Cyber security warnings about Meriton and Huawei links
Cyber security experts fear thousands of people living in apartments could be susceptible to eavesdropping because new buildings are wired with equipment linked to the Chinese Communist Party.
NSW
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Cyber security experts have warned Sydneysiders living in Meriton apartments to avoid using the in-built Huawei Wi-Fi systems — as they could be putting their online life in the hands of the Chinese Communist Party.
In 2018 the federal government effectively banned Huawei from building Australia’s 5G network because of concerns the Chinese government has the power to make Huawei hand over its metadata.
US intelligence agencies have also claimed that the Chinese government can use Huawei equipment to give it “backdoor” access to sensitive systems.
Meriton, one of Sydney’s biggest property developers, has had Huawei routers built into its apartments since at least 2014.
And buyers say they are strongly urged to go with internet service provider FuzeNet, which encourages customers to use the in-built Huawei routers.
UNSW director of Canberra Cyber and former AFP officer Nigel Phair, as well as cyber security expert Daniel Weis, said residents should be wary of Huawei Wi-Fi systems.
“I see it as a problem because we do not know the level of their eavesdropping capability,” Mr Phair said.
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“What about high-level corporate executives who are living in these buildings?
“Until the tough questions are answered we just do not know.”
Meriton has built more than 75,000 apartments in NSW and Queensland since 1963. About three in every 10 apartments built in NSW are Meriton.
The company owns about 4500 serviced apartments and more than 3066 apartments, worth more than $3 billion.
“At the very least, state and federal government employees should be very wary when accessing sensitive systems and information via Huawei equipment,” Mr Phair said.
“A risk management exercise should be conducted with these employees. They should not think that they are any less susceptible to eavesdropping.”
Cyber security expert and head of security for Kiandra IT Daniel Weis said: “China operates almost entirely by its own set of rules it seems, and Huawei products have now been banned in a lot of Western countries and the vendor removed as a supplier for future 5G networks”.
“Any Huawei device could potentially be ‘backdoored’ allowing the Chinese government to spy on and/or intercept the data.
“A lot of apartment blocks and businesses are still recommending Huawei equipment to be installed without knowing the risks, and most of the time it’s because Huawei is quite cheap and better suits the bottom line of the organisation or body that is pushing the equipment.”
Two Meriton residents — one living in Parramatta and the other near Green Square — have provided pictures of the Huawei routers installed in their apartments that they have decided to leave dormant.
Huawei routers are also in Meriton’s 3000-apartment Pagewood Green development in Sydney’s eastern suburbs.
“The Huawei router was already there when I moved in but I decided not to use it,” Mark, who lives in the Altitude Meriton apartment building in Parramatta, said.
“Meriton are definitely encouraging you to go with FuzeNet and use their router. I decided to use my own wireless system.”
The Green Square Meriton resident said he faced the same issues but again went with his own provider.
Online forums are littered with complaints from Meriton residents about the poor service they get from FuzeNet and Huawei.
A senior government source said: “We understand Meriton engages Huawei to provide the infrastructure for high-speed internet in their developments, residents can then choose a retailer that offers plans on that infrastructure”.
A Meriton spokeswoman said the company “has no affiliation/association/ ‘deal’ with Huawei whatsoever”.
“Meriton uses LBNCo or Opticomm as the infrastructure provider in lieu of NBN during construction and the initial retail service provider (which an occupant can either opt into or not) at each location, varies,” she said.
“Any of the above mentioned companies use hardware they choose to use to provide the service at whatever level they are providing it.
“No occupant of any Meriton apartment is compelled to engage with any individual retail service provider.”
Internationally Huawei is at the centre of a diplomatic storm after the company’s chief financial officer, Meng Wanzhou, was arrested in Canada in December 2018 at the request of the US.
She is charged with bank fraud and accused of misleading the bank HSBC about Huawei Technologies’ business in Iran. She denies the charges and is fighting extradition.
The matter has become a major sticking point in trade talks between the US and China.
However, this week the UK decided to allow Huawei to build parts of its 5G network — but nothing near sensitive areas — despite US warnings the move was a security threat to the west.
A Huawei Australia spokesman said the company “has operated successfully in Australia for 15 years with no security incidents involving our equipment”.
“Huawei supplies its broadband equipment to a wide range of customers in the telecoms industry across Australia,” he said.
“Huawei has no control or contact with the hardware once it has been delivered to the customer, it is installed and operated by our customers or another third party.”
Better Regulation Minister Kevin Anderson said the government has implemented new laws to stop developers locking owners corporations into long term utility supply contracts.
“While the government isn’t aware of any major issues with embedded internet services, strata laws will be reviewed later this year and the government is open to consider areas where improvements may be needed,” he said.
FuzeNet did not respond to requests for comment.