Security Update – 3 June 2009

A trial has begun in the United States (US) in which a Chinese-born engineer is accused of conspiracy, economic espionage, obstruction of justice and acting as a foreign agent. Dongfan Chung allegedly passed on critical trade secrets to China over the course of three decades. 

Prosecutors argues that Chung, who worked at Boeing and previously Rockwell International, stole over 250,000 pages of sensitive documents relating to the US space shuttle, Delta IV rockets and the C-17 Globemaster troop transport. Chung was fired in 2006 when the Federal Bureau of Investigation began its probe and he was subsequently arrested in February 2008.

The prosecution stated that Chung’s activities were uncovered when references were found to him at the house of another suspected Chinese spy, Chi Mak. Mak was sentenced to over 24 years in prison in 2007 after being found guilty of conspiracy to export US defence technology to China. Another trial is set to begin in San Jose on 17 June involving the alleged export of sensitive computer chips to China. The Economic Espionage Act was passed in 1996 in response to the perception that there were an increasing number of foreign attempts to steal US military and commercial intellectual property.

International Operations Group – Analysis

Cases of corporate and governmental espionage are set to increase during 2009 as economic pressures continue to build. In conjunction with our counter-surveillance partners, International Operations Group has seen a significant increase in the number of cases where espionage has allegedly occurred. Almost every industry is susceptible. Our recent experience, however, relates to confirmed security incidents within the fashion, logistics, media, governmental and financial sectors.

We have frequently found a lack of adequate security policies and procedures within organisations that we have consulted to. Companies must ensure that appropriate measures are taken to reduce the likelihood of information being stolen. This may include the enhancement of physical security policies and procedures, an increase in security camera coverage, stricter controls on the classification and management of critical information and various other measures, tailored to specific business environments. Organisations must ensure that these security enhancements are publicised internally, via security awareness programs. Regular counter-surveillance inspections should also be conducted, as a part of an enterprise-wide security program.

International Operations Group – Services

International Operations Group can assist in the detection and deterrence of acts of espionage. We offer an enhanced range of surveillance detection and technical surveillance countermeasure (TSCM) capabilities and use up-to-date technology equipment and processes to ascertain whether an organisation or individual is the target of surveillance or internal espionage. Our security consultants are experienced at operating in corporate, executive management and government environments across the globe.

Please email us at intel@interopsgroup.com or telephone us on +61 2 8003 3933 for additional information or confidential counter-espionage support.

For more information on our fee-based intelligence updates or bespoke reporting, please email Rob Stevenson - rob@interopsgroup.com. Rob can also be telephoned on +61 [0] 420 244 909.