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- Subject: Penetrating the Phone System
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- PERSONAL COMPUTER USERS PENETRATING NATION`S TELEPHONE SYSTEM
- By JOHN MARKOFF with ANDREW POLLACK (c.1988 N.Y. Times News Service)
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- adept at penetrating the nation's telephone system, raising questions about the
- security and privacy of the phone system, industry experts and law enforcement
- offiials say. The vulnerability of the phone system to such tampering has
- grown significantly in the past decade or so as telephone companies have
- largely replaced electro-mechanical call-routing equipment with
- computer-controlled switches.
- As a result, people with the expertise can illegally connect their personal
- computers to the phone network. With the proper commands, these intruders can
- do such things as eavesdrop, add calls to someone's bill, alter or destroy
- data, have all calls to a particular number automatically forwarded to another
- number or keep someone's line permanently busy, it was disclosed in an internal
- memorandum written by a manager of electronic security operations at the San
- Francisco-based Pacific Bell Telephone Co. and in interviews with company
- officials.
- Peter Neumann, a computer security consultant at SRI International Inc. in
- Menlo Park, Calif., said telephone companies are only beginning to awaken to
- the security problems created by the increasing computerization of the
- telephone network. ``As far as our vulnerability, we all have our heads in the
- sand,'' he said. ``We have to redefine our notions of what we entrust to
- computers and to communication networks.''
- Some personal computer enthusiasts, often called ``hackers,'' view the task
- of breaking into the telephone system as a test of their skills and only
- infrequently inflict damage, industry officials and consultants say. But others
- act with criminal intent.
- In his memo, the Pacific Bell security manager also warned that an electronic
- intruder could essentially disable an entire central switching office for
- routing calls, disrupting telephone service to entire neighborhoods.
- Furthermore, he said, organized-crime groups or terrorists might use such
- technology to their own advantage.
- The integrity of customer bills could also be compromised, he said. Customers
- might rightfully or wrongfully dispute expensive calls, claiming the calls were
- placed on their bills by computer hackers.
- Earlier this month, a teen-age computer enthusiast who requested anonymity
- provided The New York Times with the Pacific Bell memo, which was written a
- year ago. He said it had been obtained by a fellow hacker who illicitly
- eavesdropped on a facsimile transmission between Pacific Bell offices in San
- Francisco. The memo, which Pacific Bell verified as authentic, concluded that
- ``the number of individuals capable of entering Pacific Bell operating systems
- is growing'' and that ``computer hackers are becoming more sophisticated in
- their attacks.''
- In one of two cases cited in the memo, a group of teen-age computer hobbyists
- were able to do such things as ``monitor each other's lines for fun'' and
- ``seize another person's dial tone and make calls appear on their bill,'' the
- memo said. One of the hackers used his knowledge to disconnect and tie up the
- telephone services of people he did not like. In addition, ``he would add
- several custom-calling features to their lines to create larger bills,'' the
- memo said.
- In the second case, police searched the Southern California home of a man
- thought to be breaking into the computers of a Santa Cruz, Calif., software
- company. They discovered the man could also gain access to all of Pacific
- Bell's Southern California switching computers. wFiles were found containing
- codes and employee passwords for connecting with -- or ``logging on to'' -- the
- Pacific Bell switching systems and related computers. The man also had commands
- for controlling the equipment.
- In another case involving tampering with telephone company switching
- equipment, local police and the FBI in the San Francisco area are investigating
- Kevin Poulsen, a former programmer at Sun Microsystems, said Joseph Burton, an
- assistant U.S. attorney in San Jose, and John Glang, a deputy district attorney
- for San Mateo County.
- Authorities searched Poulsen's apartment in Menlo Park in February as well as
- the residence of a suspected accomplice in San Francisco, the officials said.
- Poulsen was said to be in Southern California and was unavailable for comment.
