Case Study: Huawei’s Espionage Against Ericsson in Copenhagen

Case Study: Huawei’s Espionage Against Ericsson in Copenhagen

Huawei demonstrated its sophisticated espionage capabilities in Copenhagen, where it is reported to have targeted Ericsson with eavesdropping devices in a bid to secure a $200M contract with Denmark’s TDC.

The incident allegedly involved the covert planting of eavesdropping devices in Ericsson’s boardroom to secretly capture sensitive discussions. This allowed Huawei to adjust its bid strategically and undercut Ericsson’s pricing, ultimately securing the contract. TDC, however, became suspicious of the last-minute price reduction and initiated an internal investigation.

As part of the investigation, a Technical Surveillance Countermeasures (TSCM) sweep was conducted in Ericsson’s boardroom. The inspection uncovered hidden microphones, confirming the suspicions of sensitive information theft which led to Huawei gaining a strategic advantage to win the contract.

Huawei, a company with past accusations of links to the Chinese government, has faced growing international scrutiny in other espionage cases as they have been accused of being at the intersection of corporate espionage and state-driven interests. This likely reflects a broader trend by Chinese firms, reportedly backed by the state, to launch espionage campaigns to gain a strategic advantage or steal intellectual property related to technology.

To protect against these types of threats, organizations should consider adopting a risk-based approach to securing sensitive information. In this case, Ericsson could have mitigated the risk by conducting a risk assessment ahead of the sensitive discussions, which would have considered Huawei’s potential interest in acquiring confidential information.

A TSCM sweep of the boardroom prior to discussions involving sensitive data could have helped identify any eavesdropping devices or vulnerabilities, significantly reducing the risk of information theft.