CYBER-INDUSTRIAL ESPIONAGE: ITS NATURE AND CONSEQUENCES
Abstract
The article highlights the theoretical aspects of cyber-industrial espionage. The importance of ensuring the protection of trade secrets of companies from cyber intrusions is substantiated, which is confirmed by the amount of damage caused by successful cyber attacks on the scale of the global economic space. The paper examines the essence of cyber industrial espionage through the prism of its comparison with cyber espionage and industrial espionage. It is established that cyber-industrial espionage is a type of cyber-espionage and industrial espionage. Its key features are illegality, unethicality, and unauthorised access by an unauthorised user to a company's trade secret in cyberspace, which is carried out in favour of private entities in order to gain competitive advantages and economic benefits. By the logic of the dialectical combination of the general and the particular, the author identifies the features inherent in cyber-industrial espionage (in particular, its covert, highly organised, planned, systematic nature; wide arsenal of possible technologies, methods of implementation, their combined use; a significant scope and list of negative consequences, difficulties in assessing losses from cyber intrusions, etc.), and reveals the peculiarities of their manifestation in cyberspace. Considerable attention is paid to identifying and clarifying the content of possible negative consequences of successful cyberattacks for companies, including financial losses associated with the theft of confidential information; reputational losses due to loss of trust in the company; theft of intellectual property, R&D results kept as commercial secrets; disruption of critical business processes of companies; forced changes in business practices to improve security, legal, regulatory, psychological and emotional consequences. Determination of the essential characteristics of cyber-industrial espionage and the range of possible negative consequences of its implementation is of theoretical and methodological importance for the development of an effective system of trade secret protection in companies and will help to increase the efficiency of its use.
References
PricewaterhouseCoopers. The scale and impact of industrial espionage and theft of trade secrets through cyber. European Commission. 2018. URL: https://ec.europa.eu/docsroom/documents/34841/attachments/1/translations/en/renditions/native
Civuli A., Luma-Osmani Sh., Rufati E., Arifi G. Cyber espionage consequences as a growing threat. 2022. URL: https://www.researchgate.net/publication/368461675_Cyber_Espionage_Consequences_as_a_Growing_Threat
The economic impacts of cyber crime: how it costs us all. 2022. URL: https://mitigatecyber.com/the-economic-impacts-of-cyber-crime-how-it-costs-us-all/
Searle, N. The economic and innovation impacts of trade secrets. Intellectual Property Office. 2021. URL: https://www.gov.uk/government/publications/economic-and-innovation-impacts-of-trade-secrets/the-economic-and-innovation-impacts-of-trade-secrets
Threat Landscape Developments. 2021 State-Sponsored Cyber Activity. Herjavec Group’s. 2021. 14 p. URL: https://eadn-wc01-3468285.nxedge.io/wp-content/uploads/2021/12/State-Sponsored-Cyber-Activity-Report.pdf
Cyberthteat Defense Report. URL: https://cyber-edge.com/cdr/
Андрощук Г. Економічне шпигунство: зростання масштабів і агресивності. Частина 1. Наука, технології, інновації. 2018. № 3. С. 39–49. URL: http://dspace.nbuv.gov.ua/handle/123456789/162638
Березіна Л.М. Братанов Б.В. Характерні особливості конкурентної розвідки та промислового шпигунства підприємств. Інтелект ХХІ. 2020. № 2. URL: http://www.intellect21.nuft.org.ua/journal/2020/2020_2/3.pdf
Богданович В.Ю., Бадрак В.В. Конкурентна розвідка та промислове шпигунство. Сучасний захист інформації. 2014. № 1. С. 16–22. URL: http://nbuv.gov.ua/UJRN/szi_2014_1_5
