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    Lost iPhone just one headache for Apple security

    SAN FRANCISCO (AP) — Wanted: experienced security professional. Must have plan to thwart Chinese counterfeiters, protect secret blueprints from spies and keep workers from leaving super-secret unreleased smartphones behind in bars.

    A day after a recent report surfaced that an Apple employee had lost a prototype for a new but unreleased iPhone at a Northern California watering hole, two job listings appeared on Apple's website for managers of "new product security."

    Such workers would join a team at the $350 billion company that has included ex-FBI agents and other highly trained pros with backgrounds in intelligence and law enforcement.

    While a private security force might not seem in keeping with its user-friendly image, Apple and other companies in its league need the best protection they can buy, corporate security experts say. And lost iPhones likely don't come near the top of the list of anxieties.

    "Corporate espionage, that's big money. Billion-dollar money. The paranoia is justified," said Jim Stickley, co-founder of corporate security consulting firm TraceSecurity "Whatever they're trying to do, their competitors want to know. Everybody wants to know."

    Apple declined to discuss its security operations in detail with The Associated Press, in keeping with the company's longstanding reputation for secrecy. Nor has the company confirmed the existence of the iPhone 5, the rumored latest model, much less a lost prototype.

    But San Francisco police have said that four officers recently went to a home in the city's Bernal Heights neighborhood with two Apple employees, who met with the resident and searched the home for an iPhone prototype.

    Apple watchers say the company is known for creating many test versions of its new devices before they're released to see how they work in the real world. The reportedly lost iPhone likely would have been far from the only one in circulation.

    Losing just one such device is perhaps more of a marketing headache than a serious security breach, as was the case for Apple last year when the tech blog Gizmodo posted photos of what turned out to be the then-unreleased iPhone 4 lost by an employee at a San Francisco Bay area beer garden.

    Once a new device has reached the point where employees are field-testing it, a competitor who obtained one wouldn't have enough time to analyze it and do anything to take advantage of that insider knowledge, Stickley said.

    Even so, sheriff's deputies seized Gizmodo blogger Jason Chen's computers as part of an investigation into whether the blog's $5,000 payment to acquire the lost phone amounted to a crime. No charges were filed.

    Such tactics might seem heavy-handed. But for Apple and other tech companies the issue amounts not just to a publicity problem but a fiduciary obligation to shareholders to secure the company's valuable assets, said longtime Apple analyst Tim Bajarin.

    Companies also have an obligation to try to prevent such a loss from happening again, he said: "If they fail, it's the system that failed as much as the individual."

    Despite the blogosphere frenzy surrounding the lost iPhone prototypes, experts say the security threats to tech companies are far more serious in China, where thousands of workers labor to manufacture Apple's products.

    According to a 2008 diplomatic cable released by Wikileaks, Apple had only a modest security presence in China until March of that year, when the company hired a team from Pfizer that led a crusade against fake Viagra.

    Under the leadership of Donald Shruhan, whose LinkedIn profile lists him as a Hong Kong-based senior regional director for Apple in security and investigations, the company began taking steps to reign in the country's trade in counterfeit iPhones, iPods and MacBooks.

    "Early evidence suggests nearly 100 percent of Apple products in unauthorized mainland markets are knockoffs," according to the unclassified cable from the U.S. Embassy in Beijing.

    The job of keeping such counterfeits off the shelves, to keep blueprints for new products from leaking and to otherwise secure vital trade secrets falls under the field of information assurance.

    For information assurance professionals, securing computer networks is only part of the job. They also make sure companies remember to lock their actual doors.

    "Social engineering" also remains a constant threat in the tech industry, said Gary Kessler, director of the information assurance program at Norwich University, a private military college in Vermont that has trained security personnel at Apple and other high-profile companies. From e-mail scams seeking sensitive personal information to Cold War-style cloak-and-dagger subterfuge, human weakness can be easier to exploit and harder to protect against than digital vulnerabilities.

    "This stuff has been going on for decades, just in a different guise," Kessler said. "The Internet has just given us a new vector for attack."

    And in the end, he said, even the best-trained security team in the world can only do so much to protect against someone in a bar who may have been drinking and may have been showing off the most sought-after secret product in the world.

    Said Kessler: "I'm guessing that Apple probably did everything that anybody could do, and they probably did it right."

