traditional espionage activity includes foreign government traditional espionage activity includes foreign government

Thank you for the opportunity to appear before you today to discuss the current threats to the United States homeland. Aimed at bolstering the government's arguments, the memo highlights in detail how the FBI identifies the activities of foreigners that would potentially be considered espionage. Us, Write An adversary conducts activities with precision that indicates prior knowledge. The statistics show Chinese private companies adopt an aggressive posture in conducting economic espionage activities, resulting in 60 cases prosecuted just in the United States. The FBI indictment alleges Ji was tasked by his spymaster a senior MSS officer in the Jiangsu Province MSS office. The FBI is most concerned about lone offender attacks, primarily shootings, as they have served as the dominant lethal mode for domestic violent extremist attacks. Foreign power activity or knowledge which is inconsistent with the expected norm that suggests that foreign powers have knowledge of U.S. National Security. But if China proves willing to make systemic changes, the administration should be willing to relax the trade remedies the U.S. has imposed, rather than locking the U.S. into an economic cold war with Beijing. Cyber espionage (cyberespionage) is a form of cyber attack that is carried out against a competitive company or government entity. The Espionage Act of 1917 is a United States federal law enacted on June 15, 1917, shortly after the United States entered World War I. The division has a wide range of responsibilities. DOJ officials initially touted one such law, the Foreign Agents Registration Act (FARA), 22 U.S.C. In many respects, the goals of this kind of espionage are similar to economic espionageto capture technological advances that could prove valuable to Chinese firms and potentially to the Chinese military. There is a near equal distribution of espionage activities between the four major organizational clusters. In addition to FTOs, domestic violent extremists collectively pose a steady threat of violence and economic harm to the United States. Nicholas Eftimiades is a lecturer at Penn State University, Homeland Security Program. Traditional espionage, often characterized by career foreign intelligence officers acting as diplomats or ordinary citizens, and asymmetric espionage, typically carried out by students,. What Joseph L. Rini Knows, Attorney Rachel Y. Marshall A Pillar of Strength for the Community, SpotDraft Raises $26 Million in Series A Funding for AI-Powered Legal Software, Access to the entire ALM network of websites, Unlimited access to the ALM suite of newsletters, Build custom alerts on any search topic of your choosing. FBI agents, analysts, and computer scientists are using technical capabilities and traditional investigative techniquessuch as sources, court- authorized electronic surveillance, physical surveillance, and forensicsto counter these threats. The FBI uses all lawful investigative techniques and methods to combat these terrorist threats to the United States. New Delhi has distanced itself from a controversial and unequal deal between Adani Power and the Bangladesh Power Development Board. In some of those cases (perhaps 20 percent), there was a clearly identifiable Chinese government or SOE as the ultimatecustomer for illegal exports or trade secrets. 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. But the reality is that China also engages in economic espionage using a wide range more traditional of techniques, many of which have been publicly identified over the past several years by U.S. corporate disclosures, researchers, published U.S. government reports, and Department of Justice prosecutions of suspected Chinese spies. Such tactics make coordination with all of our partners, including international law enforcement partners, essential. A person who commits espionage is called an espionage agent or spy. This was a narrow agreement in that it did not preclude the theft of intellectual property for other purposes, such as for improving defense capabilities, or the theft of U.S. government information, but it did at least temporarily represent a step by China toward reducing its espionage against U.S. commercial targets. Botnets used by cyber criminals have been responsible for billions of dollars in damages over the past several years. Failure to report may result in Judicial and/or Administrative Action In addition to these Executive Branch actions, companies and Congress have played an important role in Americas response. As a country we should work to capture that talent here and make sure that it stays in the U.S. Much research and development also works more effectively when scientists and engineers are able to collaborate across borders. Despite the statutes broad language, the DOJ has faced significant hurdles in pursuing 951 prosecutions outside the traditional espionage context, and particularly where the alleged foreign agents activity involves ostensibly legitimate international business dealings. The FBIs affidavit describes luring Xu to Belgium to illegally purchase General Electric commercial aviation technology. Several high-level conclusions can be drawn from the cases representing the last 20 