by admin_lauth | Jan 2, 2018 | Private Investigations News
Spies, Espionage, and Intellectual Property Theft
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.
Federal Effort to Combat Economic Espionage
According to a 2015, CNN Politics Report “FBI Sees Chinese involvement amid a sharp rise in economic espionage,” the FBI announced the bureau has seen a 53% increase in economic espionage and intellectual property theft cases leading to the loss of billions of dollars.
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.
- Create a distinctive mark.
- Develop and implement a Non-Compete Agreement.
For more information about how you can protect your IP, please visit www.lauthinveststg.wpengine.com or call 317.644.2788.
Kym Pasqualini, Lauth Investigations Feature Writer
by admin_lauth | Dec 9, 2017 | Private Investigations News
The Family Medical Legal Act of 1993 serves to protect an employee’s job in the case of family or personal illness or emergency. Specifically, it ensures long term, full time employees “12 work weeks of unpaid leave during any 12-month period to attend to the serious health condition of the employee, parent, spouse or child, or for pregnancy or care of a newborn child, or for adoption or foster care of a child.” Unfortunately, it is often used for anything but.
FMLA fraud is common. Employees have been known to take FMLA allotted days to go fishing, finish a long vacation after running out of vacation days, and even serve jail time. However, successfully winning a case of FMLA fraud in district court is not as easy as you may think. Proving that an employee’s “out of work” activity conflicts with their FMLA testimony is hard, and often requires a lot of documented research.
Take the example of an employee who was seen drinking and dancing during her sick leave for a bad back, but who won her case against her employer. Or the woman who successfully used her sick leave to take her mother to DisneyWorld. Cases that seem to be open and shut end up being far from it, and it is often due to a lack of information on the extent of the perceived illness, injury, or handicap, or a lack of information on the perceived act of fraud.
If you think you are a victim of FMLA fraud, and that you have an employee who is abusing the system, here are three things you should do before you terminate them to avoid frustrating legal proceedings and possibly losing a winning case.
- Hire a Private Investigator- OK, you knew we were going to say that. But in all sincerity, trying to win an FMLA fraud case without the use of a private investigator is essentially shooting yourself in the foot. In the case of FMLA fraud, a well researched case is the difference between winning and losing, because you will need to have details on what your employee is doing that you cannot get on your own. Private investigators can help you contextualize your employees medical situation, look into any plans they had for vacations or trips, help you identify any incriminating evidence, and most importantly, keep you in line with the law throughout the process. If you think that an employee is lying about their FMLA needs, they probably are. Your issue lies in proving that to a judge.
- Build a strong argument- As stated above, being out dancing might not necessarily mean that you don’t have a back problem preventing you from work- at least, not to a court judge. If the employer in that specific case did the work of consulting a medical professional and building a stronger argument around their assertion that “dancing means you can work”, they would have probably won their case. They lost because they fired their employee based on assumptions instead of facts. If you are going to fight someone on FMLA leave, make absolutely sure that you are building an argument that will stand up in court. Talk to professionals, research your assumptions (no matter how obvious and self-evident they might seem to you), and don’t terminate the employee until you are absolutely sure that you could back up your decision in front of a judge.
- Weigh the pros and cons- Unfortunately, the potential benefit of terminating an employee who abused FMLA might not outweigh the costs of court proceedings, research, and the risk of losing. Of course, you do not want to continue to employ someone who blatantly lies and abuses your company and your trust. But in the case of gray areas, it might be best for your company to let it slide and assume the best. As long as the abuse is not recurring and does not become a habit, giving your employee the benefit of the doubt in minor cases of potential fraud might be best for company morale, and for your checkbook. It simply isn’t always worth the fight, despite the injustice of it.
Winning your case comes down to one thing: being prepared. Take preparation seriously, know the facts, and you have a good chance at getting justice for your company.
by admin_lauth | Nov 22, 2017 | Personal Investigations, Private Investigations News, Tips & Facts
Lauth Investigations International is a private investigation firm. We are constantly questioned about what our background searches can provide that a personal background search cannot. All I can say, it’s all in the details. You pay for what you get. If you want all detailed, accurate information, you will pay for a Private Investigation Background Search. If you want high level information, you will conduct your own Personal Background Search.
Personal Background Search
With the internet, so much information is at our fingertips, but are we getting the most up to date information? A personal background search will bring up the following information:
- Employment history. The search will bring up employment records; however, it may only bring up the last couple of positions held. It will not give details of all the employment information for the individuals.
- Academic and/or professional qualifications. The search will provide education information and any certifications. High level information will only be received.
- Criminal Records. The search will show all arrests and convictions.
- Financial Standing. The search will bring up any liens, judgments, bank accounts and property ownership.
The information obtained will be high level and up to the person’s own ability to read the results. In order to get deeper levels, the user has to continue to pay the further in depth they go.
Private Investigations Background Search
Unlike a personal background search conducted by a novice user, a private investigations background search is not just putting a name in a database and seeing what comes up. Private Investigators have access to several databases which will show a variety of information.
- Employment history. The search will bring up employment records including all positions held, any discrepancies on a resume, the salaries affiliated with the positions and any other information a potential employer would need to know.
- Academic and/or professional qualifications. The search will show all academic history and certifications even if the individual did not complete the program.
- Criminal Records. The search will provide a detailed outline of all criminal activity from speeding warnings/tickets and arrests up to convictions and jail time served.
- Financial Standing. The search will show all liens, judgments, bank accounts, property ownership, previous ownership of properties, dates properties sold, NSF checks and bankruptcies.
