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Crackdown On Counterfeit Networking Gear

angry tapir writes "US agencies targeting the sale of counterfeit networking hardware have gotten 30 felony convictions, including a man attempting to sell fake networking equipment to the US Marine Corps, and seized $143 million worth of fake Cisco hardware. The agencies have conducted Operation Network Raider, which has made 700 separate seizures of networking equipment since 2005, the DOJ said. In addition to the convictions and seizures, nine people are facing trial and another eight defendants are awaiting sentencing."

27 of 115 comments (clear)

  1. Get em by Sean · · Score: 5, Insightful

    If people want to clone Cisco gear that's fine, just as long as they don't try to sell it to me as if it were the real thing

    1. Re:Get em by Anonymous Coward · · Score: 2, Interesting

      You can only clone them if you're a state backed company like Huawei.

    2. Re:Get em by hedwards · · Score: 3, Insightful

      That they suggest that Cisco will back the equipment when in reality nobody will. And in practice it's pretty much never really identical. Just looks like it and acts like it in the short term. Before the typically shoddy components break or destabilize and you're left with a mess and no warranty or way of getting your money back.

    3. Re:Get em by LurkerXXX · · Score: 2, Insightful

      If it's real Cisco gear, I can go to Cisco for support and warranty issues. If it's a fake, I'm left holding the bag. Clones sold as clones are fine. Clones sold as the real thing are a liability to me.

    4. Re:Get em by calmofthestorm · · Score: 2, Informative

      Actually no, not in the United States or EU. Cognac is one of the few AC-style protections that you'll find in America:

      """
      Cognac’s name is fiercely guarded and protected on multiple levels...Furthermore, Cognac A.O.C. fulfills the requirements under Article 23 of the Agreement of Trade Related Aspects of Intellectual Property (TRIPS) of the World Trade Organization (WTO)...each member of the WTO has the obligation to protect the geographical indication of wines and spirits by preventing the use of a name for a spirit if that spirit does not originate from the location indicated by the geographical indication. Article 23 is ruthless in terms of protection because it states that a geographic indication cannot be used even in translation or if it is accompanied by “expressions such as ‘kind,’ ‘type,’ ‘style,’ and ‘imitation.” To be sure, the Cognac industry has done everything in its power to make sure that the members of the WTO abide by the rules and protect Cognac from imitations and homonyms.
      """
      --http://www1.american.edu/ted/cognac.htm

      --
      93rd rule of Slashdot: No matter how obvious my sarcasm is, my comment will be taken seriously by someone.
  2. Good news, I suppose by Llamahand · · Score: 2, Interesting

    I suppose this is a good thing. Honestly though, I'm not entirely sure why this is considered news - the government has long been opposed to knock-offs of most things. It's a nice buff to the security community, but is so hard to detect that the over all effect is likely to negligible.

    I'll take a stand and say, "meh."

    1. Re:Good news, I suppose by ScrewMaster · · Score: 5, Insightful

      I suppose this is a good thing. Honestly though, I'm not entirely sure why this is considered news - the government has long been opposed to knock-offs of most things. It's a nice buff to the security community, but is so hard to detect that the over all effect is likely to negligible. I'll take a stand and say, "meh."

      Still, it's better they target actual criminals than wasting our tax dollars supporting the likes of the RIAA.

      --
      The higher the technology, the sharper that two-edged sword.
    2. Re:Good news, I suppose by Anonymous Coward · · Score: 4, Funny

      I'll take a stand and say, "meh."

      Daaumn. To feign to be unimpressed on slashdot. Balls of steel, man... balls of steel.

    3. Re:Good news, I suppose by Florian+Weimer · · Score: 4, Informative

      Still, it's better they target actual criminals than wasting our tax dollars supporting the likes of the RIAA.

      Actually, this is not too far off. The devices in question are GBICs, which are available from various sources and are as close to a commodity items as it gets in this area of networking. However, the big network equipment suppliers (such as Cisco, but they aren't the only ones doing this) order modified GBICs (with device IDs) and restrict their hardware to run only with those, and not the much, much cheaper commodity ones. It turns out that some of these manufactures produce a surplus of those special GBICs and sell them through other channels, as compatible GBICs. It's still fraud if you sell them as originals (especially if you attach stickers with logos of the relevant router maker), but it's hard to see any national security implications. More often than not, these devices are the real thing, just not rubber-stamped by the respective router vendor.

      And "counterfeit networking gear" makes it sound rather dramatic. It's more like fake ink cartridges.

    4. Re:Good news, I suppose by mysidia · · Score: 2, Interesting

      Um... GBICs are not networking gear. They are optical (or copper) connection modules that plug into networking gear.

      They are about as much networking gear in themselves as a Cat5 end.

      I suppose next we will start seeing a crackdown on genuine Cisco Cat5 plug and fiber MT-RJ connector forgeries?

