"How Real is the Risk of Corporate Espionage Today?"

via Security Director's Report (04/09) Vol. 2009, No. 4...
Globalization has resulted in an increased threat of corporate espionage. There are a variety of risks that companies are currently facing. Espionage exists in all industries, but those that are in the high-tech sector will face the most exposure.


Businesses also should be careful of foreign-government spying and U.S. companies that outsource data to India should be mindful of industrial espionage by the country's businesses. Many more competitive intelligence units have been created in order to spy on competitors, especially because it is now much easier to do so.

Spy devices, such as GPS tracking systems and listening devices, as well as Ethernet over Power (sic) help spies find information.

In addition to facing outside risk, companies are simply vulnerable to espionage. Physical defenses are poor and many spies have successfully paid internal employees to steal company data. However, there are solutions to espionage. (more)

SpyCam Story #527 - Cereal Intruder

Australia - A mystery intruder has been plundering cereal and sleeping on the couches for weeks at one of Sydney's marketing agencies...

Even more peculiar, was the absence of large amounts of cereal - about six bowls a night - from the stocks in the office kitchen, and evidence that the showers had been used...

While the company hires creative people to promote clients' brands, it was a moment of genius from the woman who runs the kitchen that snared the unwanted visitor. She came up with the idea of hiding a camera in a cereal box...

The camera was linked to a computer and activated by motion sensors, snapping clear photos of the intruder on his next visit and emailing them to staff...

They showed the man slipping into the office via an overhead ventilation panel (the office is on the building's fifth and top floor) and then leaving via the fire escape...

"He was a particularly neat guy. He'd come in at 4am, have breakfast - and it was a hearty breakfast, six bowls - clean up after himself, shower and then leave.

"He'd made his home here.'' (more)

Spy scandal hits 2016 Olympic race

Rio de Janeiro accuse one of its 2016 Olympic rivals of spying.
On the eve of the IOC Evaluation Commission's final day in Brazil, Rio's bid team revoked the journalist credentials of a man who claimed to be a reporter working for a news agency in Spain. It turns out the man is a paid consultant to Madrid's Olympic bid.

Rio 2016 is reportedly considering filing a formal ethics complaint with the International Olympic Committee. Madrid admits the man works for its Olympic PR firm but denies he was sent as a spy. (more)

"Sometimes you win sometimes you lose,

And sometimes the blues just get a hold of you..."
A total of 10 Lebanese men have now been arrested and charged with spying for Israel... All of those detained are said to have been linked to a spy cell headed by retired Brig.-Gen. Adib Al-Aalam, who was arrested on April 14. As with the others, the latest suspects were charged with gathering information on Lebanese and Syrian military and civilian installations in order to “facilitate” attacks by the Israelis. (more)

"Sometimes you win, sometimes you lose
And most times you choose between the two..."
U.S. drops charges against two alleged Israeli spies. (more)

Wonderin', wonderin' if you have made it..."
Israeli Prime Minister Benjamin Netanyahu has extended by a year the term of office of the head of the Mossad spy agency... (more)

"I'm Talkin' 'bout a sweet seasons on my mind..."
Lyrics by Carole King

The Other Wiretap

WireTap is a half-hour radio show that airs on CBC Radio One Sunday afternoons... An hour-long version of WireTap is distributed in the United States by Public Radio International and is heard on multiple public radio stations. Hosted by Jonathan Goldstein, former producer of Public Radio International's This American Life, the show features stories that are told over the phone ostensibly by Goldstein's friends and family.

The show has possibly been best described as "a weekly half-hour of conversation, storytelling and introspection, culled from equal parts real-world experience and the warp of Goldstein's imagination." Each show tends to follow a particular investigative theme; titles for past shows includes: "Life Lessons", "Reach for the Top", "Prized Possessions" and "Our Fathers".

The series began in the summer of 2004 as a 10-episode experiment... As of 2008, Wiretap has a weekly listenership of 350,000. (more) (more) (more)

Man Used Baby Monitor to Eavesdrop on Woman

CT - A 37-year-old city man was arrested on eavesdropping charges after a baby monitor was found hidden under a women's bed in Belltown, a police sergeant said.

(The man) was charged with third-degree burglary and eavesdropping. Police believe (the man) set up the monitor to listen to the victim's room, Sgt. Paul Guzda said.

The 34-year-old woman reported to police March 30 that after hearing a strange noise sounding like electric static, she found a baby monitor under her bed, Guzda said. The monitor was plugged into a nearby electrical socket. (more)

People we love... Antonio Prohías

48 years ago, this month, Mr. Spy vs. Spy came to the United States. The rest is history...

Antonio Prohías (January 17, 1921 – February 24, 1998), born in Cienfuegos, Cuba, was a cartoonist most famous for creating the comic strip Spy vs. Spy for MAD Magazine.

