Setting the Stage

Netspionage as we have defined it, is using networks, computers, and associated capabilities to steal corporations' secrets. It is a totally new concept that is becoming increasingly important. Although it has not yet penetrated deeply into the awareness of most business leaders, it is already well understood at the national governmental levels in the United States and other major global powers. Press reports ^[1] highlight the claim that the United States, in cooperation with its closest allies, the United Kingdom, Australia, and Canada, are suspected of creating a global monitoring and surveillance system. This system, reportedly code named ECHELON, is supposed to track all "telephone conversations, electronic mail messages, and faxes." ^[2] One can assume that this wholesale collection effort will undoubtedly include sensitive information being transmitted between corporations.

In similar fashion, major European nations like France and Germany, as well as former Cold War enemies like Russia, ^[3] the Peoples Republic of China, and even Sweden have all been accused of implementing technical means of surveillance to deal with all forms of electronic communications. If any of these allegations are true, there is already a great deal of Netspionage being conducted by legions of governmental analysts.

Although a major concern, passive monitoring, no matter how pervasive, depends on the negligence of the sender for success. Since sensitive information is often transmitted in an unprotected medium, such as an unencrypted e-mail message or an unencrypted cellular telephone call, it is vulnerable for collection by...