MBD* News - Chinese Report Chinese Business Espionage

Hunan Sunward Intelligent Machinery may face a lawsuit following allegations of industrial espionage, reports the 21st Century Business Herald, citing an unnamed insider. Sunward was accused of sending industrial spies competitor Shenyang North Traffic Heavy Industry Group to gain access to proprietary technology. The spies have been arrested, the insider added...

An anonymous source at North Traffic said the incident was not the first time Sunward had stolen from competitors; North Traffic has already submitted the case to court. Sunward was established in August 1999 and manufactures construction machinery with a focus on rock-drilling equipment. (more)

SpyCam Story #614 - Recent SpyCam News

OH - A Catawba man was arrested and jailed Monday after investigators say he used a covert camera to record two girls in the shower at his home.

Jack Lee Maley, 45, of 350 N. Champaign St., was taken into custody and charged with three counts of illegal use of minor in nudity oriented material or performance, second degree felonies. One of the juveniles found the camera and reported it to the Clark County Sheriff’s Office. Further investigation revealed that a second juvenile female had also been captured on video as she showered. Neither juvenile was aware they were being recorded. (more)

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CA - A Southern California computer repairman suspected of installing spyware on laptops that enabled him to snap and download photographs of women showering and undressing in their homes was arrested Wednesday at his home, police said.

Police began investigating when a Fullerton resident complained about suspicious messages appearing on his daughter's computer last year...

The software sent fake error messages telling users to "fix their internal sensor soon," and "try putting your laptop near hot steam for several minutes to clean the sensor," Goodrich said. (video) (No blond jokes, please.)

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KS - Hiding in plain sight, a camera recording people without their knowledge or consent. Police are trying to figure out who put a hidden camera in the changing room of the north YMCA. It was hidden inside a clothing hook.

"Someone bumped into it and if fell off and discovered it was a camera," said Lt. Randy Reynolds of the Wichita Police Department. (more)
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CA - A man arrested by Glendora Police for placing a spycam in a Starbucks restroom in Glendora pleaded not guilty in a Pomona Superior Courthouse Tuesday morning.

William Zafra Velasco, 25, was arrested May 4 after he confessed to installing a hidden camera disguised as a plastic hook in a women’s Starbucks restroom in Glendora. (more)
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OH - A 59-year-old Tallmadge man was sentenced to seven years in prison Monday for using his cellphone to film a 13-year-old girl getting out of the shower.
Summit County Common Pleas Judge Paul Gallagher sentenced William Chesrown to prison after he was found guilty by a jury on May 16 of gross sexual imposition, two counts of illegal use of a minor in nudity-oriented material.

The prosecutor said in December the young girl noticed Chesrown's cellphone pointing at her with the record light on as she got out of the shower. She discovered five nude videos of herself saved on the phone. (more)

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FL - The manager at a Starbucks store in the Brandon Town Center mall called police after finding a device left behind in the cafe's public restroom.

It turns out it was a camera -- but the apparent spy was not as sly as he thought. Police say he left the camera rolling as he got in his car one day, giving them a glimpse of his license plate.

Eric Efaw was arrested and charged with voyeurism yesterday. Police say he admitted to putting the camera in the unisex bathroom, and that he's done it six to seven times in the last two months. (more)
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These stories are presented to raise awareness. The enclosures continue to become more clever. The picture resolution is now HD. Features include: still shots, movies, motion detection, automatic uploading, SD card memory, low-light vision, audio, wireless and more. And, they are inexpensive. Remember, the spycam stories that become news are just the failures. Each story could represent hundreds of successes. Take a moment to see what you are up against. (click here)

British Tabloid Hacked Missing Girl’s Voice Mail

The voice-mail account of a British schoolgirl who went missing in 2002 and whose murdered body was discovered six months later was repeatedly hacked by the News of the World tabloid at a time when no one knew what had happened to her, a lawyer for her family said Monday.

According to the lawyer, Mark Lewis, the newspaper not only intercepted messages left on the phone of the girl, Milly Dowler, 13, by her increasingly frantic family after her disappearance, but also deleted some of those messages when her voice mailbox became full — thus making room for new ones and listening to those in turn. This confused investigators and gave false hope to Milly’s relatives, who believed it showed she was still alive and deleting the messages herself, Mr. Lewis said. (more)

Why Businesses Conduct Checks for Bugging Devices - Reason #43

Reason #43 - Anyone can build or buy a bug with the help of the Internet.

Here are a few examples...

--- Free advice ---

Record Telephone Conversations By Building This "Bugging" Equipment - by Swagatam

 "The circuit of a simple FM transmitter described in the article, when integrated with a telephone line, very interestingly starts transmitting all the conversations made over it. Moreover it doesn’t require any external power for the purpose.

