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Bloomberg Claims That a Major U.S. Telecom Operated a Server Backdoored by a Hidden Chip

Accepted submission by takyon at 2018-10-09 23:14:35
Security

Major US telecom was infiltrated by backdoored Supermicro hardware, Bloomberg says [arstechnica.com]

Five days after Bloomberg stunned the world with still-unconfirmed allegations that Chinese spies embedded data-sniffing chips in hardware used by Apple, Amazon, and dozens of other companies, the news organization is doubling down. Bloomberg is now reporting [bloomberg.com] that a different factory-seeded manipulation from the previously described one was discovered in August inside the network of a major US telecommunications company.

Bloomberg didn't name the company, citing a non-disclosure agreement between the unnamed telecom and the security firm it hired to scan its data centers. AT&T, Sprint and T-Mobile all told Ars they weren't the telecom mentioned in the Bloomberg post. Verizon and CenturyLink also denied finding backdoored Supermicro hardware in their datacenters, Motherboard reported [vice.com].

Tuesday's report cites documents, analysis, and other evidence provided by Yossi Appleboum, who is co-CEO of a hardware security firm called Sepio Systems. Bloomberg said that, while Sepio was scanning servers belonging to the unnamed telecom, the firm detected unusual communications from a server designed by Supermicro. Supermicro, according to last week's Bloomberg report, is the hardware manufacturer whose motherboards were modified in the factory to include a tiny microchip that caused attached servers to come under the control of a previously unreported division of China's People's Liberation Army. Supermicro told Bloomberg it had no knowledge of the implant, marking the second time the hardware maker has denied knowing anything about the reported manipulations.

[...] The criticism was still at full pitch on Tuesday morning when Bloomberg published its follow-up article. While it names a single source, some security experts quickly challenged the credibility of the report. "Sure this story has one named source but it technically makes even less sense than the first one," Cris Thomas, a security expert who tweets under the handle SpaceRogue [twitter.com], wrote. "Come on @Bloomberg get somebody who knows what they're talking about to write these stories. Calling BS on this one as well."

Previously: Chinese Spy Chips Allegedly Inserted Into Amazon, Apple, etc. Datacenters by Super Micro [soylentnews.org]
Bloomberg Stands by Chinese Chip Story as Apple, Amazon Ratchet up Denials [soylentnews.org]

Related: Firmware Vulnerabilities in Supermicro Systems [soylentnews.org]
Supermicro Announces Suspension of Trading of Common Stock on Nasdaq and its Intention to Appeal [soylentnews.org]


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