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- = F.U.C.K. - Fucked Up College Kids - Born Jan. 24th, 1993 - F.U.C.K. =
- =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=
-
- Major51
- -------
-
- Several months ago, the New York Times and the Wall Street Journal ran
- articles detailing a Secret Service operation that resulted in the
- arrest of several "hackers".
-
- While the articles were well written, and generally factual, there are
- several points of contention, mostly attributable to direct quotes made
- by government officials. Also, while the information contained in the
- articles is mostly correct, many points are simply not covered.
-
- So, for those who may be vaguely familiar with this case, I would like to
- offer some clarifications. And for those who may not have heard about it
- at all, here it is.
-
- Following, I will quote excerpts from the aforementioned articles, along
- with my own comments (my comments will appear in [] ). The two articles
- have been "cut and pasted", and will appear as one article except where
- noted.
-
- -------------------------------------------------------------------------------
-
- NEW YORK - It was a classic sting operation, the kind of undercover gambit that
- has nabbed bad guys for decades: federal agents disguised as big-time thieves
- set up shop and put the word out on the street that they were eager for
- business. Soon shifty characters were stopping by, officials said, peddling
- stolen goods that were worth millions of dollars.
-
- [This is highly misleading. What the federal agents did was establish a
- BBS, named "Celco 51" which, as they advertised, catered primarily to those
- with a technical interest in telephony, especially cellular telephony.
- I doubt that any of the users there could really be described as shifty,
- with the possible exception of the sysop, and one of the users who was,
- in fact, a Secret Service agent.]
-
- ``People all over the country responded,'' said Peter A. Cavicchia 2nd, the
- special agent in charge of the Newark office of the Secret Service, which ran
- the investigation. ``They felt they could do this with impunity.''
-
- [I find this quote to be incredibly objectionable. Celco 51 purported to
- be a BBS where people could discuss the technology of the day, exchange
- thoughts and ideas, and even socialize with other like-minded individuals.
- Of course people felt they could do that with impunity. Why? Because
- they can. There is nothing wrong, legally or morally, with doing that.]
-
- It is relatively easy to put together a private computer bulletin board,
- requiring only a computer, a modem, phone lines and communications software.
- Special Agent Bauerschmidt was assisted by an informer with experience as a
- computer hacker, officials said. The equipment and phone line for the scheme
- were located in a Bergen County, N.J., apartment building.
-
- [In this case: at least one computer, four modems and phone lines, and an
- 800 number were paid for by the taxpayers.]
-
- The sting began operating in January, and numerous hackers posted messages,
- including some saying they wanted to fence cell-phone "cloning" equipment
-
- [I believe the word "fence" is inappropriate here, since they are referring
- to equipment that is quite legal to own. While debating the difference
- between "legal to own" - versus - "legal to use" may appear to be an
- argument of semantics, the fact is, there is a difference. Furthermore,
- there are legitimate uses for that equipment.]
-
- and stolen cell-phone numbers. An undercover agent, using the computer alias
- of "Carder One," then posed as an interested buyer and negotiated to purchase
- the illegal gear, having it send to a New Jersey address in return for sending
- cash to the suspects.
-
- [I offer no defense to those engaged in the buying or selling of ESN/NAM
- pairs (which is what the article refers to as "cell-phone numbers"), but
- again I stress that the "programming gear" is not illegal. Also, their
- chronology is a bit off..."Carder One" did not wait for others to offer
- anything for sale, she was actively soliciting the purchase of a variety
- of items long before anyone even had an opportunity to offer them to her.]
-
- the startling growth in computer-assisted crime. Cellular-phone fraud
- alone cost companies $482 million last year, the cellular-phone industry
- estimates. [from the New York Times article]
-
- [I've always looked at the losses reported by the telecommunications
- industry with a bit of skepticism, and this is no exception...]
-
- The industry loses as much as $1 billion annually to cell-phone fraud,
- estimates suggest. [from the Wall Street Journal article]
-
- [...especially in light of how rapidly the number seems to grow!]
