Washington Times
January 3, 2007
Pg. 3

Pentagon report details tactics; China leads illegal collection
By Bill Gertz, Washington Times
Foreign spies are stepping up efforts to obtain secret U.S. technology through methods ranging from sexual entrapment to Internet hacking, with China and other Asian countries leading the targeting of U.S. defense contractors.
"The apparent across-the-board surge in activity from East Asia and Pacific countries will continue in the short term as gaps in technological capability become apparent in their weapons-development processes," the latest annual report by the Defense Security Service counterintelligence office stated.
"The globalization of defense business will increase the threat from strategic competitors who will use legitimate business activities as a venue to illegally transfer U.S. technology," the report said, noting that the use of third countries to disguise collection will continue as a common tactic.
The report provides details of the methods used by foreign technology spies, from simple verbal requests for information to purchases of controlled technology and -- in at least one case -- the use of a woman who seduced a contractor into providing his computer password.
Other methods included offering marketing services to contractors, spying during visits to U.S. companies and the use of "cultural commonality" to obtain technology.
The report did not identify the 106 countries that are engaged in the collection activity, but other defense officials said the most active technology spies are working for China, Russia and Iran. Other collectors of U.S. technology were identified as agents working secretly for Israel, Japan, Britain, France, Germany, Egypt and United Arab Emirates, the officials said.
The unclassified 2006 report, "Technology Collection Trends in the U.S. Defense Industry," was approved for release in June, but only recently made available to defense contractors and government agencies. A copy was obtained by The Washington Times. It is based on counterintelligence reports from contractors and other data through early 2006.
Space systems, lasers and missile- and radar-evading stealth technology are among the most sought-after U.S. technologies, the report said.
Other key targets include information systems, modeling and simulation technology, optics, aeronautics, sensors, explosives, electronics and marine systems.
The report said the largest percent of the 971 spying incidents detected during the latest reporting period came from East Asia and the Pacific with 31 percent of all incidents, while the Near East accounted for about 23 percent. About 19 percent of the incidents emanated from Eurasia and 13 percent from South Asia.
The report provides several cases showing how foreign spies have tried to obtain technology, through simple verbal requests, covert computer hacking and clandestine intelligence activities.
One case revealed in the report involved an East Asian company that sought to obtain classified technology related to U.S. unmanned aerial vehicles (UAVs), a cutting-edge U.S. military technology.
The Asian representatives showed up at a classified facility at the U.S. defense company uninvited and tried to "observe the repair" of previously purchased unclassified systems.
The report said the "aggressive effort" to visit the company appeared to be a "veiled attempt to collect information on other high-interest UAV programs at the facility." It was the fourth time since 2003 that the company sought UAV goods.
Several U.S. defense contractors have reported that between October 2005 and January 2006 they found radio-frequency transmitters hidden in Canadian coins that were planted on them after they traveled through Canada, according to the report.

Raytheon is tightening up this year. I forgot my badge this morning and the guard transferred the data on the badge I left at home to a temporary badge. The old badge won't work until I give him the temp back and he reprograms my old one. I also found an extra twelve hours added to my yearly training schedule. All had to do with internal security, especially ITAR related material.

Also, there was a Predator on the site for a show and tell since we build the pod for it. They built a tent and took boxes inside the tent and assembled the thing inside the tent.

man, those defense contractors aren't kidding when it comes to security. after reading the article, i'm not surprised that foreign countries, even our allies, want to get what we have.

you ever been to the Puzzle Palace? Almost every office is like working in a bank vault. Almost no open doors what-so-ever.

Some of the military installations are, and have been, Top Secret clearance and Customer clearance minimum to get by the outer gate. My Son worked for E Systems who sent him to an Air Force base in Colorado for a year, I believe it was in Denver, and they had two razor wire fences before you got to the guard gate. All around the outer fence were signs with a little stick figure man getting shot in the back. I seem to remember that it had "No Warning Zone" or something to that effect.

We started missing the Grandsons so my Wife and I flew out for a visit. He had a house leased in Aurora with a secure phone line. Sometimes, he would get a call at odd hours and speak with someone about a circuit problem or just get dressed and leave for the base. He told me that once inside, security police were in every hall and by every door. If you missed your door and badged through the wrong one, you went straight to security headquarters accompanied by two guards and two M16s. I couldn't work like that.

Originally Posted by Missileer

Some of the military installations are, and have been, Top Secret clearance and Customer clearance minimum to get by the outer gate. My Son worked for E Systems who sent him to an Air Force base in Colorado for a year, I believe it was in Denver, and they had two razor wire fences before you got to the guard gate. All around the outer fence were signs with a little stick figure man getting shot in the back. I seem to remember that it had "No Warning Zone" or something to that effect.

We started missing the Grandsons so my Wife and I flew out for a visit. He had a house leased in Aurora with a secure phone line. Sometimes, he would get a call at odd hours and speak with someone about a circuit problem or just get dressed and leave for the base. He told me that once inside, security police were in every hall and by every door. If you missed your door and badged through the wrong one, you went straight to security headquarters accompanied by two guards and two M16s. I couldn't work like that.

As scary as this seems, I'm glad our government, or at least our defense businesses, are doing something to protect our state secrets. I'd gladly undergo a 5-hour interrogation session for forgetting my ID card at home to protect the intellectual property of my American brothers. Well, I better get used to it because I am looking forward to a career in the FBI or DEA.

I also tried to get into Northrup Grumman to check on some retirement fund money. I've never worked for them but they bought Litton Laser and my account went to them. I finally got on their site but access is limited to the benefits area only. I get a "you aren't authorized" when I try to go to any other place in their employee web site even though I am an active member.

wow, that's what i call strict security there, missileer.

Originally Posted by bigcanada813

wow, that's what i call strict security there, missileer.

These big defense companies are getting tired of infiltration by spy go betweens selling info to the real spies. None that I know of will allow camera phones or any type of recording device and media for such devices inside the front door. It's tougher on us but I am glad to see they are finally taking this problem seriously. Now if we can only convince the folks at Oak Ridge and Los Alamos to check people out closer before they hire them.

One thing they tell us ever year, "There is no such thing as a 'friendly' intelligence service, only foreign intelligence services."

Christopher Boyce’s biography "The Falcon and the Snowman" highlighted that for me. The copy I read was annotated by a judge that sat on his trial.