US defense industry reporting of suspicious activity continues to indicate that foreign visits to US industry represent a significant security risk if threat appropriate and sound risk management is not practiced. With few exceptions, security compromises reported from foreign visit incidents could have been prevented if US personnel had been properly pre-briefed as part of the risk management process. Many of these techniques are specifically designed to produce potentially embarrassing incidents for the host, in order to obtain collection objectives as a result of the host attempting to be conciliatory. Additionally, foreign sponsored work shops, tours, and the like are potential responses to a disapproved visit request. Joint ventures, joint research, co-production and various exchange agreements potentially offer significant collection opportunities for foreign interests.
Access can be intentional or unintentional, and for both, legal or illegal.
Foreign acquisition of technology and companies in the US defense industry continues to generate significant SCM concerns regarding foreign access to US markets or sensitive and proprietary information. Once a foreign entity gains ownership, control, or influence over a US company with classified contracts, that ownership, control, or influence must be mitigated through an insulating instrument approved by the Defense Department. If such an approved insulating legal instrument is not implemented, the US company and the foreign investor face the possibility of contract cancellations and loss of future classified contracts. The growing popularity and expansion of the Internet is reflected in a significant increase in US defense industry reports of SCM incidents associated with computer-based collection attempts. Using the Internet provides a direct method of communication for foreign collection efforts.