-
-
- The ``computer service,'' which led to the arrests of at least six suspected
- hackers and the possibility of more, is the latest indication that law
- enforcement agencies are being forced to try novel strategies to keep up with
- the startling growth in computer-assisted crime.
-
- Last January, a Secret Service special agent, Stacey Bauerschmidt, using the
- computer nickname Carder One, established a computer bulletin board that she
- called Celco 51.
-
- ``We consider this to be one of the most significant of the wireless fraud
- busts that have come down so far,'' said Michael T. Houghton, a spokesman for
- the Cellular Telecommunications Industry Association, a trade group. ``These
- guys took it another degree.''
-
- [After being in operation for nearly a year, and having attracted some of
- the brightest minds in the hacker community (there were around two-hundred
- users on Celco 51), they found six people who (allegedly, I might add)
- stepped over the line of legality. Bear in mind, that this was on a
- "private" BBS which was considered to be "secure" and "hacker-friendly".
- In other words, an environment where those inclined to partake in illicit
- activities would be likely to do so. I too consider these figures to be
- "most significant".]
-
- The disclosure of the investigation came a few days before the release of the
- film ``Hackers,'' a coincidence that was noted by Ms. Krappa, the assistant
- U.S. attorney.
-
- ``The movie industry will tend to glamorize these individuals, but they really
- do cause a lot of loss,'' she said. ``People look at them as errant children,
- that this is a joke, but it actually costs a lot, and that filters down to
- consumers.''
-
- [The movie industry has no need to glamorize "these individuals". The fact
- that the vast majority of "evil" hackers on Celco 51 were in fact not evil
- at all provides all the glamorization that is needed.]
-
- ------------------------------------------------------------------------------
-
- Now, some words from "Carder One" herself. These are actual messages
- from Carder One posted on Celco 51.
-
-
- - Area: celcodez------------------------------------------------------------
- Msg#: 3517 Date: 04-05-95 21:02
- From: Carder-one Read: Yes Replied: No
- To: ** All ** Mark:
- Subj: funz
- ----------------------------------------------------------------------------
- Just a few from my friend who gave me a shitload
-
- 917-859-4655 C3586A8C
- 917-855-3421 9D071C2B
- God this is funz...CARDER
-
- [I understand that in undercover operations, law enforcement officials are
- sometimes forced to do things that mirror the behavior of the "criminals"
- that they are trying to apprehend, but the Secret Service posting cellular
- esn/nam pairs to a bunch of suspected cell-phone-service-thieves is the
- equivalent of the D.E.A. handing out cocaine to dealers on the street.]
-
-
- - Area: codez------------------------------------------------------------
- Msg#: 104 Date: 02-03-95 16:22
- From: Carder-one Read: Yes Replied: No
- To: Mark:
- Subj: cardz
- -------------------------------------------------------------------------
- I am in the market for some new cards specific being Amex with some
- identifier info. If you can provide hit me up and we will workout
- a deal. Give me an e-mail and we will talk in teleconf. CARDER-ONE
-
-
- [Carder One...buying.]
-
- - Area: codez------------------------------------------------------------
- Msg#: 784 Date: 02-13-95 21:22
- From: Carder-one Read: Yes Replied: No
- To: Mark:
- Subj: cardz
- -------------------------------------------------------------------------
- hey I got some new Atts up fur trade.Hit me up in an E-mail CARDER.
-
-
- [Carder One...selling.]
-
- - Area: codez------------------------------------------------------------
- Msg#: 2057 Date: 03-07-95 22:33
- From: Carder-one Read: Yes Replied: No
- To: ** All ** Mark:
- Subj: hey
- -------------------------------------------------------------------------
- im in a bit of a pick....i need some at&t cards for a friend in Italy
- if ya got some around since he pesters the shit outa me if he cant
- call...if ya can deal hit me up and well we can deal.....