In the late 1940s, Prohías began working at El Mundo, the most important newspaper in Cuba. By 1960, he had become an internationally recognized and awarded political cartoonist. At this time, Fidel Castro's government took over the paper, and Prohías left Cuba for New York, where he found himself attracted to Mad.

El Hombre Siniestro: (The Sinister Man) wore a wide-brimmed hat and overcoat and had a long pointed nose, becoming the prototype for the Spies. (more)

In the late 1950s Antonio Prohias was the president of the Association of Cuban Cartoonists. On the first of May 1960, he fled from Cuba to America flat broke. Once in the states, he went directly to work at Mad magazine, and became an internationally respected and beloved cartoonist. He started 'Spy vs. Spy' as an anti-Castro cartoon, but it ended up as one of the most popular features in Mad magazine. Prohias drew 'Spy vs. Spy' for Mad until he retired in 1990. Even though Antonio Prohias passed away in 1998, 'Spy Vs. Spy' can still be enjoyed in every issue of Mad Magazine. (more) (NPR audio report) (The first "Spy vs. Spy")

Visitors to my office smile when the see Mr. Black Spy riding atop a 3-foot bomb, on its way down to pay Mr. White Spy a visit. One can only guess what the next frame of this story will be. One thing we all know, the last frame will be MAD... Mutually Assured Destruction. Wry Prohías humor. Neither side ever wins.

Need something to make you, or a friend, smile? Go MAD. Let The Spy Guys make it happen. The International Spy Museum has an army of them waiting for you. Click here.

2008 U.S. Wiretap Report

A total of 1,891 intercepts authorized by federal and state courts were completed in 2008, a decrease of 14 percent compared to the number terminated in 2007. The number of applications for orders by federal authorities fell 16 percent to 386. The number of applications reported by state prosecuting officials dropped 14 percent to 1,505, with 22 states providing reports, two fewer than in 2007. Installed wiretaps were in operation an average of 41 days per wiretap in 2008, compared to 44 days in 2007. The average number of persons whose communications were intercepted decreased from 94 per wiretap order in 2007 to 92 per wiretap order in 2008. The average percentage of intercepted communications that were incriminating was 19 percent in 2008, compared to 30 percent in 2007. (report)

Used Laptops - Hidden Costs

OH - Susan Jeffrey needed a computer, so she decided to buy a used laptop. She hooked up her Webcam and started chatting online with a childhood sweetheart in Boston. After a few weeks of sending messages and what she called private pictures to him, police showed up at her Springfield home.

"They shook a little paper and they said, 'We have a warrant for your arrest,'" Jeffrey said. "I said, 'What?'"

It turned out that the laptop Jeffrey bought was stolen... The computer was equipped with Absolute Software's Computrance LoJack for Laptops.

Jeffrey noticed officers holding a picture of her friend from Boston. She recognized the picture from one of their Web chats. "I was totally stunned," Jeffrey said. "I said, 'How did you get that?'"

Absolute Software's LoJack technology goes beyond tracking. It allows the company to tap into a computer and access files, pictures and essentially anything on the laptop.

"I was just totally stunned," Jeffrey said. "I could barely talk. I just couldn't believe that you could sit in America and be tapped into your own (computer), in the privacy of your own living room." (more, with video)

While LoJack is a good product, it can produce unexpected consequences.

Worse, your new "used" laptop could also be deliberately outfitted with criminal spyware. Blackmail, business secret loss, identity theft and credit card fraud are the unexpected consequences here. These costs can't be pre-calculated.

Expect the unexpected. Be sure to add the cost of having your new "used" laptop - professionally - sanitized to the final purchase price. ~ Kevin

"Chineeesee spy museum. Now, you go away!"

China - A new Chinese spy museum exhibits guns disguised as lipstick, hollowed-out coins used to conceal documents and maps hidden as a deck of cards.

What you won't find there, however, are foreigners.

A sign outside the Jiangsu National Security Education Museum in a park in the eastern city of Nanjing states that only Chinese citizens are allowed inside, a policy designed to keep the communist regime's cloak and dagger methods secret — no matter how timeworn they may be.

"We don't want such sensitive spy information to be exposed to foreigners, so they are not allowed to enter," a spokeswoman for the museum, who would only give her surname as Qian, told The Associated Press by telephone. (more)

SpyCam Story #526 - Up-see Daisy

GA - Police say a Loganville man was caught filming up the skirt of a female shopper Sunday at a Home Depot - and that it doesn't appear to be the first time he's done so.

Police have charged Joseph Davidson, 35, with felony eavesdropping for allegedly recording the lewd footage via a palm-size, home video camera concealed in a flower pot. (more)

Reflect on this... Visual Eavesdropping

I began warning my city clients about visual eavesdropping back in the 1970's. I still do today. My concern then was not computer screens; clients didn't have them.

