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- ==Phrack Inc.==
-
- Volume One, Issue Six, Phile #12 of 13
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- *-=+^ Phrack World News ^+=-*
-
- Issue Five/Part 4
-
- Compiled and Written By
-
- Knight Lightning
-
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-
- Grown-Up Laws Sought For Computer Criminals
- -------------------------------------------
- By Dave Skidmore (Associated Press)
-
- WASHINGTON-Teen-age computer hackers are giving way to a new generation of
- people who steal information from computers for profit rather than fun, the
- head of a House crime panel said Wednesday.
-
- "The hackers were the first generation we saw. Now we have a lot of
- professionals who are getting into the business of accessing computer data
- bases," said Rep. William J. Hughes, D-N.J. [609/645-7957 or 202/225-6572], the
- sponsor of legislation aimed at helping law enforcement authorities better cope
- with the problem.
-
- Hughes commented as the House subcommittee on crime, which he heads, studied
- the proposed Computer Fraud and Abuse Act.
-
- Teen-age computer hobbyists, motivated fun and desire for status among fellow
- hobbyists, use home computers and the telephone to "hack" into government and
- industry data bases.
-
- Now, Hughes said, hackers' techniques are being increasingly used by
- industrial spies who sell trade secrets gleaned from corporate computers and
- thieves who change bank records to steal millions of dollars.
-
- "Computer crime is probably one of the fastest growing areas of crime. (It's)
- going to make the old robbery and burglary a little passe with certain
- professionals," he said.
-
- Hughes' bill, cosponsored by Reps. Bill McCollum, R-Fla [202/225-2176], and
- Bill Nelson, D-Fla [202/225-3671], creates three new offenses.
-
- 1. It forbids unauthorized access to a computer and drops a requirement that
- the government prove information in the computer was used or altered.
-
- 2. It outlaws "pirate bulletin boards" used by hackers to trade secret computer
- codes and passwords.
-
- 3. It makes it a felony punishable by up to five years in prison and a $250,000
- fine to maliciously cause damage in excess of $1,000 to a computer program
- or data base.
-
- That section of the bill would apply to so-called "Trojan Horse" programs
- which, when achieving access to another computer, destroy all the data and
- programs in that computer.
-
- The legislation is intended to plug loopholes in anti-crime legislation
- passed by Congress in 1984, Hughes said. It applies to computers used by the
- federal government or its contractors and bank and loan association computers.
-
- Hughes said he expected his bill and similar legislations sponsored by Sen.
- Paul S. Trible Jr., R-Va [804/771-2221 or 202/224-4024], to reach the House
- and Senate floors sometime in May.
-
- Information Provided by Blue Buccaneer
- -------------------------------------------------------------------------------
- The following is a critical breakdown of the above article.
- -------------------------------------------------------------------------------
- Blue Buccaneer:
-
- Concerning this law: I always thought it would be more fun to hack for cash,
- but hey... Anyway, the three new offenses are what I am not to fond of:
-
- 1) "forbids unauthorized access to a computer" (Gosh, really?) "and drops a
- requirement that the government prove information in a computer was used or
- altered" Now what kinda law is that?! The government can just arrest
- someone and not have to prove anything? COME ON!
-
- 2) "It outlaws 'pirate BBSes'" When will these people learn the correct
- terminology? Pirates trade warezzzz, not 'secret passwords and codes'. The
- point is, that because this is a federal law, it will apply to all states.
- We aren't talking pussy-laws anymore. Wouldn't it be damn awful if just
- running the stupid BBS was a crime? Besides that, I thought we had a right
- to freedom of the press. Again, COME ON!
-
- 3) "and a $250,000 fine to maliciously cause damage in excess of $1000 to a
- computer program or data base". Excuse me for asking, but can one
- "maliciously" destroy data? And isn't a quarter of a million dollars a bit
- much for a teen-ager on a regular allowance? And that much for $1000
- damage? Shit, I wish my insurance company paid like that when I wreck my
- car. Once again, COME ON!
-
- And then, I guess this is the journalist's fault, but what the hell does that
- paragraph on Trojan Horses have to do with this shit? I mean really! Do you
- think Joe Blow in the street is going to go: "Whew, for a minute there I was
- afraid that new bill might just skip over those Trojan Horse things." I'd
- kinda assume Trojan Horses were covered under the "maliciously" destroying
- data rule.
- Above written by Blue Buccaneer
- _______________________________________________________________________________
-
- Computer Kids, Or Criminals?
