Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19
Tommy Robinson Looks Set to Become New UKIP Leader - 16th Mar 19
Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - 16th Mar 19
Towards the End of a Stocks Bull Market, Short term Timing Becomes Difficult - 16th Mar 19
UKIP Brexit Facebook Groups Reveling in the New Zealand Terror Attacks Blaming Muslim Victims - 16th Mar 19
Gold – US Dollar vs US Dollar Index - 16th Mar 19
Islamophobic Hate Preachers Tommy Robinson and Katie Hopkins have Killed UKIP and Brexit - 16th Mar 19
Countdown to The Precious Metals Gold and Silver Breakout Rally - 15th Mar 19
Shale Oil Splutters: Brent on Track for $70 Target $100 in 2020 - 15th Mar 19
Setting up a Business Just Got Easier - 15th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - Video - 15th Mar 19
Gold Warning - Here Are the Stunning Implications of Plunging Gold Price - Part 1 - 15th Mar 19
UK Weather SHOCK - Trees Dropping Branches onto Cars in Stormy Winds - Sheffield - 15th Mar 19
Best Time to Trade Forex - 15th Mar 19
Why the Green New Deal Will Send Uranium Price Through the Roof - 14th Mar 19
S&P 500's New Medium-Term High, but Will Stock Market Uptrend Continue? - 14th Mar 19
US Conservatism - 14th Mar 19
Gold in the Age of High-speed Electronic Trading - 14th Mar 19
Britain's Demographic Time Bomb Has Gone Off! - 14th Mar 19
Why Walmart Will Crush Amazon - 14th Mar 19
2019 Economic Predictions - 14th Mar 19
Tax Avoidance Bills Sent to Thousands of Workers - 14th Mar 19
The Exponential Stocks Bull Market Explained - Video - 13th Mar 19
TSP Recession Indicator - Criss-Cross, Flip-Flop and Remembering 1966 - 13th Mar 19
Stock Investors Beware The Signs Of Recession / Deflation - 13th Mar 19
Is the Stock Market Still in a Bear Market? - 13th Mar 19
Stock Market Trend Analysis 2019 - 13th Mar 19
Gold Up-to-Date' COT Report: A Maddening Déjà Vu - 12th Mar 19
Save Fintech? Ban Short Selling. It's Not That Simple - 12th Mar 19
Palladium Blowup Could Expose Scam of Gold & Silver Futures - 12th Mar 19
Next Recession: Concentrating Future Losses & Bringing Them Forward In Time As Profits - 12th Mar 19
The Shift of the Philippine Peso Regime - 12th Mar 19
Theresa May BrExit Back Stab Deal Counting Down to Resignation, Tory Leadership Election - 12th Mar 19

Market Oracle FREE Newsletter

Stock and Finanacial Markets Trading Analysis Worth

Corporatist Economic Espionage

Companies / Cyber Crime Dec 09, 2015 - 10:58 AM GMT

By: BATR

Companies

Espionage is about gathering information. When foreign interests conduct such operations it is usually called spying. When corporations seek to acquire trade secrets from a competitor, it often becomes a case for legal litigation. In business terms, just what is the best way to view stealing secrets? Investopedia defines 'Economic Espionage' accordingly.


“The unlawful targeting and theft of a nation’s critical economic intelligence. Economic espionage may include the clandestine acquisition or outright theft of invaluable proprietary information in a number of areas including technology, finance and government policy. Economic espionage differs from corporate or industrial espionage in a number of ways – it is likely to be state-sponsored, have motives other than profit or gain (such as closing a technology gap) and be much larger in scale and scope. Recognizing the threat from such activity, the U.S. signed the Economic Espionage Act into law in October 1996.”

When friends and foes alike tap into the databases of government agencies or companies, law enforcement often investigates. Still, there is no shortage of cyber attacks since the crown jewels of commerce and the national security of any nation is stored in the cloud.

From the government agency, Office of the National Counterintelligence Executive the study, Foreign Spies Stealing US Economic Secrets in Cyberspace sets out the problem.

