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Industrial spies use charm and patience to extract trade secrets

Created at 15 Aug · 7:56 AM1 source↑ Market-relevant
IN SHORT

Industrial espionage is becoming more sophisticated, with spies using interpersonal skills and fluent language to approach targets in seemingly innocent circumstances to extract confidential information and trade secrets.

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Key Numbers

16 monthsduration of harassment by Russian intelligence officers
2023summer start of conversations between informant and handlers
2025summer end of conversations between informant and handlers
November 2024date of Berlin rally

Who's Involved

Metropolitan Police Department
senior officer speaking to researchers about industrial espionage
Hazumu Urushiyama
photographer
Hiroto Okura
author
Ivan
21-year-old computer science student and informant
Russian intelligence officers
handlers recruiting and managing informants
Vezzi brothers
involved in industrial espionage incidents in the 18th century
Industrial spies use charm and patience to extract trade secrets

↳ Why This Matters

The increasing sophistication of industrial espionage poses a significant threat to businesses and national security, as trade secrets and intellectual property are vital for economic competitiveness and innovation. The methods employed by state actors to recruit and manage informants also present challenges for host countries in protecting their internal affairs and supporting dissidents.

Key facts

  • Industrial espionage is increasingly sophisticated, targeting advanced corporate technology.
  • Spies are using charm, fluent language, and patience to extract trade secrets.
  • This practice involves unauthorized acquisition of sensitive business information, including trade secrets and intellectual property.
  • Actors include employees, competitors, foreign governments, and criminal organizations.
  • Russian intelligence agencies recruit informants by offering deals: cooperate or face legal consequences.
  • Informants are tasked with infiltrating opposition groups and reporting on their activities and support networks in Europe.

As geopolitical tensions rise, industrial espionage is becoming more sophisticated, with spies employing charm, fluent language, and patience to extract sensitive corporate information. These tactics often involve approaching targets under innocent pretenses to acquire trade secrets, proprietary data, and intellectual property, aiming to gain a competitive advantage or for commercial sale. The practice is illegal and unethical, conducted by various actors including former employees, competitors, and foreign governments.

Recent insights into Russian intelligence operations reveal methods of recruiting and managing informants. In one instance, a student was coerced into informing on anti-Kremlin circles by offering a choice between cooperation and imprisonment. Handlers used a 'good cop, bad cop' approach, pressuring the informant to infiltrate online communications of opposition groups and report on their activities and support networks in Europe. The intelligence officers sought details on individuals and organizations assisting Russian emigrés, demonstrating a broad scope of interest beyond Russian citizens.

Historically, industrial espionage has been prevalent in technology-heavy industries such as software, biotechnology, and aerospace, with Silicon Valley being a frequent target. The Vezzi brothers in 18th-century Venice are cited as an early example, where espionage led to the widespread knowledge of porcelain manufacturing secrets. The ultimate goal of such activities is to gain knowledge that can lead to success or failure for businesses, leveling the competitive playing field.

Frequently asked questions

Industrial espionage, also known as economic or corporate espionage, is the unauthorized acquisition of sensitive business information, such as trade secrets, intellectual property, and proprietary operational data, to gain a competitive advantage.

It can be carried out by current or former employees, contractors, corporate competitors, foreign governments, and criminal organizations.

Technology-heavy industries like computer software and hardware, biotechnology, aerospace, and telecommunications are common targets, though any industry with valuable information can be targeted.

Russian intelligence officers have been known to use coercion, offering deals to inform on acquaintances or face legal consequences, and employing 'good cop, bad cop' tactics to pressure individuals.

What Happens Next

01Further insights into Russian intelligence recruitment tactics may emerge from ongoing investigations.
02Companies in technology-heavy industries will likely increase their cybersecurity and counter-espionage measures.

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Cadence

How It Developed

Industrial espionage targeting advanced corporate technology is intensifying due to geopolitical tensions.
Spies are using fluent Japanese and strong interpersonal skills to approach targets under innocent circumstances.
The goal is to extract confidential information and trade secrets for competitive advantage or commercial sale.
Russian intelligence officers have been observed using a 'good cop, bad cop' routine to recruit and manage informants.
These informants are pressured to infiltrate online communications of opposition groups and report on their activities.
Intelligence officers are seeking details about individuals and organizations assisting Russian emigrés in Europe.

Sources

T1
Industrial spies prey on chance encounters to turn targets into informantsNikkei Asia
T2
Industrial Espionage & HUMINT - BACKBONEbackbone.io
T2
Industrial espionage - Wikipediaen.wikipedia.org
T2
How Russian spies recruit, pressure and run their informantspolitico.eu

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