Cisco admitted this week that its partners sold counterfeit Cisco products from China to the US military. The procurement creates a serious threat to military security, according to the FBI.
An FBI PowerPoint presentation leaked in April gave details of an FBI investigation into Cisco routers: "Operation Cisco Router". In the presentation, the FBI detailed how counterfeit Cisco goods from China had made their way into the US military supply chain.
The FBI presentation said part of the problem lies with government procurement practices, revealing that the government normally searches for the lowest prices for products. A counterfeit Cisco 1721 router costs $234, while the genuine version costs approximately $1,375.