The Dark Arts of “Source Enquiries”
A client for whom I did some due diligence (DD) told me how much fun it was presenting the findings to the deal teams, who called her “the CIA.”

Why did the deal team liken the DD work to spies?

Well, it is intelligence gathering, but it’s not as smoke ‘n’ mirrors as some make out. In DD land, you might hear “discreet/covert/source enquiries” or “HUMINT [human intelligence].” It’s all the same thing: getting people to talk.

Before we get into how it’s done, it might help to first consider when more comprehensive DD is required (the red dots 👇).

How It’s Done

To conduct source enquiries, you start by developing a source list (people who might know the target). Then work out what questions each might be able to answer and how to approach them without a) pretexting, b) blowing cover, or c) it getting back to the target. It’s a real art if done well. You need to have an extensive network of people to call on. You will need both passive and active sources.

Passive Sources

For example, a client was concerned that a recent high-profile hire might be a paedophile after a tip. Tracing back to where they’d lived (and left in a hurry, thousands of miles away), I found an investigative journalist who covered that topic (and that person fleeing).

Passive source = an expert on that topic.

Active Sources

An impact investor was investing in a fair trade consumer goods company. They were concerned that the founding team were at war and wanted to know who to keep in the business. There were rumours of some very toxic behaviour. A documentary maker who focuses on looking at the dark side of “doing good” organisations (from sexual assault in aid organisations to abusive founders of “purpose-driven” businesses). The documentary maker was happy about the tip, and we co-ran a covert intelligence-gathering operation to substantiate what transpired to be accurate rumours.

Active source = a gatherer of intelligence.

Buyer Beware

What IS NOT source enquiries is randomly contacting people who might have interacted with the target. Qualification is key. Cross-verification of sources, contextualisation of the source’s proximity and reliability, and attribution.

If a DD provider says, “sources close to the subject said…” that means precisely nothing. Change that to, “A source who worked closely with the subject at Company A on the launch of Product B and disclosed constant professional disagreements said…” That’s more useful.

If you’re wondering what to include in a DD scope, there’s one under the Due Diligence Services link (here: Due Diligence PDF) – page 3 of the PDF.

The Password Game
If you’re losing control of your passwords, you’re not alone.

If you are after a strange sort of catharsis – immersion therapy – there’s now a password game. It’s both compelling and infuriating – much like the need for (and then trying to remember) passwords!

Have a go here: Password Game