Presentation on theme: "FBI Criminal Investigation: Cisco Routers"— Presentation transcript:
1 FBI Criminal Investigation: Cisco Routers The overall classification of this presentation isUNCLASSIFIEDSection Chief Raul RoldanSupervisory Special Agent Inez MiyamotoIntelligence Analyst Tini LeonJanuary 11, 2008
8 Cost Comparison Example Counterfeit1721 Router$234.00Genuine1721 Router$1,375.00
9 Cisco Identified Problems Low manufacturing standardsHigher failure rateDuplicate MAC addresses of routers and switches can shut down an entire networkExamplesIn 2002, duplicate MAC addresses shut down an end user’s network in PittsburghIn 2004, a government agency conducted a network upgrade to its North American weather communication system—it failed upon installationCisco 1721 router installed in a network caught fire due to a faulty power supply
10 Sub-Contracting Process Government orGovt. Contractor(order placed)GSA IT Vendor1st Sub-Contractor2nd Sub-ContractorCounterfeit EquipmentDistributor3rd Sub-Contractor(drop ships as GSA Vendor)
19 eGlobe Solutions Inc. May 2003 – July 2005 November 2006 Indicted $788,000 counterfeit equipmentNovember 2006 IndictedConspiracy, Mail Fraud, and Counterfeit TrademarkSold toU.S. Naval AcademyU.S. Naval Air Warfare CenterU.S. Naval Undersea Warfare CenterU.S. Air Base (Spangdahelm, Germany)Bonneville Power AdministrationGeneral Services AdministrationRaytheon (Defense Contractor)
21 Syren Technology August 2002 – July 2004 December 2007 Indicted Trafficking in counterfeit Cisco productsSold toMarine CorpsAir ForceFederal Aviation AdministrationFBIDefense ContractorsUniversities and Financial Institutions
22 U.S. Navy Project U.S. Navy (Won bid for US Navy Project) (Unauthorized Cisco reseller)(Ships counterfeit to U.S. Navy)Sub-contractorSource: <http://www.govexec.com/dailyfed/0907/092807j1.htm>
23 U.S. Navy Project $250,111 counterfeit Cisco equipment Lockheed Martin Did not use GSA IT Vendor or authorized Cisco resellerDiscovered duplicate serial numbers Cisco switches
24 MortgageIT: Non-government Example (Authorized Cisco Vendor)Unidentified SupplierUnidentified DistributorSource: <http://www.networkworld.com/news/2006/102306counterfeit.html>
25 MortgageIT: Non-government Example Discovered WICs were faulty during routers upgrade30 counterfeit WAN Interface Cards (WIC)Atec Group Inc.Authorized reseller selling counterfeitCiscoMicrosoftSymantec
27 Todd Richard Between 2003 – 2007 October 2007 Indicted $1,000,000 counterfeit equipmentOctober 2007 IndictedTrafficking in counterfeit Cisco trademarksSeparate shipmentsCounterfeit equipment, labels, boxes, and manuals
30 Scope of the ProblemAlliance for Gray Market and Counterfeit Abatement (AGMA) & KPMG White Paper1 in 10 IT products sold are counterfeit10% IT products counterfeit$100 billionSource: KPGM International, “Managing the Risks of Counterfeiting in the Information Technology Industry,” 2006
31 Scope of the Problem Law Enforcement estimates much higher Customs and Border Protection (CBP)Only seize registered itemsDell Computers not registeredNo label = no seizureCannot check every containerFBIChinese postal service vs. shipping servicesSmaller shipmentsHardware, software, manuals and labels shipped separatelyAssembled in United States
35 Government Procurement Most government agencies use enterprise information systemCoordinate business processStandard data structureStandard equipmentCisco routers used in enterprise information systemsEnterprise Information Systems provide a technology platform that enable organizations to integrate and coordinate their business processes. They provide a single system that is central to the organization and ensure that information can be shared across all functional levels and management hierarchies. Enterprise systems are invaluable in eliminating the problem of information fragmentation caused by multiple information systems in an organization, by creating a standard data structure.
37 Government Procurement Government searches for lowest priceContract language allows forSubcontracts2 to 3 levels of sub-contractors“Blind drop” or “drop ship”Non-OEM purchaseSmaller businessesNo vetting of vendors by Cisco or GSAIf done by government, usually only background check
38 Problems with Cisco No Direct Sales Exceptions Cisco has 5 major distributors2 distributors sell to government via GSAComstor.net (200+ vendors)Immix Group (not awarded yet - ? vendors)ExceptionsHighly specialized equipment salesIntelligence community agenciesLarge telecom providers
39 Problems with Cisco Cisco’s solution: Use Cisco Gold/Silver Partners Training/support designation given by Cisco
40 Problems with Cisco Government’s Problem: Gold/Silver Partners purchased counterfeitsold counterfeit to government and defense contractorsCisco’s Brand Protection does NOT coordinate with Cisco’s Government Sales
42 FBI Coordination 3 Case Coordination Meetings (2006-2007) Immigration & Customs Enforcement (ICE)Customs & Border Protection (CBP)Defense Criminal Investigative Service (DCIS)Department of Interior (DOI)Environmental Protection Agency (EPA)Department of State (DOS)Department of Defense (DOD)Local Police Departments
43 FBI Coordination General Services Administration (GSA) Ongoing coordination03/2007, GSA attended FBI Case Coordination Meeting (Dallas)07/2007, GSA-FBI-DCIS Coordination Meeting (Seattle)GSA ActionsLetters of supplyPolicy review - ongoingExpansion of investigation to address all counterfeit IT equipmentSupporting FBI investigations
44 FBI Coordination Department of Defense – multiple investigations Defense Criminal Investigative Service (DCIS)Naval Criminal Investigative ServiceAir Force Office of Special InvestigationsArmy Criminal Investigative ServiceAll services concerned with critical infrastructure protectionDCIS-FBI Counterfeit IT Equipment Working Group
45 US-China Joint Liaison Group Co-chaired by US DOJ and Chinese Ministry of Public Security (MPS)Facilitate cross-border criminal enforcement operationsIntellectual Property Criminal Enforcement Working GroupSubmitted requests for investigationExample: Summer Solstice (Microsoft software investigation)IP Criminal Enforcement Working Group of the U.S.-China Joint Liaison Group for law enforcement, which is co-chaired by the Criminal Division of the U.S. Department of Justice and the PRC, MPS. The Working Group is dedicated to increasing cooperation in intellectual property law enforcement efforts and pursuing more joint US-China cross-border criminal enforcement operations.
48 Intelligence Gap Purpose of counterfeit: For profit or state sponsored?Scope of counterfeit equipment problem:Routers?Other IT equipment (PCs, printers, etc.)?Effect on the critical infrastructure?
49 The Threat IT Subversion/Supply Chain Attack Cause immediate or premature system failure during usageGain access to otherwise secure systemsWeaken cryptographic systemsRequires “intimate access to target system”Source: Committee on National Security Systems, “Framework for Lifecycle Risk Mitigation For National Security Systems in the Era of Globalization,” November 2006
Your consent to our cookies if you continue to use this website.