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This isn't new, there have been counterfeit Cisco hardware reports for years. I have even seen Cisco switches and routers act unstable with genuine Cisco modules in them which were purchased from authorized dealers. It turned out the modules were counterfeit and either didn't work when the IOS was updated or they failed prematurely. In most cases the authorized dealers made good on the counterfeit hardware.
Now they're adding malware to the counterfeit gear.