Once again, thank you and I look forward to visiting with as many of you as possible.

Transcription

1 OSS "93" National Competitiveness and National Security The International Investigative Market Sources, Methods, Products Presented By: Mr. Paul Caldwell Chief Executive Officer PSYTEP Corporation Hello, and let me just say that I'm pleased with the way the conference has gone to this point. I'd like to extend a hardy thank you to Robert Steele and his staff for their diligence and effort in making this conference successful as well for formalizing the overall Open Source Intelligence movement. Again, my name is Paul Caldwell and I am the Chief Executive Officer of PSYTEP. Our organization is engaged in open source development, collection, analysis, and training. My topic today is "The International Investigative Market; sources, methods, and products". I have not taken the liberty to change the title. However, I have had the benefit of assimilating two days of excellent platform talks and interactive discussion with you folks in the audience. So, I have remained flexible and have altered my speech a little in an effort to best meet your needs. I will briefly discuss investigative sources, methods, and products throughout this speech but I think it more appropriate to term this speech something like "unconventional open source development, collection, analysis, and training". Before I begin I'll provide you with a little background. As you can see on the screen, PSYTEP Corporation was founded in 1985 to'provide Security Intelligence services to Industry. We currently serve the open sourced intelligence needs of industry and government. We specialize in source development, collection, analysis, and training and are a supporting organization to Open Source Solutions, Inc.. As the next slide indicates we operate worldwide and maintain in-house processing and dissemination capabilities as well as a worldwide strategically based collection specialist network. Our corporate purpose is to act as an interface between worldwide open source assets, and government and industry in the pursuit of a stronger national security posture and enhanced competitive positioning for our industrial clients. Additionally, we continue to stress the importance of an open source collective to both industry and government. This interface is essential in that it should be the place where government and industry come together for information exchange. This collective will enhance the national security posture through strengthening the economic variable of the military, economic, and political spectrum of intelligence operations. As well, this collective will enhance the competitive posture of participating company's by providing them access to information that they otherwise would not receive from government agencies. An example I'll use to demonstrate this collective in action is a well publicized one. Just keep in mind there are many more. This example involves the unauthorized acquisition by Airbus Industries of some of Boeing's intellectual property. This case was publicized in the Wall Street Journal and has received much attention so I won't beat a dead horse. Suffice to say that Airbus Industries is alleged to have stolen some intellectual property from Boeing regarding aircraft technology and that the CIA found out about this but did nothing to warn Boeing of this problem. This case got folks from numerous industries and countries accusing each other of industrial espionage and all kinds of other improprieties. In fact, some companies and highly placed individuals began demanding that the United States engage its clandestine intelligence operatives in economic espionage operations against foreign owned entities. They cloaked this perspective in a "leveling the playing field" public outcry. In 4/2.

2 my opinion, this was done without researching the facts and applying applicable analytical methodologies to determine first, the scope of the problem, and second, the possible solutions. Just for the record, my opinion on this is that we should not engage in clandestine and/or covert operations against foreign competitors with our government intelligence agencies on behalf of U.S. owned companies. My reasons are numerous but in summary let me say that I think it would be very difficult to even define what constitutes a U.S. company and which ones should benefit from the intelligence and which ones should not. Next, our clandestine intelligence assets are far too valuable to expose them to potential compromise through getting them muddled up in multinational corporate environments. That is all I'll say on this so back to the subject of Airbus and Boeing. Let's say that the CIA did not notify Boeing because it did not want to compromise a source. Well, if there was a collective in place the CIA could have posted this information in a way so as to put Boeing on notice, not compromise their source, and not give Boeing or any of their competitors a competitive advantage. So, instead of our government spying on foreign corporations, let's develop an open source collective that allows for information exchange in the pursuit of protecting intellectual property that may have an adverse effect on the National Security posture if it is obtained by a foreign entity. Then let's let companies compete openly without outside government interference. If nationally owned foreign companies spy on U.S. companies (and we know they do) then U.S. companies need to adapt by protecting their assets based on science and law instead of just law. As illustrated on slide seven, it is essential that the entire Open Source Development Cycle take into account Human Intelligence, Signals Intelligence, Imagery Intelligence and Electronic Intelligence. All of these disciplines impact open source development, collection, analysis, and training. Open source intelligence is not just the use of electronic means, the INTERNET, and other large database providers to gather information. In fact these electronic means are a small, yet very significant, part of the collection process. As an example, I expend my soft data human open source assets on a given technology before I ever spend money on line. I then use other hard data sources and finally may end up on line. There is way too much money being wasted on line (Ie: on the INTERNET). Business doesn't and government shouldn't spend money for a highly trained technical person to sit at a computer twenty percent of the day playing around on the INTERNET. This is not efficient and actually becomes counter productive over time. On the other hand, we cannot adhere to some over regimented policy that limits the creative possibilities that come from our most creative thinkers. We must have a balance. And, this balance must be dynamic in nature so that it can adapt and change as necessary. Likewise, as shown on slide eight, open source must include the economic, military, and political variables in the use every related open source discipline. As seen on slide nine, the entire open source community must continue to merge with the international intelligence community and the intelligence community must strive to find a balance in merging with the commercial environment and open source assets. One of the biggest challenges to the intelligence community that we have identified at our company is illustrated on slide ten. This challenge is based on an analytical methodology that we call Lv vs. Ev. This is where we benchmark linear variables of any situation against exponential variables of the same situation. In this example there are certain linear variables that effect the intelligence community. They include, linear, or worse yet decreasing budgets, static legal issues bogged down in governmental red tape (intelligence issues for the most part are dynamic in nature and cannot be handled effectively through static means), and linear or decreasing supporting capabilities. The exponential variables include, increasing economic challenges that potentially affect national security, increasing low intensity conflicts around the world, increasing political hot spots, and the potential for ever increasing involvement in UN operations that turn into peacemaking instead of peacekeeping operations. Now, if you look at the slide you will see that the further apart these variables get from one another the less efficient and effective the entire operation becomes. The proper use of open source intelligence can bring Y3.