Along with the typical information received through a personal background search, private investigation background searches also include:
- Worker’s Compensation Claims an individual has filed. Determining the character of an individual is just as important as their criminal history. For employment purposes, an individual who files numerous compensation claims reveals a dishonest, fraudulent individual.
- Ascertain causes of accidents or any criminal activity. DMV reports will show accident information; however, they do not show all causes of the accidents. The in depth reports by private investigators show the reasoning behind accidents and if there was criminal activity involved in the accident as well.
- In depth analysis of all findings in the research. Any individual can pull information; however, it’s how the information is analyzed and interpreted that makes it helpful.
- Information on employers, business partners, and personal partners.
The process of performing background checks is and should be more in depth than just putting in a name in a database. To ensure the most updated accurate information is received, a private investigation background check is the direction to take. The analysis and time put in from a private investigator along with their ability to understand the findings places the outcome far more beneficial. The personal background checks are general and only provide high level information. Without the knowledge needed to understand the reports, the information does not provide the detail generally needed.
Background checks can be used for all kinds of reasons. If you are looking into a potential business partner, potential employee, potential life partner, a detailed background check with concise analysis can provide you the information needed to make informed decisions. Do not rely on just an internet search without the knowledge to know what information is in front of you.
by admin_lauth | Sep 19, 2017 | Private Investigations News
Private investigators tend to be known for their work in the private sector: finding missing persons, helping to track down runaways, and investigating concerns of infidelity. However, most private investigators actually conduct a majority of work in the public and corporate sector, working with law offices, hospitals, and corporations to help with everything from case investigations to fraud convictions.
One of the most common ways that private investigators help corporate clients is by conducting corporate crisis management. This blog post discusses what corporate crisis management is and how private investigators effectively help corporations when they find themselves in crisis.
What are the most common Corporate Crises?
Corporate crisis management is any situation where the unexpected arrives in a corporate setting, but there are common examples that can arise multiple times within the life of a corporation. The most common examples of corporate crises are:
–PR crisis – Information is leaked to the media and the corporation is put on the defense.
-Internal employee crisis– An employee has somehow compromised the company’s integrity, either by stealing, lying, or divulging information to an outside source. A PR crisis can be it’s own separate crisis, but most other types of crises end up being a PR crisis too once the media gets word of the situation.
–Financial crisis– The company finds itself in a financial crisis such as bankruptcy. Financial crises affect everyone from the accounting department to sales reps and are usually linked to an internal crisis such as theft or fraud.
–Legal crisis– The corporation is being accused of breaking the law, or needs to sue a client or partners. Legal crises require special treatment because they need to include outside sources such as lawyers, opposing counsel, police officers, etc.
–Partnership crisis– A partnership within the corporation is breaking up, leading to conflict and confusion in the company.
If you find yourself faced with one of the types of corporate crises described above, you will immediately feel the need to:
Conduct a thorough investigation of the events that transpired, build a strong defense for yourself and your company, locate any untrustworthy sources (employees that have leaked information, etc.), and mitigate damages as much as possible. If there is any sort of legal issues involved, you’ll want to gather a better understanding of any laws and regulations that apply to your specific situation, and how your state and federal laws can help or hurt your position. You’ll also need to stay on top of deadlines and maintain communications with the various parties involved in the crisis. This is why corporate crises have such a devastating effect on the CEO and HR departments in companies, and why private investigators have become a more common accessory for dealing with these kinds of issues.
So how do private investigators help the corporation manage the stress and work that comes along with a corporate crisis? Most of the help comes from the resources and tools that private investigators have access to that allow them to conduct more thorough research on individuals and companies, as well as the individual investigator’s experience when it comes to dealing with legal issues in that particular geographical region. (This is one reason why hiring a local investigator that specializes in your city or area is important.)
Returning to the four types of corporate crises discussed earlier, here are the major ways in which a private investigator helps corporations in these specific circumstances:
PR Crisis- Private investigators can use their tools and experience to track down any individuals who are leaking information to the press, they can also help the corporation understand how they can legally and effectively craft a better public image. Private investigators are well-equipped to deal with issues of privacy and can help CEO’s and employees install and manage the security equipment that they need to stay private and safe, both on the computer and in their office.
Internal crisis– In the case of an internal crisis, a private investigator can help you to discreetly and thoroughly investigate and screen your employees to figure out exactly what happened. PI’s can also act as consultants on how to take next steps after a corporation discovers any instance of employee misconduct or theft.
Financial Crisis- Private investigators that specialize in forensic accounting are used to track down corruption or fraud within a corporation’s books, catch instances of employee theft, trace suspicious transactions or activities, and essentially find any issues that a corporation has with their finances. If a company is already bankrupt, a private investigator can help to give experienced advice while helping the corporation to maintain their privacy and know their options.
Legal crisis- When a company is in a legal crisis, a private investigator can help to do discovery on the opposing council in order to build a strong defense for the company and its leaders. Going into a legal battle without having all of the information is a dangerous step that corporations need to avoid. Private investigators can even run background checks on their own clients in order to understand what the opposing counsel might be trying to use against them. In general, it is a good idea to have the expertise of a private investigator to help bolster the attorney’s case when in any sort of legal battle.
Partnership crisis– As with a legal crisis, a private investigator can help to protect their client by doing discovery on the other partner in the arrangement and help to build a strong case that will protect the corporation’s privacy and interests.
If you have found yourself in a corporate crisis, you may want to consider if hiring a private investigator will help you to solve your problems faster and with more privacy and efficiency. Most private investigators tend to be reasonably priced and will give you a big return on investment if they help you to catch the one piece of information that will make or break your case.
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.