My concern was lip reading, and it wasn't theoretical. We had a case where this was the method of eavesdropping. The president had a corner office on Park Avenue. Big glass windows. Scores of vantage point offices across the street. We caught them in the act.

The visual eavesdropping info-target is bigger these days. Lip reading concerns have expanded to concerns about: whiteboard / projection / computer screen reading and now... reading the reflections off of shiny objects in the room. ~ Kevin

via Scientific American...
"Through the eyepiece of Michael Backes’s small Celestron telescope, the 18-point letters on the laptop screen at the end of the hall look nearly as clear as if the notebook computer were on my lap.

I do a double take.

Not only is the laptop 10 meters (33 feet) down the corridor, it faces away from the telescope. The image that seems so legible is a reflection off a glass teapot on a nearby table.

In experiments here at his laboratory at Saarland University in Germany, Backes has discovered that an alarmingly wide range of objects can bounce secrets right off our screens and into an eavesdropper’s camera. Spectacles work just fine, as do coffee cups, plastic bottles, metal jewelry—even, in his most recent work, the eyeballs of the computer user. The mere act of viewing information can give it away." (more)

"Dude, let's go for a drive!"

"There are going to be thousands of victims." Anthony Muzichenko, the owner of L.A. Management, who lost 25 computers.

CA - In a bold, systematic hit on a landmark Ventura Boulevard office building, burglars stole scores of computers from at least 60 of the 80 businesses there, taking machines containing sensitive legal documents, credit card numbers and the tax information of thousands of people, police said Saturday.

The overnight theft at the Chateau Office Building in Woodland Hills left accountants, a talent agent, property management companies, attorneys and other businesses in the three-story structure scrambling to assess their losses as police scoured the premises... Several concluded that the thieves' target must have been the information contained on their hard drives, not property.

In one office, a pile of hard drives had been stacked in a corner, ready to be hauled out... thieves left a backup drive, positioned atop the server, leading him to believe that the theft was aimed at "the information, definitely. The computers by themselves are not worth much."

One businessman said the credit card numbers of 7,000 clients were stolen. Accountant Richard Levy said his stolen computer held the tax documents of 800 clients. Attorney Marshall Bitkower said only three computers were taken from his office, but "they had all kinds of stuff. Everything: people's names, credit cards, clients, e-mails back and forth -- who knows what."

Muzichenko, a talent manager, said that when he heard the news he was "very hysterical. I was crying. I have to restore my business." (more)

Moral: Backup and Encrypt.

History of U.S. Privacy - Ben Franklin's Web Site

via amazon.com...
Ben Franklin's Web Site: Privacy and Curiosity from Plymouth Rock to the Internet
This book explores the hidden niches of American history to discover the tug between Americans' yearning for privacy and their insatiable curiosity.

The book describes Puritan monitoring in Colonial New England, then shows how the attitudes of the founders placed the concept of privacy in the Constitution. This panoramic view continues with the coming of tabloid journalism in the Nineteenth Century, and the reaction to it in the form of a new right - the right to privacy.

The book includes histories of wiretapping, of credit reporting, of sexual practices, of Social Security numbers and ID cards, of modern principles of privacy protection, and of the coming of the Internet and the new challenges to personal privacy it brings. (more)

22 Fired During Illegal Eavesdropping Purge

Colombia’s DAS security service fired 22 detectives, apparently in connection with an investigation into the illegal wiretapping of leading public figures... “When questioned about the reason for the dismissals, spokespeople for the agency said Muñoz affected them making use of the discretionary authority the law gives him, and that there will another purge this Friday.” (more)

UPDATE - Colombia's domestic intelligence agency has fired another 11 people in a scandal over illegal eavesdropping of judges, journalists and politicians.

That brings to 33 the total number of people dismissed from the Department of Administrative Security since the scandal broke in February. (more)

Staying Safe Abroad - The Blog, Edward L. Lee II

Last year, I gave all my clients a free copy of Edward L. Lee's book: Staying Safe Abroad: Traveling, Working & Living in a Post-9/11 World Yes, it was that good!

The feedback I received spanned from: "Thank you so much..." to one security director saying, "I am buying copies for all our key executives who travel."

If you travel, or know someone who does, buy the book and get FREE updates by following Staying Safe Abroad - The Blog.

"What makes Ed Lee the big expert?"
Ed Lee retired from the US State Department in April 2006, after a career as a special agent, Regional Security Officer, director of training, chief investigator of the Cyprus Missing Persons Program, director of security of the U.S. Agency for International Development and as a senior advisor in the Office of Anti-Terrorism Assistance.

Most of his work now is devoted to educating global companies and governmental entities in how to be successful and keep their people safe abroad.

His career also includes 15 years as an international security consultant; for ten years he served as the security advisor to the Inter-American Development Bank. Additionally, Ed served six years in the Marines before joining the US State Department as a special agent.