“Foreign economic collection and industrial espionage against the United States represent significant and growing threats to the nation’s prosperity and security. Cyberspace—where most business activity and development of new ideas now takes place—amplifies these threats by making it possible for malicious actors, whether they are corrupted insiders or foreign intelligence services (FIS), to quickly steal and transfer massive quantities of data while remaining anonymous and hard to detect.”

This is called the network environment. It is a far cry from the days when Coca‑Cola protected their secret formula in a vault that was guarded more closely then Fort Knox.

One might say that companies certainly have a right to keep their proprietary and confidential data and information in house. However, when the tables are turned a New Report On Corporate Espionage Against Non-profits, illustrates most corporatists are simply looking for ways to crush any opposition to their monopolist practices, which are at the center of this clandestine culture.

“Many of the world’s largest corporations and their trade associations — including the U.S. Chamber of Commerce, Walmart, Monsanto, Bank of America, Dow Chemical, Kraft, Coca-Cola, Chevron, Burger King, McDonald’s, Shell, BP, BAE, Sasol, Brown & Williamson and E.ON – have been linked to espionage or planned espionage against nonprofit organizations, activists and whistleblowers.”

If the research or the inventive techniques of any company are private property of the owners of that enterprise, why are some of the biggest corporatists’s active in violating the privacy of groups or organizations that are working for transparency and responsible business practices?

Company whistleblowers are quite different from common thefts, employed under the reasonable expectation of trust. Just how wide spread is the risk for companies from their own insiders?

In the article, Economic Espionage: The Global Workforce and the Insider Threat, provides some stats that should alarm any CEO.

“The IBM 2015 Cyber Security Intelligence Index report provided sobering numbers: 31.5 percent of data breaches are attributable to malicious insiders and 23.5 percent are due to insider errors or nonadherence to process and policies that lead to inadvertent data breaches or disclosures.

In sum, more than 50 percent of data breach incidents in 2014 can be attributed to insiders, which is an individual with physical or remote access to a company’s infrastructure.”

Such huge numbers, who certainly are not apprentices of a real whistleblower like Jeffrey Wigand, should be held accountable. Notwithstanding, the human greed factor drives many to rip off their employer. Most of these security breaches have very little to do with a noble cause.

Should violators be prosecuted to the full extent of the law? The answer requires a deeper analysis. Who is behind the black market of buying all this valuable information? Where are the studies on vulture companies that actually encourage economic espionage?

Hopefully, this inquiry can agree that foreign penetration of firewalls that guard data should be a priority as a national policy. Encryption of the highest level might ease some concerns of business executives. But this step will never seal the door from internal betrayal.

What kind of gate keeping will protect and insure information, while maintaining as much of a free market as possible in an age of total surveillance?

The consumer faces their own economic threat on RFID credit cards. Foiling electronic pickpockets with safety sleeves seems prudent. However, a transnational conglomerate cannot wrap their operation in an aluminum shield.

Corporations are not in the business of consumer protection. Their interests have Congress taking up legislation, which is analyzed in Time to Modernize and Strengthen Trade Secret Law. Look for reports on the Defend Trade Secrets Act (DTSA). Criticism of previous efforts is found within Defend Trade Secrets Act of 2015 Faces Criticism 2.0.

This approach exemplifies the concern companies have from the loss of secrecy. Conversely, passing additional laws have never stopped methodical schemes to reap rewards from unlocking the keys used to access digital treasures.

Economic espionage may be a price of doing business, because growth and innovation are more difficult to achieve. While technology develops into uncharted fields, the map to profit has become more elusive to most ventures. The advantages of the monopolists over their rivals exist to a significant degree because they have mastered the security of their own informational systems.

Small companies inventing valuable creations are at substantial disadvantage. Maybe keeping the design and engineering blueprints off line may be the best defense from corporate hacking.

Government snoops are an entirely other matter. How can any database be safe when The U.S. Government’s Secret Plans to Spy for American Corporations is exposed? The era where “there are no secrets” has every businessman on edge.

James Hall

Source: http://www.batr.org/corporatocracy/120915.html

Discuss or comment about this essay on the BATR Forum

http://www.batr.org

"Many seek to become a Syndicated Columnist, while the few strive to be a Vindicated Publisher"

© 2015 Copyright BATR - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors

BATR Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules