Almost 25 percent of cases target commercial interests. Just $5 a month. And getting access to this information would not even really be espionage as we typically think of it--the Chinese could simply set up a front company to buy the data commercially. Our adversariesterrorists, foreign intelligence services, and criminalstake advantage of modern technology to hide their communications; recruit followers; and plan, conduct, and encourage espionage, cyber attacks, or terrorism to disperse information on different methods to attack the U.S. homeland and to facilitate other illegal activities. Unexplained absences Figure 4: Adapted from Office of the Director of National Intelligence. Be assured, the FBI continues to strive to work and share information more efficiently, and to pursue a variety of lawful methods to help stay ahead of these threats. The U.S. government has steadily increased its response to the threat of China's unconventional espionage. It is time for Pakistans political and military establishment to wake up and reconcile with the fact that they cant negotiate their way to peace. A .gov website belongs to an official government organization in the United States. I left the Members with what I thought was an ominous warning: Do something about this now or youll be calling me back in 20 years screaming: My God, how did this happen? Well, they never called me back, but if recent FBI arrests are any indication, the problem has gotten worse a lot worse. Power, Crossroads To most individual citizens, cyber espionage may not seem to influence their lives very much, but its costs on a nation-state are significant. Expressing an obligation to engage in violence There are 150,000 SOEs in China, 50,000 of which are owned by the central government and include aerospace and defense companies, research institutes, technology transfer organizations. DOJ has also faced repeated setbacks in its prosecution in the Eastern District of Virginia of Bijan Rafiekian, former business partner of Trumps National Security Advisor Michael Flynn, accused of acting as an illegal agent of the Turkish government in an effort to obtain the extradition of a Turkish dissident. The PLA was involved in 61 such cases. DHS is also investing in research into technologies and public-private partnerships that may be able to improve cybersecurity practices and in education and outreach programs designed to improve corporate cybersecurity practices. No tradecraft, with parties using open communications and true names; Use of false names and/or third parties to transmit information and ship materials; Public and commercial encryption, hosting meetings in China to avoid detection; Tailor made devices or techniques, use of third countries, use of in-country cutouts to transmit information. Familial ties, or close associations, with terrorist or their supporters Traditional espionage (18 USC 792-799): The practice of spying or using spies to obtain information about the plans and activities of a foreign government. Defense, China In its recent stepped-up enforcement efforts against foreign influence in American politics, the DOJ has faced some high-profile setbacks when it has sought to use the broad reach of 18 U.S.C. U.S. Military or government site For example, China and Chinese companies have repeatedly paid off corporate insiders at U.S. and western companies to simply walk out the door with high-value trade secrets. The minimal application of tradecraft is expected, as these cases typically do not involve professional intelligence operatives (either case officers or agents). To combat the threat at home, the FBI established the Domestic Terrorism-Hate Crimes Fusion Cell in spring 2019. https://www.law.com/newyorklawjournal/2022/12/07/setbacks-prosecuting-trump-allies-highlight-challenges-in-foreign-influence-cases/. The Department of Justice has even indicted Chinese spies for stealing strategy information from a U.S. labor union that strongly opposed Chinese trade practices. Peter Harrell. With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. The statistics show Chinese private companies adopt an aggressive posture in conducting economic espionage activities, resulting in 60 cases prosecuted just in the United States. In addition, whether located at home or abroad, many cyber actors are obfuscating their identities and obscuring their activity by using combinations of leased and compromised infrastructure in domestic and foreign jurisdictions. Center for a New American Security (en-US), Constructing Regional Partnerships and Seizing Emerging Opportunities, General Mike Holmes, U.S. Air Force (Ret. In October, the U.S. passed sweeping new export controls on China. This was a narrow agreement in that it did not preclude the theft of intellectual property for other purposes, such as for improving defense capabilities, or the theft of U.S. government information, but it did at least temporarily represent a step by China toward reducing its espionage against U.S. commercial targets. Our nation continues to face a multitude of serious and evolving threats ranging from homegrown violent extremists (HVEs) to cyber criminals to hostile foreign intelligence services and operatives. Doreign officials reveal details they should not have known. The Company Man: Protecting Americas Secrets, Economic Espionage: Protecting America's Trade Secrets, The Insider Threat: An Introduction to Detecting and Deterring and Insider Spy, Intellectual Property Protection: Safeguard Your Company's Trade Secrets, Proprietary Information, and Research, Safety and Security for the Business Professional Traveling Abroad, Safety and Security for U.S. Students Traveling Abroad, Higher Education and National Security: The Targeting of