AOL4FREE Culprit Tells His Tale
by David Cassel 
          
5:02am 2.Apr.97.PDT Nicholas Ryan, a college junior
convicted for authoring the original AOL4FREE
program, will be leaving Yale University this June
to start a six-month home sentence, and two
years of probation. 

For 25 hours a week, he will be working at a
special education program as a form of
community service. But on off-hours, Ryan will be
working on an encryption program for Windows
95, based on the Macintosh program that stumped
the Secret Service agents who confiscated his
computer. "It would be a mini-encrypted hard
drive - every time you shut down the computer,
all the information would be totally encrypted." 

Three weeks after his conviction, Ryan says he is
ready to talk about his hacker past, and to share
his experience of creating a program in 1995 that
allowed hackers to use AOL without paying the
hourly charge. Last week, Ryan came forward with
a 30-KB essay explaining his motives and
experiences to hacker sites. His confessions
came the same week that the Department of
Energy put out a warning against the AOL4FREE
"Trojan horse," a file-destroying program that is
masquerading as Ryan's original program. 

"I was an outlaw, a spy," Ryan boasts, "and I loved
cracking the puzzle of AOL's system." During the
days of US$2.95-an-hour pricing, AOL4FREE made
Ryan, aka Happy Hardcore, a hero in hacker chat
rooms. "When I entered a room, I'd immediately
get dozens of messages asking about when my
next version would come out, who I knew, and
many just thanking me." His essay also includes
anecdotes of hacking live chats and distributing
AOL customer data. 

In a press release applauding his conviction, AOL
conceded that hundreds used the program to gain
free access to the service. Ryan's is the first
federal felony conviction involving an online
service, AOL claims. "AOL and the prosecutors
decided they wanted it to strike a blow against
the hackers and take me out as an example," Ryan
said in an interview. "At one point they were even
claiming that the damages were US$1.5 million." 

Ironically, Ryan had titled one section of the
documentation for AOL4FREE "Can I get caught?"
He even supplied a prescient answer: "A better
question would be, 'Would they want to prosecute
me if I'm caught?'" Ryan now claims he'd been
reassured by internal memos forwarded by
hacker friends that AOL would not go after him. "I
assumed they were going after the AOL4FREE
users. Kind of a dumb assumption.... The Secret
Service knocked on my door in December." 

Of the latest AOL4FREE decoy, Ryan says there's
nothing new in naming Trojan-horse programs
after real ones. "I remember during 1995, way
back then, there was an AOL4FREE program that
was actually a Trojan horse. So this program may
just be a couple of years old." 

Mixed in with the harrowing stories of his
exploits, Ryan's confessional essay includes a
disclaimer: "I stress that in no way did we EVER
do anything to cause permanent damage using the
tools or information that we found." He adds: "We
could've taken down 500 file libraries. We
could've massively wreaked havoc on the service.
But it wasn't what we were there for. It was a
puzzle of it, the challenge of it."