See, the article showed that even largest companies are not completely immune to the problem. This was decade ago and payment card industry, not exactly national security matters.

The PLA can lean on factory managers very effectively but they're not going to be interested in small time stuff like credit card numbers. The sort of sophisticated criminal gang doing something like this will have fewer coercive tools at its disposal and I'd imagine would target lower level employees with bribes.

I'm not sure; the DPRK are certainly known to make their espionage units self-funding through credit card fraud.

The problem highlighted in the article is very tricky because verifying a motherboard to that level of details is difficult.

As I hinted in another comment I suspect that they had a suspicion and checked those motherboards very, very carefully.

> guess the contents of a box

Use X-ray? or whatever can penetrate the exterior shell

All big and security-responsible companies issue their employees special phones and laptops when they go on business trips to countries like China or Russia and these are quarantined immediately after they return. They get wiped, X-rayed, disassembled and checked, including any accessory (chargers, mice, etc.).

The more critical the field, the more you have to treat those devices as untrusted before attaching them to your trusted zone.

> They get wiped, X-rayed, disassembled and checked, including any accessory (chargers, mice, etc.).

Given how sophisticated these attacks can be, I'd think they'd issue disposable equipment to be destroyed on return, like a cheap netbook or something. I don't see how you could trust an individual viewing a simple X-ray scan to detect some extra microchip the size of a signal conditioning coupler.

Procedures change, as attacks get more sophisticated the next step could be disposable devices. But an attack like the one described in this article won't be mitigated by having a disposable device. On the other hand having your laptop "hijacked" while on a business trip will most likely involve some extra PCB or components that are a little more obvious that something that's "built in".

Then again many companies or public institutions would find it hard to justify shredding each week maybe tens of laptops and phones that still have to be good enough to work on. Basically they still have to be a "standard issue" device with your company's software stack, config, etc.

I'm sure someone can find a good compromise between security and wastefulness.

The obvious solution would be to earmark some number of dedicated "china laptops" that will never be trusted with anything important, and get reused everytime someone has to visit China. If they get backdoored... who cares? They can only spy on things that were getting spyed on anyway due to being in China.

Does the security team have any motivation to reduce waste? Unless you're finding hacks in your devices already I see no reason to think they aren't just making you jump through hoops because it's funny.

Of course not. But remember that someone else is holding their purse strings so they might care about that.

The post-trip inspection is not so that the device can be reused, it's so you can (try to) find out if it was compromised. A $3000 laptop is not a significant cost compared to the airfare, hotel bills, etc.

But it's useful to know when/if you're being targeted.

Add the USA to that list.

Are you saying companies should or that you know of companies that do?

As far as I know, big EU companys do that, when they visit US, or they don't have sensitive information with them in the first place.

The problem is not the data on the machine, it's that you connect that machine to your trusted network when you're back.

Especially when border cops can seize your phone / ask for your passwords

One of the companies named in thr Bloomberg article does. They just deatroy your laptop if it was in the hands of customs without your supervision for any length. US customs explicitly included, which is kind of wierd if you ask me.

That’s perfectly expected. It’s not a stretch of the imagination to think border checks are abused for industrial espionage. If it gives your country a major advantge nothing is off limits these days.

That doesn't strike me as odd at all.

My employer - doing lots of interesting engineering in among others the marine and aerospace sectors - certainly do that; we're based in Europe.

Basically, any device brought to the US and a number of other countries are issued for one-time use; if they leave our custody for even an instant, they are to be scrapped.

Some companies certainly do that (in case the question was for me).

> All big and security-responsible companies issue their employees special phones and laptops when they go on business trips to countries like China or Russia

From what I understand, Boeing does this when employees visit France.

They have had problems with men in nice suits going through laptops stored hotel safes.

And none of those measures would have protected against the compromise detailed in the article.

Sure, we were discussing someone saying their devices came with extra PCBs inside (it's a bit hard to follow but scroll up to the original comment, currently first on the page).

> We would be getting products from China with added boards to beam credit card information.

>> Trying to guess the contents of a box that you cannot open sounds a bit like madness.

>>> Use X-ray? or whatever can penetrate the exterior shell

2 different types of attacks, 2 different types of responses.

I would imagine you would treat any kit that has been to those countries as disposable on return and crush them

Yes, irrespective of country where its manufactured, if there are compliance requirements around an un-openable box, then some process becomes required.

But I think the GP's question is: "Whether it would be cheaper" - in the sense whether such an expensive QA process could have been averted by having a more trustworthy partner. One whom you're not on a race hack after hack.

The point is that if the devices are sensitive with compliance requirements then you must be able to verify them irrespective of who you hired to manufacture them.

You cannot just trust the word of a contractor on this because it's your ass on the line.

The point is that the process was to assure the device wasn't tampered AFTER shipped from manufacturer. Nobody thought it could already have been modified so early in the process. This is the eternal cat and mouse game. When I started in IT in 90s it was assumed that company network was quite safe and you didn't always need passwords, maybe for critical resources only.

I would think that, logically, and as illustrated, "the device wasn't tampered AFTER shipped from manufacturer" means after YOU have shipped it to customers. The anti-tampering system is to prevent modifications in the field.

The manufacturer shipped the device to us from China. We were already customer. The device would already have been locked. We would customize it some more (injecting cryptographic keys, application, placing our labels on the device) and then send them to merchants. The merchants were never customers, they would get it on loan from us. This was the only way to do it as the device could not be re-used with other acquirer so it only functioned as long as the merchant had valid merchant account with us.

Transparent plastic?

They may find a way to hide things out of view. My thinking would be to x-ray it. Airports are pretty good at that.