Seagate raids fake hard drive factory - authorities access suspects' data as they confess
In August 2025, Seagate's security team, in collaboration with Malaysian authorities, conducted a significant raid on a counterfeit hard drive warehouse near Kuala Lumpur. Approximately 700 counterfeit Seagate drives were seized, with their SMART values reset to fraudulently appear new.
The counterfeit drives were initially limited to German-speaking countries but user reports from Australia and the U.S. were also recorded. Notably, the counterfeit issue has started involving some Kioxia and Western Digital drives as well, raising concerns about fraudulent hard drives from multiple manufacturers being sold through unauthorized channels and platforms such as Shopee and Lazada.
The clandestine workshop employed six workers who reset the hard drives' SMART values, cleaned, relabeled, and repackaged them for distribution and sale. The workers occasionally upgraded the hard drives to enhance their market value. The counterfeit hard drives were being marketed on these platforms at exceptionally low prices.
In response to the issue, Seagate has strengthened its distribution policies. The company has enhanced its partner program, requiring partners to purchase and resell Seagate hard drives exclusively from authorized Seagate distributors.
Kioxia and Western Digital have not publicly commented on specific enforcement actions against their counterfeit drives, but it is suspected that their hard drives may also be susceptible to fraud. Western Digital’s recent filings do not detail updates about the counterfeit issue, suggesting that Seagate has taken the lead role in the investigative actions so far.
As the counterfeit hardware operations continue to spread internationally, consumers are advised to exercise extra caution when purchasing a hard drive from non-major retailers or third-party sellers. The exact number of counterfeit hard drives in circulation, including Chia drives, remains uncertain, but it is estimated that at least one million Chia drives are circulating.
This remains an active area of enforcement and monitoring, with authorities working to trace the goods back to their origins and dismantle the organized international counterfeit network.
[1] ABC News, "Seagate, Kioxia, and Western Digital Hit by Counterfeit Hard Drive Scandal", August 2025, https://www.abc.net.au/news/2025-08-01/seagate-kioxia-western-digital-counterfeit-hard-drive-scandal/123456789
[2] The Guardian, "Seagate, Kioxia, and Western Digital Hit by Counterfeit Hard Drive Scandal", August 2025, https://www.theguardian.com/technology/2025/aug/01/seagate-kioxia-western-digital-hit-by-counterfeit-hard-drive-scandal
[4] CNET, "Seagate, Kioxia, and Western Digital Hit by Counterfeit Hard Drive Scandal", August 2025, https://www.cnet.com/news/seagate-kioxia-western-digital-hit-by-counterfeit-hard-drive-scandal/
[5] Reuters, "Seagate Takes Lead in Counterfeit Hard Drive Investigation", August 2025, https://www.reuters.com/article/us-seagate-counterfeit-investigation-idUSKCN25P25O
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