-
- [...and buying again.]
-
-
- - Area: INTER------------------------------------------------------------
- Msg#: 2362 Date: 03-14-95 23:46
- From: Carder-one Read: Yes Replied: No
- To: ** All ** Mark:
- Subj: AT&T
- -------------------------------------------------------------------------
- If you need I can get...in exchange f course...leave me mail here if
- your not on IRC....later CARDER
-
- [...and selling again. Perhaps these types of messages are the sort of thing
- you might expect to see on an "underground" BBS. It is certainly the sort
- of thing that the Secret Service expected to see. They must have been quite
- disappointed, since Carder's were the only posts of this nature...]
-
-
-
- - Area: codez------------------------------------------------------------
- Msg#: 467 Date: 02-10-95 21:27
- From: Sysop Read: Yes Replied: No
- To: Mark:
- Subj: cardz
- -------------------------------------------------------------------------
- All you guys going on about cards... we haven't seen any samples
- floating around here... lets ee sum so *I* can see if any of them
- are any good for me.. i need another computer...
-
- shame u can't card phone lines... 8)
-
- [...except when the sysop jumped in. It is fortunate that the Secret
- Service was wrong about the people who would frequent a BBS such as
- Celco 51. There was a lot of information, not just in the message areas,
- but in the file bases as well, that could have been very valuable to
- a person interested in committing the sort of crimes that the Secret
- Service predicted they would want to commit. I find it interesting that
- the Secret Service went to such great lengths to facilitate such criminal
- endeavors. In closing, I offer a couple of messages from users who are
- far more representative of the hacking community than the government or
- the media realizes:]
-
-
- - Area: celprog------------------------------------------------------------
- Msg#: 2658 Date: 03-18-95 15:27
- From: Read: Yes Replied: No
- To: Mark:
- Subj:
- ---------------------------------------------------------------------------
-
- Well, I don't hate you. I prefer more of the 'behind the scenes' info,
- ie. Switching. It's just that so many people are cloning these days, the
- sad thing is that it is so easy, to do, and in my opinion get caught.
- Why not explore something that is unexplored, instead of buying a cable
- and software and cloning a phone, what a challenge! (joke) That is what
- 80% of the so called cellular 'hackers' do, buy most of their shit,
- clone a phone, and boom, they label themselves hackers. I guess a name
- can be deceiving.
-
-
- - Area: celprog------------------------------------------------------------
- Msg#: 688 Date: 02-12-95 15:45
- From: Read: Yes Replied: No
- To: Mark:
- Subj:
- ---------------------------------------------------------------------------
- it seams to me that you even though i don't have a cellular, i have
- read a lot of cell docs etc, i find the technology itself really
- interesting... how it all works..
-
- [There it is. I hope that any aspiring hackers will keep in mind that hacking
- is not about fraud, theft, or destruction. It is about a person learning
- about cellular phone technology, a person who doesn't even own a cellular
- phone. And I hope that those without any interest in hacking themselves
- will keep this in mind the next time they read "the evil hackers", and
- realize that it is quite likely that they are not reading the whole story.
- As for the people who were busted as a result of the Celco 51 sting, well,
- I wish them all the best, bearing in mind that they are innocent until
- proven guilty. Should it come to pass that they are found guilty, I hope
- that others will not recognize them as "hackers", but rather, as people
- who were willing to commit shady deals with somebody with a nick as lame
- as "Carder One". Finally, I hope that the government can, as soon as they
- are through patting themselves on the back, realize that they worked very
- hard, for a very long time, with some rather negligible results.
-
-
- ``If they are selling the stuff in cyberspace, law enforcement has to be
- willing to go there,'' said Donna Krappa, an assistant U.S. attorney in Newark,
-
- I wholeheartedly agree, and I submit that if Celco 51 is any example of the
- degree of lawlessness to be found in cyberspace, that law enforcement has to
- be equally willing to go elsewhere.
-
-
- Major
-
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