  3. What's really scary.... by irreverant · · Score: 5, Insightful

    Is the fact that they were trying to sell the knock-offs to the DOD for use with Marine Corp forces. My cousin is out there right now, and to know that operation critical hardware could fail because it's a knock-off and poorly manufactured - is the worst crime. These are our troops, brothers, sisters, friends, and family members. I would hate to think my cousin died because somewhere in someplace a network card failed to relay operational data.

    --
    Of all the things I've lost; I miss my mind the most. - Mark Twain
    1. Re:What's really scary.... by couchslug · · Score: 3, Funny

      Knowingly selling defective or fraudulent merchandise to DoD should be considered sabotage (it IS sabotage) and the offenders executed.

      Be it an engine part that fails or comm equipment that breaks down or a mortar fuse that detonates the round in the mortar tube, knowingly selling bad or fake goods to DoD is sabotage.

      --
      "This post is an artistic work of fiction and falsehood. Only a fool would take anything posted here as fact."
    2. Re:What's really scary.... by Jawnn · · Score: 2, Informative

      To die is the soldier's job.

      Spoken like someone who knows not the first thing about warfare.

    3. Re:What's really scary.... by framed · · Score: 3, Insightful

      ...to know that operation critical hardware could fail because it's a knock-off and poorly manufactured...

      ...or it could fail because its designed to fail at exactly the right time, in the right way. That our infrastructure and military hardware contain so many parts from China has to be one of their best strategic advantages in any conflict we might have. They would be silly not to try and use that.

  4. Cisco=Finisar+Cisco tax by grumling · · Score: 3, Informative

    From my understanding, Cisco uses Finisar GBICs but burns a custom serial number that IOS looks for before bringing up the port. I've made the mistake of putting a Finisar SFP in a Cisco switch and not realizing it until the port doesn't come up.

    Of course, you can put a Cisco SFP in just about anything and it will work.

    Not saying it makes what this guy did right, but still, if you're that sort of person who'd try to counterfeit, it would be pretty tempting.

    --
    "Well, good luck finding a judge that doesn't run a bestiality site."
    1. Re:Cisco=Finisar+Cisco tax by superscalar · · Score: 2, Interesting

      That's essentially right... and it's a massive tax - something like 2x or more - for which the 'value-add' from Cisco is essentially nothing. If someone figures out how to make non-Cisco full-spec GBICs work in their gear, there should be no reliability penalty at all.

  5. I can see US Government getting owned on this by adosch · · Score: 4, Interesting

    The only reason I'm *not* surprised that there was an actual U.S. Goverment/Military faction mentioned ITFA is the government's flame war over fair compete in regards to their many contracts that they bid out and most of the time going to the lowest bidder.

    I'm a federal government IT contractor and we're going through the same heartache in the sense that we put requirements together for Enterprise XYZ switch/router/server with good justifications why we want this XYZ brand, but we may never get that item. The government people in charge of procurements will just 'internet-window' purchase something off-brand or knock-off because it was 'like' requirements we asked for, or they will go with some reseller who we've NEVER heard of before, barely has a website and their phone number is disconnected because it was cheaper than the reputable reseller we were going through by 10-fold. I'm just really not all surprised. I'd really be leery of hacked or altered firmware that make some sort of port-knocking backdoor into your network.

  6. Cicso Hardware ...? by mystik · · Score: 2, Insightful

    $143 million worth of fake Cisco hardware

    So what ... like 2-3 Core Switches?

    --
    Why aren't you encrypting your e-mail?
  7. Re:The Questions Never Answered by Anonymous Coward · · Score: 2, Informative

    the stuff is basically finisar GBICs which cisco uses. these are modded with a flash to change the serial number so IOS can recognize them as genuine and a sticker saying cisco slapped on them. the performance is identical to cisco at a tenth of the price.

  8. back doors by h00manist · · Score: 2, Funny

    Question -- are the original back doors real or fake on the original routers, and on the fake routers ?

    --
    Build your own energy sources from scratch. http://otherpower.com/
  9. happened to us too... by pointbeing · · Score: 4, Interesting

    I work for an agency under Department of Defense. We just received about $300k worth of fake Cisco stuff. Fortunately the problem was discovered before my podmate certified the vendor's invoice.

    Vendor didn't get paid and contracting is still working the issue.

    --
    we see things not as as they are, but as we are.
    -- anais nin
  10. I wonder who really makes this stuff? by Bearhouse · · Score: 3, Funny

    ...attempting to sell fake networking equipment to the US Marine Corps...

    After all the polemic about cyber-attacks from Russia & China, this could be more sneaky. Mass-produce some Cisco knock-offs, with a backdoor, and sell 'em cheap...I can see it now:

    NetAdmin1: "So, no worried about $latest_attack, then?

    NetAdmin2: "Nah, just installed the latest Cisco gear. Got a good price too!!!

  11. Look up "service unsupported-transceiver". by khasim · · Score: 2, Interesting

    It is possible to get non-Cisco GBICs working on a Cisco switch. It's just difficult to find the correct command to do so.

    The command you want is "service unsupported-transceiver".

