About Charles Patterson

Charles Patterson is the president, CEO, and primary consultant of Exec Security TSCM. He began working in the security field in 1978 in executive protection and related technical security services. He has been providing TSCM sweeps since 1995.

Hacking Humans, Corporate Espionage and the Spies Among Us

This article is from Cari Guittard from Huffington Post who recently interviewed Ira Winkler, President of Secure Mentem and the Internet Security Advisors Group (ISAG) regarding changes in corporate espionage and some simple countermeasures. Ira Winkler is an expert in computer security and penetration testing. His responses point to the need to pay attention to many overlooked internal threats. Full article can be read [here].

Ira points out that internal threats from employees are often overshadowed by the well publicized concerns over cyber warfare. It’s important to recognize that along with hacking and computer threats, the information leaked through other forms of electronic eavesdropping can be equally devastating to a corporation.

Hacking Humans, Corporate Espionage and the Spies Among Us

By Cari E. Guittard, Principal, Global Engagement Partners; Professor of Global Management, Hult International Business School

I reconnected with Ira after his remarks at the SC eSymposium to get his take on […]

Charles Patterson2016-12-16T20:24:03-05:00May 18th, 2013|

Judge modifies rules for trade secret cases

An article in the Arizona Daily Sun [azdailysun.com] points out the need for taking steps to protect information that you consider proprietary. To gain legal protection for information you consider private, one of the things necessary is to demonstrate that significant steps have been taken to maintain the secrecy of that information.

Performing regular TSCM sweeps will help establish that the information that may be exchanged in phone conversations, meetings, or conferences can be considered as proprietary and protected under trade secret laws, and that the interception of that information can be prosecuted fully.
–cp

AZDailySun.com May 05, 2013 • HOWARD FISCHER Capitol Media Services

PHOENIX — Companies that want to sue former workers who have stolen what they say are trade secrets need to prove that what was taken is truly a secret, the Arizona Court of Appeals has ruled.
And they have to prove they made a […]

Charles Patterson2016-12-16T20:24:03-05:00May 9th, 2013|

Never Bring a Knife to a Gun Fight: One Simple Weapon to Fight Economic Espionage in a Cyberspace World

In this article in the National Law Review, the bottom line is key:

The author states “Innumerable resources describe trade secrets best practices, but there is one straightforward, critical practice that companies routinely ignore: Forensically audit all electronic devices of your departing employees. The majority of private enterprise trade secret thefts are made by departing employees. Most occur within one month of the employee’s departure. If possible, commence your audit not when the employee actually departs, but when the employee announces his or her departure.”

The writer emphasizes the risk of digital information being stolen, and also notes “non-cyber” methods of espionage. He did not mention however, the risks of interception of verbal information or communications. When performing audits of departing employees, or any other information security audit, a full TSCM sweep may be in order as well. —

Never Bring a Knife to a Gun Fight: One Simple […]

Charles Patterson2016-12-16T20:24:03-05:00May 5th, 2013|

Credit Suisse Alleges Espionage Against Former Employee

International Venture Capital Post; IVC POST | Marc Castro Updated: May 04, 2013

Credit Suisse Flag

The image is the frontage of the Credit Suisse corporate headquarters, whose recent performance in the bourse left much to be desired. (Photo : Reuters)

Credit Suisse Group AG has filed suit against its former vice president for emerging markets group on the grounds she stole confidential documents and trade secrets prior to her transfer to Goldman Sachs.

The complaint was filed in Manhattan state court against Agostina Pechi claiming she had sent highly sensitive and confidential information and documentation to her personal email account months before her date of resignation. The information included databases, client contact information and team sales targets.

Credit Suisse called it an ‘after hours document raid’ when she scheduled to be on furlough when the alleged illegal acts were committed related […]

Charles Patterson2016-12-16T20:24:03-05:00May 5th, 2013|

Cyberattacks, corporate espionage now targeting smaller companies

Intellectual property theft, corporate espionage growing
By Emily Chung, CBC News

Smaller companies, their websites and their intellectual property are increasingly being targeted by cyberattacks, a new report on IT security trends says.

Targeted attacks were up 42 per cent in 2012 compared to the year before, and businesses with fewer than 250 employees are the fastest growing segment being targeted, according to the annual internet security threat report issued Tuesday by Symantec.

