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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared Democrats' tax bill moves toward vote in US Senate 14 Jun 2010 Petraeus collapses, doubts grow over Afghan war effort | Video 3:21pm EDT Magnitude 5.7 quake strikes southern California 9:35am EDT Obama to address energy in high-stakes spill speech | Video 4:50pm EDT Cheap blood drug "could save 100,000 lives a year" 14 Jun 2010 Armed man halted at U.S. base was AWOL: military 12:31pm EDT Wall Street jumps as S&P 500 breaches key level 4:42pm EDT There's more water on the moon than anyone thought 7:27am EDT FBI files reveal Ted Kennedy death threats 8:17am EDT Lawmakers blast oil firms' drilling plans | Video 4:39pm EDT Democrats' tax bill moves toward vote in US Senate 14 Jun 2010 German student attacks Hell's Angels with puppy 10:55am EDT Those who eat brown rice may have less diabetes 14 Jun 2010 Common blood pressure drugs may raise cancer risk 13 Jun 2010 Obama to address energy in high-stakes spill speech | Video 4:50pm EDT IBM to buy web analytics firm Coremetrics 11:58am EDT Cheap blood drug "could save 100,000 lives a year" 14 Jun 2010 There's more water on the moon than anyone thought 7:27am EDT Magnitude 5.7 quake strikes southern California 9:35am EDT US commercial real estate gains strength 14 Jun 2010 Pictures Best of E3 Highlights from the annual video game expo. Slideshow Defense firms face cyber spying at arms bazaar Tim Hepher PARIS Tue Jun 15, 2010 2:07pm EDT Related News UPDATE 1-France picks Thales, Safran for army overhaul-sources Fri, Jun 11 2010 UPDATE 1-Pentagon sees no big change in weapons spending Thu, Jun 10 2010 M&A in defense space heating up Thu, Jun 10 2010 RPT-DEALTALK-M&A in defense space heating up Thu, Jun 10 2010 RPT-DEALTALK-M&A in defense space heating up Wed, Jun 9 2010 PARIS (Reuters) - Top arms groups are on high alert to counter cyber spies from stealing their own secrets at a major arms bazaar outside Paris, even as they market new ways to clients on how to repel hackers in the digital battlespace. Technology France is hosting the world's largest arms fair for land forces near Paris airport Charles de Gaulle, attended by up to 50,000 people who make, buy and use advanced weapons. The exhibition space bristles with weaponry from 130 countries including tanks, armored vehicles, riot gear and display cases crammed with guns and ammunition. But the crowded arms bazaar is also a snooper's paradise and another proving ground for the cyber war which is already testing the resources of major-league Defense companies. "It is very easy to go crawling over everybody's systems here. Some people come and their approach is to grab everything they can," said a senior Western Defense company official. "There are two approaches -- they either try to take the whole haystack and look for a needle, or there are those who know exactly what needle they are looking for." Scouting out the competition is as old as trade fairs themselves, but the biennial Eurosatory arms gala brings together sensitive targets from the United States, Europe, Russia and -- for the first time this year -- China. The United States has long suspected the Chinese and Russians of using cyber attacks to try to steal sensitive information, but both countries have denied this. Risks at the Eurosatory arms show range from petty theft to covert photography and electronic eavesdropping. Behind the suits and dark glasses there is an atmosphere of mutual distrust. "Everyone is told to keep their eyes and ears open, watch that equipment doesn't disappear. If people take photographs, we need to know who they are," said a French Defense executive. Exhibitors are careful not to bring classified material into a show. But portable computer networks contain commercially sensitive information and may betray a useful signature that could later provide a side door into more sensitive systems. ACHILLES' HEEL The threat at a trade show can be hidden inside something as apparently innocent as an electronic press kit, handed out on discs or memory sticks and casually swiped by a competitor. "At these shows you have to bolt everything down," said an executive with a European Defense company. Like others, the executive declined to be named when speaking about the threat from other exhibitors. But virtually all major Defense companies were promoting systems to reduce the risk of cyber attacks whether from hackers, criminals or well-organized, state-run cyber armies. Defense companies are investing heavily in systems to fight a growing onslaught of cyber attacks on corporations, utilities, financial services companies and government computer banks. The drive has both strategic and hard-headed financial logic -- to counter new threats that have shifted the odds away from traditional force, and to tap into homeland security budgets as Defense spending gets chopped. "The digital battlespace brings a new set of non-kinetic challenges. You can do anything there you can do kinetically," said Julian Hellebrand, chief of staff at UK's Cobham. In actual operations, cyber bombing seeks to exploit a possible Achilles' heel in the way modern warfare is waged. Commanders increasingly want to link up smart systems between land and air or individual soldiers and vehicles. With the increasing use of coalitions and connections, the number of vulnerable entry points multiplies. "This makes the world more threatening. The more entrances there are to a system, the more the risks increase," said Jean-Marc Bonnet, a cyber expert at France's Thales. The electronics firm on Tuesday unveiled a system, Nexium, to prevent hackers choking military and civil networks. But it was forced to cancel celebrations for a contract with Safran and Nexter to design a "net-centric" war system for the French army called Scorpion after the Defense ministry said it needed more time to review the impact of budget cuts. (Additional reporting by William Maclean) Technology Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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