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Even as Amazon, Apple, and U.S.

o

icials were investigating

malicious microchips embedded in

Supermicro server motherboards,

Supermicro was the target of at

least two other possible forms of

attack, people familiar with multiple

corporate probes say.

The first of the other two prongs

involved a Supermicro online portal

that customers used to get critical

software updates, and that was

breached by China-based attackers

in 2015. The problem, which was

never made public, was identified

after at least two Supermicro

customers downloaded firmware—

software installed in hardware

components—meant to update their

motherboards’ network cards, key

components that control communi-

cations between servers running in

a data center. The code had been

altered, allowing the attackers to

secretly take over a server’s

communications, according to

samples passed around at the time

among a small group of Supermicro

customers. One of these customers

was Facebook Inc.

“In 2015, we were made aware of

malicious manipulation of software

related to Supermicro hardware

from industry partners through our

threat intelligence industry sharing

programs,” Facebook said in an

emailed statement. “While

Facebook has purchased a limited

number of Supermicro hardware for

testing purposes confined to our

labs, our investigations reveal that it

has not been used in production,

and we are in the process of

removing them.”

The victims considered the faulty

code a serious breach. Firmware

updates obtained directly from the

manufacturer are usually assumed

to be secure. Firmware is tailored to

specific types of computer

hardware and embedded directly

into those parts, where it provides a

narrow set of operating instructions.

Detecting attacks at this level

requires specialized security

programs, so the code is rarely

scanned for bugs. By corrupting

Supermicro’s update mechanism,

the attackers were trying to get

customers to infect themselves.

While the chip and software attacks

could be efective on their own,

security experts say these

approaches could also be used in

concert, with the corrupted network

cards amplifying the capabilities of

the embedded chips.

In its denial that a chip attack

had reached its server network,

Apple did acknowledge to

Bloomberg Businessweek

that it

had encountered malware

downloaded from Supermicro’s

customer portal. Apple said the

infection occurred in 2016, months

after the events described by

Facebook, and involved a single

Windows-based server in one of

the company’s labs. The malware

was on a network card driver,

which is distinct from firmware and

allows an operating system and a

piece of hardware to communicate.

This was the reason Apple gave for

dropping Supermicro as a supplier

later that year. “As a matter of

practice, before servers are put

into production at Apple they are

inspected for security vulnerabili-

ties and we update all firmware

and software with the latest

protections,” Apple said in its

statement to

Businessweek

. “We

did not uncover any unusual

vulnerabilities in the servers we

purchased from Super Micro when

we updated the firmware and

software according to our

standard procedures.”

However, a person familiar with

Apple’s investigation says that

around the time the company

discovered malicious chips, it also

found a more serious problem with

network cards on Supermicro

motherboards. Some Supermicro

servers had network cards that

came with outdated firmware, so

the machines that were delivered

to customers contained a critical

security vulnerability that had

been fixed in newer versions. This

was potentially a third avenue of

attack. Security experts say

attackers could take advantage of

a known firmware vulnerability in

the same way they would use a

more traditional software exploit.

Once inside a target network,

hackers could seek out servers

with the dated code and easily

infect them.

More Elements of the Attack

Bloomberg Businessweek

October 8, 2018

57

further instructions, operatives could hack those comput-

ers to identify others who’d been afected. Although the

investigators couldn’t be sure they’d found every victim, a

person familiar with the U.S. probe says they ultimately con-

cluded that the number was almost 30 companies.

That left the question of whom to notify and how.

U.S. oicials had been warning for years that hardware

made by two Chinese telecommunications giants, Huawei

Corp. and ZTE Corp., was subject to Chinese govern-

ment manipulation. (Both Huawei and ZTE have said

no such tampering has occurred.) But a similar pub-

lic alert regarding a U.S. company was out of the ques-

tion. Instead, oicials reached out to a small number

of important Supermicro customers. One executive of

a large web-hosting company says the message he took

away from the exchange was clear: Supermicro’s hard-

ware couldn’t be trusted. “That’s been the nudge to

everyone—get that crap out,” the person says.

Amazon, for its part, began acquisition talks with an

Elemental competitor, but according to one person famil-

iar with Amazon’s deliberations, it reversed course in the

summer of 2015 after learning that Elemental’s board was

nearing a deal with another buyer. Amazon announced

its acquisition of Elemental in September 2015, in a trans-

action whose value one person familiar with the deal

places at $350 million. Multiple sources say that Amazon

intended to move Elemental’s software to AWS’s cloud,

whose chips, motherboards, and servers are typically

designed in-house and built by factories that Amazon

contracts from directly.

A notable exception was AWS’s data centers inside

China, which were illed with Supermicro-built servers,

according to two people with knowledge of AWS’s opera-

tions there. Mindful of the Elemental indings, Amazon’s

security team conducted its own investigation into AWS’s

Beijing facilities and found altered motherboards there

as well, including more sophisticated designs than they’d

previously encountered. In one case, the malicious chips

were thin enough that they’d been embedded between

the layers of iberglass onto which the other components

were attached, according to one person who saw pic-

tures of the chips. That generation of chips was smaller

than a sharpened pencil tip, the person says. (Amazon

denies that AWS knew of servers found in China contain-

ing malicious chips.)

China has long been known to monitor banks, man-

ufacturers, and ordinary citizens on its own soil, and

the main customers of AWS’s China cloud were domes-

tic companies or foreign entities with operations there.

Still, the fact that the country appeared to be conducting

those operations inside Amazon’s cloud presented the

company with a Gordian knot. Its security team deter-

mined that it would be diicult to quietly remove the

equipment and that, even if they could devise a way,

doing so would alert the attackers that the chips had