On Fri, 3 Sep 1993 02:20:00 GMT,
Bill Murray
I am reminded of a story, perhaps apocryphal. In the middle seventies Fortune magazine was working a feature on computer crime. Most of the experts that they interviewed told them that the security on most of the nation's commercial time sharing systems was pretty good. However, they admitted that one convicted felon and hacker, Jerry Schnieder, would tell them otherwise. Of course Fortune had to interview him.
I remember this story, Bill, and I find this correlation
interesting. It's funny how Schneider's name hasn't really
surfaced in such a long time. In fact, once I think about the
real parallels to Herren Doktor's lip service, I find it even
frightening, given the anticipated impact with which her opinions
seem to affect governmentalism.
For what its worth, there was another interesting item concerning
Schneider which appeared in Info Security News this issue, in their
"Top Ten Events" article of the top ten info-security events since
the inception of computers.
I relay the pertinent portion of this article below:
"Jerry Schneider was not the first computer crook, which he
became at 18; nor was he the first computer security consultant,
which he became at age 21. Still, his antics on both sides of
the law helped bring computer crime to the awareness of the
public in general and business managers in particular.
Although still in high school in 1968, Schneider started a
company called Creative Systems Enterprises and began selling
electronic telecommunications gadgets he invented. Each day as
he passed the Pacific Telephone and Telegraph Company office, he
scavenged the firm's dumpster for discarded equipment that could
be used to build his gadgets. He also collected a wide variety
of documents, ranging from invoices to training manuals. Within
just a few years, he became an expert on telephone company
technology and business, and reportedly knew more about Pacific
Telephone's telephone equipment supply procedures than any of
its employees.
In June, 1971, Schneider set into motion an elaborate plan to
steal new telephone equipment from Pacific Telephone and resell
it as refurbished equipment through Creative Systems. Eventually
the scam would net him hundred of thousands of dollars worth of
Pacific Telephone equipment. Scneider accessed Pacific
Telephone's computerized ordering system and by using a telephone
card dialer succeeded in placing orders for equipment. To
complete the scam, he needed to learn the telephone equipment
budgets for individual telephone company's sites, equipment
inventory levels and other key pieces of information. He
gathered the required information by getting access codes to a
commercial time-sharing service used by the telephone company
for inventory control and parts distribution.
In January 1972, acting on information provided to them by one
of Schneider's former employees, law enforcers raided
Schneider's offices and a warehouse where they found equipment
the district attorney said was worth $8,000. They also learned
at that time that Schneider had stolen a total of $125,000 worth
of equipment. Later, Schneider would admit that he had taken
close to $900,000 worth of goods.
The day after his arrest on February 8, 1972, newspapers across
the country called it one of the most famous computer crimes
ever. "How he Folded, Spindled, and Mutilated," one headline
said.
In a plea bargain, Schneider agreed to plead guilty to one
count of grand theft of $5,000 worth of equipment. In July, he
was sentenced to two monyhs in a minimum security corrections
institution. In all, however, served 40 days and paid a $500
fine.
Later that year, Schneider, then only 21 years old, formed a
computer consulting firm catering to companies that did not want
to get ripped off by cyber-crooks. He stayed in the business
until 1977. Today, he owns a firm that sells off-shore banking
services.
8<------ Gut Here ---------------
Gee, imagine that.
Ye olde Spooge Meister spooge /spooj/ 1. Inexplicable or arcane code