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- Reprinted In File Form On January 17, 1990
-
- Orignally Publised In Toronto Star Sunday January 7, 1990
-
- ===============================================================================
-
- PIRATES RING UP MILLIONS IN ILLEGAL CALLS
- By Leslie Papp
- TORONTO STAR
-
- A New breed of pirate is plundering Canadian companies armed with a
- telephone instead of a cutlass.
- They're called "fone phreakers" the telephone equivalent of computer
- hackers and they're costing companies millions of dollars.
- Phreakers charged $1 millions worth of illegal calls to Toronto's
- Call-Net Telecommunications Ltd., a private telephone network, over a six month
- period last year.
- And Call-Net isn't their only victimm.
- A Metro finacial services company was hit for $30,000 in a single day,
- telecommunications security sources said. A travel business recently lost
- $100,000 in illegal calls and a major entertainment company was stung for
- $100,000 over about three months.
- "It becomes pretty mind boggling" says Jack Cloutte, head of Bell
- Canada security in Ontario.
- "More than 100 cases of suspected telephone fraud go to his department
- monthly. And that's only a fraction of the actual abuse going on.
- "It's A big concern of ours." Cloutte said, nothing that Bell is a
- frequent victim.
- Phreaker's have repeatedly palnted listening devices in the company's
- vital Adelaide Street switiching center, seeking access to secret Bell Canada
- codes and other data, he said.
- Although new technology is being developed to make it harder to raid
- telephone networks, phreaker's remain a step ahead of the authorities, he
- admitted.
- Canada has thousands of fone phreakers, ranging from clumsy tennages to
- experts with years of experience. And they boast a long list of shady
- successes, including:
-
- o Unauthorized use of companies' long distance services to reach
- friends anywhere in the world.
-
- o Free calls with homemade electronic "boxes" that beam signals along a
- phone line to fool Bell Canada operators and equipment.
-
- o Use of telephone company test loops as a phreaker chat line.
-
- o Eavesdropping on private messages of executives and lawyers after
- cracking the code of their voice mailboxes, answering machines that
- play messages back over the telephone.
-
- o Listening to the cellukar phone conversations of insuspecting
- business people.
-
- o Tapping telephone wires leading into a company to obtain codes for
- voice mailboxes and long distance services.
-
- o Charging conversations to calling card numbers obtained by fraud.
-
- "The amount of abuse is well beyond what we expected," said Sergeant
- Val King, head of the RCMP's computer and telecommunications crime section in
- Ottawa. Oftern companies being defrauded dob't even know they're victims. And
- telephone raiders are proving extremely difficult to catch.
- "They're have so many mehtods of covering their trail," King lamented.
- "They're can jump through 50 different (telephone) systems before they access
- the one next door."
- Phreakers are formidable opponents, agreed Ros Morley owner of
- Commmunications Systems, a Toronto telecommunications consulting firm.
- "Some of the kids doing this are 14 to 16 years old," he said. "They
- start working with computers in Grade 2 and they're building computers by Grade
- 6.
- "They're practically electrically engineers when they reach Grade 10."
- Older than most is the Wizard, a Toronto phreaker who boasts about
- $2,000 in unpayed bills every month.
- "I'm screwing Ma Bell out of her money," the Wizard notes with pride.
- "That's the glory of it. That what unifies phreakers."
- In his mid 20's, but looking younger in a paisley tie and dapper pale
- gray suit, The Wizard said he's been phreaking for about eight years.
-
- Inside Information
-
- "It's just a knowledge thing," he said, adjusting his glasses. "The
- whole thrill is manipulating Bell to do what you want."
- Having inside information is a big help in cracking phone systems.
- And salting Bell Canada with listening devices is one way to get useful
- secrets, he said.
- Posing as electrical engineering students, several ohreakers, himslef
- included, have taken tours of Bell's main Adelaide St. switching center, he
- said. and they planted miniature microphones, wired to tiny transmitters
- broadcasting on a high end FM frequency.
- "You just take a tour and drop a bug." the Wizard said. "Then you
- listen across the street, on a Walkman, as the technicians user their codes."
- Now the Adelaide St. center is electronically "swept" for bugs on a
- routine basis, he said. "If we didn't learn from history we'd have to have our
- heads read."
- Bell recognizes phreaking as a serious problem, Cloutte sais, but most
- businesses don't know how exposed they are to a phone line invasion.
- Call-Net was badly burned, said the firm's president Mike Kedar, adding
- he opposed publication of new that $1 million in illegal calls was charged to
- the company.
- "It's nobody's business," he said. "We had to pay for it. It's over
- and done."
- Silence is the best response to fone phreaking, Kedar said. "It's a
- story that should not be told."
- Consultant Morley said that sttitude is widespread among firms that
- have been stung.
