Government and military entities are not the only ones spying and conducting espionage investigations to protect our national security. More and more corporations and even small businesses are now hiring expert private investigators to conduct espionage investigations and counter-surveillance to protect “trade secrets” and other classified information.
Cases of economic espionage, industrial espionage, corporate spying and corporate espionage are commonly conducted for commercial purposes but can also include personal information that can later be used to blackmail, discredit and control enemies and competitors.
Espionage or “Insider theft” can cause significant personal and financial harm and described as an individual obtaining secret information without the explicit permission of the owner. For example, a corporation or company spying on another company’s activities, collecting data and information for gain or cause damage, most commonly through the doorway of employment.
Espionage involves clandestine activities. Though methods and motives of spying have changed over time, the desire to uncover competitor’s secrets has not. There is a war going on, and spying the primary weapon.
The FBI concludes “insider threats” or employees familiar with the inner workings of a company who obtain sensitive industry secrets in exchange for large amounts of cash are becoming more common and pose a significant threat to companies worldwide.
To combat this ever-increasing menace to American businesses, the FBI produced a video “” to raise awareness.
Private investigator Thomas Lauth, CEO of Lauth Investigations International, says, “Global trade of fake goods is damaging U.S. markets, along with theft by U.S. retail workers.”
Pirated and imports of counterfeit goods are worth nearly half trillion dollars annually with much of the proceeds going to organized crime, according to the OECD and the EU’s Intellectual Property Office.
“Trade in Counterfeit and Pirated Goods: Mapping the Economic Impact,” reports fake products like footwear, handbags, even strawberries, are commonly presented to the U.S market. While there is significant financial damage occurring, products like pharmaceuticals, toys that are harmful to children, baby formula, and failing auto parts are endangering lives.
According to former Attorney General Loretta Lynch in a 2015 Department of Justice press release, “The digital age has revolutionized how we share information, store data, make purchases and develop products, requiring law enforcement to strengthen our defenses against cyber crime – one of my top priorities as Attorney General, “said Lynch. “Companies like Sony and Target – have demonstrated the seriousness of the threat all business face and have underscored the potential for sophisticated adversaries to inflict real and lasting harm.”
While the Attorney General’s Office, FBI, Homeland Security and law enforcement are allocating more resources to combating intellectual property theft from dangerous outside adversaries, companies throughout the world are encouraged to take the necessary steps to protect their own intellectual property from outside and insider threats.
Insider Theft of Intellectual Property
Experts maintain upwards to 70% of a corporation’s value is found in Intellectual Property (IP). Insider threats come from the inside because the “thieves” are given access to their day-to-day employment.
The value of an organization’s secrets, product plans, customer data, and price lists cannot be underestimated. It becomes necessary to find a balance between productivity and protocol that allows a watchful eye to protect sensitive data and detect insider threat activity. Operational staff should be prepared with information to help them better understand how insiders can damage their agency, and in the various methods used by insiders. They are the front line to help battle IP theft crimes.
Insider thieves commit crimes for varying reasons, to include gaining a competitive business edge, to start a competing business, or personal financial gain.
It is not uncommon for thieves to use networks to send internal server data outside of an organization. The most common method of stealing data is the use of external media such as a writable CD or USB mass storage device. Using corporate email accounts to send information off-site to personal emails and competitors is also common and requires monitoring to prevent such abuse.
It is necessary for organizations to identify risks and develop standards of best practices and policies that address the many ways IP can be exploited. These should include but are not limited to IT Security, removable media policy, controls and inventory, physical security, logs, and indexing tools to identify patterns in behavior. It is especially important to implement heightened security measures during reorganization, acquisition, downsizing, mergers or other organizational events.
Non-Compete Agreements Protects the bottom-line
Employee departures resulting in the scheming of trade secrets and clients has increased significantly in recent years. Many employees leave their employment to begin a similar start-up or pursue freelance work. As a result, it has become common for former employees to approach old clients, steal data, marketing materials and even share negative information to damage their former employer’s credibility.
