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- ==Phrack Inc.==
-
- Volume Three, Issue Thirty-Three, File 13 of 13
-
- PWN PWN PWN PWN PWN PWN PWN PWN PWN PWN PWN PWN PWN
- PWN PWN
- PWN Phrack World News PWN
- PWN PWN
- PWN Issue XXXIII / Part Three PWN
- PWN PWN
- PWN Compiled by Dispater PWN
- PWN PWN
- PWN PWN PWN PWN PWN PWN PWN PWN PWN PWN PWN PWN PWN
-
-
- Pentagon Welcomes Hackers! September 9, 1991
- ~~~~~~~~~~~~~~~~~~~~~~~~~~
- From USA Today
-
- The FBI is investigating an Israeli teen's claim that he broke into a
- Pentagon computer during the gulf war. An Israeli newspaper Sunday identified
- the hacker as Deri Shraibman, 18. He was arrested in Jerusalem Friday but
- released without being charged. Yedhiot Ahronot said Shraibman read secret
- information on the Patriot missle -- used for the first time in the war to
- destroy Iraq's Scud missles in midflight.
- "Nowhere did it say 'no entry allowed'," Shraibman was quoted as telli
- police. "It just said 'Welcome.'" The Pentagon's response: It takes
- "computer security very seriously," spokesman Air Force Capt. Sam Grizzle said
- Sunday. Analysts say it isn't the first time military computers have been
- entered. "No system of safeguards exists ... that is 100% secure," says Alan
- Sabrosky, professor at Rhodes College in Memphis.
- _______________________________________________________________________________
-
- Telesphere Sued By Creditors; Forced Into Bankruptcy
- ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
- Compiled from Telecom Digest (comp.dcom.telecom)
-
- On Monday, August 19, Telesphere Communications, Inc. was sued by a group
- of ten creditors who claim the company best known for its 900 service isn't
- paying its bills. The group of creditors, all information providers using 900
- lines provided through Telesphere claim they are owed two million dollars in
- total for services rendered through their party lines, sports reports,
- horoscopes, sexual conversation lines and other services. They claim
- Telesphere has not paid them their commissions due for several months. The
- group of creditors filed in U.S. Bankruptcy Court in Maryland asking that an
- Involuntary Chapter 7 bankruptcy (meaning, liquidation of the company and
- distribution of all assets to creditors) be started against Telesphere.
-
- The company said it will fight the effort by creditors to force it into
- bankruptcy. A spokesperson also said the company has already settled with more
- than 50 percent of its information providers who are owed money. Telesphere
- admitted it had a serious cash flow problem, but said this was due to the large
- number of uncollectible bills the local telephone companies are charging back
- to them. When end-users of 900 services do not pay the local telco, the telco
- in turn does not pay the 900 carrier -- in this case Telesphere -- and the
- information provider is charged for the call from a reserve each is required to
- maintain.
-
- But the information providers dispute the extent of the uncollectible
- charges. They claim Telesphere has never adequately documented the charges
- placed against them (the information providers) month after month. In at least
- one instance, an information provider filed suit against an end-user for
- non-payment only to find out through deposition that the user HAD paid his
- local telco, and the local telco HAD in turn paid Telesphere. The information
- providers allege in their action against the company that Telesphere was in
- fact paid for many items charged to them as uncollectible, "and apparently are
- using the money to finance other aspects of their operation at the expense of
- one segment of their creditors; namely the information providers..."
- Telesphere denied these allegations.
-
- Formerly based here in the Chicago area (in Oak Brook, IL), Telesphere is
- now based in Rockville, MD.
- ______________________________________________________________________________
-
- Theft of Telephone Service From Corporations Is Surging August 28, 1991
- ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
- by Edmund L. Andrews (New York Times)
-
- "It is by far the largest segment of communications fraud," said Rami
- Abuhamdeh, an independent consultant and until recently executive director of
- the Communications Fraud Control Association in McLean, Va. "You have all
- this equipment just waiting to answer your calls, and it is being run by people
- who are not in the business of securing telecommunications."
-
- Mitsubishi International Corp. reported losing $430,000 last summer,
- mostly from calls to Egypt and Pakistan. Procter & Gamble Co. lost $300,000 in
- l988. The New York City Human Resources Administration lost $529,000 in l987.
- And the Secret Service, which investigates such telephone crime, says it is now
- receiving three to four formal complaints every week, and is adding more
- telephone specialists.
-
- In its only ruling on the issue thus far, the Federal Communications
- Commission decided in May that the long-distance carrier was entitled to
- collect the bill for illegal calls from the company that was victimized. In
- the closely watched Mitsubishi case filed in June, the company sued AT&T for
- $10 million in the U.S. District Court in Manhattan, arguing that not only had
- it made the equipment through which outsiders entered Mitsubishi's phone
- system, but that AT&T, the maker of the switching equipment, had also been paid
- to maintain the equipment.
-
- For smaller companies, with fewer resources than Mitsubishi, the problems
- can be financially overwhelming. For example, WRL Group, a small software
- development company in Arlington, Va., found itself charged for 5,470 calls
- it did not make this spring after it installed a toll-free 800 telephone
- number and a voice mail recording system machine to receive incoming calls.
- Within three weeks, the intruders had run up a bill of $106,776 to US
- Sprint, a United Telecommunications unit.
-
- In the past, long-distance carriers bore most of the cost, since the
- thefts were attributed to weaknesses in their networks. But now, the phone
- companies are arguing that the customers should be liable for the cost of
- the calls, because they failed to take proper security precautions on their
- equipment.
-
- Consumertronics, a mail order company in Alamogordo, N.M., sells brochures
- for $29 that describe the general principles of voice mail hacking and
- the particular weaknesses of different models. Included in the brochure is a
- list of 800 numbers along with the kind of voice mail systems to which they are
- connected. "It's for educational purposes," said the company's owner, John
- Williams, adding that he accepts Mastercard and Visa. Similar insights can be
- obtained from "2600 Magazine", a quarterly publication devoted to telephone
- hacking that is published in Middle Island, N.Y.
- ______________________________________________________________________________
-
- Proctor & Gamble August 22, 1991
- ~~~~~~~~~~~~~~~~
- Compiled from Telecom Digest
-
- On 8-12-91, the "Wall Street Journal" published a front page story on an
- investigation by Cincinnati police of phone records following a request by
- Procter & Gamble Co. to determine who might have furnished inside information
- to the "Wall Street Journal". The information, ostensibly published between
- March 1st and June 10th, 1991, prompted P&G to seek action under Ohio's Trade
- Secrets Law. In respect to a possible violation of this law, a Grand Jury
- issued a subpoena for records of certain phone calls placed to the Pittsburgh
- offices of the "Wall Street Journal" from the Cincinnati area, and to the
- residence of a "Wall Street Journal" reporter. By way of context, the
- Pittsburgh offices of the "Wall Street Journal" allegedly were of interest in
- that Journal reporter Alecia Swasy was principally responsible for covering
- Procter & Gamble, and worked out of the Pittsburgh office.
-
- On 8-13-91, CompuServe subscriber Ryck Bird Lent related the Journal story
- to other members of CompuServe's TELECOM.ISSUES SIG. He issued the following
- query:
-
- "Presumably, the records only show that calls were placed between
- two numbers, there's no content available for inspection. But
- what if CB had voice mail services? And what if the phone number
- investigations lead to online service gateways (MCI MAil, CIS),
- are those also subject to subpoena?"
-
- At the time of Mr. Lent's post, it was known that the "Wall Street
- Journal" had alleged a large amount of phone company records had been provided
- by Cincinnati Bell to local police. An exact figure did not appear in Lent's
- comments. Thus, I can't be certain if the Journal published any such specific
- data on 8-12-91 until I see the article in question.
