Corporate Espionage: The Million Dollar Art for Billion Dollar Theft
CIOREVIEW >> Security >> NEWS

Corporate Espionage: The Million Dollar Art for Billion Dollar Theft

CIO Review

“A crime is no crime if not proven.” The idea behind these words has crooned within the corridors of law since many centuries and till today underlines the safe zone between acquittal and adjudgement. These words emerged so powerful that they can be attributed to transforming a human instinct into a habit, and finally, into a profession—the act of stealing. This may sound petty and miniscule by today’s crime benchmark. But, take the “act of stealing,” package it with layers of sophistication, present it to someone who has millions at stake, and viola. Behold “corporate espionage,” a force that can make millions, or billions shift hands at the expense of something as simple as dumpster diving. Robert Rice, in his book “The Business of Crime” explains this espousal of villainy and business—Crime is a logical extension of the sort of behavior that is often considered perfectly respectable in legitimate business.

The FBI had estimated the loss due to data theft by 2015 end to be around $400 billion. At this point, it is important to note that any figurative estimation around espionage is never close to reality. The reasons lie on both, the purloined and the purloining ends. The purloined sides many a times do not reveal every espionage attack fearing reputational loss or security agencies getting involved. Now, one might think what is the harm in reporting to security agencies? The answer is, companies employ numerous policies for functioning and the truth is, even in one in a hundred cases, there may be few company policies that might not pass legal evaluations completely. Coming to the purloining end, today’s technology empowers malicious attackers with a curtain past which traceability is feeble. And, remember the technology at play here is not alien technology. It’s the same that businesses use to run their functions, such as encryption. Moreover, today this game is mostly played by “kite,” a contactor which has agreement with its employer under which the kite is cut loose in case the espionage act is blown. In other words, the employer can deny any involvement in the act.

Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.

This game gets more interesting as one begins to dig around. Corporate espionage is not restricted to commercial entities looking to gain advantage over competition, say by getting hold of a competitor’s product launch plan or technology behind any product. At the elite level, the players are a country’s government which back activities of spying on other nation’s companies to gain knowledge which can grant edge to its own companies. At this level the whole operation may be called economic espionage. This is a relatively new phenomenon in the world of espionage as post-Cold War countries have shifted focus from stealing defense secrets to getting hands on trade information through which they can harm a rival’s economy while bolstering their own. In this scenario, the victims are mostly developed countries which possess advantage in terms of technology or trade worth all the hardship, which makes the U.S., Europe, China and a couple of Asia-Pacific tenants the favorite spot for perpetrators. While the perpetrator could be anyone seeking gains, one should not be amazed that the same developed nations, or attackers backed by them, seal prominent spots in this list as well. This can be explained by a simple idea—for mastery in the art of larceny, strong skills are deciding factors. That is why technologically developed nations fare better in this game as they have the weaponry needed to get into another’s digital fortress and make the egress least traceable.

The Recent Spike

Technology is a double-edged sword. Let’s put it in the simplest form; a manager emails a client with the pricing structure of his/her company’s products. All you need is the credentials of that manager’s or the recipient’s email id, allowing access to that email from any part of the world with a computer or a smartphone. Once you have the rival’s asking price, the deal can easily be sabotaged by quoting lesser. And, that manager will never know what blew the deal, unless any suspicion arises.

If technology exploitation at such a basic level looks profound, imagine the digital fortresses we live in today which harbor all of our wealth. In the past, espionage did exist, but it was never conducted at a scale parallel to today. Every technology that made inroads to catalyze business growth can be implemented, in one way or another, to achieve an unintended use. The technology has painted a virtual world for us, where exchange of big chunks of data from Los Angeles to Berlin is possible through invisible channels in an instant. The same technology can enable someone, say in Madrid or Paris, to tap into that channel and extract sensitive data.

