The Chinese Chip Hack Bombshell: What Is It & Did It Really Happen At All?

Yesterday, Bloomberg dropped a bomb on the top-tier of U.S. industry, accusing China of inserting chips in hardware that hacks into any network to which the device is connected. The Department of Defense, the CIA and U.S. companies like Apple, Amazon and other were reportedly compromised.

Oh crap.

Apparently, agents of the Chinese government were able to slip a chip the size of a grain of rice during the manufacturing process of hardware headed for some of America’s most sensitive, secure networks — from Apple’s intellectual property to the network that feeds drone footage to the CIA. The chip, once connected to the network could made changes and send communicate with other devices on the network. That means it could change or deactivate passwords, exposing the network without ever alerting anyone something was up.

Bloomberg’s reporting on the China Chip hack is meticulous, extensive and jaw-dropping in its implications to global manufacturing and cyber security. If true, this represents the first known hack of a supply chain.

 

There are new approaches to securing global supply chains with Blockchain from many sources, and this kind of infiltration, without detection, could be solved with the kind of unalterable record Blockchain provides manufacturers.

“I’m a believer that a supply chain backed by smart manufacturing and Blockchain technology would have prevented this or caught this within the chain-of-custody,” Pratik Soni co-founder and CEO of Omnichain, a Blockchain supply chain solutions provider, said.

For their part, both Apple and Amazon have denied claims they’ve been hacked and a U.K. security agency is backing those denials. But Bloomberg stands by it’s reporting which, if true, is poised to rock the way Americans do business to it’s core.

 

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