    ___

    Follow Marcus Wohlsen on Twitter at http://twitter.com/marcuswohlsen

     

    62 comments

    • bastage  •  8 mths ago
      Maybe Apple could manufacture their products in America instead of outsourcing it to China?
      • we're screwed 8 mths ago
        They wouldnt make as much money and after all, money is what makes Apple tick. They love proprietary crap.
      • Mark C 8 mths ago
        That would be nice....but they would have to charge quite a bit more for the phone.
      • UI 8 mths ago
        When I bought my current Mac six years ago, I assumed it would be US made, and was dispappointed to see that it was being shipped from China, despite being a lot more expensive than non-Apple computers. I don't mind paying more for a US-made product, but if they're paying starvation wages to their Chinese manufacturers while charging the kind of prices they'd have to if their products were made here, I'm a lot less likely to buy a Mac next time around.
    • zzz  •  8 mths ago
      I am just curious by what legal right can the two Apple employees search someone's home. Certainly can understand the police doing it (with a warrant).
    • jgb  •  8 mths ago
      Apple should manufacture in the U.S. at least there would be some protection. And hey! Jobs for AMERICANS!
      • rightwinggay 8 mths ago
        You should take a business class or two.
    • Doc  •  8 mths ago
      Here's an idea Apple - don't let your drunk#$%$ employees run around with unreleased products.
    • Edward  •  8 mths ago
      Make the phones here in your own manufacturing plant. Delegating manufacturing to China to save $$$ cost more in the long run via intelecual property losses and secruity. Take your billions in profits and create a world class manufacturing facility in USA (and put some Amercicans back to work).
      • Mr. Big 8 mths ago
        That is so true, but who cares about others this is what the corporate world is all about.......
      • dr kavorkian 8 mths ago
        It's cheaper just to hire more security, take chances, and have a plan B if things go south than to do all the things in your wish list.
    • Anonymous  •  8 mths ago
      It's REIN in, not reign in.
    • G  •  8 mths ago
      Apple is getting too rich and arrogant for their own good.
    • OldDan  •  8 mths ago
      "Here's $500 and the proto-type of the new iPhone. Go to a bar, have some drinks, accidentally leave the proto-type, we will have a cab outside to take you safely home."
      That puts a new meaning to "free press" LOL I want to apply for that job. LOL
    • OldDan  •  8 mths ago
      Here's a concept. "Let's "lose" the phone, it will make it to the tech mags, they will print the pre-release and think they got a hot story and we didnt have to pay a dime. If they discover any flaws, we can correct them before we release the phone to the sales folks."
    • dog s  •  8 mths ago
      You would think companies like Apple would stop making there product in China, while thousand work to make legal apple product, thousand more work to make cheaper illegal knock off and the only way this is going to stop is once companies show the Chinese they will make there product else where the Govt will act to support those jobs,
      The Chinese people do not have original idea they sell everyone else, just walk NYC canal street and get approached by Chinese people hawking knockoff of everything
    • J  •  8 mths ago
      Publicity Gimmick! Think of all the free press they got over the first lost iPhone incident, decided to do a follow-up.
    • nycapitalist  •  8 mths ago
      Fail... As others have pointed out, this was not a mistake. The prototypes are 'lost' on purpose to create a media buzz. Clever, but not new.
    • MB  •  8 mths ago
      Smart phone isnt so smart now.. They should have installed tracking devices in the prototypes..
      • Mark 8 mths ago
        they do
      • dr kavorkian 8 mths ago
        that's how they went str8 to the guys house with 4 cops, no detective work needed. Surprised this isn't in all cellphones.
    • Craazy Cacasion Infedel  •  8 mths ago
      Sounds like apple employees have some drinking problems
      • G 8 mths ago
        Anybody who worked under Jobs is bound to drink.
    • Micheal  •  8 mths ago
      Is it me or what, sounds like all these tech company's are falling apart ... along with the Federal Government. Money n greed has blinded everyone ... the Dark Age of technology has doomed itself and in the back draft the rest of us too.
    • Gregory  •  8 mths ago
      I was at Raum Chok market last week here in Chiang Mai. I stopped at a cell phone stand/shop to buy a cover for my iPhone 4. The woman next to me was looking at what appeared to be an iPhone 4 (white with this champagne pink metal surround). I asked to look at it and it looked like an iPhone but weighed 1/4 weight. Copy watch, copy purse, copy DVD, copy iPhone, copy Viagra --- China is the major source of this crap! It is state sponsored robbery -- look the other way.
    • Brad B  •  8 mths ago
      They have ghost shifts over in China, where they make counterfeit products using the same factories that the real ones are built in. You can walk down any street over there and buy fake purses, phones, dvd's, watches, pens, etc. at a fraction of the cost of the real ones.
    • »ó·¡ °­  •  8 mths ago
      And remember to set your phaser to kill!
    • JustMe  •  8 mths ago
      If I want many factories, all overseas in countries with weak laws and a history of copying technology and are paid very little. But I want to secure my design according to US laws. How about keep it in the US.
    • Mister Vegas  •  8 mths ago
      This happens every time with a new iphone prototype. I think Apple intentionally does this to get publicity. BTW, I have the lost iphone5 and want 1 billion dollars for it's return ;-)
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