A parallel offshoot of this menace which is considered a legal, but often less yielding, is Competitive Intelligence (CI). This new intelligence gathering strategy is governed by ethical regulations which allow an agent to gather information without breaching any legal boundaries. Gathering information from trade shows, ADL Matrix, and Value Net are some of the tactics employed. Needless to say, the line separating CI and economic espionage is often blurry and before realization strikes, one might be treading on the wrong side.

How Espionage Does What it Does?

The technology and tactics employed in corporate espionage most often are conceived under government intelligence programs which flow out to the corporate shores with government spies—choice of weapons in this covert game. And the rest is fulfilled by the pundits of technology who knowingly or unknowingly expose the loopholes to baleful elements.

Keyloggers: These are software programs that infect a computer and covertly monitor all the keystrokes executed. The keylogger then sends the collected information to the agent who installed it and exposes confidential information, such as passwords.

Watering hole attacks: This is a relatively new technique that doesn’t attack its victims directly. In such assaults the attacker targets public web pages with malicious Java script or HTML which redirect the victim to a website hosting the exploit code. The compromised public web page then awaits the victim for zero-day exploit.

Eavesdropping technology: This tactic is majorly used to break into business meetings and conferences. The parabolic microphone is the simplest gadget which can pick-up conversations from meters away, keeping the perpetrator at an unsuspecting distance. But, given the glass encased high rise buildings that host most of today’s business meetings, parabolic devices are less useful. At this point, laser microphones come into play. These devices rely on laser beams pointed on the glass surface of a room which gets reflected on a photocell connected to recording or hearing equipment. The laser reflection modulates according to the feeble vibrations created on the glass surface due the voices inside. The photocell translates back these modulations into audible signals.

Apart from these measures, the economic spies employ many other tactics, such as dumpster diving and hacking. However, espionage attempts are works of experts and the tactics employed can be expected to be wrapped in secrets, which the general populace remains unaware of. Susceptible organizations need to understand that deciphering a set of foolproof formulas against corporate espionage is tough. This is mainly because identifying and plugging every loophole around any technology or solution is impossible. Moreover, as technology keeps updating, so does the ways to exploit them. It is advisable that organizations deploy and maintain updated security solutions which will ensure the maximum possible degree of digital security. Consolidating security solutions with the knowledge of someone who is familiar in this covert art is the best one could do. In this regard, organizations should consult CI agencies which posses the expertise to navigate these unknown waters. At the end, it is stressed that organizations maintain their distance from intelligence gathering shenanigans as a clear demarcation between legal and not-so-legal sides in this game is absent. And, for organizations willing to tread this path, Abraham Lincoln spoke the perfect words, “He reminds me of the man who murdered both his parents, and then when the sentence was about to be pronounced, pleaded for mercy on the grounds that he was orphan.”