Sensitive, Proprietary, and Classified Information on Campuses of Higher Education, Best Practices in Supply Chain Risk Management for the U.S. Government, Two U.S. Citizens Arrested for Illegally Exporting Technology to Russia, Civil Forfeiture Complaint Filed Against Six Luxury Real Estate Properties Involved in Sanctions Evasion and Money Laundering, Russian National Charged with Supplying U.S. Technology to the Russian and North Korean Governments, Corrected: Four Florida Men Arrested in Plot to Kill Haitian President, Grand Jury Returns Indictment Against 11, U.S. Citizen Sentenced to 30 Months in Prison for Conspiring to Provide Electronic Equipment and Technology to the Government of Iran, Associate of Sanctioned Oligarch Indicted for Sanctions Evasion and Money Laundering, Chinese National Sentenced to Eight Years in Prison for Acting Within the U.S. as an Unregistered Agent of the Peoples Republic of China, Former Special Agent in Charge of the FBI New York Counterintelligence Division Charged with Violating U.S. Sanctions on Russia, FBI.gov is an official site of the U.S. Department of Justice, Protect the secrets of the U.S. Intelligence Community, Protect the nations critical assets, like our advanced technologies and sensitive information in the defense, intelligence, economic, financial, public health, and science and technology sectors, Keep weapons of mass destruction from falling into the wrong hands. They would also generally restrict those companies ability to sell products based on stolen IP not only to the United States, but also to other countries around the world. Currently there are open investigations with a foreign influence nexus spanning FBI field offices across the country. Traditional espionage, often characterized by career foreign intelligence officers acting as diplomats or ordinary citizens, and asymmetric espionage, typically carried out by students,. Concurrent with this growth, foreign direct investment (FDI) in the U.S. has increasingly become a national security concern, as hostile nations leverage FDI to buy U.S. assets that will advance their intelligence, military, technology, and economic goals at the expense of U.S. national security. But the reality is that China also engages in economic espionage using a wide range more traditional of techniques, many of which have been publicly identified over the past several years by U.S. corporate disclosures, researchers, published U.S. government reports, and Department of Justice prosecutions of suspected Chinese spies. Congress enacted the Espionage Act on June 15, 1917, two months after the U.S. entered World War I, to stifle dissent of U.S. involvement in the war. All Rights Reserved. In addition to implementing sanctions on appropriate Chinese targets under these existing Executive Orders, the Trump administration and Congress should examine whether the sanctions authorities are legally adequate as currently drafted or whether they should be broadened to cover the full range of Chinese unconventional espionage threats. The world of espionage is facing tremendous technological, political, legal, social, and commercial changes. Individuals used true names and open communications including emails, text messages, and phone calls. An adversary uses technical countermeasures to block a previously undisclosed or classified U.S. intercept technology. Such tactics make coordination with all of our partners, including international law enforcement partners, essential. An eye-witness report by two investigative journalists on the ground in Prato, Italy. The central government directly manages 102 of these firms considered critical to national and economic security. Be observant - note as much as possible and the person asking questions Asia, Southeast As a result, the FBI must remain vigilant. When expanded it provides a list of search options that will switch the search inputs to match the current selection. Foreign states are generally equipped to conduct the most damaging cyber espionage and computer network attacks. Proposals to allow hacking back are controversial because it is often difficult for a hacking victim to conclusively identify a hacker and there is concern that companies could hack back against an innocent party that was not actually involved in the original hacking. As members of the Senate know, over the summer, Congress enacted the Foreign Investment Risk Review Modernization Act (FIRRMA), which overhauled the CFIUS review process for foreign investments in the United States. As a recent report by the Hoover Institution and the Asia Society put it, Chinese-backed associations on American campuses can provide a ready channel or entry point for the political departments of Chinas embassy and consulates in the US to gather information and coordinate action. But recent FBI cases have shown that no industry, large or small, is immune to the threat. The wide variance in sophistication of espionage tradecraft implies the idea of Islands of Excellence (see Figure 6) meaning China employs espionage tradecraft with varying degrees of sophistication and effectiveness. And local Soviet spies, just like many other denizens of the Bay . When it comes to economic espionage, it is important to keep in mind that espionage is but one element in a broader Chinese strategy to modernize its economy and to promote China as the world leader in a range of technologies that will be critical to both economic and military power in the years ahead. Economic Espionage and Trade Secret Theft . Sanctions are more of a marathon than a sprint, and the long-term picture looks much more promising than the short-term one. By The State Department has recently pressed U.S. allies to similarly restrict the use of high-risk Chinese-made network equipment in their national telecommunications networks. Taking short trips. 