FBI concerned about Chinese counterfeiting Cisco routers

FBI concerned about Chinese counterfeiting Cisco routers
FBI concerned about Chinese counterfeiting Cisco routers

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By Humphrey Cheung    
TG Daily
April 24, 2008

Washington DC - An unclassified government PowerPoint presentation 
documenting Chinese counterfeiting of Cisco routers has been published 
on the net.  The Federal Bureau of Investigation document was produced 
on January 11, 2008 and discusses how counterfeit routers, switches and 
interface cards make it inside of American companies and government 

While contractors are supposed to use genuine Cisco parts, the low price 
of counterfeits =E2=80=93 in some cases one-fifth the price of a genuine Cisco 
part =E2=80=93 is just too irresistible to many companies.  The FBI says the 
government procurement process which uses layers of contractors and 
subcontractors adds to the problem.

The bureau says it has raided several companies around the nation which 
sold and installed counterfeit Cisco gear.  In many cases, the equipment 
can cause network failures because of shoddy wiring and workmanship, 
according to the FBI.  The power point presentation outlines several 
cases where the counterfeit networking gear caused duplicate MAC 
addresses and one case where a router caught fire because of a faulty 
power supply.

In addition to counterfeit gear being purchased through subcontractors, 
the FBI says Chinese gear is making its way to online auction sites like 
eBay.  Cash strapped companies needing Cisco gear will often purchase 
these components for their network closets.  Of course, shifty 
government contractors can also purchase the same gear and profit 
handsomely by charging full genuine Cisco prices.

You can view the PowerPoint presentation on here [1].


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