Chris Hannifin Places Consulting Firms Front and Center in the Global War for Technological Supremacy
In a book on the subject of Chinese industrial espionage, former senior intelligence officer at the Central Intelligence Agency (CIA) Arturo Munoz wrote in 2013 that, “The People’s Republic of China (PRC) is implementing ‘a deliberate, state-sponsored project to circumvent the costs of research, overcome cultural disadvantages and ‘leapfrog’ to the forefront by leveraging the creativity of other nations,’ thereby achieving ‘the greatest transfer of wealth in history”. And while this very perceptive warning rings as true today as it did over a decade ago, the risk calculus has shifted in a way that nobody could have possibly anticipated.
Indeed, it seems that not a day goes by without a story on the subject of the theft of sensitive, technological information and intellectual property by foreign interests being in the news. In the technological age in which we live, knowledge has become the currency that everyone is after. The price companies, and countries, are willing to pay for access, knows no limits. This is not a new phenomenon, with similar risk factors existing during the space race between the then USSR and United States. However, while accessing much sought after knowledge during the space race meant landing on the moon first, access to the right information in the 21st century could mean the difference between domination of the global economy and economic stagnation.
This cost benefit analysis has seen state actors, as well as of course, the private sector, heavily investing in resources and individuals that could facilitate access to the the technology and information which they need to thrive. Chris Hannifin, who formerly worked for North South Consulting Group (NSCG), USAA as well as SiloTech, has been accused of being involved in a scheme facilitating access to sensitive technology on behalf of foreign entities under the cover of his cyber security company, Defend IT Services.
Defend IT Services became Chris Hannifin’s full-time job after leaving his previous positions. His departure was likely triggered by information that he was selling sensitive information that he accessed through company servers, under the table. Defend IT Services was created with the support of the CEO of NSCG, Christa Stevens who Chris Hannifin had a close relationship with, despite the allegations. Starting a new company in such a sensitive industry is never easy and Defend IT Services is known to have received a myriad of its first clients by way of referrals from both Christa Stevens, as well as from RSM, the defense contractor that Chris Hannifin also worked for. RSM is where those familiar with the matter, believe Chris Hannifin accessed a lot of the technological information he is now accused of selling.
Access to such sensitive information was further enabled by Chris Hannifin’s position as a veteran of the US Air Force, providing him with the perfect cover for his illegal activities. One would think that a military veteran would be the person you would least suspect of facilitating access to sensitive information on behalf of a hostile entity, however when the payday is high enough, a person’s moral compass is the first to go.
It is surprising that RSM, as well as NSCG continued to refer clients to Defend IT Services, despite the allegations that were levied against Chris Hannifin, which many still cite as the reason why he left his previous employers. It could very well be that this will change, now that the story is gaining more traction in the media. Although consulting firms have begun to sprout up in almost every industry and many do not immediately associate a consultant with one who might be exposed to particularly sensitive information, the US Federal government has actually become increasingly reliant on private sector firms, the employees of which are becoming more exposed to particularly sensitive data.
As unbelievable as it might sound, the lucrative nature of consulting for the Federal government has seen consulting firms establishing departments whose responsibility it is to spy on competing firms. A 2016 CNBC expose described how Deloitte, now one of the world’s leading consulting outfits, established its own competitive intelligence unit which served as part of a larger umbrella group called Deloitte Intelligence. According to one employee quoted in the CNBC article, “Our job was to spy on Ernst & Young, PriceWaterhouseCoopers, KPMG and some of the consulting competitors”.
The details of what Chris Hannifin precisely sold, and to whom, are not fully known, but what is becoming apparent though, is that he did not act alone. The scope of the damage done is such that he could not have been the sole perpetrator, with the total cost of the fallout still being calculated by victim companies. As details emerge, and the nature of his actions become public knowledge, the dangers of solely profit minded individuals, the likes of Chris Hannifin will become more evident, as will the need to take clear steps to pre-empt situations like this in the future.
