AOH :: P10-08.TXT

Phrack World News 9 Part I


			       ==Phrack Inc.==

		     Volume Two, Issue Ten, Phile #8 of 9

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PWN			 <-=*} Phrack World News {*=->			    PWN
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PWN			       Issue IX/Part One			    PWN
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PWN		       Compiled, Written, and Edited by 		    PWN
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PWN			       Knight Lightning 			    PWN
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In PWN Issue Seven/Part One, we had an article entitled "Maxfield Strikes
Again."  It was about a system known as "THE BOARD" in the Detroit 313 NPA.
The number was 313-592-4143 and the newuser password was "HEL-N555,ELITE,3"
(then return).	It was kind of unique because it was run off of an HP2000
computer.  On August 20, 1986 the following message was seen on "THE BOARD."
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
		Welcome to MIKE WENDLAND'S I-TEAM sting board!
		   (Computer Services Provided By BOARDSCAN)
			     66 Megabytes Strong

			   300/1200 baud - 24 hours.

		      Three (3) lines = no busy signals!
			Rotary hunting on 313-534-0400.


Board:	 General Information & BBS's
Message: 41
Title:	 YOU'VE BEEN HAD!!!
To:	 ALL
From:	 HIGH TECH
Posted:   8/20/86 @ 12.08 hours

Greetings:

You are now on THE BOARD, a "sting" BBS operated by MIKE WENDLAND of the
WDIV-TV I-Team.  The purpose?  To demonstrate and document the extent of
criminal and potentially illegal hacking and telephone fraud activity by the
so-called "hacking community."

Thanks for your cooperation.  In the past month and a half, we've received all
sorts of information from you implicating many of you to credit card fraud,
telephone billing fraud, vandalism, and possible break-ins to government or
public safety computers.  And the beauty of this is we have your posts, your
E-Mail and--- most importantly ---your REAL names and addresses.

What are we going to do with it?  Stay tuned to News 4.  I plan a special
series of reports about our experiences with THE BOARD, which saw users check
in from coast-to-coast and Canada, users ranging in age from 12 to 48.	For our
regular users, I have been known as High Tech, among other ID's.  John Maxfield
of Boardscan served as our consultant and provided the HP2000 that this "sting"
ran on.  Through call forwarding and other conveniences made possible by
telephone technology, the BBS operated remotely here in the Detroit area.

When will our reports be ready?  In a few weeks.  We now will be contacting
many of you directly, talking with law enforcement and security agents from
credit card companies and the telephone services.

It should be a hell of a series.  Thanks for your help.  And don't bother
trying any harassment.	Remember, we've got YOUR real names.

Mike Wendland
The I-team
WDIV, Detroit, MI.
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This then is the result:

Phrack World News proudly presents...

		    Mike Wendland & the I-Team Investigate
			    "Electronic Gangsters"
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Carman Harlan:	Well we've all heard of computer hackers, those electronic
		gangsters who try to break into other people's computer
		systems.  Tonight on the first of a three part news 4 [WDIV-TV,
		Channel 4 in Detroit] extra, Mike Wendland and the I-Team will
		investigate how such computer antics jeopardize our privacy.
		Mike joins us now to tell us what at first may have been
		innocent fun may now be affecting our pocket books.

Mike Wendland:	Well Carman and Mort, thanks to the media and movies just about
		everyone knows about hackers and phone phreaks.  By hooking
		their Apples, their Ataris, and their Commodores into telephone
		lines these electronic enthusiasts have developed a new form of
		communication, the computer bulletin board.  There are probably
		10,000 of these message swapping boards around the country
		today, most are innocent and worthwhile.  There are an
		estimated 1,000 pirate or hacker boards where the main
		activities are electronic trespassing, and crime [Estimates
		provided by John Maxfield].