Based on data from 69 million “attack sensors” around the world, the report said small businesses were hit by 31 per cent of targeted attacks in 2012, up from 18 per cent a year earlier. That represents a 72 per cent increase.

The type of information being targeted by attackers is also changing — financial information is now losing ground to other kinds of competitive data, the report found.

According internet security firm Symantec, [...]
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Charles Patterson2016-12-16T20:24:03-05:00April 23rd, 2013|

Symantec: Industrial espionage on the rise, SMBs a target

Symantec’s latest Internet Security Threat report suggests that SMBs remain an attractive target for those trying to steal intellectual property.

By Charlie Osborne for Zero Day | April 16, 2013

Security giant Symantec’s latest Internet Security Threat reportsays that attacks focused on stealing intellectual property surged by 42 percent in 2012 in comparison to the previous year.

Targeted cyberattacks based on IP theft are being conducted against both the manufacturing industry and smaller businesses, which are likely to have less income to invest in shoring up their defenses against attack. Symantec says that SMBs — with fewer than 250 employees — now account for 31 percent of targeted attacks, and are often seen as a means to gain access to larger firms through “watering hole” techniques.

The average number of targeted attacks has increased to an average of 116 per day, made popular by the Elderwood […]

Charles Patterson2016-12-16T20:24:03-05:00April 23rd, 2013|

Top Senate Republican Asks Feds to Investigate Possible Illegal Wiretap

Editor’s comment: interesting to note, that in the story below, Mitch McConnell’s name is tied to this incident, but the alleged slanderous statements that were intercepted were made by someone else, not McConnell. Politics aside, if a meeting or board room is bugged, or if conversations are intercepted, this demonstrates that the PR problems created can easily affect much more than just the lone person who made the intercepted statements. Keep your meetings secure through professional technical countermeasures!

The Weekly Standard

10:39 AM, APR 9, 2013 • BY DANIEL HALPER

The top Republican in the Senate, Mitch McConnell, is asking the feds to investigate whether a closed campaign meeting was illegally wiretapped by his political opponents. The issue arises after the liberal outlet Mother Jones published “A recording of a private meeting between the Senate GOP leader and campaign aides.”

In a statement to the press, McConnell’s campaign manager, Jesse Benton, says the feds are getting […]

Charles Patterson2016-12-16T20:24:03-05:00April 10th, 2013|

Syria Alleges to Discover Israeli Spy Devices

Associated Press, DAMASCUS, Syria March 7, 2013 (AP)

Syrian authorities have discovered Israeli spying devices that were apparently hidden in objects that resembled rocks, Syria’s state news agency said Thursday.

SANA’s report said the devices are designed to photograph, register and transfer data. The agency said the objects were uncovered in Syria’s coastal regions, but gave no further details.

The Israeli military declined comment.

State-run TV aired footage of an object consisting of what looked like a camera and a satellite dish, and other objects that resembled rocks. Plastic boxes resembling batteries and cables were shown lined up in a room.

Lebanon also discovered similar devices in recent years, and said the objects were planted by Israel.

Syria and Israel have fought several wars since the Jewish state’s creating in 1948, and the two nations remain technically in a state of war even now.

Israeli warplanes carried out an air raid near Damascus […]

Charles Patterson2013-03-08T10:47:25-05:00March 8th, 2013|

The need for protecting confidential information.

The White House administration recently launched a strategy to mitigate the theft of U.S. trade secrets. (see: www.whitehouse.gov/blog/2013/02/19/launch-administration-s-strategy-mitigate-theft-us-trade-secrets )

Part of the new White House strategy includes supporting ” industry-led efforts to develop best practices to protect trade secrets and encourage companies to share with each other best practices that can mitigate the risk of trade secret theft.” […www.whitehouse.gov] This is something many of us in the security and TSCM industry have been calling for for decades.

How valuable is your information?