"Why the plug?"
I hear you say.
Just a film noir PI's cliche,
"Dead clients don't pay."

Top Seven Emerging Threats to VoIP Services

A clear, lucid article on VoIP security (or, bad stuff that can happen to that fancy new phone on your desk that plugs into the network instead of the old phone jack). Written by one of the many vendors who offer solutions.

Summary:
• VoIP DoS attacks
• Spam over Internet Telephony (SPIT)
• VoIP service theft
• SIP registration hijacking
• Eavesdropping
• VoIP directory harvesting
• Voice Phishing, or Vishing
"WatchGuard advices all businesses using VoIP systems to review their perimeter and VoIP security." (more)

Additional solution vendors:
• Sipera
• Radware
• VoIP Security Buyer's Guide

FREE VoIP security information:
• Mark Collier's VoIP Security Blog
• Blue Box: The VoIP Security Podcast
• Security Considerations for Voice Over IP Systems

Man gets prison for recording anger-management classes

...and is he pissed!
PA - An Allentown man who secretly recorded his court-ordered anger management classes and posted them on YouTube was sentenced to state prison Friday.

Richard P. Mason III told Northampton County Judge Paula Roscioli that he wanted his daughter to see the group therapy sessions, which were ordered as part of his sentence on a terroristic threats charge, said Second Deputy District Attorney William Matz Jr.

Instead, the recordings landed Mason, 41, with a probation violation and a new sentence of 18 to 36 months in state prison on the threats case. Prosecutors are also considering bringing new charges against Mason for violating the state's wiretap law, Matz said.

The case is ''unique,'' Matz said. ''First for me; I think the first for our office.'' (more)

Lost Laptop Cost Survey

A single lost or stolen laptop costs a business an average of nearly $50,000. At least, that's the word from an Intel-sponsored study by the Ponemon Institute.

That figure is based on Ponemon's recent voluntary survey of 28 US companies reporting 138 separate cases of missing laptops.

Value of missing kit was mathmagically calculated by factoring laptop replacement, data breach cost, loss of productivity, investigation cost, and other variables.

The value of a lost lappy to a firm cost an average of $49,246, according to Ponemon. Minimum damage calculated in the survey was about $1,200, and the maximum reported value was just short of a cool $1m.

By far, the cost of a data breach was found to be the most expensive part of losing a lappy, eating up about 80 per cent of the total average cost to a company. (more) (survey)

Laser Beam-ers on the loose...

Turkey - Eleven vehicles with laser eavesdropping systems were the sources for the wiretapping records that were recently broadcast by the media, daily Hürriyet reported yesterday.

"Two of these vehicles are at the disposal of a team that is under the authority of the Prime Ministry," said CHP deputy Ahmet Ersin, who is also a member of the Parliamentary Wiretapping Subcommittee.

Laser eavesdropping technology enables conversations to be taped without the need to install bugs on targets’ communication devices.

İzmir deputy Ersin said, "I learned that the vehicles were imported from Canada and Israel in 2005, but could not get the addresses of where these vehicles were delivered." (more)

Did you learn about wiretapping in 8th Grade?

Students seem riveted (yawn)...

TEACHER: You’re gonna look at— The words of the week for week five are wiretapping, source, suspicious, notwithstanding, which is a tough word to use in a sentence, and eliminate, okay? (video)

Too bad. Illegal electronic surveillance is an important topic. Teacher, Chris Buttimer, is raising an issue that was glossed over in schools when Nixon was on the hot seat; thus history repeated.

Did Corporate Spying Doom Denizen Hotels?

via Deidre Woollard, Luxist.com...
It looks like corporate espionage has sunk the fledgling Denizen Hotels brand. Hilton Hotel Corp. has announced that it has received a federal grand jury subpoena for documents regarding two former employees of Starwood hotels who switched camps and brought their trade secrets with them.

Starwood has sued Hilton saying that Hilton used privileged information in the development of the Denizen brand. The employees, Ross Klein and Amar Lalvani have been placed on paid administrative leave pending review. The Denizen Hotel website is down and Hilton has announced that the development of the brand has been "temporarily suspended." Will the brand be resurrected after the case sorts itself out? My guess is that Hilton will rebrand the hotels as something else. (more)

Business Espionage - Patent Theft Costs (update)

The Australian Commonwealth Scientific and Industrial Research Organisation (CSIRO) will use the money won from a Wi-Fi technology patent battle to fund further research.

Legal action in the United States between the CSIRO and a number of global computing giants came to an end today, with the last of 14 companies opting for confidential settlements with the scientific agency. (more)

Conclusion: Business espionage is a big BIG gamble. Obtaining justice after the fact is expensive, for all parties. This is a rare case. The good guys won. To add insult to injury, the bad guys are paying for research which will be used against them in the future. Sweet. Most often, however, the spies are allowed to win. Sour. Who "allows" them to win? Corporate victims who never bothered to look for evidence of spies in their midst. Not looking? Get help.

