cryptography

FBI discovers counterfeit computer hardware capable of remotely disabling US military systems

Check out the last paragraph in particular.

May 9, 2008
F.B.I. Says the Military Had Bogus Computer Gear
By JOHN MARKOFF

SAN FRANCISCO — Counterfeit products are a routine threat for the electronics industry. However, the more sinister specter of an electronic Trojan horse, lurking in the circuitry of a computer or a network router and allowing attackers clandestine access or control, was raised again recently by the F.B.I. and the Pentagon.

The new law enforcement and national security concerns were prompted by Operation Cisco Raider, which has led to 15 criminal cases involving counterfeit products bought in part by military agencies, military contractors and electric power companies in the United States. Over the two-year operation, 36 search warrants have been executed, resulting in the discovery of 3,500 counterfeit Cisco network components with an estimated retail value of more than $3.5 million, the F.B.I. said in a statement.