Kaspersky Labs thinks that reports of hardware hack by China to infiltrate former server supplier for Apple maybe untrue

Kaspersky also referred to the statements of denial issued by Amazon and Apple stating that the language was “pretty strong”.

  • Published: October 12, 2018 1:55 PM IST
server hardware

Russian cybersecurity company has issued a statement in response to the hardware-based hack by China adding that it is likely that the report is “untrue”. The company maintained that hardware-level hacks that originate from the supply chain exist in the real world but the evidence suggests that the hack detailed in the in-depth report by Bloomberg Businessweek may not be true. The cyber-security giant issued a 14-page analysis in response to the report adding that it “should be taken with a grain of salt”. The analysis noted that the report has had “a significant impact” on the world of technology.

The report resulted in a 40 percent stock valuation loss for Supermicro, the company in the eye of the storm and a lost of frustration for businesses that operate on Supermicro hardware. The company also pointed towards the “history of inaccurate articles” by Bloomberg to state that it may not be true. Kaspersky also referred to the statements of denial issued by Amazon and Apple stating that the language was “pretty strong” leaving little to no chance for both of the companies to deny or retract the statements. This is important since the SEC regulates the statements issued by companies in the United States.

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According to the report by MacRumors, Kaspersky believes that it is possible that the journalists reporting on the hardware hack story misunderstood the malware infection in Supermicro servers used inside Apple back 2016 and added them in “the hardware supply chain attack story.” The analysis added that such attacks are expensive and hard to implement and one can’t be sure of where the supply materials will reach in the world.

The report noted that Kaspersky is not the only one questioning Bloomberg story as others including Department of Homeland Security, NSA senior advisor Rob Joyce, and National Cyber Security Centre from the UK have raised their doubts on the report. Bruce Sewell, retired general counsel for Apple added that he asked former general counsel for FBI, James Baker to inquire about the Supermicro investigation and was told that “nobody at the federal law enforcement agency knew what the story was about.”

Bloomberg is sticking to its story while following up with a second story that focuses on compromised Supermicro hardware in the telecommunication industry.

  • Published Date: October 12, 2018 1:55 PM IST