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Wednesday, February 08, 2012, 09:00 pm PT (12:00 am ET)

Alleged Foxconn hack allowed bogus orders to be placed for vendors

A "Greyhat" hacking group announced this week that it had successfully hacked contract manufacturer Foxconn and released usernames and passwords for vendors that could be used to place fraudulent orders for companies like Apple and Microsoft.

Swagg Security published a statement (via MacRumors) on Wednesday taking credit for hacking the company's servers. The group cited "the hilarity that ensues when compromising and destroying an infrastructure" as the reason for its actions.

They did, however, also state that they were "considerably disappointed" with the inhuman working conditions at Foxconn and were also "slightly interested in the existence of an Iphone 5," but they denied that those were reasons for their hack.

"We aim to to reshape your perspectives, our perspectives, by the inducing of entertainment. A unique approach to spreading a unique philosophy which brings the sought after tranquility. In a way we are "hacktivist", but in our own views we are Greyhats," the group wrote.

Swagg Security alleged that it had bypassed Foxconn's firewall "almost flawlessly." Using several hacking techniques and a couple of days time, the hackers reportedly dumped "most of everything of significance," including usernames and passwords. According to the group, the leaked passwords "could allow individuals to make fraudulent orders under big companies like Microsoft, Apple, IBM, Intel, and Dell."

Foxconn administrators eventually took down services.foxconn.com, the hacking group noted on Twitter late Wednesday, quipping that one too many orders had been placed.

AppleInsider contacted Foxconn for confirmation that a security breach took place, but the company responded that it does not comment on matters of "internal network security."

Foxconn has been under scrutiny as of late after reports from The New York Times and CNN claimed the company is committing labor abuses against its workers. The backlash against the company are expected come to a head on Thursday when an activist group holds a demonstration outside of Apple's new Grand Central Terminal store and delivers petitions calling for Apple, one of Foxconn's biggest clients, and Foxconn to improve working conditions at the manufacturer's facilities.