[Clipping From Wargames comes on]

		In movies like Wargames computer hackers are portrayed as
		innocent hobbyist explorers acting more out of mischief than
		malice.  But today a new generation of hackers have emerged.  A
		hacker that uses his knowledge of computers to commit crimes.
		Hackers have electronically broken into banks, ripped off
		telephone companies for millions of dollars, trafficked in
		stolen credit card numbers, and through there network of
		computer bulletin boards traded information on everything from
		making bombs to causing terrorism.

[Picture of John Maxfield comes on]

John Maxfield:	Well, now there are electronic gangsters, not just electronic
		explorers they are actually gangsters.	These hackers meet
		electronically through the phone lines or computer bulletin
		boards.  They don't meet face to face usually, but it is a
		semi-organized gang stile activity, much like a street gang, or
		motorcycle gang.

Mike Wendland:	John Maxfield of Detroit is America's foremost "Hacker
		Tracker".  He has worked for the F.B.I. and various other law
		enforcement and security organizations.  Helping catch dozens
		of hackers around the country, who have used their computers
		for illegal purposes.  To find out how widespread these
		electronic gangsters have become, we used John Maxfield as a
		consultant to setup a so-called "sting" bulletin board [THE
		BOARD].

		We wrote and designed a special program that would allow us to
		monitor the calls we received and to carefully monitor the
		information that was being posted.  We called our undercover
		operation "The Board", and put the word out on the underground
		hacker network that a new bulletin board was in operation for
		the "Elite Hacker".  Then we sat back and watched the computer
		calls roll in.

		In all we ran our so called "Sting" board for about a month and
		a half, 24 hours a day, 7 days a week.	We received literally
		hundreds of phone calls from hackers coast to coast, ranging in
		age from 17 to 43.  All of them though had one thing in common,
		they were looking for ways to cheat the system.

		The hackers identified themselves by nicknames or handles like
		CB radio operators use, calling themselves things like Ax
		Murderer, Big Foot, and Captain Magic.	They left messages on a
		variety of questionable subjects, this hacker for instance told
		how to confidentially eavesdrop on drug enforcement radio
		conversations.	A New York hacker called The Jolter swapped
		information on making free long-distance calls through stolen
		access codes, and plenty of others offered credit card numbers
		to make illegal purchases on someone else's account.

John Maxfield:	Well these kids trade these credit card numbers through the
		computer bulletin boards much like they'd trade baseball cards
		at school.  What we've seen in the last few years is a series
		of hacker gangs that are run by an adult, sort of the
		mastermind who stays in the background and is the one who
		fences the merchandise that the kids order with the stolen
		credit cards.

Mike Wendland:	Then there were the malicious messages that had the potential
		to do great harm.  The Repo Man from West Virginia left this
		message telling hackers precisely how to break into a hospital
		computer in the Charleston, WV area.

[Picture of Hospital]

		This is where that number rings, the Charleston Area Medical
		Center.  We immediately notified the hospital that there
		computer security had been breached.  Through a spokesperson,
		the hospital said that a hacker had indeed broken into the
		hospital's computer and had altered billing records.  They
		immediately tightened security and began an investigation.
		They caught the hacker who has agreed to make restitution for
		the damages.  Maxfield says though, "Most such break-ins are
		never solved".

John Maxfield:	When you are talking about electronic computer intrusion, it's
		the perfect crime.  It's all done anonymously, it's all done by
		wires, there's no foot prints, no finger prints, no blood
		stains, no smoking guns, nothing.  You may not even know the
		system has been penetrated.

Mike Wendland:	Our experience with the "Sting" bulletin board came to a sudden
		and unexpected end.  Our cover was blown when the hackers
		somehow obtained confidential telephone company records.  The
		result a campaign of harassment and threats that raised serious
		questions about just how private our supposedly personal
		records really are.  That part of the story tomorrow.  [For a
		little more detail about how their cover was "blown" see PWN
		Issue 7/Part One, "Maxfield Strikes Again."  Heh heh heh heh.]

Mort Crim:  So these aren't just kids on a lark anymore, but who are the
	    hackers?

Mike Wendland:	I'd say most of them are teenagers, our investigation has
		linked about 50 of them hardcore around this area, but most
		very young.