- ----------------------------
- Mr. Slippery, age 12, never thought playing on his home computer amounted to
- much more than harmless fun -- until a mysterious call from a stranger one day
- proved otherwise. "I got a funny phone call from someone offering me money to
- destroy a bank's records," said Slippery, identified by his hacker alias. "At
- that point in time, I realized that that's an incredible way to launder money.
- That if I was real smart, I would move out of the whole thing, because that was
- an obvious point at organized crime, to me."
-
- Hacking, or using a personal computer to trespass by phone lines into the
- private computer systems of corporations, foundations, universities and banks,
- is a new form of organized crime, say experts. In the last year or two, a new,
- sophisticated breed of hacker has emerged. Their ages vary, from the early
- hackers who started at 14, and have now entered college, to adults who operate
- computerized crime networks, but their motives are similar: criminal.
-
- When Mr. Slippery started hacking seven years ago he as an exception among
- pimply faced, curious kids whose computers were toys for cheap, and typically
- harmless, thrills. For four years, he lived up to his alias, eventually
- penetrating top security government computers at the Department of Defense
- (DOD) and the National Security Agency (NSA). Mr. Slippery remained undetected
- until his last several weeks as a hacker. He was never caught, never
- convicted. Toward the end, he realized government security agents were
- following him and decided to put away his phone modem for good.
-
- "After about four years of this, though, I started realizing that an entirely
- new crowd had sprung up," observes Mr. Slippery, now a 19-year-old ex-hacker.
- "You now have the 14 year olds who were running around destroying things seeing
- how much trouble they could cause." Computer crime experts say the hacker
- problem is getting worse, even though industries are increasingly reluctant to
- discuss the topic. "The malicious hacker problem is continuing to increase
- drastically and is getting far more serious," said Donn B. Parker, author of
- Fighting Computer Crime and a computer and data security consultant at SRI
- International, a California-based, non-profit research institute.
-
- "The lowering costs of equipment, the attraction of it for new kids coming into
- it as a rite of passage, points to increasing vulnerability of American
- business to the hacker problem." Parker's expertise got him hired as a
- technical consultant to the movie War Games about two teen-age hackers who
- penetrate government defense computers. Where there is evidence of serious
- computer hacker crime is on electronic bulletin board systems (BBSes), where
- hackers share gathered intelligence. "Phone companies have huge investments
- in their equipment that is highly vulnerable to the hackers, who have figured
- out how to beat them, and have used pirate boards for their intelligence
- purposes," said SRI International's Parker.
-
- "A large proportion of these kids are, in fact, juvenile delinquents with other
- arrest records." Recently, a hacker posted this on a local BBS:
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- I live in Cleveland and the Pheds are fucking everywhere. This guy who goes by
- the alias Lou Zer got caught and they told him if he narced on like 5 people he
- would get off with probation so he did that. Now like half the 2300 club has
- been busted and this kid has a lot of problems in the future. Also I have seen
- cops that I know of dressed as fucking federal express guys. Try and avoid
- using them. Also, here's some PBXs to fuck with. They belong to Standard Oil.
-
- --Later, Sir Gallahad
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- Other BBSs post lists of telephone numbers of Fortune 1000 corporations, banks,
- credit bureaus, universities, and foundations.
-
- Admittedly, many of the numbers are invalid, say experts. Though there are
- BBSes that admit members only by invitation and operate as part of a computer
- underground, others can be accessed by anyone with a computer and a phone
- modem. Often the boards carry foreboding names like The Sanctuary, Future
- World, Dark Side, Deathtrap and Speed Demon Elite. Computer crime is sometimes
- called the perfect crime. Its perpetrators are anonymous hackers using aliases
- like Phantom Phreaker, Big Brother, Bootleg, Sigmund Fraud, and Scan Man.
-
- John Maxfield is a computer security consultant who lives in a downriver
- suburb. Maxfield spends most of his working hours scanning BBSs, and is known
- by computer crime experts as a hacker tracker. His investigative work scanning
- boards has resulted in more prosecutions of computer hackers than anyone else
- in the field, say sources familiar with his work. Maxfield, who accepts death
- threats and other scare tactics as part of the job, says the trick is knowing
- the enemy. Next to his monstrous, homemade computer system, Maxfield boasts
- the only file on computer hackers that exists. It contains several thousand
- aliases used by hackers, many followed by their real names and home phone
- numbers. All of it is the result of four years of steady hacker-tracking, says
- Maxfield. "I've achieved what most hackers would dearly love to achieve," said
- Maxfield. "Hacking the hacker is the ultimate hack."