- "A lot of these companies are just plain embarrassed," he said. "And
- corporations that haven't experienced (a phreaker raid) don't believe it can
- happen."
-
- Not Noticed
-
- Large businesses, with six figure monthly phone bills, ofter don't
- notice when phreakers add a few thousand dollars to the telephone tab, said
- King of The Royal Canadian Mounted Police.
- Sergeant Dave Hodgson of the Metro police fraud squad has specialized
- in computer and telephone communications crime since last spring and has
- investigated about 10 cases.
- How many resulted in charges?
- "None," he said with a bitter laugh. "As far as getting anything for
- court, you're just blowing again the wind."
- Bell Canada does better than police in nabbing phreakers, Cloutte said.
- The company's Ontario Investigator, Walter Heapy, handles about six cases
- monthly. And almost all result in criminal charges, civil charges or an out of
- court settlement.
- "There's always an electronic trail." said Heapy. "A call can always
- be traced back to its orgins. It's a function of time."
- Heapy's most publicized case was the conviction of Leslie Lynee
- Doucette, 35, formerly of Toronto, in 1987. She was arrested in her Rhodes
- Avenue home after stealing $12,211 worth of long distance call over a two month
- period.
- She was again charged last May, after being arrested by U.S. federal
- agents in Chicago in connection with a conspiracy involving dozens of phreakers
- and as much stealing $1.8 million worth of long distance calls over a two month
- period.
- But the possibility of arrest doesn't worry the Wizard.
- "The ones they catch are kids who don't know what's going on," he said,
- "I know what I'm doing. if I'm doing anything slightly risky I'll use a pay
- phone or a string of numbers it can only be traced back so far."
-
- ===============================================================================
-
- THE PHREAKERS' BAG OF HIGH-TECH TRICKS
- By Leslie Papp
- TORONTO STAR
-
- How do they do it?
- How do teenages crack sophisticated telecommunications networks, steal
- missions worth of long distance calls and escape scot-free?
- One secret is a big bad of hightech tricks shared by "fone phreakers"
- across North America And Europe.
- It provides basic weapons and strategics used to attack telephone
- systems. In the hands of a phreaker with special genius, these tricks can be
- used to invade virtually any phone networks, experts say.
- "Eventually, any system can be cracked," noted Corporal Brian Binnie,
- the RCMP's telecommunications fraud expert in Toronto. "If you have a phone
- line you're vulnerable."
- Businesses risk huge telephone charges when a phreakerpenetrates their
- in house communications network and plunders long distance calls.
- It's complicated, but here's how it's done:
- Many firms operate WATS lines, or 1-800 numbers, allowing staff to dial
- long distance calls automatically billed to the company. Often there are two
- such line: an INWATS paying for calls going into the office, and an OUTWATS,
- covering calls going out.
-
- Electronic Pipeline
-
- With such systems, exectives can make long distance calls from anywhere
- in the the world by dialing the INWATS number and punching in a code
- automatically passing them to the OUTWATS.
- Phreakers call this set up an "extender," says the Wizard, a
- telecommunications pirate with eight years of experience. "They're real
- treasures. You call a 1-800 number and punch in the code - usually seven
- digits - and then you dial anywhere in the world."
- Codes can be broken with a "demon dialler," a computer trying number
- after number on the target system until it finds and records the right one, he
- said.
- Homemade wiretaps also prove helpful, the Wizard noted, pulling one
- from his pocket.
- Phreakers like to link extender, using one to reach another creating a
- pipeline of illegal calls streacting through several countries before reaching
- the person they want.
-
- Basic Weapon
-
- "The longer the trail you set the harder it is them to get you," the
- Wizard said.
- Cracked codes are shared and often listed on computer bulletin boards
- around the world. That results in a deluge of long distance charges within a
- few days or weeks, sometimes totaling hundreds of thousands of dollars or more.
- Electronic "boxes" are another basic weapon in a phreaker's armory.
- Scores of these have been developed, said Ross Morley, head of a Toronto
- telecommunications consulting firm. All generate signals to mislead phone
- companies and include the:
-
- o "Red Box." It creates the electronics pulses that an operator hears
- when change is loaded into a pay phone.
-
- o "Blue Box." It signals Bell Canada that a call is finshed stopping
- charges even though a phreaker's is still on the line.
-
- o "Black Box." It emits an electronic pulse telling Bell equipment
- that a call did not go through, even though it really did.
-
- Countermeasures haven been developed to foil blue and black boxes, said
- Jack Cloutte, head of Bell Canada security in Ontario.
- Butt these defences are not used everywhere.
- "There are a ton of other boxes," Morley notes. "Phreakers come up
- with them faster than the phone company can counter them."
- Telephone test loops are another phreakers target, Cloutte said. These
- are reached through two numbers used by Bell lineman to test phone circuits.