Mort Crim:  Far beyond just vandalism!

Mike Wendland:	Yep.
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A few quicknotes in between shows, Mike Wendland and John Maxfield set up THE
BOARD.	Carman Harlan and Mort Crim are newscasters.

Also if anyone is interested in the stupidity of Mike Wendland, he flashed the
post that contained the phone number to the hospital across the screen, Bad
Subscript put the VCR on pause and got the number.  If interested please
contact Bad Subscript, Ctrl C, or myself.
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Carman Harlan:	Tonight on the second part of a news 4 [WDIV-TV, Channel 4 in
		Detroit] extra Mike Wendland and the I-Team report on how they
		setup a sting bulletin board to see how much they could get on
		these criminal hackers.  Mike joins us now to explain that
		information, that was not the only thing they got.

Mike Wendland:	That's right, Carman & Mort.  Our so called sting bulletin
		board received hundreds of calls from hackers all over America,
		and even Canada.  They offered to trade stolen credit cards,
		and they told how to electronically break into sensitive
		government computers.  But our investigation came to a sudden
		end when our sting board was stung.  Our cover was blown when
		a hacker discovered that this man, computer security expert
		John Maxfield was serving as the I-Team consultant on the
		investigation.	Maxfield specializes as a hacker tracker and
		has worked for the F.B.I. and various other police and security
		agencies.  The hacker discovered our sting board by getting a
		hold of Maxfield's supposedly confidential telephone records.

John Maxfield:	And in the process of doing that he discovered the real number
		to the computer.  We were using a different phone number that
		was call forwarded to the true phone number, he found that
		number out and called it to discover he was on the sting board.

Mike Wendland:	But the hacker didn't stop at exposing the sting, instead he
		posted copies of Maxfield's private telephone bill on other
		hacker bulletin boards across the country.

John Maxfield:	The harassment started, all of the people on my phone bill got
		calls from hackers.  In some cases their phone records were
		also stolen, friends and relatives of theirs got calls from
		hackers.  There was all sorts of other harassment, I got a call
		from a food service in Los Angeles asking where I wanted the
		500 pounds of pumpkins delivered.  Some of these kids are
		running around with guns, several of them made threats that
		they were going to come to Detroit, shoot me and shoot Mike
		Wendland.

Mike Wendland:	A spokesperson from Michigan Bell said that the breakdown in
		security that led to the release of Maxfield's confidential
		records was unprecedented.

Phil Jones (MI Bell):  I think as a company were very concerned because we work
		       very hard to protect the confidentially of customer's
		       records.  [Yeah, right].

Mike Wendland:	The hacker who got a hold of Maxfield's confidential phone
		records is far removed from Michigan, he lives in Brooklyn, NY
		and goes by the name Little David [Bill From RNOC].  He says
		that getting confidential records from Michigan Bell or any
		other phone company is child's play. Little David is 17 years
		old.  He refused to appear on camera, but did admit that he
		conned the phone company out of releasing the records by simply
		posing as Maxfield.  He said that he has also sold pirated
		long-distance access codes, and confidential information
		obtained by hacking into the consumer credit files of T.R.W.
		Little David says that one of his customers is a skip-tracer, a
		private investigator from California who specializes in finding
		missing people.  Maxfield, meanwhile, says that his own
		information verified Little David's claim.

John Maxfield:	The nearest I can determine the skip-tracer was using the
		hacker, the 17 year old boy to find out the whereabouts of
		people he was paid to find.  He did this by getting into the
		credit bureau records for the private eye.  This is an invasion
		of privacy, but it's my understanding that this boy was getting
		paid for his services.

Mike Wendland:	In Long Island in New York, Maxfield's telephone records were
		also posted on a bulletin board sponsored by Eric Corley,
		publisher of a hacker newsletter [2600 Magazine].  Corley
		doesn't dispute the harassment that Maxfield received.

Eric Corley:  Any group can harass any other group, the difference with hackers
	      is that they know how to use particular technology to do it.  If
	      you get a malevolent hacker mad at you there's no telling all the
	      different things that can happen.