According to a Wall Street Journal report, with the help of investigators, over the past decade, there has been an increase in the number of departing employees being successfully sued by former employers for breaching Non-compete Agreements (CNC).
Considered one of the most effective ways to prevent the theft of a company’s secrets, having a Non-compete in place and requiring every employee to sign it, can prevent damages that could otherwise last years.
Private investigation firms are playing a significant role in the effort to safeguard information, the detection of costly breaches and providing an evidentuary solution presenting facts when litigation is necessary.
Lauth Investigations International is working to prevent intellectual property breaches, global piracy, counterfeiting and insider threats with data mining experts and field investigators who focus on safeguarding IP and detecting violations utilizing sources that are not commonplace to HR and Operations Supervisors. “It is vital to be able to detect violations to prevent violators from reaping profits and expanding their worldwide market, where damage can extend for years,” says Lauth.
Brand Protection areas include:
Apparel
Music and Apps
Tools and Hardware
Cosmetics and other Products
Logos and Authentic Branding
Indigenous Rights
Author Rights
Content and SEO Detection and Protection
Plagiarism, Marketing Materials and Website Protection
“Our investigators conduct trademark infringement for brands, large and small, trekking through some of the most complicated cases and vast markets such as Hollywood celebrities, apparel, and electronic clients,” says Lauth. “Our team provides intellectual property and litigation support for small business and corporations working with corporate executives, HR, and those in Operations Supervision to provide research and investigations, crisis intervention, employee screening, vendor and supplier screening, electronic discovery, surveillance, loss analysis, and expert testimony if needed.
Working to protecting your brand
“Our private investigation firm will not only work with key staff and operations supervisors to identify current and potential breaches, we work with companies that operate throughout the world to implement the right policies and safety protocol to help protect their IP into the future,” says Lauth.
Lauth Investigations offers free consultations and guidance to help protect your brand. Following are a few tips to help you better protect your IP.
Protect web content and marketing materials by utilizing a DMCA account and protection badge.
Think globally. Obtain trademark protection for worldwide protection.
Set up a Google Alert to police your brand.
Obtain IP Protection for Copyrights, Trademarks, and Patents.
Register trademarks with the US Patent Office.
Develop a Policies and Procedure Handbook and have each employee review and sign.
Utilize Marketing Analytics software such as TrackMaven and Travel IQ for online tracking.
Monitor unregistered infringements.
Create various divisions for a more controlled environment.
Whether you are entering a merger, considering an investment, or assessing a competitor’s advantage, due diligence is a necessary factor to ensure a successful outcome. Business leaders know the importance of growth but every opportunity presented holds the potential for success or failure.
Business intelligence consists of collecting and organizing large amounts of data that enable businesses to identify opportunities and develop strategies that promote long-term success. Hans Peter Luhn, a researcher for IBM, said in a 1958 IBM Journal article, “Business intelligence is the ability to apprehend the interrelationships of presented facts in such a way as to guide action toward a desired goal.”
Successful business leaders know the importance of information gathering and review before making any business decision. They draw information and knowledge from various professional disciplines including business consulting, law firms, journalists, and of course investigators.
For instance, when considering a merger with another company it is crucial to know as much about the company’s history, business management, ethics, financial solvency, possible undisclosed liabilities, leadership of the company, and their affiliations. All business transactions have potential risks and it important to assess these risks prior to entering any business transaction. The public information gathered can be quite revealing and prevent a decision that could devastate years of hard work, reputation, and even avoid litigation in the aftermath.
Another circumstance that could arise is that your company may want to know the demographics of your competitor’s clients. The information gathered would contain the number of products offered by the company, how many were products were purchased, how many were sold to men or women, the age brackets of those who purchased the products, the average income level, zip code, and level of education. Utilizing a combination of commercial due diligence and intensive analytical due diligence can forecast sales growth; identify a competitor’s operational metrics, procurement, customer management, and even fraud.
