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Offense

Cyber Espionage

Cyber and Technology-Enabled Offenses

Cyber espionage is the offense of using unauthorized access to a computer system or network to covertly gather confidential government, military, corporate or personal information for intelligence, military or competitive advantage, distinguished from ordinary computer hacking chiefly by this underlying espionage purpose, gathering and exfiltrating sensitive information over time, rather than the disruption, theft of funds or public disclosure that motivates many other cyber offenses. State-sponsored cyber espionage, in which the offense is carried out by or on behalf of a government intelligence or military service against a foreign state or its institutions, occupies a distinctive and often contested legal position, since much of the same underlying conduct, unauthorized computer access, closely resembles conduct that traditional espionage law has long treated as a matter for diplomatic and intelligence responses rather than ordinary criminal prosecution, and attribution to a specific state actor is frequently difficult to establish with the certainty a criminal proceeding requires. Industrial or corporate cyber espionage, the unauthorized access of a competitor's or business partner's systems to obtain trade secrets, product designs or strategic business information, is prosecuted under ordinary domestic computer-crime and trade-secret law and does not raise the same state-actor complications, though it frequently involves techniques, such as a prolonged, deliberately covert intrusion designed to avoid detection, similar to those used in state-sponsored operations. Because cyber espionage is designed specifically to remain undetected for as long as possible, it is frequently discovered only well after the fact, if at all, making it one of the more difficult cyber offenses to measure and prosecute compared with more immediately disruptive offenses such as a denial-of-service attack or ransomware extortion.

Facts
Classification Code
The main United States law addressing this offense is the Economic Espionage Act of 1996, 18 U.S.C. sections 1831 through 1839: section 1831 covers economic espionage carried out to benefit a foreign government, while section 1832 covers misappropriation of trade secrets for ordinary commercial gain, often called corporate espionage, with no requirement of a foreign-government beneficiary. 2
Typical Penalty
A conviction under the Economic Espionage Act carries penalties of up to fifteen years in prison and five million dollars in fines for an individual, and for a company, a fine of up to three times the value of the loss caused. 2
Elements of Offense
Under section 1831, economic espionage is committed by stealing trade secrets or intellectual property with intent or knowledge that doing so will benefit a foreign government or its agents; a 2009 federal district court decision clarified that prosecutors must prove the defendant knew the information was a trade secret and intended to benefit a foreign government. 2
Notable Example
In United States v. Chung, decided by a federal district court in California in 2009, the court held that prosecutors must prove the defendant knew the information taken was a trade secret and intended to benefit a foreign government in order to convict under the Economic Espionage Act's foreign-benefit provision. 2
Jurisdiction Variation
The United States addresses this offense through a dedicated espionage statute carrying penalties of up to fifteen years, while the United Kingdom instead prosecutes the underlying unauthorized computer access under the general Computer Misuse Act 1990, whose basic section 1 offense of securing unauthorized access to a computer carries a maximum of only two years imprisonment on indictment, with national-security-grade espionage handled separately under the Official Secrets Acts. 3
Classification
Offense Grade
Serious or Indictable Offense 1
Connections

Associated With

Source Wikipedia: Cybercrime
In the Other Atlases
Sources
1. Cyber Espionage (Wikipedia)
WikipediaLead paragraph, Cyber espionage
Quote, Lead paragraph, Cyber espionage
Cyber espionage, cyber spying, or cyber-collection is the act or practice of obtaining secrets and information without the permission and knowledge of the holder of the information using methods on the Internet, networks or individual computers through the use of proxy servers, cracking techniques and malicious software including Trojan horses and spyware.
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2. Cornell LII Wex: Economic Espionage
Cornell Law School Legal Information Institute
  • Wex economic espionage, section 1832 clause
    Misappropriation for commercial gain, without intent to benefit a foreign state, falls under § 1832. This is often called corporate espionage and includes both domestic and foreign theft of trade secrets.
  • Wex economic espionage, section 1831 definition
    economic espionage involves stealing trade secrets or intellectual property with intent or knowledge that it will benefit a foreign government or its agents
  • Wex economic espionage, penalties clause
    The EEA imposes penalties of up to 15 years in prison and $5 million in fines for individuals, and up to three times the loss value for companies.
  • Wex economic espionage, US v. Chung citation
    In US v. Chung, 633 F. Supp. 2d 1134 - Dist. Court, CD California (2009), the Court clarified that prosecutors must prove the defendant knew the information was a trade secret and intended to benefit a foreign government.
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3. Computer Misuse Act 1990, Section 1 (legislation.gov.uk)
UK National Archives (legislation.gov.uk)Computer Misuse Act 1990, section 1(3)(c)
Quote, Computer Misuse Act 1990, section 1(3)(c)
on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both
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Wikipedia: Cybercrime
Associated With: Cybercrime, Lead and law-enforcement sections
Quote, Associated With: Cybercrime, Lead and law-enforcement sections
Cybercrime encompasses a wide range of criminal activities that are carried out using digital devices and/or networks.
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