years of Chinese espionage operations. This week Emily Kilcrease, director of the Energy, Economics, and Security program at CNAS, joins The Asia Chessboard podcast from CSIS for a wide ranging discussion on the i By 951 to pursue conduct outside the context of traditional espionage. However, the threat posed by terrorismboth international terrorism (IT) and domestic violent extremismhas evolved significantly since 9/11. Sri Lankas default highlights the dangers of relying on international sovereign bonds with high interest rates to fund development. Crime and terrorist activity are an ever- present threat to our Nation. As members of this Committee know, for many years the Department of Justice expended too little energy enforcing FARA, resulting in an explosion both here in Washington and across the country of unregistered agents working on behalf of foreign governments. The French engaged in economic espionage throughout the 1980s. Chinas defense industry is working to develop a comparable engine. Cyber Attacks, Potential espionage indicators (PEIs) are activities by an individual who may have volunteered or been recruited by a foreign entity as a writing espionage agent. 19 This cycle generally involves five steps: tasking, collection, processing and evaluating, analysis and production, and feedback. The message is not tailored solely to those who overtly express signs of radicalization. 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 Espionage Act of 1917 is a United States federal law enacted on June 15, 1917, shortly after the United States entered World War I. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas. 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. Similarly, CFIUS should ensure that if the Chinese government has stolen or attempted to steal U.S. technology, no Chinese company should be able to acquire a U.S. company that designs or makes the technology that China attempted to steal. As Australias military ties with the U.S. deepen, the Top End becomes even more vital to Australian security. DoD Personnel should report to their CI Element, supporting MSCO or commander. Zach Cooper at AEI published a report on Chinas cyber strategy this past fall that compiled dozens of examples of the kinds of information China tries to steal. First order effects of China's espionage include the impact on the U.S. economy through loss of intellectual property. The recent acquittal in the Eastern District of New York of Thomas Barrack, a longtime friend and ally of former President Donald Trump, who was accused of acting as an unlawful agent of the UAE to influence Trumps decision-making, is only the latest example of the DOJs difficulties successfully prosecuting cases of non-traditional foreign influence in U.S. affairs. For guidance on "suspicious activities," refer to the Espionage Indicators Guide (see Appendix A to this Order). procuring supplies for terrorist organizations As a result of the Foreign Investment Risk Review Modernization Act, which was enacted last year, the FBI anticipates its workload to increase dramatically. The Defense Departments Defense Advanced Research Projects Agency (DARPA), for example, last year launched a $1.5 billion, five-year initiative to support advances in chip technology. The winners will be those who break the old rules of the spy game and work out new ones. Of course, China may well prove unwilling to make the necessary concessions. An official website of the United States government. 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. P.C. One might expect poor tradecraft from nonprofessional intelligence entities such as individuals, companies, and SOEs. With the broad distribution of social media, terrorists can spot, assess, recruit, and radicalize vulnerable persons of all ages in the U.S. either to travel to foreign lands or to conduct an attack on the homeland. 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. Unexplained or undue affluence And the U.S. would need to take the Ronald Reagan line towards Soviet military commitments when it comes to Chinese concessions, Trust, but verifywith an emphasis on the verify. But we should not foreclose the possibility of cooperation. 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. Unauthorized access to information systems. These techniques were used approximately one-third of the time. for Us, The CCPs Organization Department makes all senior personnel appointments. But the FBI is doing its part by providing actionable intelligence to better enable the private sector to address abuse of their platforms by foreign actors. We need to keep efforts that target Chinas espionage laser-focused on the small percentage of individuals and entities engaged in illicit behavior. This initiative is a welcome step and I commend the Justice Department and the National Security Division for launching it. Traditional espionage, often characterized by career foreign intelligence officers acting as diplomats or ordinary citizens, and asymmetric espionage, typically carried out by students, researchers, or businesspeople operating front companies, is prevalent. 