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FBI investigates Chinese counterfeiting

by on12 May 2008

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Sold to the U.S. government


The FBI
is looking into claims that counterfeit Chinese computer components were flogged to the U.S. government.

More than 3,500 bogus devices with a retail value of $3.5 million were sold to government departments. A probe, code-named Operation Cisco Raider, found that the components did not make  government computer systems more vulnerable, just cheaper. Components included pirated versions of Cisco Systems routers, as well as switches, interface converters and wide area network interface cards.

Some counterfeit routers sold for as little as $234 each, compared with a retail price of $1,375 for the genuine article, according to the FBI presentation. Some counterfeit products also went to defense contractors and other private-sector buyers.
Last modified on 12 May 2008
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