www.ft.com/cms/s/0/ec02a8ca-422b-11e3-bb85-00144feabdc0.html#axzz2jMJrWmv2
German media say the BfV hoped to identify the presence of listening antennas and the action prompted an exchange between the US and the German foreign ministry in Berlin.
Analysis of revelations about the extent of the surveillance state in the US
James Clapper, US Director of National Intelligence, insisted
again in September that the US does not use foreign intelligence
capabilities “to steal the trade secrets of foreign companies on behalf
of . . . US companies to enhance their international competitiveness or
increase their bottom line”.
German companies believe the US now poses almost as big a risk as China when it comes to industrial espionage and data theft, according to a survey published in July by EY, the consultancy.
In all the documentation leaked by Mr Snowden, there has, however, been no evidence to date that the US has passed on foreign companies’ trade secrets to its own companies.
Politicians have expressed concern that the EU lacks certain IT and internet capabilities and should strive to reduce its dependence on the US. Business leaders are sceptical about this.
Jim Snabe, co-chief executive at SAP, says: “We see a new question from customers that didn’t come up a year ago – which is where is my data stored and can you guarantee that it stays physically in that jurisdiction.”
Many German executives argue that the latest reports are simply confirmation of what they already knew: that powerful states want to steal their most prized secrets and these data must therefore be guarded at all costs.
Corporate
leaders are not generally keen to boast about the countermeasures they
have taken, in case this hands an advantage to an attacker.
For large companies, the message has long since been drummed home that picking up a free USB stick at a trade fair, or leaving a laptop unguarded in a hotel room are unwise, to say the least.
However, there is concern that small and medium-sized companies remain vulnerable to hacking and surveillance. In Germany, many of these companies are global market leaders in their particular niche.
“Small and medium sized companies often lack the experience, personnel and financial resources to protect corporate secrets effectively against unauthorised access,” the BfV warns in a report.
The US warns its own companies about economic espionage by other countries. The US National Intelligence Estimate in February named France alongside Russia and Israel in a second tier of offenders who engage in hacking for economic intelligence, behind China, according to The Washington Post.
A board member at a German blue-chip company concurred that when it comes to economic espionage, “the French are the worst”.
Bernard Squarcini, former head of the French internal intelligence agency DCRI, was quoted in an interview this month as saying: “The services know perfectly well that all countries, even as they co-operate in the antiterrorist fight, spy on their allies. The Americans spy on us on the commercial and industrial level as we spy on them too, because it is in the national interest to defend our businesses. Nobody is fooled.”
On a mild day in late August a German police helicopter buzzed low over the US consulate in Frankfurt, the financial capital of Germany.
On the instruction of the Office for the Protection of the
Constitution (BfV), Germany’s domestic intelligence agency, its mission
was to photograph the rooftop of the US outpost, which is located less
than 5km from the European Central Bank and Bundesbank.German media say the BfV hoped to identify the presence of listening antennas and the action prompted an exchange between the US and the German foreign ministry in Berlin.
In depth
US Security State
But ever since Edward Snowden,
the contractor turned whistleblower, began releasing his treasure trove
of US surveillance secrets, European governments and business leaders
are no longer sure whether to take the director at his word.
Reports that the US National Security Agency spied on Brazilian oil company Petrobras
and gained access to data held by US cloud providers including Google and Yahoo have ratcheted corporate paranoia about state surveillance to new highs.
The final straw came when it was revealed that Chancellor Angela Merkel’s phone had been bugged,
possibly for about a decade. If Europe’s most powerful person can be
targeted, then surely business leaders are also potential
“Snowden
has made transparent the intensive collaboration between [US]
intelligence services and companies. I think it’s conceivable that these
data are used for mutual benefit. Germany must wake up,” says Oliver
Grün, president of BITMi, which represents small and medium sized German
IT companies.German companies believe the US now poses almost as big a risk as China when it comes to industrial espionage and data theft, according to a survey published in July by EY, the consultancy.
In all the documentation leaked by Mr Snowden, there has, however, been no evidence to date that the US has passed on foreign companies’ trade secrets to its own companies.
Politicians have expressed concern that the EU lacks certain IT and internet capabilities and should strive to reduce its dependence on the US. Business leaders are sceptical about this.
“Someone in the German parliament says we should
build a German Google. I can only shut my eyes and slowly open them
again . . . That’s not the way,” Hasso Plattner, chairman of German
business software company SAP,
says. “[If one wanted a strong European IT industry] then one shouldn’t
have let it die out 20 years ago. Everything is subsidised in Germany,
from coal, to cars and farmers. [Everything] but the IT industry.”
Still, the reach and technical sophistication of US spy agencies
exposed by the Snowden revelations have come as a shock to some
companies who previously thought the biggest surveillance risk was posed
by China.
A big shift is occurring in
cloud computing where
European executives have become more aware that data stored in the US
is subject to that jurisdiction and therefore potentially vulnerable.
According to a survey carried out by the Cloud Security Alliance, a
trade body, some 10 per cent of non-US members cancelled plans to use a
US-based cloud provider after revelations about the US Prism data mining
programme.Jim Snabe, co-chief executive at SAP, says: “We see a new question from customers that didn’t come up a year ago – which is where is my data stored and can you guarantee that it stays physically in that jurisdiction.”
Many German executives argue that the latest reports are simply confirmation of what they already knew: that powerful states want to steal their most prized secrets and these data must therefore be guarded at all costs.
“That economic spying takes place is not a
surprise . . . it has always taken place. This has been a topic for many
years and hasn’t fundamentally changed through the current discussion,”
says Kurt Bock, chief executive of chemical maker BASF.
The Americans spy on us on the commercial and industrial level as we spy on them too, because it is in the national interest to defend our businesses- Bernard Squarcini, former head of the French internal intelligence agency DCRI
For large companies, the message has long since been drummed home that picking up a free USB stick at a trade fair, or leaving a laptop unguarded in a hotel room are unwise, to say the least.
Ulrich Hackenberg, board member at carmaker Audi,
says it has been standard practice for years for mobile phones to be
collected before board meetings so they cannot be used as remote
listening devices.
Germany’s BfV advises executives to consider using simple prepaid
mobiles when on foreign trips because of the risk that smart phones are
compromised. The prepaid mobiles are then thrown away afterwards.However, there is concern that small and medium-sized companies remain vulnerable to hacking and surveillance. In Germany, many of these companies are global market leaders in their particular niche.
“Small and medium sized companies often lack the experience, personnel and financial resources to protect corporate secrets effectively against unauthorised access,” the BfV warns in a report.
The US warns its own companies about economic espionage by other countries. The US National Intelligence Estimate in February named France alongside Russia and Israel in a second tier of offenders who engage in hacking for economic intelligence, behind China, according to The Washington Post.
A board member at a German blue-chip company concurred that when it comes to economic espionage, “the French are the worst”.
Bernard Squarcini, former head of the French internal intelligence agency DCRI, was quoted in an interview this month as saying: “The services know perfectly well that all countries, even as they co-operate in the antiterrorist fight, spy on their allies. The Americans spy on us on the commercial and industrial level as we spy on them too, because it is in the national interest to defend our businesses. Nobody is fooled.”
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