Top 10 Overseas Security Trends for the U.S. Private Sector in 2007

Theft of trade secrets, cyber attacks, insider threats, “home-grown” political radicalism, terrorism and political conflict were among the top security challenges of 2007 confronting U.S. businesses, nongovernmental organizations and academic institutions operating overseas, according to a year-end analysis of trends reported during the past year by the Overseas Security Advisory Council (OSAC).

“These growing threats are among the many consequences — some good, and some bad — of increased globalization,” said Todd Brown, a Special Agent with the Department of State’s Bureau of Diplomatic Security and Executive Director of OSAC.

“As an increasing number of U.S. businesses, academic institutions, and nonprofits expand the scope of their international operations, they must learn to safeguard their facilities and personnel by incorporating security and risk management into their core business practices,” he said.

Brown added, “Those U.S. entities that take proactive security postures, manage their risks, and develop an internal culture of resiliency often are better able to survive and even thrive in riskier environments or in the aftermath of disasters.”

In Asia in particular, the threat of fraud and theft of business and trade secrets against the U.S. private sector “has increased exponentially in recent years,” according to the OSAC analysis. India and China, two of Asia’s largest players on the international business stage, are countries where the U.S. private sector faces “the greatest risk of theft of commercial secrets and insider threats,” OSAC said. OSAC advises that U.S. companies and other entities should take precautions against the insider threat, to safeguard communications systems, and for the safekeeping of sensitive data.

Citing disrupted terrorist plots in Denmark and Germany, an attack at the Glasgow Airport in Scotland, and the discovery of explosives in two vehicles in London, OSAC analysts said Europe experienced a steady increase in “home-grown” political radicalism. OSAC noted that most suspects in those cases were citizens of the countries in which they were plotting and came from diverse backgrounds and living conditions.

Another significant security event in Europe with potential ramifications for the U.S. private sector was the massive cyber attack in late April that shut down Internet sites and computer networks of banks, newspapers, broadcast companies and government agencies throughout Estonia. The digital siege lasted for about a month, involved a variety of attacks, and included cyber assaults from computers around the world that had previously been infected with a virus and placed under the control of the attackers. “It is vital to recognize that these attacks can easily be replicated against a new target, including the U.S. private sector,” OSAC warned.

In North Africa, the terrorist group Al-Qa’ida in the Land of the Islamic Maghreb (AQIM) demonstrated that it is a serious threat to both the government and private sector in Algeria, according to OSAC analysts. Noting attacks on Western company convoys and various plots to kidnap Westerners, OSAC warned that AQIM is using sophisticated attacks aimed at economic targets.

Violent crime also has become a significant threat to U.S. entities in several of Africa’s large cities. “Fatal carjacking attacks and armed robbery of residences, hotels and restaurants have dramatically increased in major cities such as Lagos, Nairobi, and Johannesburg,” OSAC said.

In Africa’s Niger Delta region, kidnapping by militant political groups and criminal organizations increased overall and extended beyond those working in the oil industry. “In addition to continued attacks against oil workers, kidnapping incidents are now impacting non-oil affiliated personnel, including Nigerian government officials,” OSAC said. On an encouraging note, one report indicated the rate of kidnappings had slowed considerably in the second half of 2007.

Political instability and political conflict posed the greatest threats to the American private sector in Lebanon and Latin America, according to the OSAC review.

OSAC noted that Lebanon had experienced several violent incidents over the past year, including low-level bombings, assassinations of several well-known anti-Syrian figures, and battles between military and extremists in Palestinian refugee camps. “These incidents have increased concerns that terrorist elements or sympathizers could take advantage of the situation in order to establish themselves and plot attacks against Lebanese or Western interests,” said OSAC.

OSAC analysts blamed political conflicts for inspiring some Latin American leaders “to nationalize private industry and campaign against U.S. interests.” Such political battles have sparked violent political street protests that “have paralyzed commercial areas in some cities and resulted in both injury and death,” according to OSAC.

This year-end security review is based on security analyses and informational products developed by OSAC’s regional specialists and delivered to its private-sector members, explained Brown.

“By working with our OSAC partners, sharing our analysis, and pushing out our information, we aim to help the U.S. private sector better prepare for, respond to, and recover from the security challenges that may arise in the coming year,” said Brown.

The following is OSAC’s list of the past year’s top overseas security challenges to the American private sector.

OSAC’s Top 10 Private-Sector Security Issues Worldwide for 2007

AFRICA: Rising Violent Crime in Major Cities

Violent crimes occurred at critical levels throughout many African cities. Criminals targeted their victims in vehicles, hotels, and commercial areas. Fatal carjacking attacks as well as armed robbery of residences, hotels and restaurants have dramatically increased in major cities such as Lagos, Nigeria, Nairobi, Kenya, and Johannesburg, South Africa. Private sector organizations operating in high-crime environments must implement sufficient measures to protect both property and personnel.

AFRICA: Increased Kidnapping in the Niger Delta

This past year, the number of kidnappings, both onshore and off-shore, by militant groups and criminal gangs in the Niger Delta increased dramatically compared to 2006. Attackers targeted locally-employed staff of Western-owned oil companies, expatriates, and their families. In addition to continued threats against oil workers, individuals not affiliated with the petroleum industry — including Nigerian government officials — also were targeted for kidnapping. On an encouraging note, one report indicated the rate of kidnappings had slowed considerably in the second half of 2007.

