Industrial Espionage : Developing a Counterespionage Program book cover
1st Edition

Industrial Espionage
Developing a Counterespionage Program

ISBN 9781466568143
Published September 25, 2013 by CRC Press
232 Pages 33 B/W Illustrations

USD $160.00

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Book Description

The FBI estimates that billions of U.S. dollars are lost each year to foreign and domestic competitors who deliberately target industrial trade secrets. And, although today’s organizations face unprecedented threats to the security of their proprietary information and assets, most books on industrial espionage fail to supply guidelines for establishing a program to prevent and thwart such threats.

Filling this need, Industrial Espionage: Developing a Counterespionage Program provides complete coverage of how to ensure the protection of company proprietary information and assets, including how to develop an effective corporate counterespionage program. The book presents the insights of a former veteran of the Office of Naval Intelligence.

The book examines the motives behind industrial espionage and illustrates the variety of spy tradecraft utilized. Through the use of real-world case examples, the author provides guidelines to determine the current threat level to your organization’s proprietary assets as well as the physical security countermeasures, policy, and procedures that must be in place to establish an effective counterespionage program.

Outlining the day-to-day aspects of protecting sensitive data and trade secrets in a corporate security setting, this book is suitable for organizations that have proprietary information and assets to protect, businesses that have operations or partner with companies overseas such as China, organizations that work with the federal government on classified projects, security and counterespionage professionals, and university degree programs in Homeland Security and intelligence.

Table of Contents

Industrial Espionage: Motives and Threats of Industrial Espionage Defined
US Espionage Acts of 1917
The US Economic Espionage Act of 1996
Uniform Trade Secrets Act
State Laws Related to Trade Secrets and Espionage
US Intelligence Agencies
     Federal Bureau of Investigation (FBI) 
     Department of Homeland Security Office of Intelligence and Analysis 
     State Department Intelligence 
     Treasury Department Office of Intelligence Support 
     Defense Security Service 
Determining the Value of Information
Conditions for Industrial Espionage 
          Espionage Threat from Foreign Governments
          Espionage Threat from Competitors
          Espionage Threat from Inside
FBI Warning Signs of Insider Espionage
Espionage Threat from Freelance Industrial Espionage Operatives

Espionage Tradecraft
The Intelligence Cycle 
     Planning and Direction 
     Analysis and Production 
Categories of Intelligence Collection and Tradecraft 
     Human Intelligence (HUNINT) 
          Methods of recruitment
     Imagery Intelligence (IMINT) 
     Open Source Intelligence (OSINT) 
     Signals Intelligence (SIGINT) 
     Measure and Signatures (MASINT)
Deception and Pretext Tradecraft

Cyber Espionage
Cyber Industrial Espionage Defined
Cyber Espionage Indicators 
     Common Cyber Indicators 
     Phishing and Spear Phishing 
     Malicious Code 
     Weak and Default Passwords
     Unpatched or Outdated Software Vulnerabilities 
     Removable Media
Cyber Espionage Tradecraft 
     Intrusion into the network 
     Obtain user credentials 
     Establish a backdoor 
     Install multiple utilities 
     Data exfiltration 
     Maintaining persistence
Use of PowerPoint as Cyber Espionage Tradecraft 
     Insider Methods 
     Counter Methods
Internet-Based Social Networking Espionage
Advanced Persistent Threats
Cyber Espionage Threats and Targets 
     Cyber Criminals 
     Organized Crime 
     Foreign Intelligence Entities (Cyber Spies)
Cyber Espionage Targets
Cyber Espionage Countermeasures
Cyber Espionage Awareness Training
Cyber Espionage Terms 
     Anonymizing Proxies
     AutoRun Worm 
     Chain Letter or Email Malware 
     Data Theft, Leakage, or Loss 
     Denial of Service 
     Domain Name System Hijacking 
     Fraudulent Antivirus Malware
     Internet Worm 
     Mobile Phone Malware 
     Social Networking Threat 
Cyber Counterespionage Terms
     Application Control 
     Intrusion Prevention System
     Network Access Control 
     URL Content Filtering

Developing a Counterespionage Program
Conducting a Counterespionage Risk Assessment
The Counterespionage Plan
Counterespionage Awareness Training
Counterespionage When Traveling
Travel Preparations 
     Travel Itinerary 
Transportation Hub Security
Hotel Security 
     Arriving at and Departing from Hotel 
Counterespionage Security in a Foreign Country 
     Personal Conduct 
     Arrested! What Do I Do Now?
Counterespionage Audits
Counterespionage Investigations 
     Inductive Reasoning 
     Deductive Reasoning
Counterespionage Technical Surveillance Counter Measures (TSCMs)

Protecting Proprietary and US Government Classified Information
Identifying Information to be Protected
Marking of Protected Information
Secure Storage of Protected Information
     Class 1 
     Class 2 
     Class 3
     Security Filing Cabinets
Secure Destruction of Protected Information
     Methods of Destruction 
          Paper Records 
          Electronic Media 
          Physical Destruction
          Removable Media 
          Nonelectronic and Nonpaper Media
Protection of US Classified Information 
     Defense Security Service 
     Industry Programs Partnership with Industry 
     The Defense Security Service Vision and Mission 
     Classification of US Government Information 
     National Industrial Security Program Operating Manual 
     Marking Classified Information
Overall Classification Markings
Automated Information Processing Requirements
Portion Marking
Point of Contact Marking
Release to Foreign Countries/Organizations
Access and Need to Know
Protection of Classified Information When in Use
Protection of Classified Information When in Storage
Destruction of Classified Information
Methods of Destruction of Classified Information
Transmitting Classified Information
Reproducing Classified Material
Suspicious Espionage Activity
Cleared Employee Reporting Requirements
Check List of What to Report
To Whom to Report
Departure of Cleared Employees
Required Security Briefing
Manual for Physical Security Standards for Sensitive Compartmented Information
Compartmented Information Facility