-
- On 8-14-91, the Journal published further details on the police
- investigation into possible violation of the Ohio Trade Secrets Law. The
- Journal then asserted that a Grand Jury subpoena was issued and used by the
- Cincinnati Police to order Cincinnati Bell to turn over phone records spanning
- a 15-week period of time, covering 40 million calls placed from the 655 and 257
- prefixes in the 513 area code. The subpoena was issued, according to the "Wall
- Street Journal", only four working days after a June 10th, 1991 article on
- problems in P&G's food and beverage markets.
-
- Wednesday [8-14-91], the Associated Press reported that P&G expected no
- charges to be filed under the police investigation into possible violations of
- the Ohio Trade Secrets Law. P&G spokesperson Terry Loftus was quoted to say:
- "It did not produce any results and is in fact winding down". Lotus went on to
- explain that the company happened to "conduct an internal investigation which
- turned up nothing. That was our first step. After we completed that internal
- investigation, we decided to turn it over to the Cincinnati Police Department".
-
- Attempts to contact Gary Armstrong, the principal police officer in charge
- of the P&G investigation, by the Associated Press prior to 8-14-91 were
- unsuccessful. No one else in the Cincinnati Police Department would provide
- comment to AP.
-
- On 8-15-91, the Associated Press provided a summary of what appeared in
- the 8-14-91 edition of the "Wall Street Journal" on the P&G investigation. In
- addition to AP's summary of the 8-14-91 Journal article, AP also quoted another
- P&G spokesperson -- Sydney McHugh. Ms. McHugh more or less repeated Loftus'
- 8-13-91 statement with the following comments: "We advised the local Cincinnati
- Police Department of the matter because we thought it was possible that a crime
- had been committed in violation of Ohio law. They decided to conduct an
- independent investigation."
-
- Subsequent to the 8-14-91 article in the Journal, AP had once again
- attempted to reach Officer Gary Armstrong with no success. Prosecutor Arthur
- M. Ney has an unpublished home phone number and was therefore unavailable for
- comment on Wednesday evening [08-14-91], according to AP.
-
- In the past few weeks, much has appeared in the press concerning
- allegations that P&G, a local grand jury, and/or Cincinnati Police have found a
- "novel" way to circumvent the First Amendment to the U.S. Constitution. In its
- 8-15-91 summary of the 8-14-91 Journal article, AP quoted Cincinnati attorney
- Robert Newman -- specializing in First Amendment issues -- as asserting:
- "There's no reason for the subpoena to be this broad. It's cause for alarm".
- Newman also offered the notion that: "P&G doesn't have to intrude in the lives
- of P&G employees, let alone everyone else".
-
- The same AP story references Cincinnati's American Civil Liberties
- Union Regional Coordinator, Jim Rogers, similarly commenting that: "The
- subpoena is invasive for anyone in the 513 area code. If I called "The Wall
- Street Journal", what possible interest should P&G have in that?"
-
- In a later 8-18-91 AP story, Cleveland attorney David Marburger was quoted
- as observing that "what is troublesome is I just wonder if a small business in
- Cincinnati had the same problem, would law enforcement step in and help them
- out?" Marburger also added, "it's a surprise to me," referring to the nature
- of the police investigation.
-
- In response, Police Commander of Criminal Investigations, Heydon Thompson,
- told the Cincinnati Business Courier "Procter & Gamble is a newsmaker, but
- that's not the reason we are conducting this investigation." P&G spokesperson
- Terry Loftus responded to the notion P&G had over-reacted by pointing out: "We
- feel we're doing what we must do, and that's protect the shareholders. And
- when we believe a crime has been committed, to turn that information over to
- the police."
-
- Meanwhile, the {Cincinnati Post} published an editorial this past
- weekend -- describing the P&G request for a police investigation as "kind of
- like when the biggest guy in a pick-up basketball game cries foul because
- someone barely touches him." Finally, AP referenced what it termed "coziness"
- between the city of Cincinnati and P&G in its 8-18-91 piece. In order to
- support this notion of coziness, Cincinnati Mayor David Mann was quoted to say:
- "The tradition here, on anything in terms of civic or charitable initiative, is
- you get P&G on board and everybody else lines up." As one who lived near
- Cincinnati for eight years, I recall Procter & Gamble's relationship with
- Cincinnati as rather cozy indeed.
- _______________________________________________________________________________
-
- Hacker Charged in Australia August 13; 1991
- ~~~~~~~~~~~~~~~~~~~~~~~~~~~
- The Associated Press reports from Melbourne that Nahshon Even-Chaim, a
- 20-year old computer science student, is being charged in Melbourne's
- Magistrates' Court on charges of gaining unauthorized access to one of CSIRO's
- (Australia's government research institute) computers, and 47 counts of
- misusing Australia's Telecom phone system for unauthorized access to computers
- at various US institutions, including universities, NASA, Lawrence Livermore
- Labs, and Execucom Systems Corp. of Austin, Texas, where it is alleged he
- destroyed important files, including the only inventory of the company's
- assets. The prosecution says that the police recorded phone conversations in
- which Even-Chaim described some of his activities. No plea has been entered
- yet in the ongoing pre-trial proceedings.
-
- _______________________________________________________________________________
-
- Dial-a-Pope Catching on in the U.S. August 17, 1991
- ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
- From the Toronto Star
-
- The Vatican is reaching out to the world, but it looks as if Canada won't
- be heeding the call. In the U.S., if you dial a 900 number, you can get a
- daily spiritual pick-me-up from Pope John Paul II. The multilingual, Vatican
- -authorized service, affectionately known as Dial-a-Pope, is officially titled
- "Christian Messaging From the Vatican." A spokesman from Bell Canada says
- there is no such number in this country. But Des Burge, director of
- communications for the Archdiocese of Toronto, says he thinks the service, for
- which U.S. callers pay a fee, is a good way to help people feel more connected
- to the Pope. (Toronto Star)
- ______________________________________________________________________________
-
- PWN Quicknotes
- ~~~~~~~~~~~~~~
- 1. Agent Steal is sitting in a Texas jail awaiting trial for various crimes
- including credit card fraud and grand theft auto.
- _______________________________________________________________________________
-
- 2. Blue Adept is under investigation for allegedly breaking into several
- computer systems including Georgia Tech and NASA.
- _______________________________________________________________________________
-
- 3. Control C had his fingerprints, photographs, and a writing sample
- subpoenaed by a Federal Grandy Jury after Michigan Bell employees,
- and convicted members of the Legion of Doom (specifically The Leftist
- and the Urvile) gave testimony.
-
- Control C was formerly an employee of Michigan Bell in their security
- department until January 1990, when he was fired about the same time
- as the raids took place on Knight Lightning, Phiber Optic, and several
- others. Control C has not been charged with a crime, but the status
- of the case remains uncertain.
- _______________________________________________________________________________
-
- 4. Gail Thackeray, a special deputy attorney in Maricopa County in Arizona,
- has been appointed vice president at Gatekeeper Telecommunications Systems,
- Inc., a start-up in Dallas. Thackeray was one of the law enforcers working
- on Operation Sun-Devil, the much publicized state and federal crackdown on
- computer crime. Gatekeeper has developed a device that it claims is a
- foolproof defense against computer hackers. Thackeray said her leaving
- will have little impact on the investigation, but one law enforcer who
- asked not to be identified, said it is a sure sign the investigation in on
- the skids. (ComputerWorld, June 24, 1991, page 126)
- _______________________________________________________________________________
-
- 5. Tales Of The Silicon Woodsman -- Larry Welz, the notorious 1960s
- underground cartoonist, has gone cyberpunk. He recently devoted an entire
- issue of his new "Cherry" comice to the adventures of a hacker who gets
- swallowed by her computer and hacks her way through to the Land of Woz.
