How businesses are targeted, and the practical steps that protect them
Corporate espionage is the theft of trade secrets, intellectual property and sensitive commercial information for the benefit of a competitor or a foreign state. It often goes undetected, and the cost to an organisation can be significant and long-lasting: lost contracts, lost competitive advantage and damaged reputations.
Most organisations assume it happens to someone else. That assumption is what makes it work.
The scale of the threat
Corporate espionage is not limited to defence contractors and technology firms. Any organisation with valuable information can be a target, including manufacturers, pharmaceutical companies, energy firms, law firms, financial institutions and universities.
In October 2025, MI5’s Director General described Chinese state activity as a threat to UK national security “every day”, citing cyber espionage, technology theft and covert interference. He named China, Russia and Iran as the main state threats, and reported a 35 percent increase in the number of people MI5 was investigating for espionage over the previous year. Competitors and criminal groups use many of the same methods as state actors.
People: the most common way in
Most corporate espionage depends on people rather than technology. An employee shares too much on social media, answers a well-crafted question at a conference or is quietly recruited. Approaches through professional networking sites are common, often starting with an offer of paid consultancy work from a profile that is not what it seems.
Skilled collectors use elicitation, drawing information out of ordinary conversation without the target realising. Exhibitions, industry events and hotel bars are common settings, and the person giving the information rarely knows they have done so.
Travel, insiders and business relationships
Staff travelling abroad carry sensitive information on their devices, in their documents and in their heads. In some countries, phone calls may be intercepted, hotel rooms searched and devices tampered with.
A current or former employee with legitimate access can be the most damaging source of all. Their motive may be money, a grievance, ideology or pressure from others, and their access means the damage is often done before anyone notices.
Business relationships create exposure too. Joint ventures, suppliers, contractors and potential investors can all gain access to information that is later misused. In some markets, confidentiality agreements offer little practical protection. And alongside all of this, phishing, compromised suppliers and weak systems give attackers remote access to sensitive files and communications.
The signs to watch for
The warning signs are often visible in hindsight. Unusual interest in projects, technology or tenders from people outside the business. Unsolicited approaches offering consultancy work or speaking opportunities. Staff accessing information they do not need for their role. Competitors who seem to know your plans or pricing. Devices or documents that appear disturbed after travel.
None of these proves espionage on its own. Together, they are a reason to look more closely.
Protecting your organisation
All organisations should assess their vulnerability to the theft of trade secrets, then develop a proportionate but effective strategy for reducing the risk. That starts with identifying your most valuable information and who has access to it.
From there, the strategy should train staff to recognise elicitation, social engineering and suspicious approaches, and brief them before travel to higher-risk countries, with clear rules for devices abroad. It should include an insider threat programme that works within existing HR, legal and security structures, and due diligence on partners, suppliers and investors. Systems should be tested for weaknesses and monitored for unusual activity, and staff should find it easy to report concerns.
How we help
Our Countering Corporate Espionage training shows staff how competitors and hostile states use social media, social engineering and insiders to obtain sensitive information, and the practical steps that reduce the risk. It can be delivered to an entire workforce through short sessions, with more detailed workshops for staff with access to sensitive information.
Related courses include Travel Safe Awareness for staff who travel on business, Insider Threat Detection & Prevention for HR, legal and security teams, and Elicitation & Influencing Skills. Our consultants can also help assess your exposure, and our cyber security services test the systems that hold your most valuable information.
Assume you are a target
Corporate espionage succeeds when organisations assume it will not happen to them. Understanding how it works, and training your people to recognise it, is the most practical defence against corporate espionage available to any business.
If you would like to assess your organisation’s exposure to corporate espionage, speak to our team.