FBI probe nets counterfeit Chinese networking parts

The FBI announced Friday that an investigation into counterfeit network components made in China and sold to the U.S. government has recovered about 3,500 fake devices with a value of $3.5 million.

The criminal probe, code-named Operation Cisco Raider, was prompted by concerns that counterfeit network components could give hackers access to government databases. But one U.S. official told Reuters that the components discovered by the FBI are not believed to have made government computer systems more vulnerable.

The existence of the probe came to light after an unclassified FBI PowerPoint presentation in January on the agency's efforts to counter the production and distribution of counterfeit network hardware showed up on Abovetopsecret.com.

"This unclassified briefing was never intended for broad distribution or posting to the Internet," James Finch, assistant director of the FBI's Cyber Division, said in a statement.

Operation Cisco Raider involved 15 investigations at nine FBI field offices and the execution of 39 search warrants, the bureau said. The FBI release did not mention whether any arrests had been made.

Components included pirated versions of Cisco Systems routers, as well as switches, interface converters, and wide area network interface cards, Reuters reported.

[custompcmax]

First, they try to get our kids with lead paint on the toys, then they try to go after our governemnt with fake networking equipment... WHat's next?

[42istheanswer]

It'll just keep happening. We're too stupid to do anything about it. What a joke.

[frussel]

Bill Clinton Just wanted them to have a better edge when he sold the chinese our secrets!

Clinton was president almost eight years ago. Who we got now?

[Louienyc75]

You just can't trust the Chinese? I personally think the U.S. should find ways to move as many of our companies' factories out of China. I don't trust the Chinese government or any of these Chinese companies contracted to make products for U.S. companies. For years Chinese espionage has been known even before they were sneaking out our decommissioned military equipment. (Bush 1 and Clinton eras) Something much worse will happen if nothing is done. And, you people thought illegal immigration was such a big problem, there are much more important things to worry about.

[xangularity]

Please stop being such racists. As much of an "ally" that Israel, Saudi Arabia is to the US, they also spy on the US and even commit acts of terrorist in some instances.<br />Plus, also understand how the US government procure their stuff. Whoever ordered should be as much to blame. Why?Had they just ordered from say Dell or bought stuff from the stores like everyone else, then no way this could have happened. But, in procurement procedures, these officials buy overprice stuff from unusualy sources and they get kickbacks.

[bournenoir]

"Had they just ordered from say Dell or bought stuff from the stores like everyone else, then no way this could have happened."<br /><br />Please tell me you're joking... and the you've never ordered from Dell. How many stuff from Dell are MADE IN CHINA? "Made in China" means the components come from a factory IN CHINA. How many factories in China have been inspected by QA? Buying from companies like Dell just means that you're paying more for the same components that cost just as little to make. Do you really think that one factory ONLY supply to a single company like Dell? Being weary of products coming from Chinese factories in a Communist Chinese regime is not being racist. They don't even have a transparent market and government like most of the developed countries. There's no guarantee when it comes to product safety and quality.

[dangermouse6]

Oh please. Hardly some big evil conspiracy, to target children or whatever. They use lead in the toys, not up to standard ingrediants in medicine, and fake components just because it's cheaper. Making money at the expense of another country. A western tradition that's not as fun now that we're on the receiving end.<br /><br />As for the Clinton dig, which of course has nothing to do with this, I guess you probably also chose to believe Rush Limbaugh in the day (is he still around even?) and that Fox news is actually a 'news' show.

[William Crow]

Does anyone avoid purchases of chinese products? Put your money where your mouth is.

[ev61]

I tried, but I was arrested for being homeless, car-less, hungry and wandering the streets naked.

[thiagucnet]

Olympic torch episode proved how many chinese spies are in this country. Looks like they are all Chinese Govt plants.

[bournenoir]

Hell yeah, I know some who do... I also do when there are comparable products and quality matters. Not everyone is as cheap as you think. Your comment implies that no one does including you. If I made the wrong assumption, I apologize.

[kyle172]

The question is.. "What isn't a knockoff in China these days?" China screws us over so bad over knock offs. MADE IN AMERICA not china

[galacticgufus]

the question is 'what difference does it make where it was made?' (answer: 'none whatsoever.')<br />2nd question, 'what difference does it make if it's a "knockoff"?' (answer: 'none, whatsoever.')

[AppleSuxLeo]

We will probably start finding Chinese during our colonoscopies. Maybe Chinese nano-bots in our circulatory system.

[JunkSiu]

How the counterfeit get in government office? Should they buy direct from Cisco??

