Is it really true that China does in fact hack U.S companies to steal trade secrets or design blue prints?

T.Vercetti

Village Sponsor
#1
Or is Trump just a "racist" white man who is just jealous of China's success and he just wants to bring these brown skinned Asians down for no reason at all?

If Trump is so racist against Asians then why in the world didn't he hammer the Koreans and their Samsung? I mean Koreans killed very many white Americans in the lengthy 1950s Korean war...

Or.... maybe Trump has a point when he says that these Chinamen just want to use 5G to spy?

(Very long article from Bloomberg.)



The Big Hack: How China Used a Tiny Chip to Infiltrate U.S. Companies

The attack by Chinese spies reached almost 30 U.S. companies, including Amazon and Apple, by compromising America’s technology supply chain, according to extensive interviews with government and corporate sources.


ILLUSTRATOR: SCOTT GELBER FOR BLOOMBERG BUSINESSWEEK
By
Jordan Robertson
and
Michael Riley

October 4, 2018, 12:00 PM GMT+3


In 2015, Amazon.com Inc. began quietly evaluating a startup called Elemental Technologies, a potential acquisition to help with a major expansion of its streaming video service, known today as Amazon Prime Video. Based in Portland, Ore., Elemental made software for compressing massive video files and formatting them for different devices. Its technology had helped stream the Olympic Games online, communicate with the International Space Station, and funnel drone footage to the Central Intelligence Agency.

Elemental’s national security contracts weren’t the main reason for the proposed acquisition, but they fit nicely with Amazon’s government businesses, such as the highly secure cloud that Amazon Web Services (AWS) was building for the CIA.


To help with due diligence, AWS, which was overseeing the prospective acquisition, hired a third-party company to scrutinize Elemental’s security, according to one person familiar with the process. The first pass uncovered troubling issues, prompting AWS to take a closer look at Elemental’s main product: the expensive servers that customers installed in their networks to handle the video compression. These servers were assembled for Elemental by Super Micro Computer Inc., a San Jose-based company (commonly known as Supermicro) that’s also one of the world’s biggest suppliers of server motherboards, the fiberglass-mounted clusters of chips and capacitors that act as the neurons of data centers large and small. In late spring of 2015, Elemental’s staff boxed up several servers and sent them to Ontario, Canada, for the third-party security company to test, the person says.



Featured in Bloomberg Businessweek, Oct. 8, 2018. Subscribe now.
PHOTOGRAPHER: VICTOR PRADO FOR BLOOMBERG BUSINESSWEEK


Nested on the servers’ motherboards, the testers found a tiny microchip, not much bigger than a grain of rice, that wasn’t part of the boards’ original design.

Amazon reported the discovery to U.S. authorities, sending a shudder through the intelligence community. Elemental’s servers could be found in Department of Defense data centers, the CIA’s drone operations, and the onboard networks of Navy warships. And Elemental was just one of hundreds of Supermicro customers.


During the ensuing top-secret probe, which remains open more than three years later, investigators determined that the chips allowed the attackers to create a stealth doorway into any network that included the altered machines. Multiple people familiar with the matter say investigators found that the chips had been inserted at factories run by manufacturing subcontractors in China.


This attack was something graver than the software-based incidents the world has grown accustomed to seeing. Hardware hacks are more difficult to pull off and potentially more devastating, promising the kind of long-term, stealth access that spy agencies are willing to invest millions of dollars and many years to get.

“Having a well-done, nation-state-level hardware implant surface would be like witnessing a unicorn jumping over a rainbow”
There are two ways for spies to alter the guts of computer equipment. One, known as interdiction, consists of manipulating devices as they’re in transit from manufacturer to customer. This approach is favored by U.S. spy agencies, according to documents leaked by former National Security Agency contractor Edward Snowden. The other method involves seeding changes from the very beginning.
One country in particular has an advantage executing this kind of attack: China, which by some estimates makes 75 percent of the world’s mobile phones and 90 percent of its PCs. Still, to actually accomplish a seeding attack would mean developing a deep understanding of a product’s design, manipulating components at the factory, and ensuring that the doctored devices made it through the global logistics chain to the desired location—a feat akin to throwing a stick in the Yangtze River upstream from Shanghai and ensuring that it washes ashore in Seattle. “Having a well-done, nation-state-level hardware implant surface would be like witnessing a unicorn jumping over a rainbow,” says Joe Grand, a hardware hacker and the founder of Grand Idea Studio Inc. “Hardware is just so far off the radar, it’s almost treated like black magic.”


