U.S. Corporations Warned: Disgruntled Workers Tend to be “Human Assets” Chinese Spies Are Targeting

By Moon Harper

Jun 05, 2024 01:13 AM EDT

Cybersecurity Threat — (Photo : UNSPLASH/Parker Coffman)

Michael C. Casey, the director of the National Counterintelligence and Security Center, says the U.S. needs to brace itself for a surge in cyberattacks from various threat actors worldwide, with China identified as the foremost concern.

Casey asserted that China is by far the most prolific actor and poses the most significant threat across various domains at Tuesday's CNBC CEO Council Summit in Washington, D.C.

Casey noted a 100% increase in cyber incidents and ransomware demands across various sectors after China recognized America's technological superiority, making it a prime target. According to him, China's relentless pursuit of technology will not cease because it works and keeps succeeding. He added that China has published its list of desired technologies, and "they go get it and it works."

The Threat of "Human Assets"

Among the threats that CEOs need to be aware of regarding intellectual property (IP) threats is the increasing utilization of what he referred to as "human assets," which are individuals within organizations that malicious actors can recruit to pilfer IP, data, or any other targeted information.

Casey conveyed to CNBC Senior Washington Correspondent Eamon Javers that because CEOs and other C-suite members cannot monitor every employee interaction worldwide, implementing a layered defense approach is the most effective strategy to prevent nation-states from recruiting human assets.

CEOs Should Implement Layered Defense Approach

He said a CEO should carefully assess the sensitive information a company aims to safeguard and determine which individuals require access to such data.

Another critical aspect to address is the risk of employees becoming human assets in the first place. This highlights those employees who may be vulnerable due to financial or marital challenges and could be taken advantage of. It is essential to implement a program to identify and support such employees. Casey even expressed surprise at the lack of awareness among many companies regarding their insider threat.

CEOs are also contending with the concern of potentially alienating the tech talent they require, a significant portion of which consists of individuals of Chinese descent. Casey emphasized that the People's Republic of China (PRC) operates as an authoritarian state, and it is crucial not to conflate this with Chinese Americans and individuals of Chinese descent. He noted that while some individuals in these groups may be vulnerable due to relatives in China, companies should be able to discern between them and understand this distinction. The optimal approach for CEOs is to collaborate with the public sector by sharing information. If a CEO does not have a relationship with their local FBI representative, they might be overlooking a crucial step, Casey said.

With China and Russia already directing their efforts towards critical U.S. infrastructure, such as water supplies, CEOs must conduct worst-case scenario drills in case these systems are compromised. Casey emphasized the importance of leaders being prepared and having contingency plans in place in the event of a catastrophic scenario.