Маліцька Г.Г., Кутаренко Н.Я. Промислове шпигунство в контексті економічної злочинності. Ефективна економіка. 2019. № 5. URL: http://nbuv.gov.ua/UJRN/efek_2019_5_32
Якубівська Ю.Є. Вплив промислового шпигунства на сферу інтелектуальної власності. Зовнішня торгівля: економіка, фінанси, право. 2013. № 4 (69). С. 158–162. URL: http://zt.knute.edu.ua/files/2013/4(69)/uazt_2013_4_24.pdf
Beattie A. Corporate espionage: fact and fiction. 2022. URL: https://www.investopedia.com/financial-edge/0310/corporate-espionage-fact-and-fiction.aspx
Crane A. In the company of spies: when competitive intelligence gathering becomes industrial espionage. Business Horizons, 2005. Volume 48 (3), pp. 233–240. DOI: https://doi.org/10.1016/j.bushor.2004.11.005
Gibbs E. The new face of corporate espionage and what can be done about. 2022. URL: https://www.securitymagazine.com/articles/98087-the-new-face-of-corporate-espionage-and-what-can-be-done-about-it
Easttom C. Industrial Espionage in Cyberspace. Computer Security Fundamentals 5ed. 2023. URL: https://www.pearsonitcertification.com/articles/article.aspx?p=3172433
Hou T., Wang V. Industrial espionage - A systematic literature review (SLR). Computer&Security. 2020. Volume 98. URL:https://www.sciencedirect.com/science/article/pii/S0167404820302923
Kenton W. Industrial Espionage: Definition, Examples, Types, Legality. 2022. URL: https://www.investopedia.com/terms/i/industrial-espionage.asp
Mueller R. F. Industrial espionage: what is it, who's involved and what harm can it cause? Journal Polygraph. 2001. Volume: 30. P. 47–55. URL: https://www.ojp.gov/ncjrs/virtual-library/abstracts/industrial-espionage-what-it-whos-involved-and-what-harm-can-it
Бурячок В.Л., Толубко В.Б., Хорошко В.О., Толюпа С.В. Інформаційна та кібербезпека: соціотехнічний аспект. Львів. 2018. 320 с. URL: https://kr-labs.com.ua/books/Buryachok-Osnovy-info-ta-ciberbezpeky.pdf
Гнатюк С. Кібертероризм: історія розвитку, сучасні тенденції та контрзаходи. Безпека інформації. 2013. Т. 19, № 2. С. 118–129. URL: http://nbuv.gov.ua/UJRN/bezin_2013_19_2_8
Діордіца І.В. Поняття та зміст кібершпигунства. Наукові праці Національного університету “Одеська юридична академія”. 2020. В. 26. С. 49–55. URL: http://naukovipraci.nuoua.od.ua/arhiv/tom26/9.pdf
Дубов Д.В. Кіберпростір як новий вимір геополітичного суперництва: монографія. Київ : НІСД, 2014. 328 с. URL: https://niss.gov.ua/sites/default/files/2015-02/Dubov_mon-89e8e.pdf
Корсун К. Огляд ринку кібербезпеки України/ Stakeholders' dialogue in the process of Ukraine's integration into the EU Digital Single Market” Project of European Media Platform 2021. URL: https://eump.org/media/2021/ukraine-into-dsm/korsun_ukr.pdf
Котух Є.В. Кібербезпека у публічному секторі: монографія. Харків : Колегіум, 2021. 272 с.
Якубівська Ю.Є. Цільові атаки в контексті промислового шпигунства. 2014. URL: http://dspace.wunu.edu.ua/jspui/bitstream/316497/1537/1/10_%D1%84%D0%B0%D1%85.pdf
Baker K. What is Cyber Espionage? 2023. URL: https://www.crowdstrike.com/cybersecurity-101/cyberattacks/cyber-espionage/
Neumann P. Computer-Related Risk. ACM Press/Addison Wesley, 1995.
O'Harat G. Cyber-espionage: a growing threat to the american economy. Commlaw conspectus. 2009. Vol. 19. P. 241–275. URL: https://scholarship.law.edu/cgi/viewcontent.cgi?referer=&httpsredir=1&article=1522&context=commlaw
Frankenfield J. Cybrsecurity: Meaning, Types of Cyber Attacks, Common Targets. URL: https://www.investopedia.com/terms/c/cybersecurity.asp
Закон України «Про основні засади забезпечення кібербезпеки України», від 05.10.2017 № 2163-VIII. Відомості Верховної Ради (ВВР), 2017, № 45. URL: https://zakon.rada.gov.ua/laws/show/2163-19#Text
Cyber espionage. ENISA Threat Landscape. 2020. 10 p. URL: https://www.enisa.europa.eu/publications/enisa-threat-landscape-2020-cyber-espionage/@@download/fullReport
From Espionage to Cyber Espionage. URL: https://www.cyber-espionage.ch/
What is Cyber Espionage? Vmware. URL: http://www.vmware.com/topics/glossary/content/cyber-espionage.html
