2023.08.29press releases

--To the press -

Started providing PC maintenance services for countermeasures and investigations against unfair competition prevention law violations such as retirees taking trade secrets and espionage. Intentional information leaks by mid-career workers are increasing, and it is important to preserve evidence just in case.

FRONTEO Inc.
Masahiro Morimoto, President and CEO
2-12-23 Konan, Minato-ku, Tokyo
(Code number: 2158 TSE Growth)

 FRONTEO Co., Ltd. (Headquarters: Minato-ku, Tokyo, President: Masahiro Morimoto, hereinafter referred to as FRONTEO) is a measure against unfair competition prevention law violations such as leakage of trade secrets and espionage by retired employees. PC data will be completely duplicated, and we will start providing a service that preserves and manages various histories.
 In recent years, not only information leaks due to cyberattacks, but also internal improprieties, such as intentional removal of information by employees and retirees, have occurred frequently both in Japan and overseas.At a manufacturing company, hundreds of thousands of pieces of technical information were taken out of the country due to an employee's spying of state-of-the-art technology from the internal system.Leakage of such trade secrets not only causes direct damage, but also leads to a decline in the economic value and credibility of companies and, by extension, the nation.
 According to the Information-technology Promotion Agency (IPA), an independent administrative agency, the leakage route of trade secrets was halved to 2016% from 43.8% in 2020 to 21.2% in 28.6. , "Leakage by mid-career leavers" increased from 36.3% to XNUMX%1)(Fig. 1).Less than XNUMX% of companies sign non-disclosure agreements with mid-career retirees and mid-career hires²)In addition, 25% of the respondents who narrowed down to 60 companies listed in the Nikkei XNUMX "don't know"XNUMX)It was made.The results of this survey reveal that while internal improprieties are increasing, corporate awareness of preventive measures is low.

Figure 1: Leakage route of trade secrets IPA: 2020 Survey Implementation Report on Fact-finding Survey on Trade Secret Management in Companies

 In addition, the number of people changing jobs is on the rise, reaching a record high of 2019 million in 353, and although it decreased to 2020 million and 2021 million in 321 and 290 due to the spread of the new coronavirus infection, 2022 million in 303, and it is increasing again.³).It is believed that the movement of human resources will continue to progress in the future due to the movement of the government to support the job change of workers.Companies need to take measures and change their mindsets to prepare for intentional leakage of trade secrets and espionage, in light of the risks associated with the flow of human resources, such as the increasing number of mid-career hires and retirees.
 In this service, when a company ships a retired PC to FRONTEO when a retired employee occurs, FRONTEO completely duplicates the digital data, ensuring authenticity as legal evidence, while maintaining temperature control in the security area.・It is to be stored strictly after taking measures against shock (Fig. 2).Misconduct may not always surface immediately after an employee leaves the company.Formatting a retiree's PC immediately after retirement or reusing it internally for use by other employees runs the risk of making important evidence irretrievable, and the validity of legal evidence. may lead to the disappearance ofBy fixing and long-term storage of data on the state at the time of retirement, this service makes it possible to secure evidence for fraud investigations even if fraud is discovered several months or years after an employee leaves the company.In addition, we will preserve the data necessary for e-discovery (electronic discovery) in the event of legal hold due to legal reasons such as US lawsuits and investigations.

Figure 2: Service flow

Retiree PC Maintenance Service Overview
◆ Target cases: Data removal, impersonation/slander, malicious program use, industrial espionage, etc.
◆ Contents: Retired PC data is completely duplicated and strictly stored
◆ Service website:https://legal.fronteo.com/retiree-computers-dataintegrity/
* Please contact us for details
 FRONTEO strives to develop and improve services in e-discovery and digital forensics, and is committed to providing highly specialized, safe, and high-quality services against intentional leaks of trade secrets and cyberattacks, which are becoming increasingly complex and diversified. Masu.
The impact of this matter alone on the Company's business performance will be minor.
1) Information-technology Promotion Agency, Japan: 2020 Survey Implementation Report on Trade Secret Management in Companies,
https://www.ipa.go.jp/archive/files/000089191.pdf
2) Information-technology Promotion Agency, Japan: Fact-finding survey report on internal impropriety prevention systems in companies,
https://www.ipa.go.jp/security/reports/economics/ts-kanri/ps6vr7000000jpfj-att/ps6vr7000000juem.pdf
3) Ministry of Internal Affairs and Communications: Labor force survey (detailed tabulation) 2022 average results, number of job changers by age group and ratio of job changers, https://www.stat.go.jp/data/roudou/sokuhou/nen/dt/zuhyou/900500.xlsx
■ About FRONTEO URL: https://www.fronteo.com/
FRONTEO is a data analysis company that provides various AI solutions and services using the in-house developed AI engine "KIBIT". Based on the philosophy of "providing solutions that do not overlook risks and opportunities buried in records and realizing fairness in the information society," extract meaningful and important information from vast amounts of text data and complex networks. Our strengths are natural language processing and network analysis technologies that support advanced judgments by experts.We are developing businesses in the areas of legal tech AI, business intelligence, life science AI, and economic security, and contributing to solving various corporate and social issues. Founded in August 2003, listed on Tokyo Stock Exchange Mothers (currently Tokyo Stock Exchange Growth) on June 8, 2007.The company operates in Japan, the United States, South Korea, and Taiwan.Acquisition of first-class medical device manufacturing and sales business license, notification of controlled medical device sales business.Capital 6 thousand yen (as of March 26, 3,042,317).
* FRONTEO and KIBIT are registered trademarks of FRONTEO in Japan.
PR Department, FRONTEO, Inc.   
Email: pr_contact@fronteo.com
FRONTEO Inc. Legal Tech AI Business Headquarters   
https://legal.fronteo.com/contact/

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FRONTEO Inc. published this content on 29 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 August 2023 06:29:02 UTC.