On a weekend afternoon, two people dressed as repairmen entered the
closed offices of a luxury-goods retailer. Working quickly with a
digital camera, they photographed the tops of the desks belonging to
three employees.
Then they copied the hard
drive on each worker's PC. Using the digital
photos as a guide, the pair made sure they hadn't disturbed anything on
the desks. Mission accomplished, they hurried back to Deloitte
& Touche's New York forensics lab.
A scene in an upcoming James
Bond movie? Hardly. The retailer had hired
the two experts to search the computers of three employees suspected of
stealing corporate secrets and client information and feeding it to a
departed executive.
With just 20 key words
supplied by the retailer, the technicians
recovered plenty of smoking guns. Deleted e-mails and America Online
instant messages confirmed the company's suspicions.
By tracing the employees'
movements through the company computer
network, the experts also showed that the suspects had sent
confidential information to the former executive using an AOL account.
Civil litigation over the theft is pending.
Corporate investigations used
to mean following a paper trail, but
these days many follow an electronic one. Increasing demand for the
skill and technology necessary to unearth digital secrets has led to
the birth of a small but growing industry: computer forensics.
Computer-forensics experts,
who often have a background in law
enforcement, computer technology or both, can determine the last time a
computer was turned on, and when a document was created, reworked and
printed. They can dig up e-mail and documents that seemingly have been
deleted, determine what Web sites were visited and which key words were
used to get there.
While some skilled
computer-room techies may be able to perform similar
tasks, the computer-forensics experts bring an added benefit: They are
outsiders. That may make them more credible in the eyes of a judge or
jury.
"If you do the work in-house,
you have a vested interest in the
evidence you find," says Bob Gomes, president of RenewData, an Austin,
Texas, forensics firm with 30 employees. "How does a court know it
wasn't altered? A good opposing counsel will do a lot with that."
Also, since they are trained
in legal technicalities, the forensics
experts are more adept at maintaining proof of the evidence's chain of
custody and documenting when, how and by whom the evidence was gathered
and analyzed. Such factors are crucial to ensuring the evidence will be
admitted in court.
As electronic evidence
continues to take a more prominent role in
litigation, computer-forensic firms are expanding. The industry is made
up mainly of players from three areas: accounting-forensic units of big
accounting firms, data-recovery and computer-repair specialists, and
litigation-support services.
"Within three years, I'm sure
almost all evidence collected in
discovery will be electronic-based," says Joan Feldman, president of
Computer Forensics Inc. of Seattle. "We're now staffed seven days a
week, 18 hours a day just to keep up with our clients' court
schedules." Her company, which she founded nine years ago, now has two
offices and 11 employees.
Deloitte & Touche LLP
went into the computer-forensics business
five years ago and operates eight labs, employing 100 specialists in
the U.S. Clients include financial-services and technology firms,
retailers and government agencies.
"People say things in e-mail
they'd otherwise never write, and probably
never say," says Simon Platt, who oversees the accounting firm's
national forensics unit. "And once it's written, copies can be found
everywhere."
Mr. Platt attributes the
industry's growth to the recent awareness by
courts and law-enforcement officials of the importance of electronic
documents. He points to New York Attorney General Eliot Spitzer's
investigation of former Salomon Smith Barney analyst Jack Grubman,
which heavily relied on e-mails.
None of this expertise comes
cheap. Most firms charge $250 to $500 an
hour, depending on the tasks' complexity and volume of records
examined. Flat fees are often negotiated for long-term projects.
Computer-forensics work
usually begins with an expert making bit-by-bit
duplicates of the digital stuff on a hard drive (analysis is conducted
on copies so that original evidence isn't disrupted).
Experts sometimes can
replicate an employee's hard drive just by
plugging into a company's network, and can even track an employee's
online movements as he or she makes them.
Verifying the authenticity of
electronic evidence is usually the next
step. Experts are often called to testify in court about the methods
used to retrieve information. Such proof is important in defending
against tampering accusations, which often arise in cases involving
electronic records.
A case involving a large
defense contractor in the Washington, D.C.,
area is typical. In November, the company contacted RenewData. The
defense company had just fired an employee and had reason to believe
that after the termination he copied some sensitive files from his
workstation and two servers to floppy disks, and then deleted them. The
company didn't know what the employee had taken nor what he had
deleted.
RenewData technicians told
the company to stop using the computer and
two servers that held the network files. Then, a forensic expert flew
to Washington to take forensic images of each of the drives involved.
Back in the lab in Austin, technicians were able to retrieve logs that
documented the employee in question deleting files. They also were able
to restore the deleted files. The former employee, when faced with this
evidence, admitted his guilt and reached a settlement with the company
out of court.
"We see a lot of cases like
this," says Mr. Gomes, the RenewData
president. "When people are faced with such incriminating electronic
evidence, usually they settle very quickly."
What can make electronic
evidence potent is that it is sometimes the
only proof of wrongdoing. In 2000, the National Oceanic and Atmospheric
Administration, a federal agency, suspected that a Russian ship fishing
in Russian waters was exceeding international crab-fishing quotas and
violating the Lacey Act, which prohibits illegal movement of natural
resources into the U.S. The crabs were being sold in the U.S. using
falsified customs declarations, officials believed.
Search warrant in hand, NOAA
officers brought technicians from a
computer-forensics firm aboard the vessel to make a replica of the
ship's computer systems. Analysis of the vessel's global-positioning
system and electronic logs determined the ship's exact location on
specific dates, its speed through certain depths, activity of its nets
and the volume of crab brought aboard. Recovered communication between
the ship and the company that owned it revealed that management knew of
the ship's activity.
Based on this, agents were
able to piece together evidence that the
agency says shows the crew and its owners had broken the law. The head
of the fishing company is facing criminal charges in Russia and may be
prosecuted in the U.S. as well.
"In this case we didn't have
Coast Guard photos; we had to rely
strictly on electronic data," says Brad Vinish, an NOAA deputy special
agent in charge. "This ability has revolutionized how we're doing some
investigations."
Write to Ellen Byron at ellen.byron@wsj.com
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