Slate. Corporate espionage: All you wanted to know about bl-premium-article-image

RADHIKA MERWIN Updated - February 23, 2015 at 10:22 PM.

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To spy fiction fans, the recent corporate espionage scandal that has rocked the Ministry of Petroleum and Natural Gas, and embroiled energy consultants, journalists and staffers in private firms such as Reliance, Reliance ADAG, Essar and Cairn, may appear a little tame. After all, this instance of espionage didn’t involve hackers or databases, cat burglars with ingenious tools or women and honey traps. Instead, the Delhi Police arrested five persons on charges of breaking and entering the Shastri Bhawan using duplicate keys and ID cards to spirit away key documents.

But that doesn’t make this scandal any less important. Among the documents leaked were the Ministry’s inputs to the Finance Minister on the Budget, plans for ONGC Videsh and internal papers from the oil, coal and power ministries. Allegations are that energy ‘consultants’ employed moles in the Ministry to routinely get tip-offs on policy moves, which they then shared with private oil firms for hefty payments. A ballpark figure of a ₹10,000-crore scam is doing the rounds.

What is it?
Corporate or industrial espionage is the covert practice of using spies, masquerading as bona fide staffers, to gather confidential information about companies. These could be details of the firm’s clients, product launches, trade secrets, products or internal business plans.

While the oil leak case seems to be an instance of private firms trying to get insider information on policy moves, corporate espionage is more often employed by companies on each other to get commercially useful information, to gain an edge in the market.

In the world of corporate espionage, old-fashioned methods involving duplicate keys, photocopiers and secret files have been rendered obsolete long ago by technology. With every employee today armed with a smartphone, recording meetings, scanning critical documents or transferring client data is child’s play.

Why is it important?

Companies lose billions of dollars to corporate espionage every year. Over 35 per cent of companies operating in India across sectors are engaged in corporate espionage and also spy on their own employees via social networking, said a survey by Assocham in 2012.

Companies in sensitive sectors reportedly spend billions to safeguard their sensitive information by burglar-proofing documents, equipment and buildings and using technology to prevent theft. Others, of course, spend an equal amount to tap into offices of their rivals by planting a mole — people in minor job profiles such as receptionists, peon and others.

Why should I care? If you work with a large firm, you need to be careful about sharing details of your work online. An overseas trip or a client win you think is just a nice little titbit to post on Facebook may well be just what a rival needs to get an inside line into your employer. Thanks to the espionage threat, today companies routinely screen your earlier professional, criminal and financial records before hiring you. You can be sure they would vet your social media pages too. Companies can use surveillance agencies to monitor your behaviour, lifestyle and whereabouts post-employment too.

The bottomline Your life can be an open book, but don’t extend the rule to your employer.

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Published on February 23, 2015 16:52