, took more than 100,000 documents to recreate the success of Starwood's W Hotel. Neither man could be reached for comment; both left Hilton after the suit was filed. Starwood said it discovered Hilton had the documents only after Hilton returned them. Hilton officials have said they returned the documents out of "an abundance of caution." (more) 

Don't count on your competitor to "do the right thing." 

Develop a counterespionage strategy. 

Need help? 

Call us.

Santa Claus Is Tapping Your Phone

Sung to the tune of... 
"Santa Claus is Coming to Town"

You better watch out,
You better not cry,
You better not pout,
I'm telling you why,
Santa Claus is tapping
Your phone.

He's bugging your room,
And reading your mail,
He's keeping a file
And running a tail
Santa Claus is tapping
Your phone.

He hears you in the bedroom
Surveills you out of doors
And if that doesn't get the goods
Then he'll use provocateurs.

So you mustn't assume
That you are secure
On Christmas Eve
He'll kick in your door
Santa Claus is tapping
Your phone.

Business Espionage: If you're not a client, you will remain bugged.

UK - From the top of the Gherkin building in London, Crispin Sturrock points out an anonymous-looking office block in the swirling snow below. “There’s a device in there,” says the chief executive of WhiteRock Defence Systems, an information security consultancy that helps companies protect themselves against spies. “They’re not clients of ours, but whenever we scan for transmissions in nearby buildings, we pick it up. It’s been there for ages, just streaming information out.” The building in question is bugged with an electronic device transmitting information about one of its tenants. In the era of WikiLeaks, it is tempting to view all leaks as news headlines. But in general, corporate leaks tend to be of interest only to a very small group of people – an organisation’s competitors or potential buyer. “The reasons people engage in competitive information gathering are usually financial gain and leverage,” says Mr Sturrock. (more) (free business espionage newsletter)

Workplace Bugging - If it works, don't call it primitive.

Officials in the Vermont town of Charlotte say they found listening devices in the Town Hall that would have allowed someone to eavesdrop on both public and private town business sessions.

Town Planner and Selectboard assistant Dean Bloch says the bugs were discovered in October during a retrofit of a dropped ceiling.

A small dynamic speaker, which may also be used as a microphone.

Shelburne Police, who serve Charlotte, say the devices weren't working and they could have been up to 10 years old.

Officer Chris Morrell tells the Burlington Free Press the spying device were "primitive." He says the two microphones were connected to battery-powered, wireless transmitters that might have carried a signal into the parking lot. (more) (more)

Security Directors: FREE Security White Paper - "Surreptitious Workplace Recording ...and what you can do about it."   

"Now do you believe in Santa Claus?"

Nine months after declaring the Bush administration's warrantless surveillance program illegal, a federal judge ordered the government on Tuesday to pay for wiretapping an Islamic charity without a warrant.

Issuing his final ruling in the lawsuit of the Al-Haramain Islamic Foundation, U.S. District Court Judge Vaughn Walker said the government should pay $2.5 million in attorneys fees and more than $20,000 for each of the two officials of the charity who were wiretapped. (more)

Workplace Bugging - The Amorous Rhinelander

WI - A Rhinelander man accused of stalking a former co-worker is scheduled to go on trial March 14.

According to online court records, Stanley F. Pecor, 57, will be tried on 69 felony counts including stalking, intercepting wire communications, misappropriation of personal identification information and bail jumping...

Pecor is accused of closely monitoring the activities of a former co-worker, bugging her office, recording some of her phone calls and gathering personal information about her.

Police searched Pecor’s residence and found, among other things, several minute-by-minute logs of the alleged victim’s activities, phone-tapping and voice-altering equipment, the alleged victim’s personal financial records and audio recordings of her at work.

Pecor remains in the Oneida County jail on $200,000 cash bail. If convicted of all charges, he could spend the rest of his life in prison. (more)

Security Directors: FREE Security White Paper - "Surreptitious Workplace Recording ...and what you can do about it."   

Business Espionage: "at Apple you can get fired for saying K48."

In their most significant move yet in a sweeping insider-trading investigation, federal prosecutors charged four corporate managers with peddling financial details about prominent technology companies and with leaking secrets about popular consumer products such as Apple Inc.'s iPhone in exchange for cash. (more)

...according to a criminal complaint unsealed Thursday, a Flextronics director named Walter Shimoon had a telephone conversation with an an unnamed "cooperating witness" (CW-2) employed by a hedge fund. During this conversation, secretly taped...he dropped his two bombshells:

..."coming out next year" with a new iPhone that's "gonna have two cameras"...

..."they [Apple] have a code name for something new ... It's ... It's totally ... It's a new category altogether... It doesn't have a camera, what I figured out. So I speculated that it's probably a reader. ... Something like that. Um, let me tell you, it's a very secretive program ... It's called K, K48. That's the internal name. So, you can get, at Apple you can get fired for saying K48." 

