UNCLASSIFIED

Targeting U.S. Technologies

Background


Department of Defense (DoD) Instruction, 5200.39, dated July 16, 2008, requires DSS to publish a report detailing suspicious contacts occurring within the Cleared Defense Contractor (CDC) community indicative of a foreign threat to personnel, information, and technologies resident in the U.S. cleared defense industrial base. Per the instruction, DSS provides appropriate dissemination of these reports to the DoD Counterintelligence (CI) community, national entities, and the CDC community to assist in general threat awareness, to identify specific technologies at risk, and to aid in the application of appropriate threat countermeasures. DSS receives and analyzes Suspicious Contact Reports (SCRs) from CDCs in accordance with reporting requirements as defined in Chapter 1, Section 3, of the National Industrial Security Program Operating Manual (NISPOM), DoD 5220.22-M, dated February 28, 2006. Based on an analysis of these SCRs, DSS prepared this report, "Targeting U.S. Technologies: A Trend Analysis of Reporting from Defense Industry."

In a departure from previous annually produced studies covering a single fiscal year (FY), this report is based on data acquired over two fiscal years, FY2006 and FY2007. Accordingly, DSS did not prepare a report in 2007 specific to information based on FY2006 reporting. Future iterations of this report will revert to production on an annual basis.

This trends report covers information regarding the most prolific foreign entities by region targeting the CDC community during FY06-FY07 as compared to previous years. In this report, DSS used U.S. Department of State regional bureaus to identify the countries that comprise the foreign regions. The report includes statistical and trends analysis on foreign regional affiliations, the traditional methods foreign entities in regional areas used to target the CDC community, and the specific technology sectors that they targeted. Each section also contains an analytical assessment forecasting potential future activities against the CDC community.

This trends report also provides specific information on cyber threats faced by the CDC community. Historically, DSS has included suspicious cyber activity as a subcategory within the regional collection trends; however, based on increased reporting of cyber attacks on the CDC community, DSS has determined a separate section is warranted to address this growing threat.

This report is published as part of DSS's ongoing effort to enhance awareness of foreign entities targeting the U.S. cleared industrial base and to encourage reporting of such incidents as they occur. It illuminates the entities' modus operandi to acquire information concerning specific technologies, identifies at-risk technologies, and projects estimates of foreign collectors' likely future activities. This report is also intended as a ready reference tool for the use of security professionals in their efforts to detect, deter, mitigate, or neutralize the effects of foreign targeting.

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UNCLASSIFIED