Security Alert - Adobe Acrobat Reader

via Erik Larkin, pcworld.com...
The popular Adobe Reader is a favorite target of online crooks, according to Mikko Hypponen, chief research officer with antivirus company F-Secure. And for better security you should ditch Reader and go with a free alternative...

Poisoned PDFs are also often used as part of a customized, targeted attack, he says, when they're sent to a specifically selected recipient attached to a well-crafted e-mail. (more)

Look for FREE alternate readers at pdfreaders.org

Councilman found guilty in spying case

SC - A former South Carolina county councilman has been found guilty of using spyware to scan another county employee's computer and e-mails.

Attorneys for former Greenville County Councilman Tony Trout said he'll likely appeal the conviction. He faces up to 16 years in prison when he is sentenced later...

Federal prosecutors said Trout used monitoring software to access County Administrator Joe Kernell's computer, took private e-mails and posted them on a Web site.

Trout was convicted of illegally accessing a computer, destroying records and intentionally intercepting and disclosing electronic communications. (more)

‘Squawk Box’ Jury Finds Brokers Guilty

NY - Former Citigroup Inc., Merrill Lynch & Co. and Lehman Brothers Holdings Inc. brokers accused of selling day traders access to internal “squawk boxes” were found guilty of conspiracy in a second trial over the scheme. (more) (background)

Go Green $$$ - Recycle Your Nokia 1100 Phone

Hackers have been offering up to €25,000 (US$32,413) in undergrounds forums for Nokia 1100 phones made in the company's former factory in Bochum, Germany. The phone can allegedly be hacked so as to facilitate illegal online banking transfers, according to the Dutch company Ultrascan Advanced Global Investigations.

Nokia said on Tuesday it is not aware that resale prices for a phone that retailed for less than €100 when it debuted in 2003 have risen so high. Further, Nokia maintains the phone's software isn't flawed.

"We have not identified any phone software problem that would allow alleged use cases," the company said in an e-mailed statement.

The 1100 can apparently be reprogrammed to use someone else's phone number, which would also let the device receive text messages. That capability opens up an opportunity for online banking fraud....

Meanwhile, a Dutch technology site, portablegear.nl, wrote that it placed a fake advertisement for the particular Nokia 1100 on an online marketplace. People offered as much as €500, offering to immediately come pick up the device. (more)

Nokia produced more than 200 million devices in the 1100 model family. The company said it doesn't disclosure figures such as how many 1100s were made in Bochum. (more)

Cell Phone Encryption for the Enterprise User

from the manufacturer...
Qtalk secure enables highly encrypted telephony. Qtalk secure uses the data channel and was designed for business customers with the highest security demands. Qtalk secure is a software solution for business customers enabling encrypted telephony (dynamic encryption, AES 256 Bit) through the data channel on mobile end devices and Windows PCs. Qtalk offers secure telephony without the need for compromises in usability or voice quality.

All conversations with Qtalk secure are initiated with a key exchange mechanism (Diffie Hellmann, 1024 Bit) and encrypted dynamically with an AES 256 Bit encryption.

Qtalk secure can be deployed independent of the network operator. It is applicable in a multitude of networks (GPRS, EDGE, UMTS, HSPA, Wi-Fi) and combines for the first time encryption with user friendly handling. The integrated user list allows instant viewing of the status of the contacts (closed user group) at all times and instant calling. (more)
(click to enlarge)

WorldView - Eavesdropping Concerns in Malta

Even in the tiny country of Malta electronic espionage is taken seriously by business.

"A simple covert listening device costing the perpetrator a measly €200, may end up costing the victim millions of euro in stolen information." Alberta Director Duncan Barbaro Sant speaks to David Darmanin on the incidence of espionage and how it may be counteracted.

Q. Do you believe there is a high incidence of commercial espionage in Malta? Is there any incidence at all?

A. In today’s highly competitive market, commercial espionage is thriving. Individuals and organisations are now turning to the theft of information as a way of gaining a competitive edge. Radio Frequency Bugs can be concealed in almost anything that can be found in the office, home or car. They can be the ultimate infiltration tool to competitors, discontented or disloyal employees, business partners or private investigators. Typically, low paid employees such as cleaners, service providers or security personnel are entrusted with planting the devices in exchange for gratuities.

Q. Have you been informed or found cases of political or diplomatic espionage in Malta? If so, without the need of mentioning names, can you elaborate on details of how this was done?

A. It is a known fact that Malta hosts several VIPs in Malta. These persons can easily be targeted especially when staying in hotels since access to hotel rooms is a minor inconvenience for the spy who is about to plant eavesdropping devices in the actual room or even one of the adjacent rooms. Just over a month ago a service was carried out for a VIP client who chose to rent out a villa rather than stay in a hotel. The company who the VIP works for lost over €15 million last year after a technology that was developed over several years was lost to their competitors by means of an eavesdropping device. Now they take no chances.