Introduction
At times many of you must have felt the need of spying on somebody’s conversation over the telephone and wondered how to bug a telephone.

Morally it won’t be correct to eavesdrop on an individual’s personal discussion, but through electronics you can always and every time find a way of fulfilling your wishes no matter whether the act is ethical or not.

Though I won’t recommend using the present circuit for listening to somebody’s private talks, it can rather be used as a fun gadget for broadcasting a telephone conversation over the FM radio." (more)

--- Books ---
Now Hear This - The bible of bugging schematics.

--- Low cost devices for sale ---

eBay

--- Antidote --- 

Business Counterespionage Strategy.

U.S. Wiretaps Rose 34 Percent Last Year

The sharp wit of Mark Parisi - offthemark.com

U.S. - The number of court-approved wiretaps rose 34 percent last year, though an unspecified amount of the increase was the result of changed reporting procedures.

According to a report by the Administrative Office of the United States Courts, federal wiretaps rose 82 percent in 2010 from the previous year while state applications rose 16 percent. Combined, 3,194 wiretaps were authorized — 1,207 by federal judges, 1,987 by state judges. (more)

SpyCam Story #613 - Bored Making Water Soft

KS - A Garden City businessman and former vice president of the USD 457 Board of Education has been accused of placing and using a concealed camcorder to eavesdrop in the women's bathroom at his business.

John Scheopner, 56, was arrested at 8:30 a.m. Wednesday in Finney County on allegations he used a concealed camcorder to eavesdrop on a 53-year-old Garden City woman, a 28-year-old Lakin woman and a 32-year-old Garden City woman in the women's bathroom at Scheopner's Water Conditioning, 2203 East Fulton Plaza, according to Garden City Police Sgt. Michael Reagle. Scheopner allegedly eavesdropped on the 32-year-old woman twice, Reagle said. (more)

This Week in Spy News

Zimbabwe’s dreaded and notorious spy agency the Central Intelligence Organisation (CIO) was thrown into turmoil Thursday evening after a London based independent radio station published details of some 480 plus state security agents, many behind acts of torture, murder and abductions. (more)

MELBOURNE'S inner-city surveillance camera network is to expand amid revelations it captures one potential crime every 90 minutes. (more)

Suspected US spy Sarah Shourd, who was released by Iran on humanitarian grounds, has changed her tune about the treatment she received while in the Islamic Republic. (more)

A Russian colonel was convicted of treason for betraying a group of spies in the United States, including Anna Chapman, a court spokeswoman told CNN Monday. (more)

How did scientists build a better spy plane? A little bird told them. Engineers have developed a micro air vehicle (MAV) that mimics the flight abilities of the swift, a passerine bird renowned for its aerial acrobatics. Camera-mounted MAVs are frequently used in reconnaissance and rescue missions to scope out a dangerous situation before humans go in. (more) (video)

If you're the parent of a teen or young driver, listen up. NBC's PC Mike Wendland has found some apps that will let you spy on your kids driving, almost as if you're right there in the passenger seat. Warning: Your kids aren't going to like this. (more) (alternate video link)

Changing Times: Video Vigilantes see through Mob Anonymity

...Nathan Kotylak... When his beloved Vancouver Canucks lost the Stanley Cup ice hockey championship on June 15, Nathan...joined a gang of rioters in downtown Vancouver, who did what rioters everywhere always do: break shop windows, burn cars, and fight the power. Police managed to arrest a few of the worst (or slowest) offenders on the spot, but rioters have always been able to take advantage of the anonymity afforded by the mob.

Until now.

The upstanding citizenry of Vancouver, shocked and embarrassed that their city had become synonymous with hooliganism (which is not a Canadian virtue), called for something to be done about this outbreak of anarchy.

Within a few hours, one of those citizens had set up a blog, the Vancouver 2011 Riot Criminal List, where they solicited all of the imagery captured during the riots - photographs from newspaper reporters, video footage from television helicopters, even images snapped on mobiles, uploaded to the web.

Vancouverites set to work, digging up an enormous wealth of material...

We're coming into the 'Era of Omniscience'. Anything that depends on limited knowledge - or, as the strategists term it, 'informational asymmetry' - has begun to fall apart. Whether you're a rioter or a vigilante, a cop or a criminal, a resident or an alien... (more) (sing-a-long)

“I find your lack of faith disturbing.” (Darth, on covert cop apps.)

Smartphones are impressive devices, to say the least. A smartphone user can consume TV, music & movies; communicate via streaming video; check the weather; record audio; take professional quality video footage; snap high quality photos… The list just continues to grow and grow. With all of these incredible capabilities, why not add surveillance?

