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Leaked recording: Inside Apple’s global war on leakers. Watch Hotel California Online Iflix. A recording of an internal briefing at Apple earlier this month obtained by The Outline sheds new light on how far the most valuable company in the world will go to prevent leaks about new products.
The briefing, titled “Stopping Leakers - Keeping Confidential at Apple,” was led by Director of Global Security David Rice, Director of Worldwide Investigations Lee Freedman, and Jenny Hubbert, who works on the Global Security communications and training team. According to the hour- long presentation, Apple’s Global Security team employs an undisclosed number of investigators around the world to prevent information from reaching competitors, counterfeiters, and the press, as well as hunt down the source when leaks do occur. Some of these investigators have previously worked at U. S. intelligence agencies like the National Security Agency (NSA), law enforcement agencies like the FBI and the U. S. Secret Service, and in the U. S. military. The briefing, which offers a revealing window into the company’s obsession with secrecy, was the first of many Apple is planning to host for employees. In it, Rice and Freedman speak candidly about Apple’s efforts to prevent leaks, discuss how previous leakers got caught, and take questions from the approximately 1.
The presentation starts and ends with videos, spliced with shots of Tim Cook presenting a new product at one of Apple’s keynotes, that stress the primacy of secrecy at Apple. When I see a leak in the press, for me, it’s gut- wrenching,” an Apple employee says in the first video. It really makes me sick to my stomach.” Another employee adds, “When you leak this information, you’re letting all of us down.
It’s our company, the reputation of the company, the hard work of the different teams that work on this stuff.” “I have faith deep in my soul that if we hire smart people .. Steve Jobs ran a notoriously secretive ship during his tenure as Apple’s CEO, and in 2.
Cook first publicly mentioned doubling down on secrecy at a 2. This has become a big deal for Tim,” Greg Joswiak, Apple’s Vice President of i. Pod, i. Phone and i. OS product marketing, says in one of the videos. Matter of fact, it should be important to literally everybody at Apple that we can't tolerate this any longer.” Later, Joswiak adds that “I have faith deep in my soul that if we hire smart people they’re gonna think about this, they’re gonna understand this, and ultimately they’re gonna do the right thing, and that’s to keep their mouth shut.”To make sure of it, Apple has built an infrastructure and a team “to come after these leakers,” Joswiak says, and “they're being quite effective.”After the first video concludes, Hubbert addresses the room. So you heard Tim say, ‘We have one more thing.’ So what is that one more thing?” she asks.
Surprise and delight. Surprise and delight when we announce a product to the world that hasn’t leaked. It’s incredibly impactful, in a really positive way. It’s our DNA. It’s our brand.
But when leaks get out, that’s even more impactful. It’s a direct hit to all of us.”“So today we’re going to share with you some of the behind the scenes of leaks that have happened on the supply chain, but also, right here in Cupertino,” she says. So let’s paint a picture as to this team that Tim said we’d put in place.”She then introduces David Rice to talk about the “New Product Security” team, a part of the larger Global Security team that Rice says “is really a secrecy group, we’re a little bit misnamed.” Rice worked at the NSA as a Global Network Vulnerability Analyst for four years, and before that was a Special Duty Cryptologist in the U.
S. Navy. He’s directed the Global Security team at Apple for more than six years, according to his Linked. In page. Hubbert also introduces Lee Freedman, who previously worked as the Chief of Computer Hacking Crimes at the U. S. Attorney’s Office and as an Assistant U. S. Attorney in Brooklyn, according to Linked. In. He joined Apple to lead Worldwide Investigations in 2. The New Product Security team is “very heavily on supply chain,” Hubbert says, and that’s the focus of the first part of the presentation.
Historically, Apple’s biggest leaks happened when parts were stolen from factories in China. Those parts get shared with the press, like when photos of the i.
Phone 5 leaked in 2. However, Rice says, Apple has cracked down on leaks from its factories so successfully that more breaches are now happening on Apple’s campuses in California than its factories abroad. Last year was the first year that Apple [campuses] leaked more than the supply chain,” Rice tells the room. More stuff came out of Apple [campuses] last year than all of our supply chain combined.”Rice compares Apple’s work of screening factory employees to that of the TSA. Their peak volume is 1. Ours, for just 4.
China, is 2. 7 million a day.” That number surges to 3 million when Apple ramps up production, he adds, and all of these people need to be checked every time they enter and exit the factory.“In aggregate, we do about 2. For comparison, 2. Rice says. “So this is just one big theme park. People coming in, coming out, there's billions of parts flying around at any given instance. So you marry up a bunch of parts moving around plus a lot of people moving around and it's no wonder that we don't leak even more.”The Global Security team in China has been “busting their ass” to solve the problem of leaks stemming from Apple’s factories, Rice says, describing the efforts as “trench warfare non- stop.”.
A supervisor holding an Apple Inc. Pad checks an employee's badge during roll call at a Pegatron Corp.
Shanghai, China. Qilai Shen / Bloomberg via Getty Images“We deal with very talented adversaries,” he says. They're very creative and so as good as we get on our security controls, they get just as clever.” Black market sellers solicit factory workers by posting signs at bus stops and factory dormitories, he says, offering “top dollar” for Apple parts.
Apple’s Chinese workers have plenty of incentive to leak or smuggle parts. A lot, like 9. 9. Rice says. “But there’s a whole slew of folks that can be tempted because what happens if I offer you, say, three months’ salary?’ In some cases we’ve seen up to a year’s worth of salary being rewarded for stealing product out of the factory.” Apple workers on the production line make approximately $3. China Labor Watch. The most valuable part for a thief is the housing or enclosure, which is basically the metal back of an i.
Phone or Mac. Book. If you have a housing, you pretty much know what we're going to ship,” Rice says. Workers will stash parts in bathrooms, clench them between their toes, throw them over fences, and flush them down the toilet for retrieval in the sewer, Rice says. We had 8,0. 00 enclosures stolen a long time ago by women putting it in the underwire of their bra,” he says. They're going to great lengths to steal this stuff. But it's not just enclosures.
It's also anything that reveals product prior to announce.”The stolen parts often end up in Huaqiangbei, one of the biggest electronics markets in the world, located in Shenzhen, Southern China. This market employs about a half million people and does about $2. Rice says. One “particularly painful year” was 2. Apple had to buy back about 1.
Phone 5. C announcement, he recalls, and then an additional 1. So we're buying as fast as we possibly can to try to keep it out of every blog on Earth,” Rice says. William Turton and Adrianne Jeffries discussed this story, with additional details, on our daily podcast, The Outline World Dispatch.
In the years since Tim Cook pledged to double down on secrecy, Rice’s team has gotten better at safeguarding enclosures. In 2. 01. 4 we had 3. In 2. 01. 5 we had 5. In 2. 01. 6, Rice says the company produced 6. So it's about a one in 1.