[zidrees]

QUOTE: But one U.S. official told Reuters that the components discovered by the FBI are not believed to have made government computer systems more vulnerable.<br /><br />I would disagree with that. I work for Cisco and I can tell you that fake network equipment can shut down an entire network due to duplicate identity addresses of devices (known as MAC addresses on network routers and switches). Fake device manufacturers copy MAC addresses of genuine Cisco equipment and if both MAC addresses are found on the same network, a network security system can cause an alarm and shut down the entire network (including mission-critical systems). I just can't believe Chinese fake equipment made it's way to government's networks right under their noses.

[spect8r]

It's no different than what the Japanese did. First they copied everything and the quality was junk. Now they rule the electronic and automotive world. It's estimated that in the next 10 years China will be the worlds largest exporter of goods. It's the U.S. now. Where will that leave us?

[JunkSiu]

There is a difference between what Japan did many years ago and what China doing now.<br /><br />20+ years ago Japanese company buy American car, disassemble them, analyze them, and IMPROVE them, and make their OWN brand. One can say they "steal" technology, but absolutely not counterfeiting. And since they improve the technology and come up with new design, 'stealing' or not is arguable.<br /><br />Today, china company put ****** material inside a product, copy the casing 100%, stick other company logo on it, and PRETEND to be other company product, that is counterfeiting.

[lanboyo]

&gt; zidrees - Since you are such a mover and shaker you should perhaps readdress the wisdom of letting a country with a history of doing exactly what is happening here manufacture all your equipment. Sure, slave labor is cheaper, but nondisclosure agreements aren't worth the paper they are signed on over there. And maybe take a good gander at your channel sales.

[BlackJack2Ace]

It's incredible that Wall St considers China and Russia paramount to our economy. Companies like Catepillar, Bucyrus, and Joy Global as well as Schlumberger and Noble, and Agrium and Mosaic create an infrastructure for the commies to beat us. In exchange they buy us off with trickets made by 30,000 peasants and sold by Wal-Mart. Some deal. Why don't we simplify the arrangement and just hand over our politicians starting with Hillary.

[thiagucnet]

I do not understand why our Govt is so blind. Go to any university and see how many Chinese students are getting financial aid. How many Research workers are chinese. They are so faithful to china that they do not even accept that when they steal our technology and pass it on to china it is a shameful act. <br />Besides baby food, petfood,paints and AK47 and toothpaste and computer parts and aviation parts and autoparts and chemicals ,music etc etc are all counterfeit.

[Astinsan]

Does anyone remember the NEC counterfeits back a few years ago. Turned out to be a counterfeit NEC warehouse in china. That was my personal favorite one. This happens with more computer components than one would think. ipods, printers (mostly lexmark), flat panels, extension cords ... you name it. <br /><br />The problem isn't security as much as safety. This is the cost of being cheap. Not that all items coming from china are dangerous. The stuff that fails is what makes the paper (is there still a paper)

[Stating]

But It's OK If Halliburton Makes Money Off Dead Soldiers!<br /><br />People are so outraged over crooked Chinese making a few bucks off gullible Americans. Where's the outrage of Halliburton making millions of dollars off of our dead Gulf War soldiers? I guess War Profiteering isn't a crime anymore.<br /><br /><a class="jive-link-external" href="http://www.cbsnews.com/stories/2004/08/17/eveningnews/main636644.shtml" target="_newWindow">http://www.cbsnews.com/stories/2004/08/17/eveningnews/main636644.shtml</a><br />"But the Houston-based conglomerate once headed by Vice President Dick Cheney is neck-deep in allegations of waste and fraud involving millions of taxpayer dollars, reports CBS News Correspondent Sharyl Attkisson. She recently told Congress that while troops rough it in tents, hundreds of preferred Halliburton KBR employees reside in five-star hotels like the Kempinski in Kuwait with fruit baskets and pressed laundry delivered daily.<br /><br />"It costs $110 to house one KBR employee per day at the Kempinski, while it costs the Army $1.39 per day to bunk a soldier in a leased tent," DeYoung said. Documents obtained by CBS News show an auditor repeatedly flagged improper fees for soldiers' laundry. At one site, taxpayers reportedly paid $100 for each 15-pound load of wash - $1 million a month in overcharges.

[firefoxluva95]

I suppose you should all throw your ipods away since you don't trust China to make them for you.

[AppleSuxLeo]

I just took a dump...and a little ********* popped out !

[KenAtNews]

Did you guys forget that, all of you copied everything from others when you were a child? Why People mostly like to copy? First, it?s the fast and easy way to learn and improve the skills of yours. To a company, the ?fast? meanings save the costs and time, the ?easy? meanings avoid the risk, second? oh, I said too much, almost leak my CORE 'idea'. Whatever, children finally will grow up, let's see in the next few years