3 these variables closer together by having a positive impact on the exponential variables and by enhancing the linear variables to bring them more in line along the linear plane. Additionally, I will now use some examples of areas that I feel need touched on that I haven't heard much about yet at the conference. This is just to provoke thought in these areas and in the name of saving time I will summarize. One of the areas I want to mention before I give these examples is an unconventional OSINT collection program that our organization has been engaged in for some time. At out office we call it the TRASHINT and the RECYCLEINT programs. What this "TRASHINT" means is that we have been collecting trash from three international airports to ascertain the qualitative and quantitative possible effects on national security and industrial competitiveness. The results have been shocking to this point. The amount of usable data we have collected is staggering. When analyzed, we have found definite patterns that impact both national security and industrial competitiveness. The term "RECYCLEINT" refers to an on-going program designed to ascertain what type of data US companies are sending to the recycling center that could have an impact on national security and industrial competitiveness. Once again, this is staggering. As an example, what if I told you that I can follow a recycling truck to the recycling center and buy your recycled paper from them. If I did it would be true in many instances. If this paper were from a database provider and I was able to look it over and obtain your search strategies I may be able to alter any given situation. It is important that these two areas be tightened up and soon. As slide eleven illustrates, the banking industry is a potential major consumer of open source intelligence and should be an included player in the open source collective concept. With the international banking industry becoming more dynamic daily and SWIFT accounts falling into the hands of "the bad guys" like happened in the Baltics recently, banking needs good intel. to make well informed decisions. As well, the government, and specifically, the Treasury Dept. need a better open source intelligence interface to trace transfer memos moving through the SWIFT system. OSINT can have an incredible positive effect on this process if through the collective we can get the Treasury Dept. and the CIA counter narcotics intelligence folks disseminating information that is correlated to applied OSINT. This will benefit the government as well as business. Slide twelve says "Cuba". What this is to demonstrate is that there are a number of small nations throughout the world that have very dynamic things going on at this time that will have an economic and political (and possibly military) impact on the rest of the world. Cuba is a good example. The European countries, as well as Mexico and Canada have begun major development plans for Cuba. There have been recent trips to Cuba by US companies (with the authorization of the office of foreign assets control) to expand services and development in the country. This information can be very valuable to both government and industry but is not readily available on any database. It requires human means as well as grey material acquisition to ascertain the particulars. Slide thirteen illustrates that the primary concern of US business is money. Not national security but the bottom line is the primary concern of corporate America at this time. We need to continue to strive to teach industry and government how the economic, military, and political variables all go hand in hand to enhance the competitive position of companies as well as the national security posture of this great country. Open source intelligence is a vehicle that greatly enhances this process. Slide fourteen illustrates how imaging intelligence (national technical means and others) can contribute to the overall effectiveness of open source intelligence. We have a program that we call "Investigative Imaging". This program is primarily designed to provide law enforcement another tool to further their investigation capabilities. We have found that there are thousands 4//.

4 of unsolved crimes still on the books throughout the law enforcement community in the United States and around the world. This program gives them access to imagery from a number of satellite imagery providers as well as the National Aerial Photography Program, the National High Altitude Photography Program, and NASA data. We have integrated global positioning technology and a database so that a law enforcement entity can call us with coordinates (or we can provide them a GPS unit) and we will query the database to ascertain the availability and usage probability of imagery. By coupling this system with the on-going re-classification program we can greatly enhance the system for law enforcement while providing the government with another profit center. Finally, and in closing, I would like to say, as illustrated on the last slide, that the feedback cycle is of primary importance. All of us providers of OSINT need to hear from you the customer to determine how to continue to make our products better meet your needs. Feedback is the key to this. Once again, thank you and I look forward to visiting with as many of you as possible.

5 SECOND INTERNATIONAL SYMPOSIUM: NATIONAL SECURITY & NATIONAL COMPETITIVENESS: OPEN SOURCE SOLUTIONS Proceedings, 1993 Volume II - Link Page Previous Learned Nations. Seeking National Competitive Advantages Through Knowledge Strategies Next An Overview of the information industry Return to Electronic Index Page