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Protecting People. Managing Risk. Globally

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Protecting People. Managing Risk. Globally PROTECTING PEOPLE. MANAGING RISK. GLOBALLY. THE QUARTERLY A GLOBAL SECURITY & INTELLIGENCE RECAP DATE: 1 OCTOBER 2019 POWERED BY: SocoSIX Strategies Bonham Consulting 2113 Lewis Turner Blvd. Ste 100 Pinehurst, NC 28374 Fort Walton Beach, FL 32547 www.gobonham.com THE QUARTERLY 10.01.19 CORPORATE & US NATIONAL SECURITY CHINA’S HUAWEI & ZTE POSE A SECURITY THREAT 3 US / MEXICO BORDER HIGHLIGHTS 5 SIGNATURE REDUCTION & IDENTITY MANAGEMENT THREATS, BEST PRACTICES, & PROFILE HARDENING 8 HIGHLIGHTED TECHNOLOGY – RATTRAP 12 BACKGROUND ESPIONAGE & COUNTERINTELLIGENCE JULY: MONITOR CHINESE STUDENTS; DEPARTMENT OF 13 STATE; NATIONAL SECURITY AGENCY The Counterintelligence, Signals, and AUGUST: UBER; GOOGLE; JULIAN ASSANGE; LIKNEDIN; 14 Analytical professionals that produce CHINA The Quarterly have spent years studying, SEPTEMBER: CANADA; RUSSIA; WHITEHOUSE; MAR-A training, and operating against the 15 -LAGO; DEFENSE INTELLIGENCE AGENCY hostile entities discussed in this report. We understand the importance of TERRORISM & COUNTERTERRORISM knowledge sharing, develop tailored reports, and conduct traveler awareness JULY: AFGHANISTAN; NEW YORK CITY; AUSTRALIA; 16 seminars in order to increase your INDIANA; PITTSBURGH; ISIS; employees’ familiarity of the current AUGUST: EL PASO; ISIS; TEXAS; NORWAY; AL-QAEDA; global threat environment. 17 NEW YORK CITY; ISIS; AFGHANISTAN We pride ourselves on keeping SEPTEMBER: NEW YORK; US MILITARY; ISIS; NATIONAL 18 businesses and their travelers better CAPITOL REGION; BIN LADEN; ISIS equipped at securing personal, proprietary, and sensitive information ABOUT US when operating in both the US and abroad. SOCOSIX 19 Simply put, our consultant clearly identify who the threat is, what they are after, how and where they operate, how they target individuals and information, and how this applies to you and your business. 2 © Bonham Consulting LLC., SocoSIX Strategies LLC. - All Rights Reserved. THE INFORMATION CONTAINED IN THE QUARTERLY GLOBAL SECURITY &. INTELLIGENCE UPDATE, MAY NOT BE COPIED, DISTRIBUTED, OR OTHERWISE DISCLOSED WITHOUT EXPRESS PERMISSION. USE IS RESTRICTED TO AUTHORIZED PURPOSES ONLY. NOT FOR REPRODUCTION. US CORPORATE SECURITY CHINA’S HUAWEI & ZTE POSE A SECURITY THREAT SPOTLIGHT REPORT EXECUTIVE SUMMARY: Six US Intelligence Agencies (including the CIA, NSA, FBI, and the Defense Intelligence Agency) have all issued a stern warning to Americans and US Corporations operating in the US and abroad, “do not buy smartphones [or other products] made by Chinese tech companies Huawei or ZTE.” All of these agencies’ top officials have testified in front of the Senate Intelligence Committee stating that both of these Chinese smartphone makers posed a security threat to American consumers. Republican Senator Tom Cotton of Arkansas asked the group to raise their hands if they would recommend private American citizens use products or services made Huawei or smartphone maker ZTE. None of them did! FOCUS: During his testimony, the FBI Director said the US Government was “deeply concerned about the risks of allowing any company or entity that is beholden to foreign governments that don’t share our values to gain positions of power inside our telecommunications networks.” He added that this would provide “the capacity to maliciously modify or steal information, and it provides the capacity to conduct undetected espionage.” These warnings are nothing new. The US Intelligence Community has long been wary of Huawei, which was founded by a former engineer in China’s People’s Liberation Army. Huawei has also been described by US politicians as “effectively an arm of the Chinese government.” This caution led to a ban on Huawei bidding for US government contracts in 2014, and it’s now causing problems for the company’s push into consumer electronics. Although Huawei started life as a telecoms firm, creating hardware for communications infrastructure, the company’s smartphones have proved incredibly successful in recent years; even surpassing Apple as the world’s second biggest smartphone maker, behind Samsung. ARREST IN POLAND: Huawei, long accused of spying, trade secrets theft, and sanctions violations by the US Intelligence Community, has denied the bulk of these allegations. Part of the company’s past arguments have been that its executives have never faced formal charges of spying. That changed when Polish law enforcement officials arrested a prominent Chinese Huawei executive in the country. Polish law enforcement arrested the Huawei executive alleging that he colluded with a local official to commit espionage, while Huawei denies involvement. Polish authorities are now reviewing the country’s use of Huawei telecommunications equipment. CFO ARRESTED IN CANADA: In 2019, the US Department of Justice filed a formal extradition request with Canada, after the arrest of Meng Wanzhou, Huawei’s Chief Financial Officer. In response to her arrest, China arrested at least 13 Canadians working in China and threatened other retaliatory measures should Canada opt to extradite Meng