Westinghouse Fraud Case Study

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Westinghouse was founded in Pittsburgh, Pennsylvania in 1886 and has been one of the most diverse and innovative companies in the United States ever since. The company was the first to bring countless innovative products to market like the AC-Powered locomotive train, the continuous-filament tungsten light bulb, the industrial atom-smasher, long-range warning ground radar and its cameras were even used to capture Neil Armstrong’s first walks on the moon (“Innovation Heritage”, n.d.). Among all of these innovative products that have changed the world, Westinghouse is best known today for being the leader within the nuclear power generation industry.
The nuclear division of Westinghouse employs over 12,000 people in 19 countries and the basis of its designs generate nearly 50% of the world’s nuclear power
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Although the Chinese will not extradite five members of its government and military to the U.S., the charges of economic espionage, conspiracy to commit computer fraud and aggravated identity theft send a clear message from Washington D.C. that these actions will not be tolerated or taken lightly (Nakashima & Wan, 2014). In the case of the Westinghouse data breach, the economic and technological gain was the clear motive. According the Zheng Mingguang, the chief nuclear designer at China’s State Nuclear Power Technology Company, China had plans to build 60 new nuclear power plants including 10 based off the design of the Westinghouse AP1000 which was the target of the hack (Clercq, 2016). China was able to benefit greatly due to the reduced cost of research and development, as well as a quicker development turnaround, from the knowledge gained during the hacks at the expense of Westinghouse

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