  12. Cisco - not generic - counterfeit hardware by toygeek · · Score: 3, Interesting

    I've seen the counterfeit hardware first hand. Modules for 2600 and 3600 series routers, mostly. That was a few years ago. It was cheap, and nobody at the *cisco partnered CCIE training company* which I will not mention cared. They worked, thats all that mattered.

    Its like spam. If people continue to buy from spam adverts, we'll continue to see more spam. If people quit buying, the spammers will eventually move to something else.

    They keep selling because it keeps on working.

  13. Mixed feelings by sjames · · Score: 3, Insightful

    I have really mixed feelings about this. Much of this hardware is not truly counterfeit. It's actually unofficial production from the same components in the same factories as the legit gear. The only way anyone (including Cisco) can tell it from the real thing is the serial numbers.

    On one hand, this is fraud an I'm all for stopping fraud. On the other, it only happens because Cisco chose to go with the dirt-cheapest labor out there knowing very well this was a likely result. The use of law enforcement resources is just externalizing the cost. Meanwhile, part of the reason U.S. domestic labor is more costly in the first place is because it exists under a regulatory framework that mostly prevents exactly this sort of fraud.

    So they offshore the production and then to add insult to injury, underemployed Americans get to foot the bill for fixing the INEVITABLE fraud, and so are forced to help make the offshoring possible and profitable for Cisco. It's almost like having your employer charge you a fee to process the paperwork for your involuntary layoff.

    Perhaps Cisco should bring it back onshore so this sort of fraud doesn't happen in the first place. If the DoD is really concerned about the security of the networking gear (and they really SHOULD be), they should INSIST that Cisco at least make their gear domestically.

  14. Re:The Questions Never Answered by Jeremy+Erwin · · Score: 2, Informative

    the stuff is basically finisar GBICs which cisco uses.

    "Basically" covers a lot of ground. Suppose Cisco wants to guarantee 99.995 uptime/reliability. If the underlying equipment is insufficiently precise, Cisco's support engineers have to be sent out more often, which costs more than engineering that extra bit of reliability in hardware. Perhaps Cisco buys Finisar parts in bulk and bins those that don't pass some internal Cisco benchmark/quality inspection.

    But that "generic" Finisar GBIC could well be a counterfeit.

    Jerry Rawls, President and CEO of Finisar, remarked on the problems Finisar is having with fake GBIC fiber optic transceivers they have discovered at their customers’ premises. Photos were shown of two GBIC transceivers that looked identical from the outside, but only one was manufactured by Finisar. It would seem that the Rolex and Gucci phenomenon of low cost replicas has now reached the photonics community. The concern is that this may be the tip of the iceberg and many companies in the photonics business may be suffering revenue loss from exact ‘fakes.’

    source

  15. Cisco, profits and labor by zogger · · Score: 2, Interesting

    What I don't get is why Cisco doesn't task some employees to keep watch 24/7 over those factories where they make this stuff. Make it a condition of the contract that they get full time, go anyplace whenever they want, access. Then they can at least eliminate the same factories making knock offs at night. I guess they save one night shift payroll expense per factory and pass it on to the US tax payer so they can have dozens of federal employees try to stop it, after the fact.

    In short, Cisco is sure a buncha hypocritical cheap guys, considering what those things cost, and the US government/tax payer is once again the sucker, with the now common "privatize the profits of Big Inc, but socialize the risks from wallets of the tax payers".

    I think the government should just contract directly with the manufacturers and cut Cisco out of the loop. Why not? If it is coming from China anyway, I mean, that's the deal, so who cares then? They are playing make believe it isn't Chinese made because it has a Cisco label on it? These are actual bona fide adults making serious coin, and they play make believe? They could get switches cheaper, contract for support directly from those Chinese manufacturers, and have their own fed employees in there following the runs and inspecting/doing Q and A, and pulling components randomly and bringing them back to look for hidden non contracted for back doors. And it would be tons cheaper, for the same exact gear.

    If some corporation wants to get rich by outsourcing, heck with it, buy directly from the outsourced builders instead. Fish or cut bait, we are trading with China or not, y/n? If yes, deal directly with the Chinese for the gear, unless there is an all made in USA quality product as an alternative. The government exists to protect US jobs..or not. They are "worried about security", or not. They can hire cisco cheaper just for new designs, tell them they can get it made themselves, cut them down to their real practical outsourced size. there's no real reason to pay for both the "IP" and then hardware profits, when as has been reported, these units are actually way cheaper when they are non Cisco branded.

    Mostly, it looks like "not", and more worried about bloated payrolls for security theater government McJobs and protecting the income of the top 1% of the population, who are globalists anyway and not even close to being loyal or patriotic or anything like that.

    All these outsourcers are economic mercenaries, and as such, I dismiss any claims they make of being patriots, etc. they want all the advantages of being in the US, get to live where generations built up the infrastrucutre and the quality of life, but are too cheap and weasly to want to chip in and pay for any of that. then when their precious gets cloned, they want the taxpayers to do their jobs for them, for *free*.

    Ta heck with that! They should "police" their IP entirely on their own nickle, same as BP and assorted should pay every penny of the cleanup and losses from this latest oil spill.