19 May 2008

FBI Probes Counterfeit Network Hardware

John Sterlicchi, US Bureau Chief,

The FBI have revealed that the US government has purchased counterfeit networking equipment that could jeopardize the security of its military and other government systems.

Assistant Director James Finch of the FBI’s cyber division issued an advisory stating that the FBI’s Cyber Division provided an unclassified PowerPoint presentation and briefing on efforts to counter the production and distribution of counterfeit network hardware.

“This unclassified briefing was never intended for broad distribution or posting to the Internet,” he said.

The presentation discussed cyber threats including Operation Cisco Raider, which targeted illegal distributors of counterfeit network hardware manufactured in China and included 15 investigations across nine FBI field offices and the execution of 39 search warrants.

The FBI said the effort disrupted a large distribution network and recovered about 3 500 counterfeit components with an estimated retail value of more than $3.5 m.

According to the FBI, the products sometimes shipped directly to the US while other times they arrived by way of foreign governments, including Canada, Germany, the UK and the Netherlands.

A website, AboveTopSecret.com, published parts of the FBI presentation, the FBI said could possibly “provide backdoor capabilities and access into compromised networks for the originators of the equipment.”

According to the website, the military, the FBI, the Federal aviation Administration, defense contractors, financial institutions and universities may have purchased an array of counterfeit equipment, which included routers, servers, switches and other equipment.

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