- Burton said he could not discuss a current investigation. Glang would say
- only that the case had been taken over by the federal government because
- ``there are some potential national security overtones.'' But a security
- expert familiar with the case, who requested anonymity, said that Poulsen
- ``pretty clearly demonstrated you can get in and romp around inside a Bell
- operating system.'' ``What it pointed out,'' he said, ``was the serious
- vulnerability.''
- Security consultants said other phone companies are equally vulnerable to
- such breaches. They noted that most phone service in the nation is provided by
- companies that were part of the Bell System until it was broken up in 1984 and
- still use similar equipment and procedures.
- Michigan Bell officials said they had caught an intruder who tampered with
- the company's switching equipment last year. A spokesman declined to give
- details of the incident but said no arrest was made. ``We have been able to
- tighten our security arrangements,'' said Phil Jones, a company spokesman.
- ``There were lessons to be learned here.''
- Jack Hancock, vice president for information systems at Pacific Bell, said
- his company had also taken steps to make it tougher to penetrate its systems.
- He said, however, that the company had to strike a balance between security and
- cost considerations so the phone system would still be widely affordable and
- easy to maintain.
- ``We could secure the telephone system totally, but the cost would be
- enormous,'' he said. ``A public service will probably always have certain
- insecurities in it.''
- Though Pacific Bell refused to disclose the security measures it had taken,
- the company said it had restricted the ability to dial into its computers from
- remote points.
- As computerized communications become more sophisticated, companies will be
- able to improve security at a reasonable cost, said Barry K. Schwartz, a
- systems planning manager at Bell Communications Research, which does research
- for the seven Bell operating companies. It will be increasingly possible to
- program a computer so it will only answer a call from an authorized phone, he
- said. Another new technology on the horizon, he said, is electronic voice
- verification. A security system using this technology would be able to
- recognize those authorized to gain access to a computer by their voice
- patterns.
- Telephone companies have long had to worry about electronic abuse of their
- networks. For several decades individuals have used electronic equipment to
- make long-distance phone calls for free. Some have used devices that generate a
- series of tones that provides access to long-distance lines. Telephone
- companies have installed equipment on their lines to detect and thwart such
- abuse. In other instances, people have used personal computers to find
- long-distance access codes belonging to other users. They do this by
- programming computers to keep trying various numbers until they hit upon one
- that works. But while costly, these kinds of abuse are not much of a threat to
- the integrity of the system because they do not affect the system itself.
- The new problems involving network tampering are arising, experts say,
- because the switches that route calls are now mostly electronic, meaning they
- are essentially big computers. If a customer wants an option like call
- forwarding or call waiting added to his or her telephone service, that is done
- by typing commands into a computer, not by moving wires and switches.
- Pacific Bell said 79 percent of its customers are now served by computerized
- switching systems. Experts say these electronic networks are especially
- vulnerable to tampering because it is possible to dial up the computers
- controlling the switches from the outside. Phone companies designed their
- systems this way to make it easier for them to change the system and diagnose
- problems. For example, a technician in the field trying to diagnose problems
- on a line needs to be able to dial certain test circuits in the central office.
- But such a dial-up capability can also be used by outsiders with personal
- computers and modems who know the proper numbers to call and the proper
- procedures to get on the system.
- The ability to eavesdrop on telephone calls is included in the system to
- allow an operator to check to see whether a line that is busy for a long time
- is being used or whether the phone is off the hook or the line is broken.
- One security consultant who requested anonymity said this capability had also
- made it much easier for law enforcement officials to wiretap a line. When the
- police receive court permission to conduct a wiretap, they can have the phone
- company dial up the switch serving the line so conversations can be monitored
- from a remote location. Obtaining the information needed to break into the
- phone system can be difficult, but intruders often do it by impersonating phone
- company employees -- a practice that hackers call ``social engineering.''
- A teen-ager interviewed by Pacific Bell officials after his arrest told
- investigators that he had entered a number of Pacific Bell facilities in the
- San Francisco area disguised as a Federal Express delivery man in order to
- search for manuals and other documents, according to the company memo. The
- youth also said he had impersonated telephone security officials to obtain
- passwords and other information.
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