Reviews of the 2015 agreement have been mixed. Legalweek New York explores Business and Regulatory Trends, Technology and Talent drivers impacting law firms. The FBI is the lead agency for exposing, preventing, and investigating intelligence activities in the U.S. Because much of todays spying is accomplished by data theft from computer networks, espionage is quickly becoming cyber-based. Members of the Committee may have seen recent press reports about marketing firms and hedge funds buying cell phone location data showing the near-real time locations of tens of millions of Americans going about their daily routines. Twenty years ago, I testified before a U.S. congressional committee on Chinas espionage operations in the United States. Historically, economic espionage has targeted defense-related and high-tech industries. Similarly, much of the responsibility for responding to Chinese efforts to infiltrate U.S. academic institutions will fall on those institutions themselves. Figure 1: Categories of Chinese Espionage. The intelligence officer may begin by accessing the corporate web page to identify candidates to target via emails or social engineering. Unexplained affluence An adversary conducts activities with precision that indicates prior knowledge. Law.com Compass delivers you the full scope of information, from the rankings of the Am Law 200 and NLJ 500 to intricate details and comparisons of firms financials, staffing, clients, news and events. Provide non-descript answers Responding to Chinas unconventional espionage threat will require a whole-of-society approach, not just a whole-of-government approach. Browsing international terrorist websites, Everyone is required to report all FIE threats On a daily basis, these actors seek to steal our state secrets, our trade secrets, our technology, and the most intimate data about our citizensthings of incredible value to all of us and of great importance to the conduct of our government business and our national security. The FITF is uniquely positioned to combat this threat. We're looking at $200 billion to. Share sensitive information only on official, secure websites. The task force now brings together the FBIs expertise across the waterfrontcounterintelligence, cyber, criminal, and even counterterrorismto root out and respond to foreign influence operations. 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. Additionally, the DSN shall instruct NOAA staff and employees to report suspicious activities involving the foreign national to the DSN who, in turn, shall report them to the servicing security office immediately. frequent questionable foreign travel In closing, the work being done by the FBI is immeasurable; however, we cannot afford to be complacent. Regardless, it seems likely that China will continue to deploy hacking as a tool of gaining U.S. IP as U.S. policy developments like export control reform and new restrictions on Chinese investment in the U.S. restrict Chinas ability to legally and overtly acquire its desired technologies. 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. We will continue working to identify individuals who seek to join the ranks of foreign fighters traveling in support of ISIS, those foreign fighters who may attempt to return to the United States, and HVEs who may aspire to attack the United States from within. Recruiting personnel for a terrorist organization As a result, the FBI must remain vigilant. Al Qaeda maintains its desire for large-scale, spectacular attacks. The International Trade Commission (ITC) has authority under Section 337 to investigate claims that an import uses stolen U.S. IP and to exclude infringing products, and has excluded a number of Chinese products in recent years. What do we know about him? Asia, Pacific In the developing phase the foreign intelligence officer attempts to establish a close relationship with the target. The U.S. Intelligence Community is a federation of executive branch agencies and organizations that work separately and together to conduct intelligence activities necessary for the conduct of foreign relations and the protection of the national security of the United States. The widespread availability of malicious software (malware) that can create botnets allows individuals to leverage the combined bandwidth of thousands, if not millions, of compromised computers, servers, or network-ready devices to disrupt the day-to-day activities of governments, businesses, and individual Americans. Traditional espionage, often characterized by career foreign intelligence officers acting as diplomats or ordinary citizens, and asymmetric espionage, typically carried out by students,. 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. Within the FBI, we are focused on the most dangerous malicious cyber activity: high-level intrusions by state-sponsored hackers, global organized crime syndicates, and other technically sophisticated and dangerous actors. 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 attack was attributed to Russian hackers and caused an estimated $10 billion in damages. These individuals are FTO-inspired individuals who are in the U.S., have been radicalized primarily in the U.S., and are not receiving individualized direction from FTOs. U.S. federal research and development (R&D) spending as a percentage of U.S. GDP, meanwhile, suffered through a multi-year decline before Congress finally began to reverse the trenda welcome developmentfor fiscal year 2018, which saw the largest federal research spending increase in a decade. Each of these technologies is identified as apriority requirementin Chinas State Council2015 strategic plan Made in China 2025.. The Department of Justice has in recent years indicted numerous Chinese spies, hackers, and companies for their involvement in stealing U.S. IP. Foreign espionage strikes at the heart of U.S. national security, impacting political, military and economic arenas. The Trump administration has also begun to deploy targeted trade measures against Chinese beneficiaries of IP theft. In approximately 60 cases I reviewed, Chinese companies or individuals were acting unilaterally for commercial benefit only. Advocating support for terrorist organizations Emily Kilcrease & Michael Frazer. Center for a New American Security (en-US), Constructing Regional Partnerships and Seizing Emerging Opportunities, General Mike Holmes, U.S. Air Force (Ret. U.S. Embassy Chinas information objectives are focused in priority sectors and technologies. 