Fake tech gear has infiltrated the U.S. government
By David Goldman@CNNMoneyTech
November 8, 2012: 3:10 PM ET
NEW YORK (CNNMoney) -- A record number of tech products used by the U.S. military and dozens of other federal agencies are fake. That opens up a myriad of national security risks, from dud missiles to short-circuiting airplane parts to cyberespionage.
Despite laws designed to crack down on counterfeiters, suppliers labeled by the U.S. government as "high risk" are increasing their sales to federal agencies. Their presence in government's supply chain soared 63% over the past decade, according to a new study released by IHS, a supply chain management consultancy.
Two years earlier, the FBI seized $76 million of counterfeit Cisco (CSCO, Fortune 500) routers that the Bureau said could have provided Chinese hackers a backdoor into U.S. government networks. A number of government agencies bought the routers from an authorized Cisco vendor, but that legitimate vendor purchased the routers from a high-risk Chinese supplier.