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{-=*> Phrack World News <*=-}
*Issue VIII*
Created by Knight Lightning
Written by
Knight Lightning and Sally Ride
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Welcome readers to PWN Issue VIII! The last few months have been pretty slow
in the area of real news and this issue we feature; Phrack World Reprints.
That's right, unfortunately most of the information in this issue is from
outside sources. I hope you find it equally as interesting and remember...
No News Is Good News!
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TMC Cracks Down August 26, 1986
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Byline article by F. Alan Boyce, Associated Press Writer
Raleigh (AP) -- The use of home computers to pirate long-distance telephone
access codes and credit card numbers is increasing and may warrant more
prosecution and tighter security, federal authorities said Tuesday.
U.S. Attorney Sam Currin said five recent indictments for computer fraud
stemmed from a six-month investigation involving home computers and computer
bulletin boards in 23 states. By telephoning some computers, people with the
proper passwords could get numbers that would let them charge phone calls to
unsuspecting victims or make purchases with stolen credit cards.
"One bulletin board contained more than 100 stolen telephone access numbers
and 15 stolen credit card numbers," Curri said. "With the use of computers
becoming much more prevalent in our society, we're going to see a lot more of
this type of activity."
The probe began with Telemarketing Communications (TMC) of Raleigh, where an
estimated $100,000 was lost to unauthorized calls in six months.
Investigators were aided by an unidentified 16-year-old high school student
who had been caught by Telemarketing officials after making $2,000 worth of
illegal calls, officials said.
"That was a tremendous benefit to us in this investigation," Currin said.
"High school kids today are computer-smart. They know what they're doing."
The juvenile was not charged and has made restitution, Currin said.
U.S. Secret Service Agent William Williamson said the youth provided passwords
and used his own computer to reach the highest levels of bulletin boards
operated by those indicted.
A federal grand jury in Greensboro charged three North Carolina men Monday
with illegally possessing charge-account numbers and telephone long-distance
access codes obtained through home computers.
Robert Edward Lee II of Durham was charged with devising a method for
defrauding Telemarketing Communications (TMC). The grand jury also charged
Michael William McCann of Dobson with possessing more than 15 unauthorized
telephone access codes and account numbers owned by Telemarketing
Communications, TransCall America and General Communication Inc. Tyrone
Columbus Bullins of Reidsville was charged with possessing 17 unauthorized
charge numbers and 15 unauthorized telephone access codes and account numbers.
Ralph Sammie Fig of Knightdale and James Thomas McPhail of Goldsboro were
indicted on similar charges by a grand jury in the Eastern District Aug. 19.
Currin said each could face up to 10 years in prison and a $250,000 fine if
convicted under tough laws passed in 1984.
"The potential for fraud in this area is very great," he said. "We have an
obligation to prosecute violators. Companies themselves, if they're going to
stay in business and remain viable, also have an obligation to promote their
own internal security systems."
Mike Newkirk of TeleMarketing Communications said it was difficult to protect
codes without making systems too hard for the average customer to use.
"There are programs that break codes in security systems such as ours as the
computer operator is even sleeping," he said. "It can be randomly broken and
he can wake up the next morning and just check the file."
Newkirk said his company was considering installing equipment that could deny
telephone access to phones where trouble arises. But he said other
alternatives, like having operators answer calls to screen for access codes,
would be too expensive.
Williamson, however, said one company that changed from computer answering to
operators reported 5,600 callers hung up when asked for proper codes.
Information Provided By Sally Ride:::Space Cadet
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Here's a news story out of Vancouver, Washington that shows an unusual twist
on the old cat and mouse game we phreaks play with the feds and phone cops.
The story should be entitled...
FEDS TRASH HACKER
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However, it's really headlined.......