Security Update – 11 August 2009

Incidents of data theft and corporate espionage are now occurring more regularly due to a combination of inadequate corporate security measures, increased competition between companies due to pressures associated with the financial crisis, and enhanced internal security risks resulting from mass employee layoffs.

Security Update – 9 June 2009

The United States (US) Secretary of State, Hillary Clinton, announced on 8 June that all State Department security programs and processes for vetting and clearance will be reviewed, following the arrest of a former department employee last week in relation to espionage charges. Walter Kendall Myers and his wife, Gwendolyn, allegedly passed on top secret documents to handlers from the Cuban Intelligence Service over the course of three decades.

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. 

Security Update – 22 May 2009

Lebanon filed a complaint to the United Nations on 21 May, with regard to an alleged Israeli spy network in the country. Lebanon has charged 18 people with espionage in a crackdown since January.  Lebanese security forces accuse those arrested of gathering intelligence for Israel on Hezbollah positions, infrastructure targets and the movements of the organisation’s leaders.

Current Situation

Security Update – 22 April 2009

The recent report that Australian Prime Minister Kevin Rudd was subjected to communications monitoring during a trip to Beijing in August 2008 highlights the security threat of mobile phone espionage. In his national security statement to the parliament in December 2008, Rudd admitted that electronic corporate and state-based espionage will be a growing vulnerability as both government and society becomes more dependent on integrated information technologies. Australia’s defence and security government agencies are prime targets for foreign espionage given the close defence partnership between Australia and the US.

The risk of mobile phone hacking has increased with more phones offering internet access. Generally speaking, the ease with which a mobile phone can be tapped rises alongside its functionality. Widely available spy software can turn the vast majority of mobile phones into portable espionage aids. Spy software can enable conversations to be listened to, text messages to be viewed and the precise location of a mobile phone to be shown using satellite updates. An individual’s location can be pinpointed to within two to three metres in a high density urban area using triangulation from mobile telephone masts or base stations.

Security Briefing – 20 April 2009

Starwood Hotels & Resorts Worldwide has sued its major rival, Hilton Hotels, for what it claims is, “the clearest imaginable case of corporate espionage, theft of trade secrets, unfair competition and computer fraud”. Ross Klein and Amar Lalvani, both of whom left Starwood for Hilton in 2008, have been accused of stealing over 100,000 electronic and hard copy files containing ‘proprietary and highly confidential Starwood information’ in order to help Hilton expand its luxury hotel offerings.

Lawsuit puts launch of Denizen Hotel brand into doubt

The lawsuit alleges that Klein downloaded the confidential files onto a laptop computer using a personal email account. Starwood states that the information included a guide to creating a luxury concept, board presentations, development plans, training materials and market research studies. The stolen information allegedly helped to expedite Hilton’s entry to the lifestyle hotel market, reposition its luxury brands and reduce the costs and risks involved in the process.