Q. What other reasons could there be for espionage to be done in Malta?

A. With the increasing number of pharmaceutical companies setting up plants here in Malta, as well as online gaming companies, these all have a direct interest in protecting their data. In the case of gaming companies, the infiltration of bugging devices in their computer systems is an obvious danger, especially since they would hold credit card details of thousands of customers. For pharmaceutical companies, with research and development in this field being so cut-throat, any lost data can mean a competitor gaining the multi-million licence for a product costing years and possibly millions in medical research.

Q. Are VIPs visiting the country exposed to the risk of having paparazzi install covert cameras or bugs?

A. As regards covert cameras, these may be installed in all sorts of places, clocks, AC vents, behind mirrors and so on. It is estimated that over US$800 million of spy equipment per year is sold within and outside the US, a concern for all businesses around the world. Such devices are not always installed to gather intelligence from competitors; their use varies from collecting data for bribery, spying on colleagues when competing for promotions, collecting evidence for separation cases and so on.

Q. How easy is it to intrude on people’s conversations or information? What devices are used? Where are they obtained from? Is it expensive to bug an edifice or a telephone?

A. Bugs come in various forms – some as innocent-looking as a pen or calculator left on someone’s desk containing an active microphone, the only drawback being that a battery will only last so long. However, one can easily buy a multiple plug with an active microphone over the internet for as little as €200. Once plugged in, it is automatically powered up and enables the perpetrator to listen in to all conversations.

Furthermore, it is also customary for people to discuss confidential matters while travelling in a vehicle, be it with another passenger or on a mobile phone. These devices may relay information on where or who is travelling in the car or being met, thus posing personal security threats as well as information or commercial losses. (more)

Interestingly, the subject of business espionage is not new in Malta, as this book, published in Malta, reveals...
SO YOU WANT TO BE AN INDUSTRIAL SPY?
By Louis Moreau
Gozo Press, 1977 (Malta)

Business Espionage - Aston Martin v. Rival

NY - The owners of a Long Island, New York, exotic car dealership that sells Bentleys and Aston Martins were charged with corporate espionage against a rival that sells Ferraris and Maseratis.

Giacomo Ciaccia and Leka Vuksanaj, owners of Universal Autosports LLC in Glen Cove, were arrested along with Creative Director Michael Lussos at their homes today, according to a statement by Acting U.S. Attorney Lev Dassin in Manhattan.

They are accused of illegally tapping into the e-mails of Ferrari Maserati of Fort Lauderdale-Long Island in Plainview, New York. The defendants accessed Ferrari Maserati’s e-mail server about 2,500 times between February and September last year from their homes or Universal Autosports, according to the criminal complaint dated April 16 and unsealed today.

“In one instance a dealer associated with Universal Autosports e-mailed a customer who had been negotiating with Ferrari Maserati to buy a rare Ferrari Enzo worth more than $1.3 million,” according to the statement.

“Is there any way I can help or get in the middle,” the dealer wrote, according to the complaint. “Have they found you a car yet?” (more)

Car dealers.
Is anyone out there surprised?
Anyone?
....silence....

Wireless LAN Security Survey

Note: This article may prompt you to conduct an independent, company-wide WLAN Security Survey and Legal Compliance Vulnerability Assessment.
If so, be sure to read this.

via infosecnews.org...
Deloitte Touche (India) released the results of a survey titled, "Wireless Security Survey." 35860 wireless networks were surveyed.

Key findings...
• 37% appeared to be unprotected i.e. without any encryption.
• 49% were using low level of protection i.e. Wired Equivalent Privacy (WEP) encryption.
• Balance 14% were using the more secure Wi-Fi Protected Access (WPA/WPA2).
• This makes around 86% of the observed wireless networks vulnerable. (more)

Records from Murray Associates on-site WLAN security surveys show IT departments in the U.S. maintain better security.

However...
More costly problems (legal and espionage) are discovered in almost every system we inspect...

PROBLEM 1: Non-compliance with applicable laws:
• Sarbanes-Oxley Act – U.S. Public Companies
• HIPAA – Health Insurance Portability and Accountability Act
• GLBA – Gramm-Leach-Bliley Financial Services Modernization Act
• PCI-DSS – Payment Card Industry Data Security Standard
• FISMA – Federal Information Security Management Act
• DoD 8100.2 – Use of Commercial Wireless Devices, Services, and Technologies in the Department of Defense Global Information Grid
• ISO 27001 – Information Security Management
• Basel II Accord – Banking
• EU - CRD (Cad 3) – EU - Capital Requirements Directive - Banking

Just one loophole... Hackers are in. Data is out. & "You are out of compliance."

and...

