Industrial espionage: A hidden threat to global business

In the modern world, with information being a key asset, industrial espionage has grown into a serious threat to companies of all levels.

Industrial espionage (intelligence) is an activity of individuals, companies or states involving attempts to illegally acquire trade secrets or sensitive data of other organizations in order to gain significant competitive advantages. Economic and industrial espionage is not limited to stealing formulas or designs. It can target anything, from marketing strategies to customer bases to production processes.

Industrial espionage dates back to ancient times, and today, in the era of rapid technological progress and digitalization, it enters a brand new stage in its history. History knows a lot of cases of industrial espionage. One of them was when the great Briton Francis Cabot Lowell illegally brought the designs for textile machines to the United States, thus contributing to the emergence of the textile industry in New England.

In general, digital technology has made data more accessible on the one hand, and at the same time it has rendered it much more vulnerable to various attacks on the other. Therefore anyone in the business community must learn about industrial espionage, regardless of the size and content of their business.

Industrial espionage and competitive intelligence can take different forms and use multiple methods, depending on the goals and resources of attackers. Let’s consider some of them.

1. Cyber espionage

This is the most common form of industrial espionage in the economy and in the modern world in general. It involves using malicious software to access corporate information systems. To achieve their goals, cybercriminals can use phishing, network hacking or various social engineering techniques to create lots of problems for their victims.

2. Physical espionage

Despite becoming less common in the digital era, physical espionage is still existent.  Some of the examples of this type of industrial espionage include unauthorized entry of offices or production facilities to copy data, take photographs or install eavesdropping devices.

Other methods are interception and theft of physical correspondence and documents that may contain sensitive information.

3. Insider espionage

This is one of the most dangerous forms of industrial espionage, as insiders have legitimate access to valuable information. This type of espionage is possible through the sale of trade secrets to competitors or other interested parties by employees. There are also inadvertent data leaks, such as accidental disclosure due to negligence or lack of awareness of the security policy.

Countering this type of industrial espionage basically involves careful and informed selection of employees, especially those with direct access to sensitive data of the business.

4. Economic espionage

The industrial espionage problem often goes global. For example, this is the case with economic espionage which involves governments and uses government intelligence resources to support domestic companies at the expense of foreign competitors. This can include using intelligence agencies to obtain industrial data or undertaking more sophisticated cyber operations to steal intellectual property.

Consequences of business intelligence and industrial espionage can be devastating. They include loss of competitive advantages, losses from leakage of unique technology and trade secrets, as well as loss of trust from customers and business partners. Companies affected by different types of industrial espionage may face serious financial losses and damaged reputation, which sometimes leads to bankruptcy.

The best way to protect your information against industrial espionage is to have comprehensive security measures in place. These include enhanced physical security, development and implementation of strict IT protocols, training employees in information security fundamentals, and managing access to sensitive information.

Some of technological solutions include the use of encrypted communications, regular updates of antivirus software, and implementation of a multi-level authentication system. Another important aspect is legal protection of data by trade secret provisions and non-disclosure agreements that should be clearly stated and set out in contracts with employees and business partners.

Our experts can help you with the development and implementation of effective solutions for protecting your information against industrial espionage. The Corporate Security Policy Development service of SEVEN SENSES will ensure that your information systems and business assets are securely protected. We will also assist you in building an efficient business environment for the progressive development of your business free from threats and risks of any kind.