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Seagate and KPDN Bust Counterfeit Hard Drive Operation Near Kuala Lumpur

If you've shopped online for storage in recent years, you've probably seen those suspicious listings on Shopee or Lazada offering massive 16TB or even 18TB hard drives for shockingly low prices. We're talking about devices that usually retail at RM1,799 being advertised for just RM529.80. Tempting? Sure. But as the saying goes—if it looks too good to be true, it usually is.

Recently, Seagate, together with Malaysia's Ministry of Domestic Trade and Cost of Living (KPDN), exposed a major counterfeiting operation running just outside Kuala Lumpur. And the details of the raid reveal how elaborate and risky this scam really was.

How the Scam Was Uncovered

It all started when Seagate's local sales representatives noticed unusually low prices for certain high-capacity hard drives being sold online. Those discounts raised red flags, and further digging revealed a disturbing pattern: the drives weren't brand new at all.

Many of them had been recycled from previous heavy-duty use, particularly from Chia cryptocurrency mining farms. On the surface, the drives looked fine. But inside, diagnostic data had been tampered with to hide their actual wear and tear.

An "End-to-End" Counterfeit Setup 

This wasn't your average backyard tinkering. According to Seagate, the criminals had built an entire workshop dedicated to the scam. The process included:

When authorities raided the workshop in May, they seized nearly 700 hard drives. These weren't just Seagate models but also units from Western Digital and Toshiba, some with capacities up to 18TB. Alongside the hardware, investigators found video evidence showing the relabelling process in action.

Six individuals were arrested during the operation.

Seagate's Response

In the wake of the bust, Seagate has tightened its partner programme. Distributors and resellers must now only source products from authorised channels, and all partners will be subjected to Global Trade Screening (GTS) compliance.

Interestingly, Seagate's unique firmware made it possible to detect tampering in these recycled drives. But the same can't be said for all brands, raising concerns that similar scams could still slip through with products from other manufacturers.

Why This Matters to You 

For most people, a hard drive is more than just a gadget—it's a vault for work projects, gaming libraries, or irreplaceable personal data. Buying a counterfeit or recycled unit can mean:

Saving a few hundred ringgit might seem like a win, but the long-term risk could cost you far more than what you saved.

How to Protect Yourself When Buying Storage

If you're in the market for a new hard drive, here are some practical tips:

Final Thoughts

The Kuala Lumpur raid is a reminder that counterfeit tech isn't just limited to fake smartphones or knock-off accessories. Even high-end storage solutions are being targeted, and the scams are only getting more sophisticated.

So the next time you're shopping for a hard drive, think twice before hitting "Add to Cart" on that bargain 16TB model. A legitimate purchase might cost more upfront, but it could save you from data disasters—and plenty of regret—down the line.

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Monday, 18 August 2025

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