Mike Wendland:	What can happen?  Well besides getting your credit card number
		or charging things to your account, hackers have been known to
		change people's credit ratings. It is really serious business!
		And tomorrow night we'll hear about the hacker philosophy which
		holds that if there is information out there about you it is
		fair game.

Mort Crim:  "1984" in 1986.

Mike Wendland:	It is!
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Carman Harlan:	News four [WDIV-TV, Channel 4 in Detroit] extra, Mike Wendland
		and the I-Team look at how these hackers are getting out of
		hand.

Mike Wendland:	The problem with hackers is not just with mischief anymore,
		unscrupulous hackers are not only invading your privacy, they
		are costing you money.	Case and point, your telephone bills,
		because American telephone companies have long been targets of
		computer hackers and thieves we are paying more than we should.
		Experts say the long distance companies lose tens of millions
		of dollars a year to, these self described "Phone Phreaks."

		For example in Lansing, the Michigan Association of
		Governmental Employees received a phone bill totalling nearly
		three hundred and twenty one thousand dollars.	For calls
		illegally racked up on there credit card by hackers.  Such
		victims seldom get stuck paying the charges, so hackers claim
		there piracy is innocent fun.

Phil Jones (MI Bell):  Nothing could be further from the truth, it becomes a
		       very costly kind of fun.  What happens is that the
		       majority of the customers who do pay there bills on
		       time, and do use our service lawfully end up quitting
		       after that bill.

Mike Wendland:	That's not all, hackers regularly invade our privacy, they
		leave pirated credit card numbers and information how to break
		into electronic computer banks on bulletin boards.  Thousands
		of such electronic message centers exist across the country,
		most operated by teenagers.

John Maxfield:	There is no law enforcement, no parental guidance, they're just
		on their own so they can do anything they want.  So the few bad
		ones that know how to steal and commit computer crimes teach
		the other ones.

Mike Wendland:	There is very little that is safe from hackers, from automatic
		teller machines and banks to the internal telephone systems at
		the White House.  Hackers have found ways around them all
		hackers even have their own underground publication of sorts
		that tells them how to do it.

[Close up of publication]

		Its called 2600 [2600 Magazine], after the 2600 hertz that
		phone phreaks use to bypass telephone companies billing
		equipment.  It tells you how to find credit card numbers and
		confidential records in trash bins, break into private
		mainframe computers, access airline's computers, and find
		financial information on other people through the nations
		largest credit bureau, TRW.  2600 is published in a
		ram-shackled old house at the far end of Long Island, New York
		by this man, Eric Corley.  He argues that hackers aren't
		electronic gangsters.

Eric Corley:   We like to call them freedom fighters.  Hackers are the true
	       individuals of the computer revolution, they go were people tell
	       them not to go, they find out things they weren't supposed to
	       find out.

Mike Wendland:	Corley's newsletter supports a hacker bulletin board called the
		Private Sector.  Last year the F.B.I. raided it.

Eric Corley:  They managed to charge the system operator with illegal
	      possession of a burglary tool in the form of a computer program.

Mike Wendland:	But the bulletin board is still in operation.  Corley resents
		the suspicion that hackers are involved in criminal activities.

Eric Corley:  Hackers are not the people who go around looking for credit cards
	      and stealing merchandise.  That's common thievery. Hackers are
	      the people who explore.  So basically what we are saying is more
	      knowledge for more people.  That will make it better for
	      everybody.

Mike Wendland:	He claims that hackers, in their own ways, really protect our
		rights by exposing our vulnerabilities.  Well hackers may
		expose our vulnerabilities, but they also invade our privacy.
		There activities have really spotlighted the whole question of
		privacy raised by the massive files that are now out there in
		electronic data banks.	Much of that information that we think
		is personal and confidential is often available to the whole
		world.



		   Original transcript gathered and typed by

			    Ctrl C & Bad Subscript

		       Major editing by Knight Lightning
_______________________________________________________________________________

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