US Department of Homeland Security Says No Reason to Doubt Firms’ China Hack Denials

The US Department of Homeland Security said on Saturday it currently had no reason to doubt statements from companies that have denied a Bloomberg report that their supply chains were compromised by malicious computer chips inserted by Chinese intelligence Agencies.US Department of Homeland Security Says No Reason to Doubt Firms' China Hack Denials

“The Department of Homeland Security is aware of the media reports of a technology supply chain compromise,” DHS said in a statement.

“Like our partners in the UK, the National Cyber Security Centre, now we have no reason to doubt that the statements from the firms named in the narrative,” it said.

Bloomberg Businessweek on Thursday cited 17 unidentified intelligence and company sources as saying that Chinese spies had placed computer chips inside gear employed by approximately 30 companies, as well as multiple U.S. government agencies, which would give Beijing secret access to internal networks.

Britain’s national cyber-security bureau said on Friday it was no reason to doubt the evaluations made by Apple Inc and also Inc hard the report.

Apple contested the Bloomberg report on Thursday, stating its internal investigations found no evidence to confirm the narrative claims and neither the company, nor its contacts in law enforcement, were conscious of any analysis by the FBI about the situation.

Apple’s recently retired general counsel, Bruce Sewell, told Reuters he called the FBI’s then-general counselor, James Baker, annually after being told by Bloomberg of an open evaluation of Super Micro Computer Inc, a hardware maker whose products Bloomberg said were planted with chips that were malicious Chinese.

“I got to the telephone with him personally and said,’Would you know anything about it? ,” Sewell said of his dialogue with Baker. “He said,’I’ve never heard of this, but give me 24 hours to make sure.’ He also called me back 24 hours later and said’nobody understands what this story is about.'”

Baker and the FBI declined to comment on Friday.