Hopefully many corporations will begin to pay closer attention to their information security needs. Often we have heard from corporate clients who really don’t think it would hurt them much if a little information went missing. One company who developed medical equipment for cancer treatment did not have an alarm system in their office. When I asked about that oversight, they said they had nothing worth stealing. “If someone stole […]

Charles Patterson2016-12-16T20:24:04-05:00February 23rd, 2013|

China Wire-tapping Wars: The World of Official Espionage

From China Digital Times

Wire-tapping Wars: The World of Official Espionage

Before the Southern Weekly crisis broke out last month, one of the paper’s sister publications, the magazineSouthern People Weekly, published a scathing exposé on the secret world of spying and backstabbing endemic throughout Chinese officialdom. Aside from revelations about Bo Xilai bugging calls with president Hu Jintao, there has been little available information about surveillance inside the Party.

The December article narrates the adventures of Qi Hong, an ex-wire-tapping detective who was so busy debugging the offices of various Chinese officials, he once dismantled 40 hidden wires and cameras in a single week.

The piece is no longer available from Southern People Weekly online.
CDT’s Mengyu Dong has translated the entire article below:

Wire-tapping with Chinese Characteristics

Qi Hong grabbed a handrail on a crowded Beijing subway, exposing a deep scar. Others on […]

Charles Patterson2016-12-16T20:24:04-05:00February 19th, 2013|

Corporate espionage: fascination with spying and spy technology

Interest and fascination with spying is ever present, especially in the corporate world. This can lead employees to cross boundaries and attempt illegal eavesdropping or theft of information for their own advancement or profit.

The availability today of inexpensive electronic devices that can be used for covert surveillance can lead the less ethical among us to venture into the world of spy craft. Many may not even realize they could be breaking serious laws through the use of simple items they found on the internet.

Lifehacker recently sponsored a number of articles about spy technology available to the average person. [here]

“When you’re a spy, you are often called on to augment your training with improvised solutions using whatever happens to be at hand. Sounds a lot like life hacking, doesn’t it? While most of us don’t have the pressure that spies face or the intensive training they receive, we can […]

Charles Patterson2016-12-16T20:24:04-05:00January 27th, 2013|

“Work Like a Spy: An Ex-CIA Officer’s Tips for Business Success”

Former CIA operative, J. C. Carleson, has written “Work Like a Spy: An Ex-CIA Officer’s Tips for Business Success” where she applies what she learned in the CIA to working in the corporate world. Due on bookshelves in February.

She was interviewed regarding her new book by Fast Company, www.fastcompany.com

“…in the spy world let’s say there’s a change in leadership–a shift in power, someone new is taking the helm. There are always going to be people who feel stepped on. Those are the people who are vulnerable to recruitment by a spy. They still have access and knowledge. They are the people who see the writing on the wall, so they want to get revenge or build up a bank account. Translate that to the corporate world: new management comes in, a CEO gets ousted, a new exec brings a new team, people in the organization feel stepped on, they feel […]

Charles Patterson2016-12-16T20:24:04-05:00January 27th, 2013|

Sports espionage: NBA Commissioner David Stern weighs in, “Don’t eavesdrop!”

January 17, 2013, 5:06 PM ET
By Mark Woods | Special to ESPNNewYork.com

LONDON — NBA commissioner David Stern says any team tempted to “eavesdrop” on opponents will face sanctions from the league.
But the actions of New York Knicks owner James Dolan in ordering extra microphones to be installed within Madison Square Garden in the wake of Carmelo Anthony’s recent suspension did not break any rules, he confirmed.

Speaking in London ahead of Thursday’s game against the Detroit Pistons, Stern revealed he would like to see more devices available so that fans can listen in to players and referees in a similar fashion to the National Football League.

But acts of espionage are off limits. “If a team does something to eavesdrop on other players, they would be sanctioned because it would be against our rules,” Stern said.

“But there is a difference between eavesdropping such as […]

Charles Patterson2016-12-16T20:24:04-05:00January 18th, 2013|

Corporate Espionage Fines Jump with New Trade Secrets Law

By Jeffrey Benzing | January 15, 2013 4:28 pm

Maximum fines are jumping well into the millions for those accused of stealing trade secrets to benefit foreign entities.

On Monday, President Barack Obama signed the Foreign and Economic Espionage Penalty Enhancement Act of 2012, which raises the maximum fine for an individual from $500,000 to $5 million. The maximum fine for an organization, previously set at $10 million, is now either $10 million or three times the value of the stolen trade secret.