PROBLEM 2: The WiPhishing Vulnerability (in laymen's terms)
I am sure you can remember the name of every person you have loved. Laptop computers remember the names of their past connections, too. Unlike you, however, laptops keep trying to reconnect every time they are turned on.

Unauthorized re-connections are never a good idea, with lovers or computers.

Data hackers pretend to be an old connection. They set up a Wi-Fi station with the old flame’s name (hhonors, starbucks, boingo etc.) Laptop gets turned on; automatically connects. Hacker steals sensitive corporate data on laptop.

Wait! It get’s worse...

Your employee returns to the workplace, jacks the laptop directly to your corporate LAN and logs in. The data hacker is right in there, too! (background)

Secret Recording of Confidential Meeting Exposed...

...negotiations sour.
PA - A judge wants bankrupt Philadelphia Newspapers to focus on its financial reorganization while others investigate claims an investor illegally tape-recorded a sensitive financial meeting.

The ruling follows testimony Monday from Brian Tierney, chief executive of Philadelphia Newspapers. Tierney says a representative of New York-based CIT Group Inc. recorded a November meeting in his office. He says the pre-bankruptcy negotiations soured after he raised concerns about the taping. (more) (more) (more)

Police chief charged in bugging scheme

MN - The police chief of Gaylord... Dale Lee Roiger, 60, is charged with misconduct of a public officer and illegal interception of communications... According to charges: Roiger ordered one of his police officers to secretly place a voice-activated tape recorder in the Chamber of Commerce office... Roiger admitted to two people that he tried "bugging the Chamber office but failed. He said he got the "bugging device" from the city of Glencoe. A Glencoe police detective later confirmed loaning a digital voice-activated tape recorder to Gaylord police officer Tom Webster. (more)

Computer Spies Breach U.S. Electricity Grid

Cyberspies have penetrated the U.S. electrical grid and left behind software programs that could be used to disrupt the system, according to current and former national-security officials.

The spies came from China, Russia and other countries, these officials said, and were believed to be on a mission to navigate the U.S. electrical system and its controls.

The intruders haven't sought to damage the power grid or other key infrastructure, but officials warned they could try during a crisis or war. (more)

Computer Spies Breach Fighter-Jet Project

Computer spies have broken into the Pentagon's $300 billion Joint Strike Fighter project -- the Defense Department's costliest weapons program ever -- according to current and former government officials familiar with the attacks.

Similar incidents have also breached the Air Force's air-traffic-control system in recent months, these people say. In the case of the fighter-jet program, the intruders were able to copy and siphon off several terabytes of data related to design and electronics systems, officials say, potentially making it easier to defend against the craft.

The latest intrusions provide new evidence that a battle is heating up between the U.S. and potential adversaries over the data networks that tie the world together. (more)

"Calling all White Hats. Calling all White Hats..."

"...Computer hacked at Pentagon. Electric Grid hacked..."
The Department of Homeland Security is looking to recruit white-hat hackers to help defend the US's critical internet infrastructure.

An ad by General Dynamics Information Technology on behalf of of the DHS seeks applicants who can "think like the bad guy", understand hacking tools and tactics, analyse net traffic and identify vulnerabilities in federal systems. In a budget request, Defense Secretary Robert Gates requested funds to increase the number of experts it trained each year from 80 to 250 by 2011. (more)
Might also want to put a call out to the Blue Blaze Irregulars. Just sayin'.

When Respected Business Magazines Start Running SpyCam Ads...

...you know
the business climate is brutal!

from the ad...
What happens while you're away?
Let's face it. Our vision is limited to what we can see in the moment. The Agent Camera gives you an extra pair of eyes for a new perspective on what is going on around you. Slip into your shirt pocket, and you'll have access to a whole new world of information you didn't see before.

This tiny spy cam provides you with a high quality audio and video in a package no larger than a USB stick or a pack of gum.

Easily concealable in your pocket, on a shelf, behind a picture, or wherever you need to focus your security, with the Agent Camera you'll know for certain that you won't miss a thing. The Agent Camera is an absolute cinch to use. Simply pop in a Micro SD Card (128MB to 2 GB, aim the camera, and press record. It's that simple. The camera will record continuously in real time for up to 3 hours! After you're done recording simply back up your evidence on your computer with the provided USB cable. (more)

Of course, there is no mention of how that "high quality audio" could easily put you on the wrong end of a criminal and/or civil U.S. lawsuit. As a public service, allow me fill you in... click here. ~Kevin

"Bug the bugs, then kill them!"

The Island of Guam became a living laboratory for scientists as they attached acoustic equipment to coconut trees in order to listen for rhinoceros beetles... the Guam Coconut Rhinoceros Beetle Eradication Project.

