It was the early 1980s, and the Soviet Union had already invaded Afghanistan. The Cold War was at its peak. The Soviet Union and the United States worked on secret missions and operations to undermine each other. According to the CIA, spies working for Moscow had illegally acquired Western technology worth hundreds of millions of dollars in the late 1970s.
But little did the leader of the Communist bloc know that the same process of acquisition of US technology would result in the delivery of sabotaged US high-tech. How did that happen, you ask? Let's find out.
An FBI agent, who once saw an Austrian entrepreneur entering San Francisco's Soviet Consulate, had another chance encounter with the same man, this time at a bar. The agent, Rick Smith, and the man, whose name remains a mystery, would plant what remains a major counterintelligence campaign of the era, according to a report in Politico Magazine.
The Austrian man was already actively exporting American goods to European nations. The FBI believed the Soviet Union was always desperately looking for the latest and cutting-edge American technology. And that's how they dealt a major blow to their Communist opponents.
As part of Operation Intering, the FBI and the Austrian "would seed faulty tech to Moscow and its allies", draining the Soviet Bloc's coffers. And it wasn't limited to just that. The operation would also expose Moscow's intelligence officers and people who conspired against America.
It was all executed from the Austrian capital Vienna, believed to be a neutral ground for both Communist and Western officials to operate from. The Austrian sought and got an appointment with the Soviet Embassy where he was to pitch Moscow cutting-edge Silicon Valley microelectronics and computer technology.
Initially, Moscow spies expressed some interest, "but they wanted classified information, basically," Smith said. However, the Communists directed the Austrian man to their allies -- the Bulgarians, and their East German and Russian allies, who were to get that forbidden tech. But not before the FBI tampered with it.
While some tech was altered before Bulgarians received it, some were left completely unusable. However, to ensure the operation's longevity and avoid suspicion, some of the technology was delivered unadulterated.
The FBI would also tamper with the electronics, which then experienced "chance" voltage overloads once plugged in by the Soviets. Apart from that some of the machines and parts were fiddled with such that they would degrade over time.
The Soviet Bloc unknowingly purchased sabotaged US goods to the tune of millions of dollars. The Communist spies, who had no idea they were being played, were lauded for their "success in purchasing this forbidden technology from the West".
However, it was only a matter of time before the Austrian's cover was blown, and then the Americans couldn't risk using him as an agent anymore. “He did all this for the sheer fun of doing it,” said Bill Kinane, a retired longtime San Francisco-based FBI counterintelligence agent who helped supervise the Intering operation. “And, like most Austrians, he hated the Russians.”
After the Cold War, the Austrian reportedly moved back to Europe and amassed a huge fortune there in real estate.