3488, enacted October 11, 1996 deals with industrial espionage (e.g., the theft or misappropriation of a trade secret and the National Information Infrastructure Protection Act) and four other areas of action that Congress deemed appropriate and the United States Sentencing Commission reports regarding encryption or . Nations have been spying on the United States (and us on them) since the American Revolution. Intelligence & Espionage. The term APT is commonly used in reference to the cyber threat posed by foreign intelligence services, or hackers working on behalf of such entities, but is not limited just to this and can equally be applied to other threat actors such as organized crime syndicates and those involved in traditional espionage. About Us| A .gov website belongs to an official government organization in the United States. As a country we should work to capture that talent here and make sure that it stays in the U.S. Much research and development also works more effectively when scientists and engineers are able to collaborate across borders. Fourth, Congress should consider amendments to the Foreign Agents Registration Act (FARA) or other legislation to require better disclosure about Chinese operations in the United States. Your responsibility to report. Broadly speaking, the government response can be divided into three parts: encouraging better defense; prosecuting spies; and increasing costs in an effort to punish and deter unconventional spying. Browsing international terrorist websites, Everyone is required to report all FIE threats Outright theft of U.S. and western intellectual property (IP) is a key piece of Chinas strategy, but it is only a piece. Those include going after terrorists and spies, including in cyberspace, countering foreign malign influence, enforcing our export controls and sanctions laws, and reviewing foreign investments in U.S. companies. U.S. Federal law enforcement office 9. The group has been observed targeting healthcare, telecom, technology, and video game industries in 14 countries. Based on an actual case, The Company Man: Protecting Americas Secrets illustrates how one U.S. company was targeted by foreign spies and how that company worked with the FBI to bring the perpetrators to justice. by a rival foreign government. Chinese social groups, enterprises and public entities will have increased responsibility to combat foreign espionage under new regulations issued by the country's ministry of state security. Asia, Asia The charges included acting as an agent of a foreign government without notifying the attorney general, a charge the Justice Department has referred to as "espionage lite," a violation of . Illegal downloads. In some of those cases (perhaps 20 percent), there was a clearly identifiable Chinese government or SOE as the ultimatecustomer for illegal exports or trade secrets. International conventions, seminars, and exhibits China is pursuing a whole-of-society approach to its technological capabilities that includes purchasing innovative companies through overseas investments, requiring western companies to transfer cutting edge technologies to China as a condition of market access, providing vast state resources to finance domestic technological development, and financing training for top Chinese students and researchers overseas and paying a hefty premium to attract talent back to China. Almost two years ago, I established the Foreign Influence Task Force (FITF) to identify and counteract malign foreign influence operations targeting the United States. Weak passwords It is seen by many who enter messaging apps and participate in social networks. The Australian Security Intelligence Organisation's detailed public threat assessments could be a model for Canada's spy service on explaining the elements of foreign interference, added Wesley. Note as much as possible Do not use personal commercial computers or cell phones for sensitive or classified matters.. especially at a foreign establishment. Chinas information objectives are focused in priority sectors and technologies. Second, Congress should study ways to expand prohibitions on the import into the U.S. of items made with stolen U.S. IP, and the Trump Administration should work with allies to keep such products out of foreign markets. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas. China has expanded its espionage efforts considerably over the last 20 years. Media is waiting where a sensitive DoD program will be tested. On the military side, the Peoples Liberation Army (PLA) General Staff Headquarters, Second Department is responsible for collecting military information, including related foreign technology. The government must also provide a description of the information sought and the places or facilities that will be searched. Belgian authorities placed him in custody on arrival and put him on a plane to the United States (most likely with an FBI escort). This was often the case in illegal export of military technology, source code, large-scale agricultural and industrial production and manufacturing techniques. We face threats from state-sponsored hackers, hackers for hire, organized cyber syndicates, and terrorists. But this is not just an election-cycle threat. Take time to use secure communications equipment What Joseph L. Rini Knows, Attorney Rachel Y. Marshall A Pillar of Strength for the Community, SpotDraft Raises $26 Million in Series A Funding for AI-Powered Legal Software, Access to the entire ALM network of websites, Unlimited access to the ALM suite of newsletters, Build custom alerts on any search topic of your choosing. License our