But that’s just what U.S. investigators found: The chips had been inserted during the manufacturing process, two officials say, by operatives from a unit of the People’s Liberation Army. In Supermicro, China’s spies appear to have found a perfect conduit for what U.S. officials now describe as the most significant supply chain attack known to have been carried out against American companies.

Bloomberg Businessweek


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The Big Hack: How China Used a Tiny Chip to Infiltrate U.S. Companies
The attack by Chinese spies reached almost 30 U.S. companies, including Amazon and Apple, by compromising America’s technology supply chain, according to extensive interviews with government and corporate sources.

ILLUSTRATOR: SCOTT GELBER FOR BLOOMBERG BUSINESSWEEK
By
Jordan Robertson
and
Michael Riley
October 4, 2018, 12:00 PM GMT+3
In 2015, Amazon.com Inc. began quietly evaluating a startup called Elemental Technologies, a potential acquisition to help with a major expansion of its streaming video service, known today as Amazon Prime Video. Based in Portland, Ore., Elemental made software for compressing massive video files and formatting them for different devices. Its technology had helped stream the Olympic Games online, communicate with the International Space Station, and funnel drone footage to the Central Intelligence Agency. Elemental’s national security contracts weren’t the main reason for the proposed acquisition, but they fit nicely with Amazon’s government businesses, such as the highly secure cloud that Amazon Web Services (AWS) was building for the CIA.


To help with due diligence, AWS, which was overseeing the prospective acquisition, hired a third-party company to scrutinize Elemental’s security, according to one person familiar with the process. The first pass uncovered troubling issues, prompting AWS to take a closer look at Elemental’s main product: the expensive servers that customers installed in their networks to handle the video compression. These servers were assembled for Elemental by Super Micro Computer Inc., a San Jose-based company (commonly known as Supermicro) that’s also one of the world’s biggest suppliers of server motherboards, the fiberglass-mounted clusters of chips and capacitors that act as the neurons of data centers large and small. In late spring of 2015, Elemental’s staff boxed up several servers and sent them to Ontario, Canada, for the third-party security company to test, the person says.



Featured in Bloomberg Businessweek, Oct. 8, 2018. Subscribe now.
PHOTOGRAPHER: VICTOR PRADO FOR BLOOMBERG BUSINESSWEEK
Nested on the servers’ motherboards, the testers found a tiny microchip, not much bigger than a grain of rice, that wasn’t part of the boards’ original design. Amazon reported the discovery to U.S. authorities, sending a shudder through the intelligence community. Elemental’s servers could be found in Department of Defense data centers, the CIA’s drone operations, and the onboard networks of Navy warships. And Elemental was just one of hundreds of Supermicro customers.


During the ensuing top-secret probe, which remains open more than three years later, investigators determined that the chips allowed the attackers to create a stealth doorway into any network that included the altered machines. Multiple people familiar with the matter say investigators found that the chips had been inserted at factories run by manufacturing subcontractors in China.


