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http://www.tgdaily.com/content/view/37100/108/



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

organizations.



While contractors are supposed to use genuine Cisco parts, the low price

of counterfeits – in some cases one-fifth the price of a genuine Cisco

part – 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 AboveTopSecret.com here [1].



[1] http://www.abovetopsecret.com/forum/thread350381/pg1







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