Study on the scale and impact of industrial espionage and theft of trade secrets through cyber. Pwc. 2019. URL: https://www.pwc.com/it/it/publications/docs/study-on-the-scale-and-Impact.pdf
Bigelow J. Sentonas M. The economic impact of cybercrime and cyber espionage. 2014. URL: https://www.securitysolutionsmedia.com/2014/03/11/the-economic-impact-of-cybercrime-and-cyber-espionage/
EU Cyber Resilience Act: what to watch out for now. 2023. URL: https://onekey.com/blog/eu-cyber-resilience-act-what-to-watch-out-for-now/
Industrial espionage: the threat to global business. URL: https://www.enderi.fr/Industrial-Espionage-The-Threat-to-Global-Business_a1143.html
6 Ways Cybercrime Impacts Business. URL: https://www.investopedia.com/financial-edge/0112/3-ways-cyber-crime-impacts-business.aspx
The impact of cybersecurity threats and cybercrime on businesses. URL: https://www.bitsioinc.com/cybercrime-impact-on-businesses/
PricewaterhouseCoopers. (2018)The scale and impact of industrial espionage and theft of trade secrets through cyber. European Commission. Available at: https://ec.europa.eu/docsroom/documents/34841/attachments/1/translations/en/renditions/native
Civuli A., Luma-Osmani Sh., Rufati E., Arifi G. (2022) Cyber espionage consequences as a growing threat. Available at: https://www.researchgate.net/publication/368461675_Cyber_Espionage_Consequences_as_a_Growing_Threat
The economic impacts of cyber crime: how it costs us all. (2022). Available at: https://mitigatecyber.com/the-economic-impacts-of-cyber-crime-how-it-costs-us-all/
Searle, N. (2021) The economic and innovation impacts of trade secrets. Intellectual Property Office. Available at: https://www.gov.uk/government/publications/economic-and-innovation-impacts-of-trade-secrets/the-economic-and-innovation-impacts-of-trade-secrets
Threat Landscape Developments. 2021 State-Sponsored Cyber Activity. (2021) Herjavec Group’s. 14 p. Available at: https://eadn-wc01-3468285.nxedge.io/wp-content/uploads/2021/12/State-Sponsored-Cyber-Activity-Report.pdf
Cyberthteat Defense Report. (n.d.). Available at: https://cyber-edge.com/cdr/
Androshchuk H. (2018). Ekonomichne shpyhunstvo: zrostannia masshtabiv i ahresyvnosti. Chastyna 1. Nauka, tekhnolohii, innovatsii. no. 3. pp. 39–49. Available at: http://dspace.nbuv.gov.ua/handle/123456789/162638
Berezina L. M. Bratanov B. V. (2020) Kharakterni osoblyvosti konkurentnoi rozvidky ta promyslovoho shpyhunstva pidpryiemstv. Intelekt XXI. no. 2. Available at: http://www.intellect21.nuft.org.ua/journal/2020/2020_2/3.pdf
Bohdanovych V. Yu., Badrak V. V. (2014) Konkurentna rozvidka ta promyslove shpyhunstvo. Suchasnyi zakhyst informatsii. no. 1. pp. 16–22. Available at: http://nbuv.gov.ua/UJRN/szi_2014_1_5
Malitska H. H., Kutarenko N. Ya. (2019) Promyslove shpyhunstvo v konteksti ekonomichnoi zlochynnosti. Efektyvna ekonomika. no. 5. Available at: http://nbuv.gov.ua/UJRN/efek_2019_5_32
Yakubivska Yu. (2013) Vplyv promyslovoho shpyhunstva na sferu intelektualnoi vlasnosti. Zovnishnia torhivlia: ekonomika, finansy, pravo. no. 4 (69). pp. 158–162. Available at: http://zt.knute.edu.ua/files/2013/4(69)/uazt_2013_4_24.pdf
Beattie A. (2022) Corporate espionage: fact and fiction. Available at: https://www.investopedia.com/financial-edge/0310/corporate-espionage-fact-and-fiction.aspx
Crane A. (2005) In the company of spies: when competitive intelligence gathering becomes industrial espionage. Business Horizons. volume 48 (3), pp. 233–240. DOI: https://doi.org/10.1016/j.bushor.2004.11.005
Gibbs E. (2022) The new face of corporate espionage and what can be done about. Available at: https://www.securitymagazine.com/articles/98087-the-new-face-of-corporate-espionage-and-what-can-be-done-about-it
Easttom C. (2023) Industrial Espionage in Cyberspace. Computer Security Fundamentals 5ed. Available at: https://www.pearsonitcertification.com/articles/article.aspx?p=3172433
Hou T., Wang V. (2020). Industrial espionage - A systematic literature review (SLR). Computer&Security. volume 98. Available at: https://www.sciencedirect.com/science/article/pii/S0167404820302923
