Banning New Foreign Routers Mistargets Products to Fix Real Problem

On March 23, the FCC issued an update to their Covered List, a list of equipment banned from obtaining regulatory approval necessary for U.S. sale (and thus effectively a ban on sale of new devices), to include all new routers produced in foreign countries unless they are specifically given an exception by the Department of Defense (DoD) or DHS. The Commission cited “security gaps in foreign-made routers” leading to widespread cyberattacks as justification for the ban, mentioning the high-profile attacks by Chinese advanced persistent threat actors Volt, Flax, and Salt Typhoon. Although the stated intention is to stem the very real threat of domestic residential routers being commandeered to initiate attacks and act as residential proxies, this sweeping move serves as a blunt instrument that will impact many harmless products. In addition to being far too broad, it won’t even affect many vulnerable devices that are most active in these types of attacks: IoT and connected smart home devices.

Previously, the FCC had changed the Covered List to ban hardware by specific vendors, such as telecom equipment produced by companies Huawei and Hytera in 2021. This new blanket ban, in contrast, affects the importation and sale of almost all new consumer routers. It does not affect consumer routers produced in the United States, like Starlink in Texas. While some of the affected routers will be vulnerable to compromises that hijack the devices and use them for cybercrime and attacks, this ban does not distinguish between companies with a track-record of producing vulnerable products and those without. As a result, instead of incentivizing security-minded production, this will only limit the options consumers have to US-based manufacturers not affected by the ban—even those that lack stellar security reputations themselves.

While the sale of vulnerable routers in the U.S. will not stop, the announcement quoted an Executive Branch determination that foreign produced routers introduce “a supply chain vulnerability that could disrupt the U.S. economy, critical infrastructure, and national defense.” Yet this move does nothing to address the growing number of connected devices involved in the attacks this ban aims to address. As we have previously pointed out, supply chain attacks have resulted in no-name Android TV boxes preloaded with malware, sold by retail giants like Amazon, fuelling the massive Kimwolf and BADBOX 2 fraud and residential proxy botnets. Banning the specific models and manufacturers we know produce dangerous devices putting its purchasers at risk, rather than issuing blanket bans punishing reputable brands that do better, should be the priority.

With the FCCs top commissioner appointed by the President, this ban comes as other parts of the administration impose tariffs and issue dozens of trade-related executive orders aimed at foreign goods. A few larger companies with pockets deep enough to invest in manufacturing plants within the U.S. may see this as an opportune moment, while others not as well poised to begin U.S. operations may attempt to curry enough favor to be added to the DoD or DHS exception lists. At best, this will result in the immediate effect of an ill-targeted policy that does little to improve domestic cybersecurity posture. At worst, it entrenches existing players and deepens problematic quid-pro-quo arrangements.

American consumers deserve better. They deserve the assurance that the devices they use, whether routers or other connected smart home devices, are built to withstand attacks that put themselves and others at risk, no matter where they are manufactured. For this, a nuanced, careful consideration of products (such as was part of the FCC’s 2023-proposed U.S. Cyber Trust Mark) is necessary, rather than blanket bans.