industry-leading legal content to extend your thought leadership and build your brand. Of course, China may well prove unwilling to make the necessary concessions. Freeway overpasses shuddered and collapsed, swallowing cars like a sandpit. The CCPs Organization Department makes all senior personnel appointments within these business organizations. I will also briefly touch on Chinas espionage tools with respect to U.S. universities and other non-governmental organizations here in the United States and in allied nations. Espionage Act said the need for the Act to apply everywhere was prompted by Irvin C Scarbeck, a State Department official who was charged with yielding to blackmail threats in Poland. Intercepts of cell phones or wireless signals, 1. The two use similar language to talk about China, but that doesn't mean their positions are the same. The IT threat to the U.S. has expanded from sophisticated, externally directed FTO plots to include individual attacks carried out by HVEs who are inspired by designated terrorist organizations. We also handle intelligence operations and oversight. Economic espionage activities . Cyber criminals often operate through online forums, selling illicit goods and services, including tools that lower the barrier to entry for aspiring criminals and that can be used to facilitate malicious cyber activity. They include foreign states, criminals, "hacktivist" groups and terrorists. As the threat to harm the United States and U.S. interests evolves, we must adapt and confront these challenges, relying heavily on the strength of our federal, state, local, and international partnerships. Does anyone need to know? A recent Hoover Institution-Asia Society report offered a number of recommendations with respect to these operations that I endorse, such as promoting transparency and disclosure around Confucius Institutes and increasing the due diligence universities apply to grants and gifts from Chinese sources. Introduction A person who commits espionage is called an espionage agent or spy. Economic Espionage Act of. In intelligence terminology, information objectives identify the specific information (or technology) that is tasked for collection. Based on an actual case, the video illustrates how one company was targeted by foreign actors and what the FBI did to help. Email Email. Only a tenth of Russian spy operations in Europe have been uncovered, according to the former MI6 boss Sir John Sawers, after it emerged that the two men accused of carrying out the Salisbury . Once established, the foreign intelligence officer makes an offer to help the target with his problems. Emily Kilcrease & Michael Frazer. This has taken several forms. When divided into the aforementioned categories (Espionage, Economic Espionage, ITAR, EAR, Covert Action) the 274 espionage cases show the percentages of operations as follows (Figure 1.). This button displays the currently selected search type. The industry-leading media platform offering competitive intelligence to prepare for today and anticipate opportunities for future success. Disgruntled First, espionage is a segment of the larger intelligence cycle, which in turn describes the sets of activities designed to produce the information necessary for policymakers' decision-making. This is due, in part, to their lack of a direct connection with an FTO, an ability to rapidly mobilize, and the use of encrypted communications. Foreign Intelligence Threats Traditional FIE Activity includes: Foreign Intelligence Entities operating Many of the government mobile espionage efforts examined had roots in campaigns designed to spy on targets of interest of some of the nations covered in this report for political purposes. Never answer questions you feel uncomfortable He recently retired from a 34 year government career that included employment in the CIA, Department of State, and Defense Intelligence Agency. In another 22 cases, MSS operatives employed only simplistic or limited operational tradecraft. I do not want to overstate the risk: the vast majority of research collaboration benefits the U.S. And the U.S. benefits from the world-class students and researchers we are able to attract to the U.S., many of whomif they can get visas to stayhelp found and build cutting edge companies in the U.S. However, cases attributed to the Ministry of State Security show an astounding nine cases where case officers and recruited agents demonstrated no discernible tradecraft. Recent prosecutions, however, have relied on 951. In addition to these Executive Branch actions, companies and Congress have played an important role in Americas response. In recent years we have broadly seen two types of Chinese espionage targeting U.S. colleges and universities. Historically, economic espionage has targeted defense-related and high-tech industries. Unsurprisingly, China is also targeting sectors critical to U.S. military dominance, like aerospace, according to a recent indictment. Congress passed the CFAA to prohibit hacking, but the law also prohibits hacking back in which victims of cyber espionage and other hacking take active steps to interfere with the hackers computers. Just last month, a new law reorganized the cyber security operations of DHS in order to improve their effectiveness, including establishing DHSs Cybersecurity and Infrastructure Security Agency. The FBI is working closely with partners in the Intelligence Community and in the federal government, as well as with state and local partners, to establish a common operating picture. One might expect poor tradecraft from nonprofessional intelligence entities such as individuals, companies, and SOEs. Technology companies have a front-line responsibility to secure their own networks, products, and platforms. An analysis ofoperational activities reveals a wide range of tradecraft practices (see Figure 5): As illustrated, the most frequently employed elements of tradecraft include using false names or documents to ship information or technology. The foreign intelligence officer begins pay the target for his efforts. Over four years after the project was announced, updates remain scarce on China's first nuclear icebreaker. Figure 2: Chinese Organizational Clusters Committing Espionage. Economic Espionage and Cybersecurity Espionage comes in different forms. 