When and Why to Launch a Forensic Investigation
Digital forensics can determine the outcome of a case, particularly in matters involving trade secret theft or the misappropriation of confidential business data. Evidence that shows what happened, when it happened, and who was involved is not only compelling in court, but often game-changing if uncovered early, before litigation even begins.
In this series, we’ll cover three key areas:
- When should you consider a forensic examination?
- How can timing give you an edge over the opposition?
- Where can evidence be found that tips the scales in your favor?
When Should You Consider a Digital Forensic Investigation?
If you’re a business leader or legal advisor, the time to consider a forensic investigation is the moment you suspect something may be wrong, particularly in cases involving departing employees with access to sensitive data.
Whether it’s an executive, engineer, sales manager, or someone in product development, any employee with access to proprietary or confidential information can present a risk. Consider this: more than 70% of employees take company data with them when they leave, and often it’s undetected until the damage is done.
Here are critical questions to ask when assessing risk:
1. Did the employee have access to confidential data?
Not just executives, mid-level employees in engineering, product development, sourcing, or operations often hold valuable knowledge of your intellectual property, pricing, and internal strategies.
2. Where is the employee going next?
If they’re joining a competitor, or won’t say where they’re going, it’s a red flag. Non-disclosure can signal intent to conceal a conflict or misuse of data.
3. Are they returning to a foreign country?
We’ve seen multiple cases where employees returned to countries known to incentivize intellectual property theft, either through direct programs or economic motivation.
4. Did they give proper notice, or none at all?
A same-day resignation, or very short notice, is often a sign that something’s off. It may suggest the individual is attempting to avoid oversight or act before controls are in place.
5. Were there signs of dissatisfaction?
Missed bonuses, passed-over promotions, company layoffs, or strained relationships with leadership are all common justifications cited in data theft cases.
6. Is there a trend in departures?
Sometimes, one exit seems benign, until it’s followed by others. Watch for staggered departures from a single business unit or functional area. For example, a sourcing employee leaves, then a manufacturing lead, then someone in sales, this pattern could indicate coordinated activity.
The Cost of Not Looking
Many businesses only discover data theft after the fact, often months or even years later. The signs might show up as a new competitor offering similar products at lower prices, or an unexplained erosion of market share. These indicators are easy to dismiss, until it becomes clear that someone else is using your proprietary information to beat you.
It’s Never Too Late, But Sooner Is Always Better
While early action allows you to preserve more evidence and act with more precision, it’s never too late to begin a digital forensic investigation. Even delayed engagements can uncover key insights, just understand that the longer you wait, the harder it may be to recover complete evidence.
In summary: If you suspect risk, especially during employee transitions, act quickly. A timely digital forensic investigation can deliver the facts you need to protect your business, support litigation, or even prevent it entirely.