What GAO Found
United States Government Accountability Office
Why GAO Did This Study
Highlights
Accountability Integrity Reliability
April 10, 2008
INTERNET SALES
Undercover Purchases on eBay and Craigslist Reveal
a Market for Sensitive and Stolen U.S. Military Items
Highlights of GAO-08-644T, a testimony
before the Subcommittee on National
Security and Foreign Affairs, Committee
on Oversight and Government Reform,
House of Representatives
Unauthorized individuals,
companies, terrorist organizations,
and other countries continue their
attempts to obtain sensitive items
related to the defense of the United
States. The Internet is one place
that defense-related items can be
purchased, raising the possibility
that some sensitive items are
available to those who can afford
them. In addition to the risk that
sensitive defense-related items
could be used to directly harm U.S.
service members or allies on the
battlefield, these items could be
disassembled and analyzed (i.e.,
reverse engineered) to develop
countermeasures or equivalent
technology.
Given the risks posed by the sale of
sensitive defense-related items to
the public, and the Internet’s
international reach and high
volume of commerce, the
Subcommittee asked GAO to
conduct undercover testing to
determine whether the general
public can easily purchase these
items on the Internet, including on
the Web sites eBay and Craigslist.
To perform this work, GAO
investigators used undercover
identities to pose as members of
the general public, meaning that
they conducted their work with
names, credit cards, and contact
information that could not be
traced to GAO. Investigators
interviewed sellers where possible
and referred cases to the
appropriate law enforcement
entities for further investigation.
GAO found numerous defense-related items for sale to the highest bidder on
eBay and Craigslist. A review of policies and procedures for these Web sites
determined that there are few safeguards to prevent the sale of sensitive and
stolen defense-related items using the sites. During the period of investigation,
GAO undercover investigators purchased a dozen sensitive items on eBay and
Craigslist to demonstrate how easy it was to obtain them. Many of these items
were stolen from the U.S. military. According to the Department of Defense
(DOD), it considers the sensitive items GAO purchased to be on the U.S.
Munitions List, meaning that there are restrictions on their overseas sales.
However, if investigators had been members of the general public, there is a
risk that they could have illegally resold these items to an international broker
or transferred them overseas.
Examples of Sensitive Items Purchased by Undercover Investigators
No. Item Web site Notes
1
F-14 antenna eBay F-14 components are in demand by Iran,
the only country with operating F-14s
Winning bidders on other auctions held by
the seller were located in countries such as
Bulgaria, China (Hong Kong), and Russia
2
Nuclear biological
chemical gear
Craigslist Could be reverse engineered to develop
countermeasures or produce equivalent
technology
Stolen military property
3
Enhanced small
arms protective
inserts
eBay Body armor plates manufactured in June
2007 and currently in use by troops in
Afghanistan and Iraq
Winning eBay bidders on other body armor
items offered by this seller included
individuals in China (Hong Kong), Taiwan,
and Singapore
Stolen from U.S. military or manufacturer
Source: GAO.
GAO investigators also identified examples of U.S. government property that
was stolen and sold for a profit rather than being utilized by DOD. For
example, GAO found two civilian store owners who acted as conduits for
defense-related property that was likely stolen from the military. The store
owners told GAO they purchased gear from service members—including
Kevlar vests, flak jackets, and gas masks—and sold it through eBay to the
general public. GAO also purchased stolen military meals, ready-to-eat (MRE)
and found a robust market for stolen military MREs on eBay and Craigslist.
Advertisements for the sensitive defense-related items GAO purchased were
not removed by Web site administrators, allowing investigators to buy the
items. Both Web sites maintain lists of items that are prohibited from sale,
including stolen items, but only eBay contains warnings related to overseas
sales and the improper sale of sensitive defense-related items.
To view the full product, including the scope
and methodology, click on GAO-08-644T.
For more information, contact Gregory D.