The lethal hack of Hezbollah’s Asian-branded pagers and walkie-talkies has sparked an intense search for the devices’ path, revealing a murky market for older technologies where buyers might have few assurances about what they are getting.
While supply chains and distribution channels for higher-margin and newer products are tightly managed, that is not the case for older electronics from Asia where counterfeiting, surplus inventories and complex contract manufacturing deals can sometimes make it impossible to identify the source of a product, analysts and consultants say.
The response from the companies at the center of the booby-trapped gadgets that killed 37 people and wounded about 3,000 in Lebanon this week has underlined difficulties in discerning how and when they were weaponized.
Photo: Reuters
Taiwan-based Gold Apollo Co (金阿波羅通信) put the blame on a Europe-based licensee of its pager, sparking investigations in Hungary, Bulgaria, Norway and Romania into the origins of the deadly device.
Japan’s Icom Inc initially said it could not tell if the walkie-talkies bearing its name were real, in a market awash with fake products.
It issued a statement on Friday saying it was highly unlikely that the exploded products were theirs.
Icom cited Lebanese Minister of Telecommunications Johnny Corm as saying the devices were not imported through a distributor and that counterfeit products of the same model number were being imported from other countries.
Physical examination of the devices that exploded would be needed to conclude they were not Icom products, but in light of multiple pieces of information that have been revealed, chances are “extremely low” that they were Icom’s, the Japanese manufacturer said.
“If the supply chain was compromised to put explosives inside ... it’s incredible engineering to do that. But the actual supply chain compromise is not that hard. Probably the easiest part was the supply chain compromise,” said David Fincher, a China-based technologist and consultant.
He said counterfeit products are prevalent, especially in big manufacturing centers like China where fake components can be easily produced, adding that it is not a big leap to go from fake components to supply chain compromise.
“As the technologist I am, I can tell you getting a little explosive in a radio is not that hard,” he said.
Hezbollah acquired the devices around five months ago and the armed group thought it was buying the pagers from Gold Apollo, a security source said.
The handheld radios, which the source said were purchased around the same time as the pagers, had labels bearing the name of Osaka-based Icom and the phrase “Made in Japan,” images of one exploded device showed.
Both companies have ruled out the possibility that any of the deadly components were made in factories in either of their home locations.
In Taipei, Minister of Economic Affairs J.W. Kuo (郭智輝) has also said the components used in the pagers that detonated in Lebanon were not made in Taiwan.
A preliminary investigation by Lebanese authorities into the devices found that the explosives were implanted before they arrived in the country, a letter to the UN Security Council by the Lebanese mission to the UN said.
However, for now, that is about all anyone is certain of. It is not clear how or when the pagers and walkie-talkies were weaponized so they could be remotely detonated.
Joe Simone, partner with Chinese intellectual property firm East IP, said part of the problem is that smaller brands tend to invest less in policing counterfeits, due in large part to costs that could impact their profitability.
“Authorities are happy to deal with low-tech counterfeits, but the IP owners need to monitor, investigate and file complaints and that doesn’t always happen as much as it might for high tech and bigger technology brands,” he said.
For Icom, one problem is that it stopped making the IC-V82 model in question a decade ago, around the time it started introducing holographic stickers as a protection against counterfeit products, the company said.
It has long warned about imitation products, especially of its older models.
In fact, more than 7 percent of firms in Japan reported business losses from counterfeit products in 2020, with about one-third of cases linked to China, the latest available report by the Japanese Patent Office showed.
Icom has urged that customers only use its official distributor network to ensure they are buying genuine products.
However, there are dozens of shops in China selling Icom-branded walkie-talkies on e-commerce platforms such as Alibaba.com, Taobao, JD.com and Pinduoduo, including in some cases the IC-V82 model.
Among three China-based vendors of Icom products on Alibaba.com, none of which were listed as official suppliers on Icom’s Web site, Guangzhou Minxing Communications Equipment Co and Chengdu Bingxin Technology Co Ltd both said they sell authentic products, while Quanzhou Yitian Trading Co acknowledged selling “Chinese made imitations” in addition to original products.
Icom has said it makes all its products in its factories in Japan.
It did not immediately reply to a request for comment on Icom-branded products sold in Chinese online sites.
The discontinued IC-V82 model is also sold in Vietnam on e-commerce platform Shopee, indicating wide availability of such products.
For Gold Apollo, which licensed its brand to Budapest-based BAC, the supply chain devolved into a mysterious production trail that authorities in several countries are now trying to piece together.
“The widespread availability of cheap, second-hand manufacturing equipment meant counterfeiters were increasingly able to go beyond single components and even make full-fledged products,” said Diganta Das, a University of Maryland Center for Advanced Lifecycle Engineering researcher, who studies counterfeit electronics.
“I wouldn’t call it counterfeiting anymore, it’s like illegal manufacturing,” Das said.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
Meta Platforms Inc offered US$100 million bonuses to OpenAI employees in an unsuccessful bid to poach the ChatGPT maker’s talent and strengthen its own generative artificial intelligence (AI) teams, OpenAI CEO Sam Altman has said. Facebook’s parent company — a competitor of OpenAI — also offered “giant” annual salaries exceeding US$100 million to OpenAI staffers, Altman said in an interview on the Uncapped with Jack Altman podcast released on Tuesday. “It is crazy,” Sam Altman told his brother Jack in the interview. “I’m really happy that at least so far none of our best people have decided to take them
PLANS: MSI is also planning to upgrade its service center in the Netherlands Micro-Star International Co (MSI, 微星) yesterday said it plans to set up a server assembly line at its Poland service center this year at the earliest. The computer and peripherals manufacturer expects that the new server assembly line would shorten transportation times in shipments to European countries, a company spokesperson told the Taipei Times by telephone. MSI manufactures motherboards, graphics cards, notebook computers, servers, optical storage devices and communication devices. The company operates plants in Taiwan and China, and runs a global network of service centers. The company is also considering upgrading its service center in the Netherlands into a
RSS