This value includes the cost of research, design and other production expenses the organization avoided through economic espionage.

In August, then-House Judiciary Chairman Lamar Smith (R-Tex) said the bill would keep foreign entities from illegally benefiting from American innovation. In particular, he noted the threat U.S. companies face from cyber criminals.

“The economic and national security of our country depends on the security of […]

Charles Patterson2016-12-16T20:24:04-05:00January 17th, 2013|

Municipal espionage: Michigan county pays in eavesdropping lawsuit.

Occasionally we have been hired by police departments because they thought the mayor was bugging their offices and by mayors’ offices because they were worried about the police eavesdropping on them (not the same city, though). Even those involved with the law do not always understand (or care about) the legal ramifications of their actions. This case was sheriff vs. deputies, and it cost the county $625,000.00.

Leelanau County Pays $625K In Eavesdropping Lawsuit
January 17, 2013 3:21 PM

SUTTONS BAY, Mich. (AP) – Court documents show that Leelanau County’s board of commissioners has agreed to pay $625,000 to settle a federal lawsuit by sheriff’s deputies who say the then-sheriff and undersheriff eavesdropped on their private conversations and otherwise violated their rights.

The board in the northwestern Lower Peninsula county approved the deal in October but didn’t reveal its terms. The Traverse City Record-Eagle says the amount of the payment was listed in […]

Charles Patterson2016-12-16T20:24:04-05:00January 17th, 2013|

Industrial espionage: AMD files suit against former employees for alleged document theft

By Joel Hruska on January 15, 2013 at 4:00 pm
from extremetech.com

AMD has filed (and been granted) a request for immediate injunctive relief against multiple former employees that it alleges stole thousands of confidential documents. Named in the complaint are Robert Feldstein, Manoo Desai, Nicholas Kociuk, and Richard Hagen. All four left AMD to work at Nvidia in the past year. The loss of Feldstein was particularly noteworthy, as he’d been the head of AMD’s console initiatives for years. Feldstein was behind the work that landed AMD the Wii U, PS4, and Xbox Durango. He also worked closely with Microsoft during the Xbox 360′s development cycle and brought that contract to ATI prior to AMD’s acquisition.

The AMD complaint states that “He [Feldstein] transferred sensitive AMD documents, and in the next six months, the three defendants either did the same thing, violated ‘no-solicitation of employees’ promises, or […]

Charles Patterson2016-12-16T20:24:04-05:00January 17th, 2013|

Vulnerability on VOIP phone systems.

by Charles Patterson
Patterson Communications, Inc.
www.execsecurity.com

VOIP vulnerability and disaster recovery

We’ve had a busy schedule here in the New York area since Hurricane Sandy hit. A few of our clients lost their entire offices due to flooding from the Hudson River and had to relocate. We have been spending many hours helping some of them get their phone systems situated and back on line.

Flood waters

One of our clients’ entire office (60 employees) was under four feet of water and they quickly had to relocate to a temporary facility a few miles away. To keep their business operational they signed up with a VOIP hosted phone provider who was able to give them phone service at their new office in a very short period of time. This was great for their quick recovery from the disaster. In helping them set up their new phones, though, […]

Charles Patterson2016-12-16T20:24:04-05:00December 11th, 2012|

Apple’s secret garden: the struggle over leaks and security

“I understand why people leak, because everyone wants to feel important and prove that they know things,” one employee said.

Apple’s secret garden: the struggle over leaks and security

by Jacqui Cheng – Oct 22 2012, 9:00am

Apple engineers love the “big reveal.” When a surprising new product they have been toiling over in secrecy finally bursts into public view during an Apple keynote, they enjoy seeing the public reaction. But the public wants its products details early, and it gets them in the form of leaks, rumors, and grainy cell phone shots of dubious authenticity. To the engineers, this is a bit like children who insist of spoiling the fun of opening presents by shaking them, squeezing them, and finally guessing exactly what’s within. Increasingly, though, leaked products are the reality even for the famously secretive Apple.

Products have always leaked out of Apple. To the leaker, knowledge is a form of power, […]

Charles Patterson2016-12-16T20:24:04-05:00October 22nd, 2012|