Global hardware scam: ‘brand new’ Seagate hard drives exposed as used mining equipment

Key Takeaways:

• Over 200 used Seagate hard drives have been sold as new globally.
• Drives had 15,000–50,000 hours of prior use from crypto mining.
• Scammers reset SMART parameters to hide usage history.
• Retailers claim no knowledge; Seagate denies involvement and investigates.
• Consumers are urged to verify drives and report suspicious cases.

An International Fraud Uncovered

An international fraud scandal has been uncovered involving the sale of used Seagate hard drives repackaged and sold as new across global markets. Investigations have confirmed over 200 cases worldwide, revealing a sophisticated scam that has affected consumers in Europe, Australia, Japan, and Thailand.

Origins in Crypto Mining

The repackaged hard drives have been traced back to mining operations in China, where they were extensively used to mine Chia, a cryptocurrency that surged during the early years of the pandemic. According to reports, “many of the drives are recorded to have logged between 15,000 and 50,000 hours of use prior to their resale,” highlighting the significant wear and tear on these devices.

Manipulation of Drive Data

To conceal the extensive prior usage, scammers reset the standard SMART (Self-Monitoring, Analysis, and Reporting Technology) parameters that track hard drive health and usage. By manipulating this data, the drives appeared to be brand new, effectively obscuring “the wear and tear accumulated from years of crypto mining.”

Global Impact and Affected Retailers

Investigations have traced the scam back to several German retailers, including Alternate.De, Wortmann, Galaxus, and Proshop. Similar used drives have also been identified in adjacent European regions, along with confirmed cases across Australia, Japan, and Thailand. Retailers have insisted that they were unaware of any tampering involved with the affected stock, emphasizing that the products came from suppliers they trusted.

Responses from Retailers and Seagate

Seagate, the manufacturer of the hard drives, has denied any involvement in the distribution of the affected units. The company has reportedly launched an internal investigation and is working with law enforcement to track the fraudulent resellers. Seagate has urged buyers to report any suspicious cases to fraud@seagate.com.

Consumer Advice

Owners of Seagate hard drives are encouraged to verify their devices using SeaTools, a software tool designed to ensure drive integrity. This scandal serves as a cautionary tale, highlighting the importance of vigilance when purchasing hardware. The sophistication of the scam, particularly the resetting of SMART parameters, signifies a new level of fraud in the technology market.

Conclusion

The uncovering of this global scam underscores the need for transparency and accountability within the supply chain. As investigations continue, both retailers and consumers are urged to exercise due diligence to prevent the further spread of such fraudulent activities.