611 et seq., which makes it illegal to act as an agent of a foreign principal by engaging in political activities in the United States without prior registration. collecting intelligence for a terrorist organization China's espionage operations on the United States have been growing stronger for years. Foreign influence operationswhich may include covert actions by foreign governments to influence U.S. policy decisions, political sentiment or public discourseare not a new problem. Southeast Your article was successfully shared with the contacts you provided. APT41 has been active since as early as 2012. We remain concerned that groups such as the Islamic State of Iraq and ash-Sham (ISIS) and al Qaeda have the intent to carry out large-scale attacks in the U.S. The person may. The governing Chinese Communist Party (CCP) uses government, quasi-government, academic, and commercial entities as mechanisms to conduct all forms f espionage abroad. The IC remains focused on the missions of cyber intelligence . U.S. companies continue to need to make major investments in hardening their defenses against cyber threats and to train employees to be vigilant against Chinese espionage. Spies from 20 foreign intelligence agencies, including Nato allies such as France and Germany, are attempting to steal Britain's most sensitive secrets. A fine of not more than $5,000,000, Personnel who fail to report CI activities of concern as outlined in Enclosure 4 of DoD Directive 5240.06 are subject to appropriate disciplinary action under regulations, Under DoDD 5240.06 Reportable Foreign Intelligence Contacts, Activities, Indicators and Behavior; which of the following is reportable, Contact with known or suspected foreign intelligence A 2018 National Counterintelligence and Security Center (NCSC) report on foreign economic espionage in cyberspace stated that in addition to China, Russia and Iran were engaging in significant cyber-enabled economic espionage activities. The FBI is the lead agency for exposing, preventing, and investigating intelligence activities in the U.S. Because much of today's spying is accomplished by data theft from computer networks,. Provide non-descript answers Most of Chinas espionage activities are not traditional espionage, yet they are having a profoundimpact on Americas economic wellbeing, national security, and potentially our political and governance processes. Chairman Thompson, Ranking Member Rogers, and members of the committee, thank you again for this opportunity to discuss the FBIs efforts to combat the myriad of threats it faces. Preventing terrorist attacks remains the FBIs top priority. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team. Congressional cybersecurity legislation enacted in 2014 has also played an important role in improving U.S. government efforts to harden U.S. defenses against Chinese and other attacks. That said, I recommend that Congress carefully consider hacking back proposals that would enable U.S. companies to take a broader range of active measures to defend themselves against cyber espionage and other cyber attacks. Persons subject to the UCMJ may be subject to punitive action The Espionage Act of 1917 is a United States federal law enacted on June 15, 1917, shortly after the United States entered World War I. Reporting threats to your Facility Security Officer or Supervisor. At a minimum, there is no indication that the CCP or Chinese government have taken any measures to impede the illegal activities (illegal in the United States) of their state corporations and citizens. Concealing foreign travel Activities, behaviors, or circumstances that "may be indicative" of potential espionage activities by an individual who may have volunteered or Ben recruited by a foreign entity as a writing espionage agent. conducting illegal covert or clandestine acts at the direction of, or for the benefit of, a foreign government or entity. Copying files DOJ used FARA to prosecute former Trump campaign chair Paul Manafort and Trump fundraiser Elliott Broidy, and in its unsuccessful prosecution of former Obama White House Counsel Gregory Craig for his alleged lobbying efforts on behalf of Ukraine stemming from his private practice legal work. The goal of these foreign influence operations directed against the United States is to spread disinformation, sow discord, push foreign nations policy agendas, and ultimately undermine confidence in our democratic institutions and values. FBI.gov is an official site of the U.S. Department of Justice. Several high-level conclusions can be drawn from the cases representing the last 20 years of Chinese espionage operations. Advertisement. The division has a wide range of responsibilities. Is there an need to share? Failure to report may result in disciplinary action. Law Offices of Gary Martin Hays & Associates Foreign Intelligence Threats - Traditional Activity Traditional activity Forgoing intelligence entities operating out of: Embassies Consulates Universities Trade missions Insider Spies (Insider Threat) Foreign Intelligence Threats Non-Traditional Activity Foreign government-sponsored commercial enterprises International trafficking organizations