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- THE SYNDICATE REPORT
- Bell Information Transmittal No. 9
-
-
- Released February 16, 1987
- Featuring:
-
- 911 Charge Fee (m am 12\1)
-
- AT&T Rates Chopped (m am 12\1)
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- TSPS Justice (n wk 12\1)
-
- Cloning Experiment Avoids Havoc For Bell Companies (n wk 12\1)
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- Computer History Stickups (cmt usr 12\5)
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- SONAR To Speed Up Order Process (n wk 12\7)
-
-
- by The Sensei
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-
- Exposition:
-
- The Syndicate Report now excepts outside sources. Anyone can write/provide
- information to the Syndicate Report. The Syndicate Report is also altering
- format. Rather than concentrating mainly on BELL orientated information,
- the Syndicate Report now has a more broad interest. Thus, TSR now handles
- all types of news gatherings.
-
- All articles have been presented by me unless shown at the end of the
- article as the information provider(s).
-
- The Syndicate Report is about 2 months late due to computer problems. The
- actual release date was scheduled at Dec 28 '86. Sorry for the late issue.
- Other matters force me to hold off on producing the report, so if you don't
- see the report next month...most likely I stopped publishing.
-
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- 911 CHARGE FEE:
-
- When the legislature passed the omnibus "garbage" bill last
- session, few reports noticed a measure to fund 911 telephone service in states.
- Starting January '86 most of all telephone customers will be assessed a monthly
- 911 service fee of 14 cents on each access line, trunk, or trunk equivalency.
- More than 80 percent of the state's population has 911 emergency calling
- capability but the fee will be charged on all phone lines in the state. The
- fee will be collected by phone companies each month and paid to the state of
- each state. The state will use the money to pay the companies cost of 911
- telephone lines. That cost is estimated to be 3.5$ million per year. The
- law does not provide for reimbursement to phone companies for the cost of
- collecting the fee.
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- AT&T RATES CHOPPED:
-
- AT&T long distance rates are expected to drop an additional 8.1 percent
- January 1 if the FCC approves the company's filing of last month. The
- proposed reduction, the second in a year and the fourth in three years, would
- save customers 1.2$ billion. The 8 am - 5 am calling period rates would drop
- the most, benefitting daytime callers including large number of business
- customers. MCI and Sprint have indicated they would keep their rates
- competitive, but industry observers say it will be a tight squeeze.
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- TSPS JUSTICE:
-
- The Justice Department last month filed a court briefing supporting
- a proposal that would allow the former Bell companies to provide certain
- TSPS operator services for interLATA calls.
- The proposal has been opposed by AT&T, MCI and U S Sprint, which have
- sought a ruling that the Concent Decree prohibits the Bell Companies from
- providing such services.
- The services in question include providing conference call arrangements,
- emergency assistance, billing for operator-handled calls, and time and
- charges information.
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- CLONING EXPERIMENT AVOIDS HAVOC FOR BELL COMPANIES:
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- Computers in the Network Simulation Lab at Bell Communications
- Research are into cloning. They create clones of voiceband networks at
- the Bell operating companies to find out how proposed changes and improve-
- ments will affect customers' data transmission through modems. By simulating
- network impairments such as echo, the lab can determine whether proposed
- changes will cause digital errors -- before the companies invest in changes.
- Bell Research, the nation's largest research and engineering consortium,
- is jointly owned by the operating companies of the seven Bell regions.
-
-
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- COMPUTER HISTORY STICKUPS:
-
- The run-of-the-mill bank robber nets 20,000$. If caught, the thief
- has a 90 percent chance of being prosecuted and, if convicted, will be jailed
- for five years. A swindler who pulls off an electronic funds transfer nets an
- average of 500.000$, has a 15 percent chance of persecution, and, if convicted,
- faces only five months behind bars.
-
- Computer Crime is relatively new -- so new that the FBI only began
- keeping statistics in 1974. Today, though, the FBI has developed several
- computer-fraud training programs, including its challenging four-weeks at the
- FBI Academy in Virginia.
- You might say computer crime began as a nickel-and-dime operation.
- In 1967, a New York bank employee used the institution's computer to shave
- fractions of pennies from interest on long-term accounts. He wrote a program
- to deposit these fractions to his own account. After several years, he had
- ammassed over 200,000$.
- In the 1960s and early 1970s, such crimes were isolated. in the 1980s,
- computer crimes are not uncommon. A 1986 study conducted by Mercy University
- in Dobbs Ferry, N.Y., revealed that 56 percent of the Forbes 500 companies
- reported computer crime during 1985 with a combined total loss of 12,250,000$.