ASIA: Theft of Trade Secrets and Insider Threats

The private sector in Asia faces a significant threat of fraud, including theft of trade and business secrets, and these threats have increased exponentially in recent years. India and China, two of Asia’s largest players on the international business stage, continue to be among the nations where the private sector faces the most intense risk of theft of commercial secrets and insider threats. Companies must perform extensive due diligence measures to guard against document fraud by job applicants, competitors trying to place an insider to steal company secrets, and theft and compromise of trade and commercial secrets.

ASIA: Regional and Domestic Terrorism

The effects of regional and domestic terrorism are apparent across Asia. Pakistan is a prime example where transnational terrorists and domestic insurgencies are increasingly active, as exhibited by continued recruitment of extremists, terrorist training, and terrorist operations against official and private sector targets. This has been most evident in attacks across India and attacks by extremists targeting the government and military in Pakistan. These threats require the American private sector to operate at heightened levels of security, often resulting in increased operating costs and heightened concerns by employees and investors.

EUROPE: Cyber Attacks

In the wake of a political controversy, Estonia was victimized by cyber attacks which plagued the Web sites of the government, media services, and banks. The attacks were carried out by flooding websites with digital debris, forcing them to become unusable, and by infecting computers around the world with viruses in order to remotely operate them against Estonian systems. It is vital to recognize that these attacks can easily be replicated against a new target, including the U.S. private sector. It is incumbent that crisis management plans now account for this type of cyber threat.

EUROPE: Radicalization

Radicalization of “home-grown” elements in Europe continued in 2007, evidenced by terrorist plots disrupted in Germany and Denmark, the discovery of explosive devices in two cars in London, and a flaming SUV that extremists crashed into the Glasgow airport in Scotland. The radicalization process, influenced by international terror groups, appeals to people of varied backgrounds, living under diverse circumstances. These plots and incidents underscore the fact that extremist elements in Europe continue to pose an ongoing threat to the region.

LATIN AMERICA: Natural Disasters

Earthquakes, hurricanes, and tropical storms significantly impacted operations of the U.S. private sector during 2007, destroying property, killing hundreds, and leaving thousands homeless. In one particular case, seventy percent of Tabasco, Mexico was flooded and a major natural gas pipeline exploded as a result of a late-season tropical storm. Both tourist and industrial sectors are vulnerable in areas prone to natural disaster. This has lead security managers to re-evaluate contingency plans within the region.

LATIN AMERICA: Political Obstructionism

Political conflict has emerged as a significant concern to the U.S. private sector in Latin America with the movement by some Latin American leaders to nationalize private industry and campaign against U.S. interests through proposed constitutional referendums. This was demonstrated in late 2007 when Venezuelan President, Hugo Chavez, proposed 69 amendments to the Venezuelan Constitution which could have diminished economic stability and property rights. The same type of movement has been orchestrated by Bolivian President Evo Morales. Political demonstrations have at times flared into violent street protests, which have paralyzed commercial areas in some cities and resulted in both injury and death.

MIDDLE EAST AND NORTH AFRICA: Political Instability in Lebanon

For much of 2007, Lebanon’s dueling political blocs led some in the private sector to worry that the country could return to civil war if issues are not resolved to the satisfaction of all parties. Lebanon also experienced several tension-inducing incidents in the past year that have been political and/or sectarian in nature, including low-level bombings, assassinations of several well-known anti-Syrian figures, and battles between military and extremists in Palestinian refugee camps. These incidents have increased concerns that terrorist elements or sympathizers could take advantage of the situation in order to establish themselves and plot attacks against Lebanese or Western interests.

MIDDLE EAST AND NORTH AFRICA: Terrorist Attacks in Algeria

Violent terrorist attacks throughout Algeria over the last year have confirmed that AQIM (al-Qa’ida in the Land of the Islamic Maghreb) poses a serious threat to government and private sector entities. Using sophisticated tactics, several AQIM attacks targeted economic interests, including three attacks on Western company convoys. Other threat incidents included several suicide vehicle bombings (two of which were coordinated attacks on multiple high-profile targets in Algiers), a suicide vest used in an attack targeting Algeria’s president, as well as plots to kidnap Westerners.

About OSAC

The Overseas Security Advisory Council was established in 1985 as a Federal Advisory Committee with a U.S. Government Charter to promote security cooperation between the U.S. Department of State and American business and private sector interests worldwide.

With a constituency of more than 3,500 U.S. companies and other private-sector organizations with overseas interests, OSAC operates a Web site (www.osac.gov), which offers its members the latest in safety- and security-related information, public announcements, warden messages, travel advisories, significant anniversary dates, terrorist group profiles, country crime and safety reports, special topic reports, foreign press reports, and much more.

The OSAC staff includes international security research specialists dedicated solely to serving the U.S. private sector. Additionally, OSAC has a network of 100 country councils around the world that brings together U.S. embassies and consulates with the local U.S. community to share security information.

OSAC is co-chaired by the Director of the Diplomatic Security Service (DSS) and a selected representative of the private sector. The OSAC Executive Director is a Diplomatic Security Special Agent.

About The Bureau of Diplomatic Security

The Bureau of Diplomatic Security is the U.S. Department of State’s law enforcement and security arm. The special agents, engineers, and security professionals of the Bureau are responsible for the security of 285 U.S. diplomatic facilities around the world.

In the United States, Diplomatic Security personnel investigate passport and visa fraud, conduct personnel security investigations, and protect the Secretary of State and high-ranking foreign dignitaries and officials visiting the United States. More information about the U.S. Department of State and the Bureau of Diplomatic Security may be obtained at www.state.gov/m/ds.

Contact: 
Brian Leventhal
571.345.2499
FAX 571.345.2527
LeventhalBH@state.gov