Earlier this month, reports emerged of a Chinese employee at Google who allegedly downloaded over 500 confidential AI software files, transferred them to his personal account, and purportedly aimed to benefit two Chinese companies.
This incident is emblematic of a recurring pattern—Chinese nationals working for American firms pilfering trade secrets and sharing them with Chinese entities they are affiliated with.
One notable aspect of this case is the accused’s brazenness in touting access to Google AI secrets while courting potential investors in China.
According to a U.S. Department of Justice (DOJ) press release:
“A document related to the accused’s startup stated: ‘We have experience with Google’s powerful computational platform; we just need to replicate and upgrade it – and then develop a platform suitable for China’s needs.’”
The 3 Rs—Chinese Theft Strategy
This episode aligns with the DOJ’s Chinese theft strategy acronym:
- Rob – Appropriating the intellectual property of American companies.
- Replicate – Duplicating the technology.
- Replace – Competing with American firms in both the Chinese and global markets.
Methods Employed
Let’s delve into how the accused allegedly sought to evade detection of his purported theft.
Over time, we’ve witnessed various tactics used by Chinese IP thieves to abscond with proprietary data from their U.S. employers, such as photographing sensitive information on their computer screens or concealing stolen files within digital images.
In this instance, the accused, a former Google employee, employed a novel approach. Rather than directly transmitting the files to his personal account, he first converted them into PDFs using Apple Notes.
As per the DOJ press release:
“…he allegedly copied data from Google source files into the Apple Notes application on his Google-issued MacBook laptop. By then converting the Apple Notes into PDF files and uploading them from the Google network into a separate account, Ding [the accused]allegedly evaded detection by Google’s data loss prevention systems.”
And here is another novel approach:
“Likewise, the indictment describes how in December 2023 Ding allegedly permitted another Google employee to use his Google-issued access badge to scan into the entrance of a Google building – making it appear he was working from his U.S. Google office when, in fact, he was in the PRC. [China]”
WAKE-UP CALL
This incident serves as another wake-up call for professionals in both digital and physical IP security.
FINAL THOUGHTS
We must proactively anticipate and outmaneuver Chinese IP thieves.
We must continually ponder: How could a Chinese actor pilfer and transmit trade secrets to Chinese entities without attracting notice from their employer or law enforcement?
And defend against it!
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