Targeting U.S. Technologies



Breaking the suspicious requests into regions, the current two-year trends show the ranking of regions remained constant; however, the percentages changed. DSS found that the region with the largest number of suspicious contacts, East Asia and the Pacific, increased from 30 to 36 percent when compared to statistics from FY04-FY05. DSS noted these East Asia and the Pacific collection efforts were almost twice as frequent as those reports emanating from the Near East, the second largest foreign collector of U.S. technology. After these collectors, Europe and Eurasian and South and Central Asia entities completed the hierarchy of most frequently encountered collectors. The aforementioned top collectors targeted U.S. technology, specifically "Information Systems," representing a 23 percent focus of collection activities.

This collection period saw a shift in collectors from entities associated with governmental entities to those linked to commercial enterprises. The most prolific entities continued to utilize "Commercial" collectors to acquire U.S. technology with that category of collector affiliation responsible for almost 40 percent of Suspicious Contact Reports (SCRs). Reporting indicated the governments from the East Asia and Pacific and Near East regions used both legitimate commercial entities and illicit front companies in attempts to acquire controlled technologies. Meanwhile, South and Central Asia collectors were more inclined to use less-traditional collectors, such as students, to gain access to restricted U.S. technology. The top collectors also relied heavily on "Government Associated" entities to target U.S. technology with contacts from that category representing 24 percent of the collection effort.

In FY06-FY07, the top collectors used "Request for Information" (RFI) and "Attempted Acquisition of Controlled Technology" as the main Methods of Operation (MO) to acquire U.S. technology. Entities utilizing these MOs as well as "Solicitation and Marketing of Services" were responsible for over 70 percent of all collection attempts. This was also consistent from entities within the specific regions, as "RFI" and "Attempted Acquisition of Controlled Technology" continued regionally as the top collection MOs. The top collectors also used the "Suspicious Internet Activity" MO to collect U.S. technology. This MO significantly increased from four to 10 percent to occupy the position as the fourth most frequently encountered collection technique.

During FY06-FY07, reporting from the most prolific collectors also included those reports with a cyber nexus. Suspicious entities with IP addresses originating in the East Asia and the Pacific region represented 52 percent of the cyber collection effort, greatly outdistancing Europe and Eurasia as the second-ranking region-specific origin of such incidents. DSS and Intelligence Community reporting indicated that East Asia and the Pacific cyber collectors were targeting Cleared Defense Contractor (CDC) networks for R&D and "Command, Control, Communication, Computers, Intelligence, Surveillance, and Reconnaissance" (C4ISR) programs in support of their "Information Systems" collection effort. Similarly, the most prolific cyber collectors targeted "Information Systems" as the most popular cyber technology with 43 percent of suspicious contact activity focused on acquisition of information applying to that discipline. To gain this technology, collectors used the "Attempted Intrusion" MO the most, constituting 61 percent of the cyber collection effort against this technology. Due to the nature of IP addresses and the use of anonymous proxies, cyber collectors often conceal their identities. This makes it difficult to positively ascertain the collector's true affiliation. In FY06-FY07, DSS analysis could only attribute four percent of cyber related SCRs to entities within specific regions of origin. Although it is difficult to discover true cyber affiliations, network attacks and attempted intrusions continue to grow with the expansion of the global marketplace and technological advancements.

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