Kenton W. (2022) Industrial Espionage: Definition, Examples, Types, Legality. Available at: https://www.investopedia.com/terms/i/industrial-espionage.asp
Mueller R. F. (2001) Industrial espionage: what is it, who's involved and what harm can it cause? Journal Polygraph. volume: 30. pp. 47–55. Available at: https://www.ojp.gov/ncjrs/virtual-library/abstracts/industrial-espionage-what-it-whos-involved-and-what-harm-can-it
Buriachok V. L., Tolubko V. B., Khoroshko V. O., Toliupa S. V. (2018) Informatsiina ta kiberbezpeka: sotsiotekhnichnyi aspekt. Lviv. 320 p. Available at: https://kr-labs.com.ua/books/Buryachok-Osnovy-info-ta-ciberbezpeky.pdf
Hnatiuk S. (2013) Kiberteroryzm: istoriia rozvytku, suchasni tendentsii ta kontrzakhody. Bezpeka informatsii. vol. 19, no. 2. pp. 118–129. Available at: http://nbuv.gov.ua/UJRN/bezin_2013_19_2_8
Diorditsa I. V. (2020) Poniattia ta zmist kibershpyhunstva. Naukovi pratsi Natsionalnoho universytetu “Odeska yurydychna akademiia”. vol. 26. pp. 49–55. Available at: http://naukovipraci.nuoua.od.ua/arhiv/tom26/9.pdf
Dubov D. V. (2014) Kiberprostir yak novyi vymir heopolitychnoho supernytstva: monohrafiia. Kyiv: NISD. 328 p. Available at: https://niss.gov.ua/sites/default/files/2015-02/Dubov_mon-89e8e.pdf
Korsun K. (2021) Ohliad rynku kiberbezpeky Ukrainy / Stakeholders' dialogue in the process of Ukraine's integration into the EU Digital Single Market” Project of European Media Platform. Available at: https://eump.org/media/2021/ukraine-into-dsm/korsun_ukr.pdf
Kotukh Ye. V. (2021) Kiberbezpeka u publichnomu sektori : monohrafiia. Kharkiv: Kolehium, 272 p.
Yakubivska Yu. (2014) Tsilovi ataky v konteksti promyslovoho shpyhunstva. Available at: http://dspace.wunu.edu.ua/jspui/bitstream/316497/1537/1/10_%D1%84%D0%B0%D1%85.pdf
Baker K. (2023) What is Cyber Espionage? Available at: https://www.crowdstrike.com/cybersecurity-101/cyberattacks/cyber-espionage/
Neumann P. (1995) Computer-Related Risk. ACM Press/Addison Wesley.
O'Harat G. (2009) Cyber-espionage: a growing threat to the american economy. Commlaw conspectus. vol. 19. pp. 241–275. Available at: https://scholarship.law.edu/cgi/viewcontent.cgi?referer=&httpsredir=1&article=1522&context=commlaw
Frankenfield J. (n.d.) Cybrsecurity: Meaning, Types of Cyber Attacks, Common Targets. Available at: https://www.investopedia.com/terms/c/cybersecurity.asp
Zakon Ukrainy «Pro osnovni zasady zabezpechennia kiberbezpeky Ukrainy», vid 05.10.2017 No. 2163-VIII. Vidomosti Verkhovnoi Rady (VVR). 2017. No. 45. Available at: https://zakon.rada.gov.ua/laws/show/2163-19#Text
Cyber espionage. (2020) ENISA Threat Landscape. 10 p. Available at: https://www.enisa.europa.eu/publications/enisa-threat-landscape-2020-cyber-espionage/@@download/fullReport
From Espionage to Cyber Espionage. (n.d.). Available at: https://www.cyber-espionage.ch/
What is Cyber Espionage? (n.d.) Vmware. Available at: http://www.vmware.com/topics/glossary/content/cyber-espionage.html
Study on the scale and impact of industrial espionage and theft of trade secrets through cyber. (2019). Pwc. Available at: https://www.pwc.com/it/it/publications/docs/study-on-the-scale-and-Impact.pdf
Bigelow J. Sentonas M. (2014) The economic impact of cybercrime and cyber espionage. Available at: https://www.securitysolutionsmedia.com/2014/03/11/the-economic-impact-of-cybercrime-and-cyber-espionage/
EU Cyber Resilience Act: what to watch out for now. (2023). Available at: https://onekey.com/blog/eu-cyber-resilience-act-what-to-watch-out-for-now/
Industrial espionage: the threat to global business. (n.d.). Available at: https://www.enderi.fr/Industrial-Espionage-The-Threat-to-Global-Business_a1143.html
6 Ways Cybercrime Impacts Business. (n.d.). Available at: https://www.investopedia.com/financial-edge/0112/3-ways-cyber-crime-impacts-business.aspx
The impact of cybersecurity threats and cybercrime on businesses. (n.d.). Available at: https://www.bitsioinc.com/cybercrime-impact-on-businesses/