While business intelligence can identify external opportunities and risks, internal business intelligence can be equally important. For instance, in the Human Resources Department of a company, the data collected on employee’s absences can be a predictive trend and therefore a strategy developed to combat income loss and retain employees. The same company may want to gauge how their latest marketing campaign is increasing sales in order to produce a trend analysis report and present the information in east to understand graphs and charts in PowerPoint at the next Board Meeting. The advantage of data analysis is endless when assessing performance measures of a business.
Professional investigative teams have private investigators that can verify information, collect information about financial transactions, assets, investments, liabilities, and identify existing contracts, business practices, and even political associations. The information is then provided to the client providing a solid base for decision-making.
Business intelligence involves research, measurement, querying, analytics, data mining, performance management, reporting, identifying benchmarks, information sharing, and regulatory compliance. To implement effective business intelligence strategy, it is important to have skilled investigators to help your company obtain the needed information while conducting a legal, ethical, and discreet investigation.
According to Thomas Lauth, owner and lead private investigator at Lauth Investigations International, business intelligence has become a necessary component of business management worldwide. “From a negative media campaign to competing for a contract, knowing who your opposition is and their political and media affiliations, marketing and internet campaigns, and even motives will give you the competitive edge” says Lauth. “The old saying, it is better to be safe than sorry!” rings true.
Private investigators do a variety of work. They track down missing people and recover lost assets. They keep an eye on spouses when one partner is worried about infidelity or in the process of divorce. Private investigators look into business assets during a merger and vet CEOs to make sure there are not hidden secrets that will embarrass the company later.
People tend to assume private investigators only do one kind of work, but that’s a mistake. Here are some stories from around the web that demonstrate the versatility of private investigators and all they do.
Founder and operator of Lauth Investigations International, Thomas Lauth, was featured in this article from the San Diego Tribune about private investigators working to recover missing people being trafficked into the sex trade.
In Indiana, Thomas Lauth, founder of Lauth Investigations, said his company has worked trafficking cases since “before the word ‘trafficking’ ever came around.”
Historically, he said, law enforcement turned their backs on trafficking victims they viewed simply as prostitutes.
He said that often times a girl is recruited by a friend who introduces her to a trafficker or pimp.
“Police say she left on her own. Parents don’t know what to do. They call police repeatedly. Then they call an investigator,” Lauth said.
Obviously we’re very happy to see Tom’s hard work and dedication to helping families and children being featured in such a big newspaper, but we’re even happier for the work itself. Tom has a long history of finding missing people and helping families recover their loved ones. It’s hard work, but Tom loves doing it and always gets it done.
In a strange case of cat and mouse, Buzzfeed Motion Pictures employee Mike Carrier hired a private investigator to investigate himself and see what he could dig up. Unbeknownst to the private investigator, Carrier hired a second private investigator to investigate the first private investigator. The story ends rather anticlimactically, but it’s worth reading just for the uniqueness of the situation.
Burglars breaking into people’s home and using their showers is surprising common as we wrote about here.While most people would assume burglars want to get in and out as quickly as possible, they’re frequently tempted to get far too comfortable in the homes they invade.
In Youngstown, Ohio this week a man broke into a woman’s house and trashed the inside before the homeowner returned and found the man rinsing his hair in the shower. Surveillance video showed the man came from a convince store around the corner. Police said the man had a lengthy burglary record.
Mannix was a tv show that aired for eight season on CBS starting in 1967. Mike Connors played the hero and title namesake Mannix. The show was a big hit despite poor first season ratings. Mannix was a private investigator in Los Angeles who solved street crime and mixed it up with bad guys.
In the CBS News obituary Connors said Mannix was a hit because, ““Up until Mannix, most private investigators were hard-nosed, cynical guys who lived in a seedy area and had no emotions. Mannix got emotionally involved. He was not above being taken advantage of.”
