China Embedding Spy Chips in Everyday Household Gadgets and Appliances

Does anyone think that Obama isn’t salivating at the thought of having one of these bad boys in everyone of our gadgets? Listening to our conversations, the thought police at the ready. But then again, we are already at it in Virginia.. New recycling bins with tracking chips coming to Alexandria VA.

That cash — roughly $180,000 collected from 19,000 residents– will pay for new larger recycling carts equipped with computer microchips, which will allow the city to keep tabs on its bins and track resident participation in the city’s recycling program.

“If you know who’s participating in the programs, you can focus your education and outreach to those who are not participating,” said Stacy Herring, Alexandria’s recycling coordinator.

According to a report on state-owned TV in Russia (via the BBC), …[s]ome irons imported from China allegedly showed evidence of including wireless spy chips that could connect to unprotected Wi-Fi networks and spread viruses. And tech blog The Register notes that reportedly chips were also found in kettles.

The Russian news agency Rosbalt reported that a few dozen products were at retailers in St. Petersburg. The spy chips had infiltrated some company networks, using them to send spam.

The hidden spy chips are mostly being used to spread viruses, by connecting to any computer within a 656 ft radius which uses unprotected Wi-Fi networks. Other products found to have rogue components reportedly included mobile phones and car dashboard cameras.

The TV report quoted one customs brokerage professional as saying the hidden chips had been used to infiltrate company networks, sending out spam without administrators’ knowledge. Hat tip: Consortium of Defense Analysts.

It sounds like a spy thriller spoof, but this is hardly the first time Chinese products were reported infested with ways for someone to break into systems. There was the report last year that a researcher found a so-called back door in a military-grade computer chip, meaning that someone could, from anywhere, get ready access to the chip and, through it, connected systems.

H/T:Doug Ross