to the US. Meng has been accused of fraud related to payments allegedly made through international banks between a Huawei supplier in Hong Kong and Iran, a sanctioned country. But corporate filings and other documents found in Iran and Syria show that Huawei is more closely linked to two firms than previously known. The documents reveal that a high-level Huawei executive appears to have been appointed Skycom’s Iran manager. They also show that at least three Chinese-named individuals had signing rights for both Huawei and Skycom bank accounts in Iran. A Middle Eastern lawyer said Huawei conducted operations in Syria through Canicula. The previously unreported ties between Huawei and the two companies could bear on the US case against Meng, who is the daughter of Huawei founder Ren Zhengfei, by further undermining Huawei’s claims that Skycom was merely an arms-length business partner. 3 HOME © Bonham Consulting LLC., SocoSIX Strategies LLC. - All Rights Reserved. THE INFORMATION CONTAINED IN THE QUARTERLY GLOBAL SECURITY &. INTELLIGENCE UPDATE, MAY NOT BE COPIED, DISTRIBUTED, OR OTHERWISE DISCLOSED WITHOUT EXPRESS PERMISSION. USE IS RESTRICTED TO AUTHORIZED PURPOSES ONLY. NOT FOR REPRODUCTION. US CORPORATE SECURITY CHINA’S HUAWEI & ZTE POSE A SECURITY THREAT SPOTLIGHT REPORT 60 MINUTES SPECIAL REPORT: If you're concerned about the decline of American economic power and the rise of China, then there is no better case study than Huawei. Chances are you've never heard of this Chinese technology giant, but in the space of 25 years it's become the largest manufacturer of telecommunications equipment in the world; everything from smart phones to switchers and routers that form the backbone of the global communications network. It's an industry the US invented and once dominated, but no more. Huawei is aggressively pursuing a foothold in the US, hoping to build the next generation of digital networks here. It's prompted an outcry in Washington DC, and a year-long investigation by the House Intelligence Committee that has raised concerns about national security, Chinese espionage, and Huawei's murky connections to the Chinese government. Huawei's world headquarters is located on this sprawling Google-esque campus in Shenzhen, not far from Hong Kong. China's first international conglomerate is a private company, ostensibly owned by its 140,000 employees, but exactly how that works and other details of corporate governance are closely held secrets. VIEW THE FULL 60 MINUTES REPORT: https://www.cbsnews.com/news/60-minutes-2012-report-on-huawei/ 4 HOME © Bonham Consulting LLC., SocoSIX Strategies LLC. - All Rights Reserved. THE INFORMATION CONTAINED IN THE QUARTERLY GLOBAL SECURITY &. INTELLIGENCE UPDATE, MAY NOT BE COPIED, DISTRIBUTED, OR OTHERWISE DISCLOSED WITHOUT EXPRESS PERMISSION. USE IS RESTRICTED TO AUTHORIZED PURPOSES ONLY. NOT FOR REPRODUCTION. US NATIONAL SECURITY US / MEXICO BORDER HIGHLIGHTS – JULY US CUSTOMS AND BORDER PROTECTION MEXICO: According to Mexico’s Secretary General of National Public Security (Secretariado Ejecutivo del Sistema Nacional de Seguridad Pública, SESNSP), 17,498 people were murdered between December 2018 and May 2019; an average of almost 3,000 per month. Despite a slight drop in the number of intentional homicides reported in April (2,724 homicides) compared to previous months, May 2019 saw an increase to the highest tally yet for the year with 2,903 killings, or the equivalent of 96 per day. February, however, continues to have the highest number of homicides per day on average in 2019 (102 homicides/day) thanks to similar numbers reported (2,877 homicides) over fewer days in the month (28 days). The mid-year data also revealed that just over half of Mexico’s 32 state and federal entities saw increases in the number of homicides registered since the start of the López Obrador administration. According to SESNSP’s data, when compared to the same period of time the year before (December 2017 – May 2018), the most significant or “worrisome” increase in homicide rates occurred in Nuevo León. Nuevo León’s homicide rate increased from 5.3 homicides per 100,000 individuals to 9.2 homicides per 100,000 individuals. The 72% increase far surpassed the rises in Tabasco (50.7%), Mexico City (43.2%), Sonora (43.1%), and Morelos (42.5%). Meanwhile the states with the largest decreases in homicide rates during that time period were Baja California Sur (78.3% reduction), Nayarit (69%), and Guerrero (30.8%). ARIZONA: • LUKEVILLE – seize 50 lbs. meth from vehicle; arrest five backpackers possessing 90 lbs.. marijuana and 12 lbs. meth. • NOGALES – seize 8 lbs. fentanyl taped around couriers torso and calves; 123 lbs. meth and 2 lbs. heroin from vehicle; 26 lbs. cocaine from vehicle dashboard and heater core; 30 lbs. meth from vehicle; 107 lbs. meth from vehicle trunk; 11 lbs. heroin and small amount of fentanyl from fuel tank; 65 lbs. meth and 5 lbs. fentanyl from vehicle. • TUCSON – seize 102 lbs. meth from vehicle; 19 lbs. cocaine from vehicle. • WELTON - seize 35 lbs. meth from vehicle; seize 32 lbs. meth from vehicle. CALIFORNIA: • ANDRADE – seize 108 lbs. meth from vehicle; 56 lbs. meth from vehicle doors.
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