This Bloomberg Story Makes No Sense

Someone Is Making Something Up

One of the biggest stories right now in the tech world is the bombshell dropped by Bloomberg that the biggest names in tech have been hacked. Not through a software exploit or through some gap in a firewall, but by the Chinese government infiltrating their server supply chain. You can read the story here.

This resonates with tech professionals for a lot of good reasons. First, the people who know how to make these servers do something useful for an end user are rarely the same people who understand the specifics of how they work. I might know how to bootstrap and set up a bunch of Dell servers, but if asked to explain in intricate detail how iDRAC functions or what specifically can be done to harden the server itself, I would have to plead some ignorance. There's just so much to learn in this field that one person can't do it all. At some point I have to trust the thing I just unboxed from Dell or Supermicro or whomever is safe to use.

So when the assertion came out that the supply chain itself for the hardware we all rely on may have been breached, it shook us all to our cores. First we rely on these companies to provide us with services not easily duplicated elsewhere. I don't know a lot of stacks anymore that don't rely on some AWS functionality, so saying all of that information may have been released to the Chinese government is akin to your bank saying it might have lost the keys to the safety deposit boxes. There's also the knowledge that we cannot individually all vet these vendors. I lack the training to disable every PCB inside of every model of device in my datacenter and determine whether it's safe and up to spec. I don't even have the diagrams to do this assuming I could! Basically Bloomberg asserted everyone's worse fears.

Then cracks started to show up. Not small cracks, not companies covering their butts kind of problems. Amazon denies the story 100% in a way where there is no room for debate as to what they mean.. Amazon wasn't alone in these strong denials. Apple denied it as well in a letter to Congress. I would challenge anyone to read these statements and come away thinking these were parties attempting to leave room for doubt. Which is incredibly strange!

As time goes on we start to hear more problems with the actual reporting. One of the few named sources in the story, who provided technical background and context, admits it feels strange that almost everything he told the reporter as to how these attacks might happen is later apparently confirmed by different sources. I would encourage folks to listen to Joe Fitzpatrick here. Then the people who WERE supporting the narrative started to come out of the woodwork and they raised more questions than they answered. Yossi Appleboum, CEO of Sepio Systems (a firm with deep ties to the intelligence community based on their companies "About" page) comes out swinging that this is a much bigger problem! The scope is indeed even higher than Bloomberg asserts. You can read his take here.

Someone is lying, clearly. Either this hack didn't happen or it did happen and companies are willing to lie on the record to everyone involved. The later scenario feels unlikely for a number of reasons. One, because we know from recent events like the Facebook hack and the Google+ hack, the penalty for being caught leaking user data isn't that high. It would be a stock-price hit for Apple and Amazon if indeed this was true, but certainly one they could recover from. However the PR hit would appear to be relatively minor and you could bury the entire thing in enough technical details to throw off the average reader. Like I doubt if I told a random person on the street who uses and enjoys their iPhone that some of the servers making up the iCloud infrastructure might have been compromised by Chinese, they would swear off the company forever.

If it isn't "this hack happened and everyone involved is attempting to cover it up", then what is it? A false flag attack by the intelligence community on China? Sure maybe, but why? I've never seen anything like this before where a major news outlet that seemingly specializes in business news gets shut down by major industry players and continues writing the story. Whatever this story is, it feels like these companies coming out strongly against it is sending a message. They're not going to play along with whatever this narrative is. It also doesn't appear that foreign nationals would even need to go through all this trouble. Turns out the Supermicro firmware wasn't the best to start with on its own.

At the end of this saga I think either some folks at Bloomberg need to be let go or we need to open investigations into being deceived by officers of publicly traded companies. I don't see any other way for this to resolve.