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FREE online courses on Corporate Espionage - Why and how is Espionage happening - Operations Vulnerabilities

Let us examine Operations Vulnerabilities first: Again, we can group them under four heads:

  • Human
  • Creative (Fallout of such functions) vulnerabilities
  • Communications (Fallout of such functions) vulnerabilities
  • Controls (Fallout of such functions) vulnerabilities

Human

Human beings are fragile, unique resources operating under different personal circumstances and pursuing, individually, personal/career goals. If such a resource is your organization's key strength, it can also be a key weakness. In the context of operations, humans can:

  • Have poor security awareness, apathy: One obliging sales executive responding to a fake phone call from a caller pretending to be her boss's brother-in-law, couriered an important file of trade contracts. She was ‘socially engineered', i.e. sweet-talked into handing over, voluntarily, vital information to a convincing liar.



  • Carelessness and accidents can lose data – one secretary to a CEO of a major North Indian concern took an important file to his Boss's residence for signatures.  On the way back, it fell off his scooter, unnoticed…and found its way, by bad luck, into hostile hands. The deal was compromised.
  • We give away too much information in our ‘Job Advertisements': One ‘Help Wanted' ad was so detailed about the type of person needed, it detailed the entire (confidential) process, machinery, schedules, everything. You can be sure many ‘dummy' applicants from rival organizations came for interviews – just to find out more! And did!
  • Sales/Marketing/PR people are often so keen to bag orders/project company image, they over-enthusiastically reveal too much information on strategy, plans, operations etc. One ad campaign was so informative that the rivals stole a march over them.
  • Human beings, like organizations, can also be exploited by rival companies, due to their own vulnerabilities, be they financial or personal (proclivities). One employees' ego, addiction and lack of awareness made him innocently reveal his boss's travel plans for a tour to clinch a collaboration – only trouble was, his friend's boss, who got the advance information, clinched the deal instead.

Creative

The creative side of human nature needs outlet and appreciation. But unless tempered by caution and security considerations, it can sometimes result in serious information leakage detrimental to a company's image, future or both:

  • In larger corporations, such as ICAR (Indian Council of Agricultural Research) or IARI (Indian Agricultural Research Institute), [Which are herein mentioned only in the context of their pioneering research and enormous contributions to the economy and society as a whole, there being dozens more like them], highly qualified, talented scientists may be neglected and smothered by bureaucracy. They eagerly seek recognition by publishing research papers, some of which might turn out to be extremely sensitive to India's bio-diversity or integrity of its traditional plants and herbs (like neem, haldi) or agricultural produce (e.g. Basmati). It will tempt pirate operators, both foreign as well as indigenous, to try and monopolize/ commercialize the data. What would be the fallout, in case such an incident happened in a security-sensitive department, can only be left to the imagination.
  • In face of heavy competition and challenging sales targets, marketers/ salespeople frequently go over board in releasing as much information as they can lay their hands on. One division of a major fan manufacturer even released commercials for TV/ cinema, much before the product was launched, giving a rival ample time to copy/launch it with an advertising slogan – “We invent the future”. It's a war out there – the enemy is watching and listening.

It is necessary to understand, and make others understand, the value of information which has been hard won by research, but which could be unwillingly leaked to competitors.

Communications Related

  • Many companies replace lack of performance with a media blast and/or conferences and Press Releases. Unless suitably monitored, such strategies can turn into disaster for many reasons, one being the release of either too false or too true information of a sensitive nature, both of which will be used by your company's adversaries against you.
  • Many a false and misleading media claim have received MRTP strictures. What is important is the leads rivals obtain as to future strategies and present R&D efforts – in advance.

 

When a major multinational had to withdraw its skin care beauty products due to a court judgment of ‘false and misleading claims' of arrest of the aging process and removal of wrinkles, it was immediately a target for break-ins and espionage, since this area of research along with biotechnology, is the real concern of tomorrow-the fountain of youth. The competition wanted to find out (a) what it had been doing, process-wise (b) what it had NOT being doing, to focus their own efforts (c) what it proposed to do in future.

 

ALL INFORMATION IS USEFUL, EVEN DATA ON FAILED EXPERIMENTS! THE ADVERSARY LEARNS FROM YOUR MISTAKES. DON'T LET HIM KNOW OF THEM!

 

  • HR Departments can get so isolated from operations that they can sometimes fail to see larger issues. One ‘Help wanted' advertisement released by a major Western India-based motor scooter manufacturer, in a bid to attract technical personnel for its proposed (secret) four-stroke-engine scooter, revealed almost all that rivals needed. Observe how a south-based manufacturer, known for innovation, craftsmanship and efficiency, brought out its 4 stroke scooter first in the Indian market, beating its older, slower rival on counts of performance, looks and efficiency, to boot.
  • Just as radio and TV waves can be intercepted, communications signals like phone calls and faxes, web surfing and email, all can be monitored.

A once-successful entertainment electronics manufacturer suddenly started losing orders, results from developmental efforts and even personnel. After the firm had been wound up, packers discovered a secret network of ‘bugging' microphones and transmitters-the source of which can only be guessed. Can the sudden rise of two rival firms in the identical business provide clues to the mystery?

Controls and their vulnerabilities

Human nature and circumstances are unpredictable. Whatever secret motivations lie beneath the surface-greed, need, or negative emotions like hate, envy, jealousy or treachery-need to be addressed.

  • Screen people properly before recruitment. One multinational company's website was hacked thanks to a disgruntled employee who parted with IDs, passwords and other data.
  • Keep an eye on people who start early and leave late, then take work home: Some of the most successful corporate spies who had burrowed into a rival organization, were rated as ‘excellent' workers.
  • Strengthen or activate ‘incident reporting' procedures: If people tend to just ignore apparent attempts at infiltration, it shows dangerous apathy, which might prove risky if such attempts are repeated. The Kargil War and its high cost in terms of Indian casualties can be, perhaps, attributed to (as reports and commentaries suggest) apathy to repeated reports of intelligence agents that the enemy was massing for a big strike. Here the Indian military intelligence machine itself failed to react quickly, perhaps deluded by past ‘dummy' attacks/border skirmishes.
  • Sanjay Bhatla, joined Samsung Electronics at their Jaipur office as Branch manager in November 95. A seasoned, market savvy and hardworking professional he was transferred to the corporate office and Delhi in March 2000 as AGM. On 1st April 2000 he left, to join LG (in May 2000) taking with him a mass of highly secret and sensitive marketing data he'd a accessed on the corporate intranet, including country-wide dealer/region/product performance data, crucial to a competitor. Samsung hasn't taken kindly to Bhatla's espionage triumph and slapped criminal cases on him at Jaipur. Time will tell what course the law takes. (July 7 – 21 – 2000, Business Today)
  • Giving out too much information to employees, to avoid undue/ adverse publicity and so as not to educate them on the methodology adopted by a would be infiltrator. [This can prove counter-productive, as it prevents ‘proactive' measures]. No wonder banks circularize detailed accounts of methodology used in each attempted (or successful) fraud case, so as to educate all branches on need to strictly follow the laid-down procedures and reduce risk. This is only, however, a reactive' measure.

 

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