See Also: Top Distance and Remote Learning Solution Companies

More in News

Organizations are increasingly using digital platforms to connect with customers, employees, and stakeholders, making it essential for businesses to ensure that their websites are accessible. ADA compliance and web accessibility solutions allow organizations to create websites and digital applications that can be used by individuals with disabilities while meeting regulations and enhancing the overall user experience. These solutions enable businesses to reach a wider audience, improve their brand image, and offer more inclusive digital services across various industries. Web accessibility is about designing and maintaining content so that people with visual, auditory, motor, cognitive or other disabilities can access and use it. ADA compliance solutions help organizations find accessibility problems, fix them and make sure they keep their content accessible over time. As more and more sectors, like healthcare, retail, education, financial services, government and hospitality, move their services online, accessibility has become a part of digital strategy. Enhancing Digital Compliance Through Web Accessibility Solutions The main advantage of ADA-compliant web accessibility solutions is that they help find the things that get in the way of people using a website. Using machines to test accessibility helps organizations find the problems that make it hard for people to use their websites and web applications. The tools can find things like missing text for pictures, colors that are too hard to see, headings that are not done right, forms that do not work, and problems with using a keyboard to get around. " ADA compliance and web accessibility solutions allow organizations to create websites and digital applications that can be used by individuals with disabilities while meeting regulations and enhancing the overall user experience. " Accessibility specialists watch how real people use a website, and they check if the website works with tools that help people with disabilities. If a website has problems, some services can help fix them. These services make the website code better, make it easier to move, make videos and other media more accessible, and make the website look nicer. It makes the website easier to use and follows the rules for accessibility. It is very important to keep checking a website to make sure it is still accessible. Websites are always changing, so organizations need to keep looking for problems. Organizations need help making sure they are doing everything they can to make their websites accessible. ADA compliance web accessibility solutions help organizations do all these things so they can make their websites better and more accessible to everyone. ADA compliance web accessibility solutions are very important for making sure that everyone can use the internet. Demand Growing for ADA Compliance Web Accessibility Solutions Demand for web accessibility solutions continues to grow as organizations recognize the operational, legal, and commercial importance of accessible digital platforms. As more people interact with companies, these companies need to make sure their websites and digital services are easy for everyone to use. More people are becoming aware of accessibility standards, so companies are trying to make their digital services more inclusive from the start rather than waiting until someone complains. Modern websites have a lot of things like applications, videos, online shopping and personalized experiences, which makes it harder to manage accessibility without special tools. Companies are paying attention to how users feel when they are on their websites. Making websites accessible is not just good for people with disabilities; it makes the website easier to navigate and read for everyone. Big companies are changing the way they do things digitally. Companies are making sure their websites, mobile apps and other digital services are accessible as part of their plan. Websites are always being updated, which means companies need to keep checking if their websites are accessible. They need tools that can help them make sure their websites are accessible over time, even as they change. The need for accessibility solutions is growing because companies need to follow rules to make their users happy. They are always making new digital things. Digital-first business models and accessibility go hand in hand. Accessibility is important for the first business models. Advancing Web Accessibility: Innovative Solutions Ahead Advances in automation, AI and integrated digital governance will shape the future of ADA compliance web accessibility solutions. AI makes automated accessibility testing by finding problems that are not so easy to see, suggesting ways to fix them, and helping to check for compliance more quickly. Development platforms include accessibility features in the design and coding process. Accessibility can be considered from the beginning rather than trying to fix things after something has already been built. There are real-time monitoring technologies that can detect accessibility issues as soon as changes are made to a website or new content is added. Connecting these technologies to content management systems, experience platforms, and development pipelines will make it even easier to manage accessibility across an organization. Analytics are getting better, which means that organizations can see how well they are doing with accessibility, how much progress they are making, and if they are meeting compliance requirements across all of their digital properties, including ADA compliance web accessibility solutions. Although automation will continue improving efficiency, human expertise will remain essential for usability evaluation, accessibility strategy, policy development, and user-centered design decisions. ...Read more
Distributors can have plenty of inventory across their network and still struggle to meet demand at individual branches. Stock sitting in one warehouse does little good when customers need it elsewhere, while keeping every location stocked for its highest historical demand can tie up unnecessary capital. With thousands of product and location combinations to manage, purchasing teams cannot review every decision manually. Executives evaluating demand forecasting software need to know whether it can improve local product availability without driving up inventory costs across the business. Network-wide averages can easily hide costly gaps at individual locations. Past sales provide a useful starting point, but irregular buying patterns can make forecasting difficult. Slow-moving products may not generate enough transactions to produce a reliable forecast on their own. Seasonal spikes can also skew averages long after demand has returned to normal. Buyers should look at whether the software can draw insights from related products and distinguish recurring demand from unusual orders. External factors such as weather may also help improve predictions, but their value needs to be demonstrated for the products concerned rather than assumed across the entire catalog. Knowing what customers will buy is only half the equation. Buyers also need to know when to reorder. Changing supplier lead times can make it difficult to act on even an accurate demand forecast, while order frequency and minimum purchase quantities affect how much stock needs to be kept on hand. Software should account for actual purchase order history rather than rely solely on fixed lead times. Safety stock should also reflect how individual products sell at each location. Applying the same buffer everywhere can leave fast-selling products out of stock while slower-moving items pile up. “Lantern refreshes recommendations weekly and lets buyers compare suggested stocking levels with existing settings before approving or overriding them.” The way forecasting software works with existing ERP systems is another important consideration. If recommendations sit in a separate dashboard, buyers may still have to enter them manually into their purchasing systems. They should establish whether the software can read transactions from their existing ERP and feed approved stocking parameters or purchase orders back into it. Buyers also need to understand why the system recommends a particular change. When a business wins a new account or a branch receives an unusually large order, experienced staff should be able to override a forecast without having to work outside the system. Forecast accuracy matters, but it does not tell the whole story. Lower inventory means little if it leads to stockouts and unhappy customers. In some cases, holding more stock may be the right decision if those products sell consistently. Buyers should look at how the software affects product availability, inventory turns and the capital tied up in excess stock. Testing its recommendations against past transactions can also show where they differ from existing purchasing practices before a wider rollout. Buyers should also account for the work involved in preparing historical data and managing exceptions once the system is in place. Lantern builds a custom machine learning forecasting model for each distributor, using historical ERP data and business-specific purchasing practices. It combines demand forecasts with projected supplier lead times to recommend order timing and safety stock at the item-location level. Lantern refreshes recommendations weekly and lets buyers compare suggested stocking levels with existing settings before approving or overriding them. Approved purchase orders or stocking parameters can be written back into the ERP. Its models also examine relationships across products, supporting forecasts where individual sales histories are sparse. Distributors with large catalogs spread across multiple branches, especially those balancing excess inventory against missed sales, are the relevant buyers for this model. ...Read more
Enterprise imaging purchases rarely fail because a scanner cannot create a digital file. Trouble starts when document volumes and legacy applications collide with downstream workflows that were built around older processes. A platform may handle clean, standardized forms well, yet slow down when incoming files vary substantially or demand different routing rules. Executives, therefore, need to examine how completely a proposed environment can absorb the real document mix without forcing extensive manual preparation or creating new bottlenecks elsewhere. Capture architecture deserves close attention as the front end determines how much work remains after scanning. Useful systems should support classification, optical character recognition, data extraction and validation in ways that match actual document types and exception rates. Human review also matters. Automated recognition is valuable when confidence is high, but buyers should understand where validation screens enter the process and how questionable fields are routed before information reaches a database or content repository. Hardware choices belong in the same discussion. Desktop scanning and high-volume production work impose very different demands, and forcing both through a single equipment model can inflate costs or limit throughput. The proposed design should reflect actual preparation effort, peak intake volumes and the physical scanning environment rather than nominal device speed alone. Scanner flexibility also matters where several departments process different document sets at substantially different volumes. “EDAC Systems provides first-line support across the hardware and software it sells, reducing the need for customers to separate faults among multiple providers.” Legacy compatibility is equally consequential. Many enterprises still depend on older capture software and long-standing repositories while retaining scanners embedded in established processes. Replacing everything at once can increase implementation risk and budget pressure. A stronger proposal should account for migration and configuration from the outset, with integration planned around how existing records move into the new environment and how the changeover will be tested. Buyers should also examine whether the architecture can adjust when document volumes increase or automation requirements change without requiring a wholesale rebuild. That flexibility becomes more important when an organization expects its capture requirements to shift over several budget cycles. Security and records requirements can narrow the field quickly, particularly in government or regulated environments. Encryption and records-management controls need to be resolved against approved deployment conditions before installation, rather than treated as post-deployment configuration. Procurement teams should verify that both hardware and software satisfy applicable requirements and that the provider can work within on-premises or approved hosted environments when needed. Support after go-live is another practical separator. Document imaging environments combine scanners, capture software, connectors and repositories, which can leave customers coordinating multiple suppliers when something fails. Contract review should establish who owns first-line troubleshooting and whether hardware and software issues are handled through one support path. Availability of on-site assistance also matters when remote fixes are insufficient. EDAC Systems designs document imaging and data capture environments around each customer’s document types, workflow, existing technology and budget constraints. Its approach can combine Ricoh or OPEX scanning hardware with capture software and Doxis-based document or records management, depending on the application. It also handles migration, configuration, testing and training during implementation. It provides first-line support across the hardware and software it sells, reducing the need for customers to separate faults among multiple providers. For enterprises with mixed legacy environments, compliance requirements or varied document volumes, the breadth of design and support makes EDAC Systems a practical vendor to consider. ...Read more
Moving from Google Workspace or legacy Exchange to Microsoft 365 involves more than transferring mailboxes. File structures may not translate cleanly, account permissions can change and an overlooked dependency can interrupt access after cutover. Executives comparing migration providers must establish how thoroughly each one investigates the existing environment before committing to a transfer schedule. A technically completed migration offers little reassurance when employees cannot retrieve the information they previously used. Pre-migration assessment establishes the boundaries of the work. User inventories should account for inactive accounts and shared mailboxes, while file assessments must identify naming restrictions, excessive path lengths and permission structures that Microsoft 365 handles differently. Tenant-to-tenant transfers introduce additional complications around identity mapping and existing collaboration spaces. Providers should document these differences before migration begins rather than discovering them during execution. Compliance requirements can alter the migration design considerably. Retention policies and access restrictions may determine where information resides after transfer or which users can retrieve it. An assessment that concentrates exclusively on data volume risks overlooking controls that governed the original environment. Procurement teams benefit from examining whether the provider produces a documented migration scope connecting technical dependencies to the organization's internal requirements. “RyanTech incorporates Microsoft Defender and Purview into tenant planning, allowing security requirements to shape the destination environment before users begin working in it.” Cutover scheduling exposes a different set of risks. DNS propagation may take longer than anticipated, while network interruptions can delay synchronization during a planned transition. Promises of zero downtime leave little room for these external dependencies. A credible migration approach includes contingency procedures, defined escalation responsibilities and a cutover window that reflects the organization's working patterns. The provider should explain what happens when an expected transition does not occur on schedule. Business continuity also depends on what employees encounter after the switch. Missing shared files or unfamiliar permissions can generate support requests even when mailbox transfers succeed. Validation should establish that users can access the resources required for their work, not merely confirm that data reached its destination. Clear responsibility for resolving post-cutover issues reduces the burden on internal IT teams. Security configuration cannot be deferred until employees have settled into Microsoft 365. A newly provisioned tenant may introduce unfamiliar exposure through identity settings or insufficiently configured data protection policies. Microsoft Defender, Intune and Purview provide controls that can be incorporated into the destination design. Providers differ in whether they configure these protections during migration planning or treat them as later projects. Licensing decisions also influence which controls are available and whether organizations purchase functionality they will actually use. Support arrangements become particularly relevant once the migration specialists have completed their assignment. Changes to compliance requirements or user access may expose decisions made during the original transfer. Continuity between migration and support personnel helps retain that context. RyanTech conducts Microsoft 365 migrations through an initial environment audit that establishes customer requirements and informs a documented transfer plan. Its migration team prepares for DNS delays and other cutover interruptions, scheduling transitions around business requirements rather than promising uninterrupted service. RyanTech incorporates Microsoft Defender and Purview into tenant planning, allowing security requirements to shape the destination environment before users begin working in it. Its project and support teams subsequently address configuration changes, user adoption and evolving compliance requirements. Experience spanning Google Workspace, on-premises Exchange and tenant-to-tenant migrations informs its handling of differing source environments. Organizations consolidating disparate systems into Microsoft 365 while requiring security configuration and continuing technical support are particularly suited to this approach. ...Read more