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. $500,000 fine, and/or not more than 15 years in Federal prison The Espionage Act was amended in 1940 to increase the penalties it imposed, and again in 1970. Any company with a proprietary product, process, or idea can be a target. This report presents initial findings from analysis of 274 documented cases of Chinese worldwide espionage since the year 2000. Illegal downloads. Contact with international terrorist Recent high-profile announcements such as the Marriott hotel companys acknowledgement last week that cyber intruders had accessed the personal information of 500 million customers bring home the fact that despite billions of dollars of corporate investment in cybersecurity in recent years, many corporate networks remain all too vulnerable. The second type of Chinese espionage targeting U.S. colleges and universities has been espionage aimed at intimidating Chinese students and professors critical of Chinese policies, and to a lesser extent American students and academics. Removing markings. Our adversaries are continuously trying to undermine our country, whether it is election season or not. The resources and capabilities of such actors vary. Defense, China But theres just as much, if not more, tracking in the virtual world.". Beginning under President Obama and continuing under President Trump, the Department of Homeland Security (DHS) has launched programs to encourage the private sector to harden defenses. More than 60 percent of Chinas attempts to illegally export U.S. critical technologies are targeted at military technologies or space systems. Providing financial support to terrorist organization Unexplained or undue affluence without indicating you are uncomfortable, change any conversation that might be too proving with respect to your duties, private lift and coworkers 20 Espionage falls 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. The minimal application of tradecraft is expected, as these cases typically do not involve professional intelligence operatives (either case officers or agents). NPR's Leila Fadel talks to Rachel Ziemba of the Center for a New American Security about sanctions which have failed to dramatically weaken Russia's economy, and its ability t By Congress has also played an important role. U.S. policymakers however, have rightly sought to aggressively deter and punish Chinese espionage intended to steal trade secrets and other IP from the U.S. private sector that is then transferred to Chinese companies for commercial advantage, and to crack down on other forms of unconventional espionage that threaten Americas technological, economic, and military edge. Cleared contractor facility A joint effort would provide an integrated approach to disrupt China's espionage activities which generally fall into one (or more) of five categories: Traditional espionage (18 USC 792-799 . The nation faces a continuing threat, both traditional and asymmetric, from hostile foreign intelligence agencies. We tend to think of espionage as involving information classified under national security legislation and relating to political or military secrets. 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. Terrorists in ungoverned spacesboth physical and virtualreadily disseminate propaganda and training materials to attract easily influenced individuals around the world to their cause. 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. The first of these is espionage targeting cutting edge research and technologies being developed by U.S. universities, including technology that has U.S. military applications. Foreign power activity or knowledge which is inconsistent with the expected norm that suggests that foreign powers have knowledge of U.S. National Security. Virtually every national security threat and crime problem the FBI faces is cyber-based or facilitated. U.S. Trade Representative Lighthizer and President Trump need to demand major, systematic changes in a range of Chinese trade abuses before relenting on the tariffs and other measures the U.S. has imposed. We must build toward the future so that we are prepared to deal with the threats we will face at home and abroad and understand how those threats may be connected. This is a significant transformation from the terrorist threat our nation faced a decade ago. Viruses In recent years we have broadly seen two types of Chinese espionage targeting U.S. colleges and universities. Sanctions are more of a marathon than a sprint, and the long-term picture looks much more promising than the short-term one. By Foreign Intelligence Threats - Traditional Activity. APT41 has been active since as early as 2012. These techniques were used approximately one-third of the time. PLA collection capabilities include military attachs conducting overt and clandestine collection and collectors under other government and commercial covers. Along with our domestic and foreign partners, we are collecting and analyzing intelligence concerning the ongoing threat posed by foreign terrorist organizations and homegrown violent extremists. They seek to hold our critical infrastructure at risk, to harm our economy and to constrain our free speech. 10. 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. It is a pleasure to be joined by two distinguished co-panelists who will also speak about the threat and I will focus on the aspects of the threat that I am most familiar with: how China uses unconventional, economic espionage as a component part of a comprehensive strategy to promote Chinas own high-tech industries. Thank you again for the opportunity to testify today and I look forward to your questions. Unsurprisingly, China is also targeting sectors critical to U.S. military dominance, like aerospace, according to a recent indictment. A lock () or https:// means you've safely connected to the .gov website. 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. Preventing terrorist attacks remains the FBIs top priority. Victims of Chinas espionage efforts include major defense and aerospace companies, pharmaceutical firms, technology research companies, manufacturers, and universities. Similarly, SOEs are aggressive in conducting or supporting espionage (72 acts total), stealing primarily advanced military technology. 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. 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. Espionage, spying, or intelligence gathering is the act of obtaining secret or confidential information (intelligence).A person who commits espionage is called an espionage agent or spy. This would let China determine exactly where government officials and corporate executives work, where they spend the night, what doctors they visit, and their travels, among other informationall of which would provide valuable information to Chinese spies and companies. On October 30, 2018 the U.S. Department of Justice announced the indictment of 10 Chinese intelligence officers and cyber hackers from the Ministry of State Security (MSS), Chinas main civilian espionage organization. Both options are priced the same. for Us, The CCPs Organization Department makes all senior personnel appointments. American policymakers should continue to distinguish between Chinas economic espionage and more traditional spying targeting U.S. government agencies, defense contractors, and other parts of the national security establishment. Up to life imprisonment Individual victims of Chinese IP theft have begun to resort to legal measures to fight back against companies that steal their trade secrets. 