||This paper seeks to document a variety of competitive intelligence (CI) vulnerabilities which: 1. are common to most organizations, and 2. have a unique and adverse effect on virtual firms due to their reliance on subcontracting and information technologies. A 7-stage competitive counterintelligence program (identified by the FOG-PACT acronym) is developed in order to remedy many of these CI problems. The program includes: 1. FBI and the ANSIR program - An early warning network of economic espionage, 2. outsourcer security issues, 3. minimizing CI losses attributable to government filings, and 4. personnel security issues - The weakest link. Virtual organizations represent a new form of organizational structure designed to enhance competitiveness and strategic flexibility through the extensive use of subcontracting, business partnering, and information technologies. Many of these strategic advantages derive from the ability of the virtual organization to freely exchange information, resources, technologies and ideas across organizational boundaries.