FBI Probe finds $3.5 M in Cisco Counterfeits

Multiple investigations into Chinese counterfeit operations have led to the seizure of $3.5 million in counterfeit Cisco routers, switches, interface converters, and wide area network interfaces. The logistics involved 15 separate investigations at nine field offices, and included 39 search warrants. According to the FBI, with the end of investigations, there is still no word in any arrests. World wide the estimated total seizures were $76 million. The counterfeits were sold at steeply discounted prices, normally selling routers at $1,375; some were sold for as little as $234 each. News of the unclassified operation code named “Cisco Raider” came from a FBI slide presentation. The presentation not meant for distribution was posted on the website www.abovetopsecret.com. The slide show was given on January 11 for briefing another government agency. The presentation included the government unknowingly purchasing the counterfeit parts which have been subsequently installed on government systems. In light of the potential vulnerability of Chinese counterfeit computer parts running U.S. government systems, the risk was quickly downplayed. According to a statement by one U.S official, the incidents have not made the government more vulnerable to information breeches. The distributions of the parts were elaborate enough to traffic through government channels to multiple states. The parts even made their way onto the online auctioneer eBay. source doc: reuters

Short URL: http://www.typerion.com/?p=180