Senior US official warns of ‘major surge’ of foreign spies targeting tech companies

The nation’s top counterintelligence officer, Mike Casey, warns of a “major uptick” in foreign spies trying to covertly infiltrate tech companies V United States so they can steal the latest American innovation.

America’s own economy and national security—even democracy itself—are at stake, Casey said. China in particular seek to use stolen technology to crush US competitors and infringe on civil liberties at home. Chinaand strengthen China’s military power.

“We’re not perfect, but I don’t want to live in a dystopian version of the world. (People’s Republic of China)” joked Casey, who, as director of the US National Counterintelligence and Security Center, coordinates and directs the country’s counterintelligence activities.

Casey said that over the past two years, as U.S. companies began heeding warnings about questionable investments from China. US Intelligence Community China has seen a surge in the use of shell companies and other trusted entities to gain access to start-up companies and then steal their new technology.

According to Casey himself, at least part of what worries him is classified US intelligence, which poses a “huge problem” for US officials who want to convince startup executives with no security clearance (and little money) ), be very careful in choosing investors and partners.

That’s why the Casey Center, part of the Office of the Director of National Intelligence, and the FBI have spent much of the past year figuring out not just how to convince tech companies that the threat to their business is real, but how offer suggestions to mitigate it.

The FBI field office in San Francisco, near Silicon Valley, is a leader in this effort, with Special Agent in Charge Robert Tripp as its head and an assistant special agent in charge as the agent in charge of counterintelligence operations, Casey said. led by Jeff Fields, taking a surprisingly “aggressive” approach to engaging with the private sector and academia as early as possible.

Just last week, Casey, who lives in Washington, D.C., flew across the country to meet with Fields and technology researchers at the University of California, Berkeley, some of whom have expressed concern that the U.S. government could end up stifling start-up companies. in his quest to protect them.

Casey said he welcomes the response.

“I don’t think it will do any of us much good if all that happens is people from Washington come and read our talking points to people in the Valley and say, ‘You should do these five things,’ and then leave.” ” . This is stupid,” he said. “So if we don’t go out and do a reality check every once in a while, then we’re letting everyone down.”

During the meetings, one of the researchers, an expert in defense-related analysis, told Casey about a database she and her fellow researchers were creating that would cover all cases of economic espionage that had been made public. Casey told ABC News that such a database could become a resource for the FBI and U.S. intelligence communities as they try to alert the private sector to threats from China, Russia and other adversaries.

Having these “really compelling examples and trend lines is incredibly helpful,” Casey said.

Casey’s work over the past year culminated Monday when, in a first-of-its-kind public action, the U.S. government and four of its closest allies simultaneously issued new warnings about how foreign intelligence agencies and criminals are targeting Western technology. companies.

On Monday, the Five Eyes alliance – the US, Australia, Canada, New Zealand and the UK – launched online portals with detailed booklets and fact sheets urging start-up companies and their potential investors to choose “safety”. from the very beginning”, following a series of “cost-effective” proposals.

“There is a growing feeling that we all have the same problem,” Casey said.

Among the suggestions: “We recommend screening all potential investors, suppliers and partners.”

Warning about the threats posed by China and Russia, Casey repeated a phrase used by many national security experts: “While Russia’s efforts against the United States are like a hurricane, China’s efforts are like climate change,” he said.

What China is doing is “a slow rise that you may not pay attention to, but one day your house will be flooded,” Casey said.