- A survey by an American Bar Association task force in 1984 estimated
- that businesses lose as much as 730$ million a year to computer crime. Other
- sources estimate the annual loss from such crimes may be as high as 3.5$
- billion. White-collar crime, which includes computer-aided theft, adds an
- estimated 15 percent to the cost of retail goods. But what has made computer
- crime such an alluring profession? Three technological advances have formed
- the Achilles' heel of business-computer systems:
-
- o Systems are more user friendly today than ever.
-
- o The number of computers has greatly increased
-
- o Unauthorized persons can access computers through phone lines
-
- As a result, perfect crimes are committed where it is impossible to
- identify the perpetrator. Super-perfect crimes occur because many
- organizations are unaware a crime has been committed. Movies such as War Games
- often portray young, brilliant computers users ("hackers") as the primary
- threats to business and government computer systems. Not so, Mercy University
- reports. Mercy University's studies revealed that almost two-thirds of
- discovered computer crimes were perpetrated from the inside by employees.
- Hackers commit no more than 20 percent of all computer crimes, 5 percent by
- other estimates. Usually computer criminals are knowledgeable programmers or
- employees who have been entrusted to access critical information. Mercy
- University states, "You don't have to be a computer wizard to steal using
- computers; you just have to have suffice access."
-
- The most understood motives for people who breach systems, violate
- someone else's privacy or sabotage a critical computer system is: Ego,
- Revenge, criminal/financial gain, irrational behavior and zealous causes. The
- first three are the most prevalent.
- Most computer criminals have never broken the law before but are tempted
- by the technological challenge. The typical computer hacker is an intelligent
- and introverted person who is a luser is social environments. The hacker's
- sense of unimportant and lack of self-worth feed the desire to achieve
- something worth bragging about. For an employee, designing the perfect
- computer crime is little more than a mental exercise, like solving a cross
- word puzzle.
- In 1983, government computer personnel -- unhappy about mandatory
- layoffs -- made unauthorized changes in computer programs so that payroll
- checks continued to be sent to some of the terminated employees.
- The more ingenious revenge methods include computer viruses, which
- gradually alter and disrupt other computer programs and systems, and
- programming bombs, which will, at a predetermined time or number of runs,
- erase a company's data or destroy its master programs. More subtly, it
- may cause virtually invincible but deadly changes to data bases.
-
- An example of a sophisticated computer crime is the Rifkin case in 1978,
- where consultant Mark Rifkin robbed a California bank of 10.2$ million. All
- he required was one phone call, a code number and an assumed name. Although
- the crime was perfect, Rifkin was caught by the FBI because of his loose
- tongue, rather than by the bank's computer safeguards. In fact, Security
- Pacific National Bank was unaware the funds were missing until the FBI notified
- bank officials.
-
- Last summer, the U.S. House of Representatives toughed existing
- computer-crime legislation. H.R. 4718, the Computer Crime and Abuse Act of
- 1986, would establish three federal crimes for computer fraud, destruction
- and password trafficking. Three areas were strengthened:
-
- o It would make is a felony, punishable by five years in prison, to trespass
- into a "Federal-Interest computer" with an intent to defraud. A Federal-
- Interest computer is defined as any computer used exclusively by the federal
- government, financial institutions or one of a group of computers located in
- different states.
-
- o It also would make it a five-year felony to cause damage of 1000$ or more
- by altering information or preventing access to federal-interest computer.
-
- o It would make it a misdemeanor to display computer passwords. This
- provision is designed to discourage private pirate bulletin boards, in which
- hackers exchange secret codes to gain unauthorized access to computers.
-
- The Senate Judiciary Committee, by voice vote, approved a similar
- measure, S. 2281.
-
-
- ::::::::::::::::::::Information provided by The Mercenal::::::::::::::::::::
-
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- SONAR TO SPEED UP ORDER PROCESS:
-
- When a customer of Bell calls to order service, it's been customary
- for a service representative, pen in hand, to jot down order information.
- It's passed an order typist for final entry.
- A new system called SONAR (Service Order Negotiation and Retrieval) is
- changing all that. SONAR was introduced earlier this month to service reps.
- all over the nation to Old Mill Account Center. Decisions were made and
- Business Service Centers will cut over to the new system on January 20.
- Project manager Rick Wilson says all Bell Service Centers will have
- SONAR within the next six months. At that point, 85 percent of all residence
- service orders will be on the system. This new technique will create a
- service order without having it touch human hands. And greatly reduce the
- chance for errors...and speed the order process.
- Mountain Bell began using the system in August and Pacific Bell will
- switch to it in the third quarter of next year, NWB Reports.
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- If there is any question to the information in this file, contact the
- author. Now can be found on the Private Sector 20 Meg, 3/1200 baud
- system at (201) 366-4431 (2600 Magazine Bulletin Board).
-
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- This concludes this transmittal No. 9 provided by:
-
- The Sensei of The Syndicate Report
-
- Released February 16, 1987
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