Silicon Valley, however, prefers to 'downplay, or outright conceal' its vulnerabilities to trade-secrets theft

Meanwhile, China, a rising superpower with a long history of stealing US intellectual property, takes a more 'hands-off' approach to spy craft

Intelligence officials call the situation a 'full-on epidemic of espionage,' and believe Moscow is paying prostitutes for trade secrets

The upscale Rosewood Hotel on Sand Hill Road in Menlo Park adamantly denies that it is apart of any illicit activity

These suspected 'honeypot' escorts seek out high-rolling tech execs and venture capitalists in one place in particular

Silicon Valley is a hotbed for Russian prostitutes doubling as Kremlin spies tasked with extracting the most coveted secrets in the hi-tech industry, according to a new report published by Politico on Friday.

These suspected 'honeypot' escorts allegedly seek out high-rolling tech execs and venture capitalists in one place in particular, the lounge of the upscale Rosewood Hotel on Sand Hill Road in Menlo Park.

And so-called 'cougar nights' on Thursdays is where they set the bait.

These suspected 'honeypot' escorts seek out high-rolling tech execs and venture capitalists in one place in particular (Pictured: The Rosewood Hotel)

The upscale Rosewood Hotel on Sand Hill Road in Menlo Park adamantly denies that it is apart of any illicit activity

Intelligence officials call the situation a 'full-on epidemic of espionage,' and believe Moscow is paying prostitutes for trade secrets

'If I were a Russian intelligence officer, and I knew that these high-end girls were dragging CEOs of major companies back to their rooms, I'd be paying them for info too,' said one intelligence source.

'It's that whole idea of concentric rings: You don't need to be on the inside, you just need somebody on the inside that you have access to.'

The situation has become more acute over recent years amid US intelligence assessments accusing the Russian government and its proxies of meddling in the 2016 presidential election (Pictured: Russian President Vladimir Putin)

Intelligence officials call the situation a 'full-on epidemic of espionage,' and believe Moscow is paying local Russian and East European prostitutes to canoodle with the the most lavish West Coast technology magnates in the game.

'Sex workers targeting executives at high-end bars and nightclubs such as the Rosewood Sand Hill … and other spots have been identified as potentially reporting back to Russian intel officers,' another former operative, speaking on the condition of anonymity, recently told Politico.

The online publication said it based its report on interviews with more than half a dozen former intelligence community officials with direct knowledge of U.S. counterintelligence activities in the Bay Area.

The situation has become more acute over recent years amid US intelligence assessments accusing the Russian government and its proxies of meddling in the 2016 presidential election.

In response to the allegations, The Rosewood strongly denied that their establishment was ground-zero for such activities.

'Rosewood Sand Hill holds itself to the highest standards and does not tolerate illegal or immoral activity,' the statement Friday said.

'The statements made in the Politico article regarding our hotel are unfounded and without validity. We will continue to maintain the highest levels of security as we always have to ensure the safety, privacy and integrity of our guests and local patrons.'

In response to the allegations, The Rosewood strongly denied that their establishment was ground-zero for such activities (stock picture)

Former intelligence officials warn that there's a 'full-on epidemic of espionage' in Silicon Valley including social media giant Facebook

Meanwhile, China, a rising superpower with a long history of stealing US intellectual property, takes a more 'hands-off' but equally worrying approach to spy craft.

Sources who spoke to Politico say in order to 'grab as much targeted proprietary technology or (intellectual property) as possible, as quickly as possible,' China uses 'opportunistic businessmen, ardent nationalists, students, travelers' and others.

'Chinese intelligence also undertakes very intentional efforts to recruit insiders placed within organizations whose technologies they are interested in,' one former official said.

Meanwhile, China, a rising superpower with a long history of stealing US intellectual property, takes a more 'hands-off' approach to spy craft

Highlighting the concern among tech tycoons is a recent lawsuit filed against a subsidiary of Chinese smartphone giant Huawei, alleging that the company infiltrated a meeting held at a telecommunications summit held at Facebook, according to Mercury News.

Huawei has denied that the company or its products are a security threat despite accusations from US security agencies that it conducts espionage on behalf of Beijing.

Silicon Valley, however, prefers to 'downplay, or outright conceal' its vulnerabilities to trade-secrets theft and corporate espionage, according to Politico.

'Coming forward and saying you didn't have controls in place — that totally impacts shareholder or investor value,' a former intelligence official told Politico.

'Especially when you're dealing with startups or mid-level companies that are looking for funding, that's a big deal. You're basically announcing to the world, especially if you're potentially going forward with a public trial, that you were not able to protect your information.'

Silicon Valley, however, prefers to 'downplay, or outright conceal' its vulnerabilities to trade-secrets theft and corporate espionage, according to Politico



