Industrial espionage is acquisition of industrial trading secrets from business competitors. Industrial spying is a reaction to the efforts made by many of the businesses to keep secret their designs, methods, formulas, manufacturing processes, research, and future plans. All these trade secrets may enter into the open market through disloyal employees or through various other means. Penalties should be imposed against those found guilty employees so that it restricts further use of the knowledge to substantial damages. (Encyclopedia, 2009) According to the US Intelligence Authorization Act for Fiscal Year 1995 defined foreign industrial espionage as "industrial espionage conducted by a foreign government or by a foreign company with direct assistance of a foreign government against a private United States company and aimed at obtaining commercial secrets". (NACIC, 1995) Methods:
The different methods for Industrial Espionage according to NACIC are: * Foreign students studying in the USA, foreign employees of US firms and agencies, debriefing foreign visitors to the USA on their return to their home country and exploit company secrets at international conference and trade affairs. * Open-source intelligence (OSINT) methods include open use of public databases, hiring information brokers and assigning consultants to gather information for confidential research reports. Risk factors:
The risk factors associated with industrial espionage are:
The companies confidential information such as Customer data, company's financial information, Research and development methods. (TRADE, 2000) Impact:
Due to the loss of companies confidential information, this results in loss of revenue, loss of competitive advantage. As a result, in some cases companies have gone out of business entirely and every individual in the company lost their job. (TRADE, 2000) Cases:
Harold Worden retired from Eastman Kodak in Rochester, NY after 30...