David Schroeder, Blog Writer, Lauth Investigations International
Jack E. Sandline, an Indiana Senator and owner of private investigation firm Jack Sandline and Associates, shared a post on Facebook mocking the women who participated in the post inauguration Women’s March as being fat and unmotivated. Sandlin shared a picture of the march which read: “In one day, Trump got more fat women out walking, than Michelle Obama did in 8 years.”
The post was quickly deleted, but it was too late. People had already taken screenshots of the post and it began spreading like wildfire. After the post was deleted, a second post appeared on Sandlin’s Facebook wall apologizing, but it was also deleted shortly after. Sandlin told the Indy Star he didn’t make either post, but he allow the possibility that he, “…could have hit something.”
Social media is a powerful tool. It can connect you with your audience directly to strengthen your brand. It can also destroy all of your hard work if you post the wrong thing. Here’s a few times people’s social media posts got them into hot water.
It’s no secret that Saturday Night Live and Donald Trump have an adversarial relationship. Alec Baldwin has been portraying Trump in less than flattering ways ever since Trump announced he was running for president. While SNL has a history of lampooning anyone and everyone, even they had to draw the line when one of their writers tweeted about Trump’s youngest son, Barron.
On the day of Trump’s inauguration, SNL writer Katie Rich published a tweet that said, “Barron will be this country’s first homeschool shooter.” The reaction across social media was swift and strong in its condemnation of the tweet. People were outraged Rich targeted a child with an insult.
Rich deleted the tweet and even deactivated her Twitter account after the backlash, but it was too late. Executives quickly suspended her for indefinite amount of time for the tweet. Rich’s name was removed from the credits of the following show.
Justine Sacco was the director of corporate communications at IAC when she caused a social media meltdown. Sacco was sitting on a plane waiting to take off for Africa when she tweeted, “Going to Africa. Hope I don’t get AIDS. Just kidding. I’m white!” Sacco’s flight took off shortly after the tweet was sent.
Sacco didn’t have internet access as she flew and had no idea her tweet was causing the uproar it did. With only 170 followers, it’s unlikely Sacco expected any significant response to her tweet. Unfortunately social media is unpredictable and it’s difficult to know what will and won’t blow up. By the time Sacco’s plane landed, there were numerous blogs calling her a racist and she had lost her job.
In case you thought only lower level employees would lose their jobs over social media posts, Matt Harrigan is here to prove you wrong. Harrigan was the CEO and President of PacketSled, a network security company before resigning due to some ill advised social media posts.
In multiple posts across his Twitter and Facebook pages, Harrigan wrote about wanting to personally kill Donald Trump.
Twitter and Facebook accounts tied to Matthew Harrigan, the President & CEO of PacketSled, included comments threatening Trump Sunday afternoon, according to an NBC 7 source.
“I’m going to kill the president. Elect,” was one of the posts on Harrigan’s Twitter account. It was followed by the comment, “Bring it secret service.”
“…getting a sniper rifle and perching myself where it counts,” reads a post to Harrigan’s Facebook account. “Find a bedroom in the whitehouse [sic] that suits you motherf—er. I’ll find you.”
After Harris’s social media posts began to garner attention, he tendered his resignation to the PacketSled board of directors who quickly accepted. As if losing his job wasn’t bad enough, his comments were also reported to the Secret Service. Harris did apologize for his comments, but it was too late.
David Schroeder, Blog Writer, Lauth Investigations International
Hiring a CEO is a long and arduous process. Companies can’t afford to waste time and money on the wrong candidates. It’s bad enough when someone gets a CEO position and isn’t good at their job. It’s even worse when they have to resign in embarrassment.
More frequently than you might suspect, companies hire someone for a top executive position without doing a thorough background check. Instances like these not only waste company resources, but they hurt the company’s image and make securing top talent in the future harder. Here are a few times a more thorough vetting process could’ve protected a company’s resources and reputation.
