CHINA , US - HACKING ISSUE - CAN WE TRUST BLOOMBERG'S REPORT ?

WHAT HAPPENED RECENTLY ?

Bloomberg reported that China had inserted tiny chips into computer equipment manufactured for about 30 US companies, including Apple and Amazon, to steal its technologies secret , citing government and corporate sources.

The report further said that the chips were used in equipment made for various US companies and government agencies.

Image result for China U.S Hacking Issue STUDY IQ

The magazine claimed that members of the 'People's Liberation Army'(China's Army) snuck rice grain-sized microchips onto these key IT infrastructure components during the manufacturing process.

BLOOMBERG'S SOURCES ?

Bloomberg said its reporting derived from 17 unnamed sources, including "senior Apple insiders" and "senior national security officials".

So,we can't say Bloomberg's sources are 100% accurate.

HOW ALL THESE STARTED?












The story starts with two smaller hardware suppliers : 'Elemental and Supermicro' 

Elemental is one of the leading companies in the network-level video compression.

It also compresses video communications for the US intelligence services, notably handling the CIA's drone footage.

Elemental compresses videos for its clients by placing its video compression servers on their internal networks. These servers were manufactured by a US company called Supermicro

And Computer equipment of Supermicro made in China

HOW WERE THE CHIPS PLANTED ? 

China is the world's leading producer in electronics. It has been since US companies began outsourcing manufacturing to the cheaper Chinese market in the 90s. As a result most of the hardware that goes into running company network and servers is manufactured in China.

Supermicro, for its parts, outsources its server manufacturing to companies operating in Shanghai and Taiwan.

As per Bloomberg's report PLA assembled small chip in Supermicro computer and then that equipment used in servers where CIA drone videos stored by Elemental.

WHEN DID THE MICROCHIP HACK HAPPEN ? 

According to Bloomberg, when Amazon received the results of the Elemental server security assessment in the late Spring of 2015, it alerted the US government immediately.
 

Amazon buy the elemental in 2012-2013 and performing security assessment test. And in 2015, they find device implemented by China's Army.

CAN WE TRUST BLOOMBERG'S REPORT ? 

The Department of Homeland Security released a statement this weekend supporting  Apple and Amazon's denial of an explosive Bloomberg Business week report claiming that Chinese military unit inserted microchip into super micro computer 

THE DENIAL  

Both Amazon and Apple strongly refute the story. Amazon says it is untrue that it knew of server containing malicious chips or modifications in data centers based in china. or that it worked with FBI to investigate or provide data about malicious hardware.

Apple also clear that - They never found any malicious chips , hardware manipulation or vulnerabilities  purposely planted in any server.

There could be the case that - Both are Big Companies - If they tell that it's true then their share collapse. (Just a theory), reputation will loose. 

Trump signs bill banning government use of Huawei and ZTE tech in 2018 (August)

Because, US think that it's a security threat for them

So there could be case, Bloomberg report could be true. We can't totally ignore 




For more information, you can access the below links:


https://www.bloomberg.com/news/articles/2018-10-09/new-evidence-of-hacked-supermicro-hardware-found-in-u-s-telecom

Above Information is as per data available in news till the date when I am posting this. For Other Topics visit - http://learn2ogether.blogspot.com

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