This attack was something graver than the software-based incidents the world has grown accustomed to seeing. Hardware hacks are more difficult to pull off and potentially more devastating, promising the kind of long-term, stealth access that spy agencies are willing to invest millions of dollars and many years to get.
“Having a well-done, nation-state-level hardware implant surface would be like witnessing a unicorn jumping over a rainbow”
There are two ways for spies to alter the guts of computer equipment. One, known as interdiction, consists of manipulating devices as they’re in transit from manufacturer to customer. This approach is favored by U.S. spy agencies, according to documents leaked by former National Security Agency contractor Edward Snowden. The other method involves seeding changes from the very beginning.
One country in particular has an advantage executing this kind of attack: China, which by some estimates makes 75 percent of the world’s mobile phones and 90 percent of its PCs. Still, to actually accomplish a seeding attack would mean developing a deep understanding of a product’s design, manipulating components at the factory, and ensuring that the doctored devices made it through the global logistics chain to the desired location—a feat akin to throwing a stick in the Yangtze River upstream from Shanghai and ensuring that it washes ashore in Seattle. “Having a well-done, nation-state-level hardware implant surface would be like witnessing a unicorn jumping over a rainbow,” says Joe Grand, a hardware hacker and the founder of Grand Idea Studio Inc. “Hardware is just so far off the radar, it’s almost treated like black magic.”
But that’s just what U.S. investigators found: The chips had been inserted during the manufacturing process, two officials say, by operatives from a unit of the People’s Liberation Army. In Supermicro, China’s spies appear to have found a perfect conduit for what U.S. officials now describe as the most significant supply chain attack known to have been carried out against American companies.

One official says investigators found that it eventually affected almost 30 companies, including a major bank, government contractors, and the world’s most valuable company, Apple Inc. Apple was an important Supermicro customer and had planned to order more than 30,000 of its servers in two years for a new global network of data centers. Three senior insiders at Apple say that in the summer of 2015, it, too, found malicious chips on Supermicro motherboards. Apple severed ties with Supermicro the following year, for what it described as unrelated reasons.


READ ON HERE. Including how the Chinese actually accomplished this feat.

https://www.bloomberg.com/news/feat...ny-chip-to-infiltrate-america-s-top-companies
 

RV Pundit

Village Elder
#10
Its possible when it comes to .ke, the chinaman propably has all the data they want from GOK servers that hold secret info.
All the huduma number database is probably already with the chinaman
 

Sambamba

Village Sponsor
#11
China hack China copies China steals that is true. But hii story ya Bloomberg ya microchip backdoors ilikua nonsense.
No one in the security establishment reads Bloomberg

There's a time they also run a supposedly huge story about Huawei backdoors which turned out to be telnet :D:D:D:D
 

T.Vercetti

Village Sponsor
#12
China hack China copies China steals that is true. But hii story ya Bloomberg ya microchip backdoors ilikua nonsense.
No one in the security establishment reads Bloomberg

There's a time they also run a supposedly huge story about Huawei backdoors which turned out to be telnet :D:D:D:D

Clearly hujasoma article ndio uelewe ni nini wanazungumzia. It is not bloomberg itself that is claiming to have been hacked but hundreds of U.S companies and organisations e.g Apple inc , Amazon, AWS, CIA drone program, department of defence, the navy etc.
 

T.Vercetti

Village Sponsor
#13
Its possible when it comes to .ke, the chinaman propably has all the data they want from GOK servers that hold secret info.
All the huduma number database is probably already with the chinaman
Highly probable. I mean even Safaricom, Telkom, Airtel all run on Huawei infrastructure to varying degrees. Siri wako nazo mingi.
 

T.Vercetti

Village Sponsor
#15
And we don't even have the capacity to detect/deactivate their spy device's even if they told us its in all GOK servers motherboards.
Si waliuziwa nchi na nani. I guess he can't risk angering them by investigating them and later calling them spies. They probably have first hand knowledge on all the juiciest road tenders. Insider info. They can very easily control the politics and propaganda of that state to suit their needs. That is why spying is actually an act of war. Spies are usually hanged because they are more dangerous than bombs.

Another key target for China are the Western embassies in East Africa. China doesn't really need to hack the White House but if they can gain entry into a few key U.S or European embassies on African soil si hio ni game shot. They will be in a position to intercept very crucial intelligence maybe even before it gets to the white house.

If the U.S was involved in a war say in Iraq , China can even feed raw intel from the U.S embassy to the enemy ...
 

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