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. A detailed look into how, why, and where Chinese spies are active in the United States. Edward Snowden (2013) There is some argument as to whether this is a true espionage case or not, despite the fact that U.S. authorities have charged Snowden with a criminal indictment asserting such. Individuals used true names and open communications including emails, text messages, and phone calls. CCP embedded committees manage all actions within directly managed SOEs. Copying files The U.S. also needs to start getting a handle on the vast quantity of Americans personal information that is all too readily available to make sure that it cannot be exploited by spies. 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. We also handle intelligence operations and oversight. Death, Theft of Trade Secrets for a Foreign Govenment, Penalty for individual The International Trade Commission (ITC) has authority to ban the import of products that are made with stolen U.S. IP, and in recent years U.S. companies have successfully petitioned the ITC to ban such products from entering the U.S. market. 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 The final aspects of Chinese espionage activities are their use of specific clandestine collection techniques commonly known as espionage tradecraft. Chinese government agencies, SOEs, companies and individuals employ varying levels of sophistication of espionage tradecraft. The foreign intelligence threat to the United States is expanding, becoming more complex and less predictable. 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. Us, Write The objective of this espionage was to steal intellectual data and confidential business information about the engine. 951 to pursue conduct outside the context of traditional espionage. Does anyone need to know? The government must also provide a description of the information sought and the places or facilities that will be searched. Unusual work hours Fifth, I would encourage Congress to carefully study proposals to enable U.S. companies who are victims of Chinese economic espionage to hack back. There are significant concerns about hacking back proposals but I believe the concept merits careful study. Based on an actual case, the video illustrates how one company was targeted by foreign actors and what the FBI did to help. Traditional espionage encompasses a government's efforts to acquire clandestinely classified or otherwise protected information from a foreign government. Cyber threat actors have also increasingly conducted ransomware attacks against U.S. systems, encrypting data and rendering systems unusablethereby victimizing individuals, businesses, and even emergency service and public health providers. To date these authorities have been deployed against individuals and companies from Russia and Iran in response to cyberattacks, but have yet to be deployed against Chinese entities engaged in or benefiting from economic espionage or other cyberattacks against the U.S. 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. The French engaged in economic espionage throughout the 1980s. These activities support a national concerted effort to expand Chinas economic and security interests. The venues for prosecution show where the target company or organization was located (see Figure 3.) Over the last year, the FBI has met with top social media and technology companies several times, provided them with classified briefings, and shared specific threat indicators and account information, so they can better monitor their own platforms. Good morning Chairman Thompson, Ranking Member Rogers, and members of the committee. The group has been observed targeting healthcare, telecom, technology, and video game industries in 14 countries. In the spotting phase the foreign intelligence officer identifies the target. But universities do need to take appropriate precautions to ensure that China is not able to use academic collaboration to steal U.S. intellectual property or engage in other activities that might harm U.S. national security. Intercepts of cell phones or wireless signals, 1. Note as much as possible Last month, under former Attorney General Jeff Sessions, the Department of Justice expanded on several years of increasing prosecutorial efforts by launching an important new initiative to combat Chinese economic espionage, which Assistant Attorney General Demers is leading. According to the New York Times, Congress received an intelligence report last month that underscored at . But this is not just an election-cycle threat. Chinese theft of U.S. intellectual property has been one of the major legal and policy rationales for the Trump administrations Section 301 finding on China and subsequent imposition of tariffs on some $250 billion in Chinese goods imported into the United States. Espionage is now addressed by 3 offences in the Bill: obtaining or disclosing protected information; obtaining or disclosing trade secrets; and assisting a foreign intelligence service. The poor performance in oversight and case management is possibly due to the highly politicized nature (CCP management) of Chinese intelligence. This button displays the currently selected search type. , Statement Before the House Homeland Security Committee. Practice good Operations security CI-21 proposes significant changes in the way the United States government approaches, and organizes itself to meet, the threat of foreign espionage and intelligence gathering. The recent attacks in Texas and California underscore the continued threat posed by domestic violent extremists and perpetrators of hate crimes. For physical searches, the government must show that the place to be searched contains "foreign intelligence information" and that it is used, owned, or possessed by an agent of a foreign power or a foreign power. 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 The European conflict has laid bare several vulnerabilities in the TNI's modernization plans. In recent years a number of members of Congress have introduced legislation that would amend the CFAA to authorize hacking back by victim companies under certain circumstances. Taking short trips. An official website of the United States government. 9. While the U.S. government must continue hardening its defenses against all espionage, Chinas spying on the U.S. government fits within a long practice of government spycraft and should be addressed with traditional types of tools. Economic Espionage Act of. Now, more than eight years since the climax of the Cold War, the threat of industrial and economic espionage has percolated once again to the forefront, and the tools of the intelligence collector .