- Callers dialing one test loop numbers can speak free of charge to anyone
- dialing the other.
- "We do have a means of preventing that," said Walter heapy, one of
- Bell's top investigators. "But the door's not always closed."
- Another door left leads to exectives' voice, or electronic, mailboxes,
- the Wizard said.
- To demostrate, he picked up a phone and quickly punched in a telephone
- number and four digit code.
- At the receiving end, the answering machine of a multinational
- accounting firm's vice president played back confidential message of its owner.
- Nothing much there this time the Wizard said with a disappointed sniff.
- Just a few appointments scheduled and a meeting cancelled.
- But a few months ago there was news of a company merger, he said. "We
- know about it before it hit the papers."
- Voice mailbox codes are easy to "hack out" he noted. Oftern they're
- obvious, based on the owner's name, or run in an easy to remember series like
- 1-2-3-4.
- Business secrets also leak to phreakers through cellular phones, the
- Wizard said.
-
- Calling Cards
-
- A cellular message is really a radio transmission that is easily picked
- up with a scanner. A phreaker can eavesdrop on long sections of conversations,
- especially in a central Toronto location at rush hour, when traffic is slow,
- he said.
- "I've heard brokers talking about stock tips." the Wizard chuckled.
- "There guys don't know how easy it is to listen in. They talk about what
- mergers are coming up, and so on.
- Phreakers, however must weed through a jungle of 823 frequencies used
- by cellular companies. As a caller travels, the conversation is constantly
- switched to a different frequency, usually allowing an eavesdropper to hear
- only bits of a message.
- Phreakers can overcome this problem with a device that can track a
- specific call as it is passed from one frequency to another.
- Among the simplest of phreaker scams is misuse of calling card numbers.
- Card numbers are easily obtained, sometimes by peaking over a user's
- shoulder at a busy location, like an airport.
- Once taken, numbers are listed on computer bulletin boards. That
- results in long distance charges far excess of a card's allowable limite as it
- is used simultaneously by phreakers in the United States, Canada and Europe,
- Cloutte said.
- International data bases, used by major credit card companies to keep
- track of stolen numbers, do not yet exist for calling cards, he said.
- "All countries aren't in one pool," he said.
-
- ===============================================================================
-
- CULPRITIS GET A THRILL IN SNUBBING AUTHORITY
- By Leslie Papp
- TORONTO STAR
-
- Youth, electronics genius and an obsessive need to thumb a nose at
- authority bind "fone phreakers" throughout North America and Europe, expects
- say.
- "It's almost like a disease," said Jack Cloutte, head of Bell Canada
- security in Ontario. "It can be addictive.
- Computer and electronics whiz kids get a deep psychological thrill out
- of stealing telecommunications (Yeah right, I phreak because I get my jolies
- out of doing it, yeah right! If the fucking cost of calling long distance
- were lower they wouldn't have such a problem! -Tla), he said. It is a way of
- realizing a Dungeons And Dragons style fantasy, matching their powers against
- police and Bell investigators in a secret battle of wits.
- "Some are good," Cloutte said with a hint of admiration. But most are
- not quite normal.
- "A lot of people into this are kind of strange," (Ok, this is another
- stupid statement said made by this guy. He's starting to piss me off! -Tla)
- he said. They're very bright, but somehow out of sync with society.
- "They get a charge of beating the system. You can compare it to an
- athlete who gets a charge out of winning a big game." Cloutte said.
- "It can be become a real obsession. Sometimes they can't stop."
- Most phreakers don't see themselves as criminals. Usually they gain no
- profit from what they do and consider their invasions a game of high tech hide
- and seek, hurting only Bell and fat cat corporations.
- But phreakers aren't simply pranksters, said John Kuhn, a CNCP
- Telecommunications strategic planner.
- They are twisted individuals, he said. "There's a criminal element to
- their psyche making them want to wreck something that's orderly." (Oh no, this
- guy is stupid he doesn't know a slightest thing why we are doing it. I think
- Bell and the other corporations deserve to get ripped! -Tla)
-
- You may distrubute this file freely but may not change any part of this file in
- whole or part without the written or verbal concent of the author.
-
- ===============================================================================
- Call These Great Upi Boards!
- ===============================================================================
- Node Number Board Name Sysop Baud
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- Hq 416-Upi-Home The Northern Phreaker's Alliance The Lost Avenger 12/24
- 1 416-Upi-Nde1 The Shining Realm FrosT BitE 12/24
- 2 514-Upi-Nde2 The Order Of Kamikaze Tomcat 12/24
- ===============================================================================
- 01-17-90/001 Copywrite 1990 By The Lost Avenger-All Rights Reserved
-
- Downloaded From P-80 International Information Systems 304-744-2253 12yrs+
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