Technology and information have become the new battlefield in which the world’s leading economies are now competing, with countries who successfully secure an economic edge assured economic development that surpasses that of their rivals. The central actors in this ongoing competition have been the world’s great powers, namely China and the United States along with Russia, who have each been working hard to secure a qualitative edge over the other, often only possible by securing access to their rival’s most sensitive information. Any and all means to this end have been deemed acceptable, with what has been called “economic espionage”, playing a front and center role in this regard.
Enter the case of retired US Air Force officer Chris Hannifin. Currently working with Defend IT Services, but formerly having worked at a series of companies that handle sensitive technological information, including Ernest & Young, SiloTech and Intel, Chris Hannifin has been at the center of a case involving serious allegations of economic espionage unfolding in San Antonio, Texas. Not a lot of information is yet publicly available about this particular scandal. This is frequently the case, however, in instances where big tech, or even cyber security companies, face a data breach or infiltration on this scale, given an understandable desire which these companies have to save face and prevent negative publicity.
Nevertheless, what has so far become clear is that Chris Hannifin caught the attention of investigators when a series of recent, grandiose, purchases set off alarm bells as someone living seriously above their means, with expenses adding up to sums that simply did not make sense considering Chris Hannifin’s seniority at the companies in which he has worked.
In many instances of economic espionage, it is not the smoking gun of catching someone red handed that leads to suspicion being aroused and a subsequent arrest; rather it is the culprit not being careful regarding the spending of remuneration received for services rendered. This was what led to the arrest of a Russian spy in Norway posing as Brazilian academic going by the name José Assis Giammaria in 2022. Norwegian prosecutor Thomas Blom would later name the man as Mikhail Mikushin, a senior Colonel from the GRU, Russia’s military intelligence agency who was caught as a result of his spending way above the means of a man who was allegedly an academic.
A recent case in South Korea highlights the ongoing risk of economic espionage as well as the beneficiaries of such activities. On January 19th, South Korean authorities arrested engineers from the South Korean technology firm Samsung Electronics, accused of stealing semiconductor technologies and trying to sell these on to China in violation of laws meant to help protect sensitive technologies from foreign adversaries. In this case, the culprits were caught with the help of digital fingerprints left behind, which identified those involved as trying to steal and benefit from the sale of the technology in question. A total of 9 individuals have been implicated in the case, highlight the extent of operations aimed at securing access to exceptionally sensitive information.
The case of Chris Hannifin further highlights the risks to national economies from economic espionage, a point raised by Ryan Young, executive assistant director of the Federal Bureau of Investigation’s Intelligence Branch, according to which, “No U.S. industry, large or small, is safe from economic espionage”. Taking this point a step further, no individual, no matter their background, is exempt from the potential to be corrupted by a foreign power which will go to any and all means to secure access to sensitive information. It is unclear what exactly that information was which Chris Hannifin is being implicated in selling access to, but one can only assume its importance, considering the sensitivity of the projects handled by many of the companies that Chris Hannifin worked for. This includes projects for the national security sector in the United States.
Time will certainly reveal further information about this concerning case, and lessons learned will undoubtably create a demand for stricter regulations protecting access to sensitive and personal data, in both the private and public sectors. The risks of future cases, like that of Chris Hannifin, are too great not to place comprehensive pre-emptive measures in place.