-
- Maxfield estimates there are currently 50,000 hackers operating in the computer
- underground and close to 1,000 underground bulletin boards. Of these, he
- estimates about 200 bulletin boards are "nasty," posting credit card numbers,
- phone numbers of Fortune 500 corporations, regional phone companies, banks, and
- even authored tutorials on how to make bombs and explosives. One growing camp
- of serious hackers is college students, who typically started hacking at 14 and
- are now into drug trafficking, mainly LSD and cocaine, said Maxfield. This is
- an example of a recent BBS posting:
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- WANTED: LSD, of any kind. Leave me mail if you're willing to talk prices, I'll
- take anything up to $5 a hit. $3 is more likely.
-
- --urlord
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- The BBSs are versatile teaching tools, too. Hackers post detailed tutorials
- on:
-
- HACKING: Using a personal computer and modem to trespass into the private
- computer systems of corporations, foundations, universities, and
- banks.
-
- CARDING: Using valid credit card numbers obtained from discarded carbons,
- accounts posted at video rental stores, or even by hacking credit
- bureau computers.
-
- TRASHING: Sifting through trash to find discarded credit card carbons,
- receipts, computer passwords, code words, confidential phone company
- directories.
-
- PHREAKING or FONING: Manipulating phone systems, usually to make
- long-distance calls at no charge.
- -------------------------------------------------------------------------------
- Below is an excerpt from a four-part tutorial on credit card fraud posted on an
- exclusive East Coast BBS for elite advanced hackers:
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- Carding! By Music Major. Believe it or not, without carding, a damper would be
- put on the computer users of America (and especially Canada). Can you imagine
- trying to save enough money to BUY a 2400 baud modem and a 30 meg drive for a
- BBS? Oh, of course it can be done, but considering that a majority of the
- active computer users are still in school, and most do not have a steady job,
- it will take too long, and cost too much for this average person to spend on a
- BBS. Working at minimum wage at a part-time job, it would take 30 weeks of
- CONSTANT saving to put up the BBS (with good modem and good drive). Not a
- pretty thought! When the going gets tough, the tough go carding!
-
- Music Major goes into more detail on later, he warns younger hackers about the
- possible risks of trying a method he claims he invented: "I have called this
- method foning for cards. To be convincing, you MUST have a fluent tongue and a
- semi-deep voice (skip this part if your voice is still cracking--refer back
- when you get a real voice)."
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- Maxfield's operation is called BoardScan. He is paid by major corporations and
- institutions to gather and provide them with pertinent intelligence about the
- computer underground. Maxfield also relies on reformed hackers. Letters of
- thanks from VISA and McDonald's decorate a wall in his office along with an
- autographed photo of Scottie, the engineer on Star Trek's Starship Enterprise.
-
- Often he contacts potential clients about business. "More often I call them
- and say, I've detected a hacker in your system," said Maxfield. "At that
- point, they're firmly entrenched. Once the hackers get into your computer,
- you're in trouble. It's analogous to having roaches or mice in the walls of
- your house. They don't make their presence known at first. But one day you
- open the refrigerator door and a handful of roaches drop out."
-
- Prior to tracking hackers, Maxfield worked for 20-odd years in the hardware end
- of the business, installing and repairing computers and phone systems. When
- the FBI recruited him a few years back to work undercover as a hacker and phone
- phreak, Maxfield concluded fighting hacker crime must be his mission in life.
-
- "So I became the hacker I was always afraid I would become," he said. Maxfield
- believes the hacker problem is growing more serious. He estimates there were
- just 400 to 500 hackers in 1982. Every two years, he says, the numbers
- increase by a factor of 10. Another worrisome trend to emerge recently is the
- presence of adult computer hackers. Some adults in the computer underground
- pose as Fagans, a character from a Charles Dickens novel who ran a crime ring
- of young boys, luring young hackers to their underground crime rings.
-
- Courtesy of Galaxy Girl and Silicon Thief
- Major Editing by Knight Lightning
- Written by Lisa Olson (News Staff Writer for Detroit News)
- -------------------------------------------------------------------------------
- A few notes: It is my assumption that Music Major's Carding Tutorial was
- from KL actually four posts made on the Carding Subboard on Stronghold
- ------- East. If this is true then it would mean that at the time or
- previous to the time of this article Maxfield was on SE. This
- post was probably taken in before the MASSIVE user purge on
- Stronghold East.
- _______________________________________________________________________________
-
-
-