2 Commencement. The threats posed by foreign fighters, including those recruited from the U.S., are very dynamic. Economic espionage activities . These foreign competitors deliberately target economic intelligence in advanced technologies and successful U.S. industries. Economic Espionage Act of 1996. The intelligence officer may begin by accessing the corporate web page to identify candidates to target via emails or social engineering. No Thanks Our Team Account subscription service is for legal teams of four or more attorneys. This report presents initial findings from analysis of 274 documented cases of Chinese worldwide espionage since the year 2000. China's espionage operations on the United States have been growing stronger for years. Browsing international terrorist websites, Everyone is required to report all FIE threats In its recent stepped-up enforcement efforts against foreign influence in American politics, the DOJ has faced some high-profile setbacks when it has sought to use the broad reach of 18 U.S.C. The only notable area in which China has shown minimal advancement has been in applying sophisticated espionage tradecraft. Chinese entities conducting espionage include government agencies, the military, state- owned enterprises (SOEs), private companies/individuals, and select universities. China is stepping up anti-espionage activities amid worsening ties with the United States and a renewed focus on national security ahead of a key Communist Party anniversary later this year. Former National Security Agency Director Keith Alexander has called Chinas IP theft greatest transfer of wealth in history. And as the 2018 NCSC report noted, the threat is growing due to expanded cloud-based computer networks and the internet of things (the home appliances, cars, and other things that will be connected to the internet)--which, according to the NCSC will create an incalculably larger exploitation space for cyber threat actors., Casual discussions of Chinese economic espionage often focus on high-end cyber intrusions into U.S. corporate networks. That Act prohibits the theft of trade secrets in which the perpetrator acts intending or knowing that the offense will benefit a foreign government. Avoiding polygraph 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. Dynamically explore and compare data on law firms, companies, individual lawyers, and industry trends. In the spotting phase the foreign intelligence officer identifies the target. The goal of cyber espionage, which may also be referred to as cyber spying, is to provide the attacker with information that gives them advantages over competing companies or governments. Similarly, much of the responsibility for responding to Chinese efforts to infiltrate U.S. academic institutions will fall on those institutions themselves. Composed of subject matter experts from both the Criminal Investigative and Counterterrorism Divisions, the fusion cell offers program coordination from FBI Headquarters, helps ensure seamless information sharing across divisions, and augments investigative resources. As the threat to harm the United States and U.S. interests evolves, we must adapt and confront these challenges, relying heavily on the strength of our federal, state, local, and international partnerships. DoD personnel who suspect a coworker of possible espionage should, Report directly to your CI or Security Office, Cyber vulnerabilities to DoD Systems may include, Disgruntled or Co-opted employee The distribution pattern shows activity concentrations occurring in high-tech sectors, manufacturing hubs, and business centers. Up to life imprisonment Doreign officials reveal details they should not have known. Money, Tokyo The State Department has recently pressed U.S. allies to similarly restrict the use of high-risk Chinese-made network equipment in their national telecommunications networks. The second major U.S. government response has been increasingly aggressive Justice Department efforts to prosecute Chinese spies. Site Map, Advertise| And getting access to this information would not even really be espionage as we typically think of it--the Chinese could simply set up a front company to buy the data commercially. China is drawing lessons from Russias invasion of Ukraine. Any individual or spy ring (a cooperating group of spies), in the service of a government, company, criminal organization, or independent operation, can commit espionage. Many foreign terrorist organizations use various digital communication platforms to reach individuals they believe may be susceptible and sympathetic to violent terrorist messages. Russia and China have been identified as . In these cases no (23 cases) or minimal tradecraft (21 cases) was employed. Women, Influence & Power in Law UK Awards honors women lawyers who have made a remarkable difference in the legal profession. Trust your instincts 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. As part of a nationwide campaign to raise awareness of the growing economic espionage threat, the FBI has released a short video, "The Company Man: Protecting Americas Secrets." Traditional espionage, often characterized by career foreign intelligence officers acting as diplomats or ordinary citizens, and asymmetric espionage, typically carried out by students,. Store information in Secure Facilites Similarly, SOEs are aggressive in conducting or supporting espionage (72 acts total), stealing primarily advanced military technology. The problem is that these recent indictments and arrests are only two of hundreds, if not thousands of cases. While continued counterterrorism pressure has degraded the groups Afghanistan-Pakistan senior leadership, in the near term, al Qaeda is more likely to focus on building its international affiliates and supporting small-scale, readily achievable attacks in key regions such as east and west Africa. Cyber espionage: Russian state-sponsored groups have been implicated in a range of cyber espionage activities against Ukraine, including stealing sensitive government and military data, intellectual property, and other confidential information. 