Only God and the Angels can observe ... the rest of us have to participate.

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Only God and the Angels can observe ...the
rest of us have to participate.

• Robert F. Kennedy

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Threats Directed Against US Defense
IndustryJuly 2002

• Defense Security Service Academy
• NCMS National Training Seminar
• Ft. Worth, TX

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Changing Threat Environment

• US economy national security
• Expanding international economy
• Increasing foreign collaboration
• Results
• - Increased foreign access
• - Increased opportunity to collect

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Foreign Interest Trends

• Economic and ST information
• Dual-use technologies/products
• Traditional non-traditional foreign threats
• Covert/illegal MOs to overt/legal MOs
• Both FIS commercial activity

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Motivation

• CY 2000 economic espionage
• 100-250 Billion in lost sales
• Target Manufacturing Processes and RD
• Source Dept of Commerce

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As a team, we can identify

• Who is doing the targeting?
• What is being targeted?
• How are they doing the targeting?

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Targeting by Region

• Asia - 17
• Eurasia - 10
• Europe - 30

• Middle East / Africa - 25
• South America - 10
• Non Targeting

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As a team, we can identify

• Who is doing the targeting?
• What is being targeted?
• How are they doing the targeting?

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• The difference between a colony and a
  first-rate power rests on technological
  capability and industrial strength.

Alexander Hamilton 1791
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Technology List All 18 Military Critical
Technologies!

• Information Systems 30
• Sensors and Lasers 20
• Armaments and Energetic Materials 14
• Aeronautics 11
• Electronics 7

• Marine Systems 6
• Space Systems 5
• Chemical and Biological 4
• Manufacturing and Fabrication 4
• Guidance and Navigation 4

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As a team, we can identify

• Who is doing the targeting?
• What is being targeted?
• How are they doing the targeting?

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Foreign Collection Modus Operandi (MO)

• Requests for Information - 32
• Acquisition - 21
• Solicitations - 15
• Overseas Travel - 9
• Foreign Visits to US - 8
• Joint Ventures - 7
• Internet - 6
• International Conventions - 4

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Requests for Information

• Email, Mail, Fax, Phone
• Least personal to most personal
• Usually involves ITAR items
• The MO of embargoed countries

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Acquisition of Technology Companies

• Foreign KMPs
• Non-traditional countries
• Legal instruments
• Future access
• Buying only 1
• Buying part of a system

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Solicitation Marketing of Services

• Foreign intern
• Training the competition
• Sell back their knowledge
• Foreign Sales Reps

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Overseas Travel

• Detainment at Security Points
• Stolen Lap Tops
• Physical Surveillance
• Electronic Surveillance
• Honeytraps
• In control of local law enforcement

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Foreign Visits

• Hidden agendas
• Wandering visitors
• Taking advantage of the system

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Suspicious Contacts

• Contractors shall report efforts by an
  individual, regardless of nationality, to obtain
  illegal or unauthorized access to classified
  information or to compromise a cleared employee.
• NISPOM
• Para 1-302b

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Suspicious Contacts

• In addition, all contacts by cleared employees
  with known or suspected intelligence officers
  from any country, or any contact which suggests
  the employee concerned may be the target of an
  attempted exploitation by the intelligence
  services of another country, shall be reported.

NISPOM Para 1-302b
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Our Challenge

• Individuals fail to recognize suspicious
  contacts
• As a result, many suspicious contacts go
  unreported
• Our Solution Education!

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Suspicious Contact ReportsReceived by DSS
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DSS Referral Leads to Arrest 1
From the CNN web site
Two arrested in scheme to ship devices to
China August 30, 2001 Posted 943 AM EDT (1343
GMT) WASHINGTON -- Federal agents have arrested
two men for allegedly trying to ship sensitive
military encryption devices to China. "The
technology that these individuals were attempting
to export to China is among the most sensitive
items on the U.S. munitions list," Allan Doody,
the Customs special agent in charge in Baltimore
told Reuters. The sale of these units is so
tightly controlled that the National Security
Agency must approve it."
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DSS Referral Leads to Arrest 2
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Workshop Exercise

• Partner up
• Using the Regions of the World, Technology List
  List of MOs
• Discuss Suspicious Incidents at your facilities
• Come up with an example to share with the group
• The BIG Question!

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Only the dead have seen the end of war.
Plato

• Black Hawk Down