A recent article over at the Atlantic highlights a fascinating project by 23-year-old hacker Rich Jones. CopRecorder (iPhone) and OpenWatch (Android) are part of an experiment Jones describes as "a global participatory counter-surveillance project which uses cellular phones as a way of monitoring authority figures." In short, CopRecorder and Openwatch are apps that covertly record audio during encounters with authority figures, enabling the user to submit the audio anonymously to the OpenWatch site.

Here's a brief explanation of the project (plus instructions for installation): (more)

...and then they bought Skype. Your tax dollars at work?

 The U.S. Patent and Trademark Office published a Microsoft patent application that reaches back to December 2009 and describes “recording agents” to legally intercept VoIP phone calls.

The “Legal Intercept” patent application is one of Microsoft’s more elaborate and detailed patent papers, which is comprehensive enough to make you think twice about the use of VoIP audio and video communications. The document provides Microsoft’s idea about the nature, positioning and feature set of recording agents that silently record the communication between two or more parties.

The patent was filed well before Microsoft’s acquisition of Skype and there is no reason to believe that the patent was filed with Skype as a Microsoft property in mind. [Other than governments worldwide might pay a bundle to be able to eavesdrop on Skype calls.] However, the patent mentions Skype explicitly as an example application for this technology and Microsoft may now have to answer questions in which way this patent applies to its new Skype entity and if the technology will become part of Skype. (more)

Korean Broadcasting & Communications Committee Fears Bugging

Korea - Rep. Kim Jae-yoon (right), the main opposition Democratic Party’s chief secretary at the National Assembly’s Culture, Sports, Tourism Broadcasting and Communication Committee, and the party`s floor spokesman Hong Young-pyo submit Sunday documents to Yeongdeungpo Police Station. The party seeks a police probe into suspected eavesdropping into the party chief’s office in parliament. (more)

Thus making Fritz the butt of some "you sound a little tinny" jokes.

A German chemicals company said on Monday its managers have begun keeping their mobile phones in biscuit tins during meetings in order to guard against industrial espionage.

"Experts have told us that mobile phones are being eavesdropped on more and more, even when they are switched off," Alexandra Boy, spokeswoman for Essen-based specialty chemicals maker Evonik, told AFP.

"The measure applies mostly when sensitive issues are being discussed, for the most part in research and development," she said, confirming a report in business weekly Wirtschaftswoche.

Biscuit tins have a so-called Farraday cage effect, she said, blocking out electromagnetic radiation and therefore preventing people from hacking into mobile phones, not only for calls but also to get hold of emails. (more) (sing-a-long)

Actually, this is a fairly good MacGyver on their part. However, professional enclosures with padding and internal white noise generators are also available.

A Microsoft Wiretap Patent...

...what could possible go wrong?

Microsoft has been granted a patent for technology that acts as a wiretap of sorts for Internet communication, allowing governments or other law-enforcement authorities to record the data without detection.

Dubbed "Legal Intercept," using the technology means "data associated with a request to establish a communication is modified to cause the communication to be established via a path that includes a recording agent" that silently records the data, according to a filing with the U.S. Patent and Trademark Office.

In other words, the technology intercepts Internet communications data so it can be recorded for the purposes of reviewing it later by, presumably, government or law-enforcement officials.

"Sometimes, a government or one of its agencies may need to monitor communications between telephone users," Microsoft said in the filing, describing how a recording device can be placed at a central office to record communications over a traditional telephone network.

But with Voice over IP and other Internet-based communications, "the [conventional] model for recording communications does not work," according to Microsoft. (more)

China Opens Chain of Spy Schools

Last week, China opened its eighth National Intelligence College on the campus of Hunan University in the central city of Changsha. Since January, similar training schools have opened inside universities in Beijing, Shanghai, Xian, Qingdao and Harbin.

The move comes amid growing worries in the West at the scale and breadth of Chinese intelligence-gathering, with MI5 saying that the Chinese government "represents one of the most significant espionage threats to the UK"...

The new schools aim to transform and modernize the Chinese intelligence services, producing spies who are trained in the latest methods of data collection and analysis. Each school will recruit around 30 to 50 carefully-selected existing undergraduates each year...

The United States has a similar project, named the National Security Education Program (more)

Beef Board Admits CEO Eavesdropped on Conference Calls

The Cattleman's Beef Board has admitted its CEO eavesdropped on conference calls between the National Cattlemen's Beef Association and members of the Federation of State Beef Councils...

The response to NCBA states that Ramey admitted to repeatedly listening in unannounced to NCBA-organized conference calls with state beef council executives, and that he listened to a recording of one of those calls...

Ramey eavesdropped on conference calls during the time NCBA was working to restructure its board, which could have impacted the Federation of State Beef Councils and decisions on checkoff allocations, said Lynn Heinze, Beef Board vice president of communications. (more)

N.B. See this story. ~Kevin