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. Power, Crossroads Third, the Trump administration should use Committee on Foreign Investment in the United States (CFIUS) authorities to prevent China from acquiring technologies that it is also trying to steal. DHS is also investing in research into technologies and public-private partnerships that may be able to improve cybersecurity practices and in education and outreach programs designed to improve corporate cybersecurity practices. Distribution of Chinese Espionage Activities in the U.S. Chinas main espionage activities against the United States are focused on the illegal export of military and dual use technology. Fines Asia, South g. Beijing has stated its intention to advance industry, technology, and military capabilities to become a world leader by 2025. SOE espionage activities show a wide variance in tradecraft. 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. Do not probe for information Prepare in advance Solicitation and marketing of services These diverse threats underscore the complexity and breadth of the FBIs mission: to protect the American people and uphold the Constitution of the United States. A .gov website belongs to an official government organization in the United States. 13757 (2016) that authorize the Treasury Department to impose sanctions on entities that engage in various forms of cyber hacking and on companies that steal trade secrets or other high-value IP via cyber-enabled means, or which benefit from such stolen IP. The Trump administration should use CFIUS to block Chinese companies that have stolen U.S. technology from acquiring companies in the United States. Former U.S. Defense Secretary Robert Gates said in an interview that there are probably a dozen or 15 countries that steal our technology. In 2015 a South Korean company plead guilty to conspiring to steal proprietary DuPont information about Kevlar, the body armor material, and paid more than $300 million in fines and restitution. Amid great power competition, life in the China-Russia borderlands reveals the paradoxes underpinning the Beijing-Moscow friendship. Individual victims of Chinese IP theft have begun to resort to legal measures to fight back against companies that steal their trade secrets. Edward Fishman. These troubled cases raise caution flags for future DOJ criminal prosecutions of non-traditional foreign influence cases. Non-DoD civilians may face sanctions. The PLA was involved in 61 such cases. The scope of the criminal activity, including evidence of involvement by a foreign government, foreign agent, or foreign instrumentality The degree of economic injury to the trade secret owner The . Both options are priced the same. A recent report by cybersecurity firm Carbon Black found that 68 percent of surveyed cybersecurity incident response professionals reported that they were seeing cyberattacks from China and the half of all investigations focused on China and Russia. The reason for this is because Snowden did not provide information he obtained to a foreign government. Legalweek New York explores Business and Regulatory Trends, Technology and Talent drivers impacting law firms. The U.S. government has steadily increased its response to the threat of Chinas unconventional espionage. 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 . Espionage and counterespionage have been essential tools of statecraft for centuries, of course, and U.S. and Chinese intelligence agencies have been battling one another for decades. Access to additional free ALM publications, 1 free article* across the ALM subscription network every 30 days, Exclusive discounts on ALM events and publications. The charges included acting as an agent of a foreign government without notifying the attorney general, a charge the Justice Department has referred to as "espionage lite," a violation of . 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. What do we know about him? Illegal downloads. In closing, I would like to offer two general thoughts. Individual U.S. government agencies understand that increasing investment is the most important element to maintaining Americas technological edge. The world of espionage is facing tremendous technological, political, legal, social, and commercial changes. Attempting to gain access, without need-to-know Regardless of the method or activity, Foreign Intelligence Entities seek one thing: to learn more about the Department of Defense plans in order to exploit its information and impede its mission. Advocating violence for terrorist organization Responding to Chinas unconventional espionage threat will require a whole-of-society approach, not just a whole-of-government approach.