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Posted on ZDNet News: Sep 24, 2007 5:55:00 AM

Reuters Logo The FBI is investigating allegations that Unisys failed to detect a Chinese Web site's cyber break-ins on computers at the U.S. Department of Homeland Security and then tried to cover up its shortcomings, according to reports.

Unisys won a $1 billion contract in 2002 to build and manage information technology networks at the department and the Transportation Security Administration. But evidence gathered by the Homeland Security Committee of the U.S. House of Representatives indicates network-intrusion devices were not properly installed and monitored, The Washington Post reported Monday.

As a result, some 150 DHS computers were compromised by hackers using a Chinese-language Web site from June through October in 2006.

Unisys, based in Blue Bell, Pa., disputed the charge with a statement saying: "We can state generally that the allegation that Unisys did not properly install essential security systems is incorrect. In addition, we routinely follow prescribed security protocols and have properly reported incidents to the customer in accordance with those protocols...We believe that a proper investigation of this matter will conclude that Unisys acted in good faith to meet the customer's security requirements."

Besides the original $1 billion contract, Unisys received a $750 million follow-up deal in 2005, the Post said.

An aide on the Homeland Security Committee told the newspaper that the FBI was investigating Unisys for criminal fraud. The committee also has called for the DHS to look into the matter.

The committee also said the contractor allegedly had falsely certified the computer network had been protected to cover up its failings, the Post said.

Story Copyright © 2007 Reuters Limited. All rights reserved.

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