Physical Security
Intrusion Detections System 
     Electromagnetic Contacts
     Glass Breakage 
     Pressure-Sensitive Sensor 
     Passive Infrared 
     Capacitance Proximity 
     Dual Chamber Smoke Detector 
     Rate of Rise Heat Detector 
     Natural Gas or Carbon Monoxide Detectors 
     Water Flow 
     Security Cameras 
          Transmission of the Signal 
          Digital Recording and Monitoring 
          Motion Detection
Determining Total System Cost 
     System Design Cost 
     System Installation Cost 
     System Operational Cost 
     IT Related Cost 
          Maintenance Cost 
          Replacement Cost 
          Cost–Benefit Analysis 
          Cost of Loss 
     The Cost of Prevention
     Return on Investment (ROI)
     Total Cost of Ownership (TCO) 
     Cost Factor 
     Locks, Key Control, and Access Control 
          Mechanical Locks 
          Wafer Tumbler Lock
          Dial Combination Lock 
          High Security Dead Bolt Lock 
          Card Access Electrified Locks
          Exit Locks 
          Master Locking System
Control of Keys and Locking Devices 
     Master Key
     Duplication of Keys 
     Lost Keys 
     Disposition of Employee Keys upon Transfer or Termination
Security Containers 
     Class 4 
     Class 5
     Class 6
Security Filing Cabinets
Security Barriers and Fencing
Security Lighting
     New Fluorescent (To Replace Incandescent) 
     Mercury Vapor 
     Sodium Vapor
Protection of Windows and Utility Ports 
     Annealed Glass 
     Wire Reinforced Glass 
     Tempered Glass 
     Laminated Glass
     Annealed Glass with Security Film 
     Bullet Resistant Glass 
     Bullet Resistant Acrylic
Radio Frequency Identification, Magnetometers and X-Ray 

Security Department

Chief Security Officer
Determining the Size of the Security Department
Mission of the Security Department
Legal Authorization to Protect the Facility 
     Pedestrian Stops
Profile and Security Threat
     Size of the Facility 
     Hours of Operation 
     Number of Employees and Visitors
Proprietary Security Force
Contract Security Force
Security Department Uniforms and Identification
Staff and Visitor Identification
Security Department Protective Equipment 
     Oleoresin Capsicum Spray 
     Use of Force Continuum
Security Department Vehicles 
Security Department Communications
Security Department Reports
     Incident/Complaint Report and Continuation Report 
     Daily Activity Report
Protection of Security Department Information
Ethics and Conduct 
Security Department Training 
     Professional Security Certifications
Security Patrols
Apprehension and Arrest

The Human Resources Department and Counterespionage
Position Description and Separation of Functions
Pre-Employment Background Investigation 
     Criminal Records 
     Civil Records 
     Driving Records 
     Employment History 
     Professional Licenses and Certifications
     Financial History 
     Military Service 
     Personal and Professional References
     Residence Inquiry
     Internet Search 
Periodic and Promotion Update Counterespionage Investigation
Non-Disclosure Non-Competitive Agreements
Employee Exit Interview

Counterespionage Resources
Private Professional Intelligence Organizations 
     Association of Former Intelligence Officers 
     Business Espionage Controls and Countermeasures Association 
     International Association for Intelligence Education 
     International Spy Museum 
     Naval Intelligence Professionals 
     Society of Competitive Intelligence Professionals
Private Professional Security Organizations 
     ASIS International 
          ASIS Certifications 
     Association of British Investigators 
     Association of Certified Fraud Examiners 
     National Council of Investigation and Security Services 
     World Association of Detectives
US Government Security and Intelligence Agencies 
     Defense Security Service
     Federal Bureau of Investigation 
          FBI Mission 


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Daniel J. Benny, PhD, CPP, PCI, CFE, CCO, is a licensed private investigator and security consultant. He holds a PhD in criminal justice from Capella University, a master’s degree in aeronautical science from Embry-Riddle Aeronautical University, an MA in security administration from Vermont College of Norwich University, a BA in security administration from Alvernia College, an associate’s degree in both commercial security and police administration from Harrisburg Area Community College; and a diploma in naval command and staff from the United States Naval War College.

He is board certified by ASIS International in security management as a certified protection professional (CPP) and as a professional certified investigator (PCI), a certified fraud examiner (CFE) by the Association of Certified Fraud Examiners, and a certified confidentiality officer (CCO) by Business Espionage Controls and Countermeasures Association.

He is the author of the books General Aviation Security: Aircraft, Hangars, Fixed Base Operators, Flight Schools and Airports, and Industrial Espionage: Developing a Counterespionage Program. He is also coauthor of the book The Complete Guide to Physical Security. He has authored more than 300 articles on security administration, intelligence, aviation security, private investigation, and cultural property security topics.

Dr. Benny served as a U. S. Naval intelligence officer with duty at the Office of Naval Intelligence, Naval Criminal Investigative Service, Willow Grove Naval Air Station, Fleet Rapid Support Team and Central Intelligence Agency. He also served as director of protective services for the Pennsylvania Historic and Museum Commission and a U.S. Navy police chief.


" … takes the security novice and quickly brings them up to speed on what exactly industrial espionage is and how to develop effective counterespionage programs."
General Aviation Security

"The overall visual presentation is professional with photographs by the author throughout. This book is recommended for general readers interested in protecting intellectual property and those with a specific interest in industrial espionage issues."
Security Management

"Benny has covered every angle—guarding against cyber-espionage, being wary when in hotels and travelling abroad, protecting classified information (whether paper records or in digital form) and what locks, filing cabinets, and windows you might want."
—Professional Security