"This method of acoustic detection allowed Guam 'rhino hunters' to quickly and efficiently locate feeding grubs in an area thought to be rhino-beetle free," says Aubrey Moore, "and as the beetle broadens its range the acoustic approach to detection may save money and the lives of many coconut trees." (more)

Oryctes rhinoceros (L.) (Coleoptera: Scarabaeidae: Dynastinae) causes economically important damage to ornamental and commercial coconut palm trees in the western Pacific region that could be mitigated significantly by early detection and treatment. Adults are difficult to detect visually because they attack the crowns of the trees and feed internally before mating and dispersing to new hosts. Visual inspection is nevertheless the most widely used detection method, augmented with pheromone traps. This species is an ideal candidate for acoustic detection because the adults are large, active borers that produce stridulations during courtship and mating. (more)

Fun to play with.
"For some weird reason, Japanese people love Rhinoceros Beetles. It is very common for a boy to have a beetle as a pet. They usually put them in little boxes and carry them around in their pockets. Used almost like a Pokemon, boys will whip out their beetles and make them fight each other. This vending machine sells Rhinoceros Beetles - Males for 300 yen, and females for 100 yen." (more)

...and, Not Your Grandfather's Beetle! Uneavesdroppable. Won't be your pet. Would probably make a great fighter, however. (video)

"Protect us, but..."

The head of the Senate Intelligence Committee said Thursday that the panel would investigate reports that the National Security Agency improperly tapped into the domestic communications of American citizens.

The Justice Department confirmed Wednesday that it had reined in the NSA's wiretapping activities in the United States after learning that the agency had improperly accessed American phone calls and e-mails while eavesdropping on foreign communications.

Senate Intelligence Committee Chairman Dianne Feinstein, D-Calif., said the committee will hold a hearing within a month to look at the NSA's surveillance activities. "We will make sure we get the facts," she said.

The Justice Department discovered the problems during a routine review of NSA wiretapping. The government's action was first divulged Wednesday by The New York Times. (more)

You Need More Than a Password to Protect You

Canada - ...a young woman was apparently killed by her laptop last month.

Heather Storey, 25, of Delta died after the small car she was driving was hit by a tow truck turning left.

When investigators looked into the incident, however, they concluded she would have survived if not for her laptop computer.

Storey was on her way out of town for work at the time of the accident and usually kept her laptop in a backpack in the backseat, according to her brother Michael Pratt.

"What we believe happened [was] that she was struck in the back of her head and neck with this laptop computer," RCMP Sgt. Roger Morrow said Wednesday morning at the Surrey detachment, east of Vancouver.

"She simply didn't have it secured within the confines of her car, and ultimately it has been the instrument of her death," he said. (more)

We have too many electronic gadgets these days. We worry more about the information on them than we do about the safety risks they pose. Use common sense. Think ahead. Don't use cell phones while driving. Don't place electronic gadgets on the dashboard or rear deck. Don't wear earphones while driving, and don't wear Bluetooth earpieces while driving or making love. They give the same wrong impression either way.

"Is this a game of chance?" (update)

..."Not the way I play it, no." ~W.C. Fields
New York - A jury began deliberations on Monday in Brooklyn federal court for the retrial of six men accused in a criminal case of an alleged plan to misuse information announced over brokerage-firm "squawk" boxes.

The case concerns announcements at many Wall Street firms that disclose when customers are about to buy or sell big blocks of stock. Federal prosecutors from the U.S. attorney's office for the Eastern District of New York claim that brokers at Merrill Lynch & Co. (now a part of Bank of America Corp.), Citigroup Inc.'s Smith Barney unit and the old Lehman Brothers Holdings Inc. were paid to leave open telephone lines next to the internal speaker systems at their firms so that traders at the now-defunct A.B. Watley Inc. could secretly eavesdrop on block orders by institutional clients between 2002 and 2004.

Prosecutors say the Watley traders made nearly $1 million by trading ahead of, or front-running, the orders that were broadcast. (more) (background)

Funniest Home SpyCam Video to Date

Business Espionage - Patent Theft Costs

Australia - The Australian Commonwealth Scientific and Research Organisation (CSIRO) has had some more wins in an ongoing legal battle over the use of patented Wi-Fi technology...

Three weeks after Hewlett-Packard reached an agreement with the CSIRO, a spokesman has confirmed that Intel, Dell, Fujitsu, Microsoft and Asus have followed suit. Discussions are continuing with a range of other companies, including Nintendo and Netgear.

...law experts say the settlements could be a windfall for the CSIRO, because of the scale of the unauthorised use of the wireless technology. (more)

UPDATE - 4/23/09 - The Australian Commonwealth Scientific and Industrial Research Organisation (CSIRO) will use the money won from a Wi-Fi technology patent battle to fund further research.

Legal action in the United States between the CSIRO and a number of global computing giants came to an end today, with the last of 14 companies opting for confidential settlements with the scientific agency. (more)