- (ComputerWorld, July 1, 1991, page 82)
- _______________________________________________________________________________
-
- 6. The Free Software Foundation (FSF), founded on the philosophy of free
- software and unrestricted access to computers has pulled some of its
- computers off the Internet after malicious hackers <MOD> repeatedly deleted
- the group's files. The FSF also closed the open accounts on the system to
- shut out the hackers who were using the system to ricochet into computers
- all over the Internet following several complaints from other Internet
- users. Richard Stallman, FSF director and noted old-time hacker, refused
- to go along with his employees -- although he did not overturn the decision
- -- and without password access has been regulated to using a stand-alone
- machine without telecom links to the outside world.
- (ComputerWorld, July 15, 1991, page 82)
- _______________________________________________________________________________
-
- 7. The heads of some Apple Macintosh user groups have received a letter from
- the FBI seeking their assistance in a child-kidnapping case. The FBI is
- querying the user group leaders to see if one of their members fits the
- description of a woman who is involved in a custody dispute. It's unclear
- why the FBI believes the fugitive is a Macintosh user.
- (ComputerWorld, July 29, 1991, page 90)
- _______________________________________________________________________________
-
- 8. Computer viruses that attack IBM PCs and compatibles are nearing a
- milestone of sorts. Within the next few months, the list of viruses will
- top 1,000 according to Klaus Brunnstein, a noted German computer virus
- expert. He has published a list of known malicious software for MS-DOS
- systems that includes 979 viruses and 19 trojans. In all, there are 998
- pieces of "malware," Brunnstein said.
- (ComputerWorld, July 29, 1991, page 90)
- _______________________________________________________________________________
-
- 9. High Noon on the Electronic Frontier -- This fall the Supreme Court of the
- United States may rule on the appealed conviction from U.S. v. Robert
- Tappan Morris. You might remember that Morris is the ex-Cornell student
- who accidentially shut down the Internet with a worm program. Morris is
- also featured in the book "Cyberpunk" by Katie Hafner and John Markoff.
- _______________________________________________________________________________
-
- 10. FBI's Computerized Criminal Histories -- There are still "major gaps in
- automation and record completness" in FBI and state criminal records
- systems, the Congressional Office of Technology has reported in a study on
- "Automated Record Checks of Firearm Purchasers: Issues and Options." In
- the report, OTA estimates that a system for complete and accurate "instant"
- name checks of state and federal criminal history records when a person
- buys a firearm would take several years and cost $200-$300 million. The
- FBI is still receiving dispositions (conviction, dismissal, not guilty,
- etc.) on only half of the 17,000 arrest records it enters into its system
- each day. Thus, "about half the arrests in the FBI's criminal history
- files ("Interstate Ident-ification Index" -- or "Triple I") are missing
- dispositions. The FBI finds it difficult to get these dispositions." The
- OTA said that Virginia has the closest thing to an instant records chck for
- gun purchasers. For every 100 purchasers, 94 are approved within 90
- seconds, but of the six who are disapproved, four or five prove to be based
- on bad information (a mix-up in names, a felony arrest that did not result
- in conviction, or a misdemeanor conviction that is not disqualifying for
- gun ownership) (62 pages, $3 from OTA, Washington, D.C. 20510-8025,
- 202/224-9241, or U.S. Government Printing Office, Stock No.052-003-01247-2,
- Washington, D.C. 20402-9325, 202/783-3238).
- (Privacy Journal, August 1991, page 3)
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- Founded in 1974, Privacy Journal is an independent monthly on privacy in the
- computer age. It reports in legislation, legal trends, new technology, and
- public attitudes affecting the confidentiality of information and the
- individual's right to privacy.
-
- Subscriptions are $98 per year ($125 overseas) and there are special
- discount rates for students and others. Telephone and mail orders accepted,
- credit cards accepted.
-
- Privacy Journal
- P.O. Box 28577
- Providence, Rhode Island 02908
- (401)274-7861
- _______________________________________________________________________________
-