Monica Crowley was a research assistant to Richard Nixon in the 1990s. She received a PhD from Columbia University in 2000 and was a political commentator for The Wall Street Journal, Fox News and MSNBC, among others. She has published multiple books as well.
When Donald Trump won the presidency he initially nominated Crowley to be the Senior Director of Strategic Communications for the National Security Council. Quickly after her nomination reports began circulating that Crowley had plagiarized large portions of the books she had written.
Initially the Tump administration said they stood by Crowley and that the attacks on her were politically motivated. However more and more evidence of Crowley’s plagiarism began to mount.
Crowley was found to have not only plagiarize portions of her books, but also her PhD dissertation for Columbia University. Harper Collins, Crowley’s book publisher, withdrew her books from being sold and Columbia said they were reviewing their records.
Crowley’s plagiarism went from minor footnote to national spectacle overnight. After standing by Crowley during the initial accusations, the Tump administration ended up withdrawing her nomination. This whole scandal could’ve been avoided with basic cross referencing and data mining.
Gustavo Martinez was the CEO of J. Watler Thompson, a major company in the advertising industry. JWT has over 10,00 employees working in more than 200 offices across 90 countries.
Martinez is originally from Argentina and became Global President of JWT in 2014. In January of 2015 Martinez was named CEO. Within a year of his promotion, Martinez was named in a lawsuit alleging discrimination by a female employee.
The lawsuit claimed Martinez had made numerous racist remarks during a company meeting. Martinez is said to have told employees to double check their bags and belongings since the hotel where they were staying had so many black people. Martinez is also accused of making comments about raping female employees.
One of the more shocking aspects of this case is the brazenness of Martinez. All of these comments were made in front of large groups of people. His comments about black people potentially stealing employees belongings are even on video. In fact, Martinez had been known to discuss his distaste for Jewish people.
Martinez’s willingness to speak this way publicly surely could have been discovered before he was made CEO. Instead J. Walter Thompson is now engaged in a high profile lawsuit and lost their CEO. Extensive background investigations can protect your company from embarrassing headlines and wasting money fighting lawsuits that should never have happened in the first place.
Scott Thompson is an American businessman with an impressive resume. Thompson had a long career in technology before becoming the CEO of Yahoo in 2012. He had been the Executive Vice President of Technology Solutions for Inovant, Chief Information Officer for Barclays Global Investors, Chief Technology Officer and then President of Paypal.
Thompson’s work history made him appear to be the perfect candidate for almost any job in technology. How could he have gotten so many high level technology jobs without any skeletons being rousted from his closet?
Despite his exceptional work history it turns out that Thompson had been falsifying his resume. After six months as the CEO of Yahoo, Thompson was forced to resign after it was discovered he lied about his college education. Thompson claimed to have received bachelor’s degrees in computer science and accounting from Stonehill College.
When Stonehill College was contacted about potential discrepancies on Thompson’s resume, they would only confirm he had received a degree in accounting. Thompson blamed a headhunting firm for the false information, but the firm strongly denied the allegation. Yahoo has been struggling to find stead leadership ever since.
All of these cases share a common theme; they were all 100% avoidable. There is no excuse for hiring a CEO who has to resign in disgrace with a year of employment or even before they begin the job. Private investigation firms like Lauth Investigations International can identity these issues before your company makes a move.
Companies aren’t just wasting time and money on unqualified candidates, but they’re risking their reputations. Appearing dysfunctional is bad for investors and makes it more difficult to secure qualified candidates in the future. Lauth Investigations International has the investigatory skills to protect your business from self-inflicted wounds.
David Schroeder, Blog Writer, Lauth Investigations International
The FBI concludes “insider threats” or employees familiar with the inner workings of a company who obtain sensitive industry secrets in exchange for large amounts of cash are becoming more common and pose a significant threat to companies worldwide.
Insider thieves commit crimes for varying reasons, to include gaining a competitive business edge, to start a competing business, or personal financial gain.