The iPad -- code named K48 -- was unveiled four months later. (more)

If the company with one of the best counterespionage strategies around has these problems, imagine what is happening at your company. Kick off 2011 with a counterespionage strategy. Call us.

SpyCam Story #595 - Brazos Taping

TX - A former manager of the Brazos Valley Bombers is behind bars, accused of secretly video taping several of his female employees while they were changing.


Kfir Jackson, 32, was arrested Friday. He is charged with five counts of improper photography or visual recording.

According to Bryan police, Jackson asked several female employees to change into some uniforms he was considering them wearing for their job. The victims became suspicious they were being videotaped and called police 

Bryan police say on Wednesday, the Criminal Investigation Division executed a search warrant at 405 Mitchell St. in Bryan. That's listed as the Brazos Valley Bombers' office. Several electronic items including computers were seized. These items were forensically analyzed at the Bryan Police Department. Images found on the hard drive of one of Jackson's computers were consistent with the victims account. (more)

Ultimate TSCM Smackdown

The explosion heard in Lebanon late Wednesday was an Israel Air Force operation aimed at destroying an espionage device it had installed off the coast of the city of Sidon, the Voice of Lebanon radio station reported on Thursday.

The report comes a day after the Lebanese Army said it had uncovered two Israeli spy installations in mountainous areas near Beirut and the Bekaa Valley, The installations included photographic equipment as well as laser and broadcast equipment...

On December 3, Hezbollah activists found Israeli wiretapping equipment near the southern Lebanese town of Tyre. After it was discovered, the equipment was destroyed by remote control in a blast that injured two Lebanese civilians...

Hezbollah said the installations were used to tap into the independent fiber-optic communications network that the Islamic organization set up throughout Lebanon in 2008.

In October of last year, Hezbollah operatives uncovered another wiretapping installation near the southern Lebanese village of Houlah. According to Lebanese security officials, the facility had tapped into Hezbollah's independent landline telephone system. ...the equipment consisted of underground Israeli wiretapping installations that Israel blew up by remote control out of concern that they were about to be discovered. 

Israel has neither confirmed nor denied that the equipment served as a surveillance installation... (more)

"Bug-in-a-Book" project at the Spy Museum

via David Simpson

We all love spy gear, from the wacky Maxwell Smart rotary-dial shoephone to the grab bag of goodies Bond always so nonchalantly snares from Q. Thank you, MAKE, for Volume 16, the "Spy Tech" issue, which featured Mad Magazine's iconic Spy vs. Spy on the cover. In that issue, you can find my wireless "Bug-in-a-Book" project. The guts come from readily available Radio Shack components (a mini FM transmitter for listening to your iPod through the car stereo and a grandpa-tech amplified listener). 

Fast forward: I'll be leading that workshop at the Spy Museum at the end of January.

The session will open with an "NCIS-like" briefing, laying out an impeding threat and mission, but I can't divulge the full details here. Let's just say that this whole thing was triggered by an encrypted message intercepted by an allied listening post off the coast of Algeria on one of the long wave frequencies known to be used by a US-based black market arms dealer and certain intermediaries representing a radical militant religious group targeting pro-western nations. Maybe by now it's becoming clearer; the well-being of the free world lies in the hands of the young makers that attend this workshop and the intelligence they're able to gather during surveillance using their field-made Bug-in-a-Book. (more)

Attic'ed to Love

Authorities apprehended a man who camped out in his ex-girlfriend's attic to spy on her every move.

Merced County Sheriff's Department was called when the girlfriend feared her ex had been in her home.

"One of our deputies actually crawled up into the attic and found him there hiding under some insulation," Merced County Sheriff's Department Deputy Tom MacKenzie said, "and evidence appeared that he had been there for some time."

The girlfriend first thought something was out of place when she noticed her cell phone was missing.

"The scary part is he came down sometime at night to steal her cell phone while it was charging to see if she had been calling any new guys or new boyfriends," MacKenzie said. (more) (creepy, but sing-a-long anyway)

Why You Shouldn't Use Outlook Rules to Intercept Your Boss's E-mails

Big surprise! Turns out that forwarding your boss's e-mail to yourself with Outlook rules is quite illegal. Ars Technica reports that David Szymuszkiewicz, now a former IRS worker, learned this the hard way after being convicted on wiretapping charges under the U.S. Wiretap Act.

Already in hot water for driving drunk with a suspended license, Szymuszkiewic's job required he drive to the homes of delinquent tax payers. Out of fear for his job, Szymuszkiewicz set up a rule on his supervisor Nella Infusino's Outlook application that forwarded any e-mails sent to her...

Despite the rather serious charges, Szymuszkiewicz was sentenced to a relatively lenient 18 months probation. (more)