Honeypot operations can put corporate secrets at risk. They may be designed to obtain trade secrets or strategic plans, and in some sectors, information related to national security that could benefit foreign adversaries.
Nvidia CEO Jensen Huang acknowledged Sunday that he had been unfaithful to his wife. The company’s board has begun an internal investigation following reports that he was targeted in an alleged Chinese spying operation. The board said it would review the available information but had “no reason to believe that either national security or Nvidia secrets were compromised.”
Ken Senser, chief strategy officer at Corporate Security Advisors, said relationships created with the aim of compromising an executive can expose a wide range of sensitive information. He said he had no specific knowledge of the Nvidia case, but potential targets could include corporate strategy, customer identities, product designs, pricing and allocation plans, and discussions with government officials.
In more serious cases, Senser said, an operation could lead to coercion or blackmail, with someone threatening to reveal compromising material unless an executive cooperates.
Senser said companies should put substantial effort into educating executives about possible risks. An apparently chance meeting or an approach from someone who seems personally interested may have another purpose, he said, so it can be sensible to look into the circumstances or ask a colleague to do so.
He added that contacts with ties to potential adversaries may warrant closer scrutiny. Regardless of who someone is, executives should be reminded to share sensitive information only with people who need it for their work, Senser said.
T.J. Marlin, CEO of Guardrail Technologies, said the risks for executives in artificial intelligence and national-security-related industries extend beyond the theft of documents. Information about research priorities, customers or deployment plans can reveal a company’s direction—and, at times, a country’s. He said an attempt to influence a decision or arrange a carefully chosen introduction can also have strategic value.
Mark Trott, an investigations program manager at Concentric Advisors in San Francisco, said espionage activity in the city may rival or exceed that in Washington, as valuable secrets have increasingly shifted from government laboratories to Silicon Valley.
Spies may avoid asking directly for confidential information, Trott said. Instead, they might draw out a target by asking for opinions, complaints or advice. A person who listens sympathetically to an executive’s work frustrations could be a more significant warning sign than a stranger approaching them in a bar, he added.
Senser said companies should establish non-punitive ways for employees to report suspicious encounters. People should feel able to raise concerns about an approach or conversation without fearing repercussions, particularly when they are coming forward in good faith.
Trott said a strong reporting culture is a better safeguard than treating every interaction with suspicion. Employees should be able to report unusual approaches easily and without consequences, he said.
