PacBell FAX on several BUSTS ! August 3, 1987 MR. SPILLER Frank: I've attached a summary of some recent events that are alarming. I believe this information should be shared with Mr. Kaplan? I've sent a copy to Roland. (signature) W. M. Kern COPY FOR: ROLAND DONALDSON UNAUTHORIZED REMOTE COMPUTER ACCESS San Francisco, July 29, 1987 Case Nos.: 86-883, 87-497 T. M. CASSANI, Director-Electronic Operations: Electronic Operations recently investigated two cases involving a number of sophisticated hackers who were adept at illegally compromising public and private sector computers. Included among the victims of these hackers was Pacific Bell, as well as other local exchange carriers and long distance providers. Below is a synopsis of the two cases (87-497 and 86-883), each of which demonstrate weaknesses in Pacific Bell's remote access dial-up systems. Case No. 87-497 On May 14, 1987, Electronic Operations received a court order directing Pacific Bell to place traps on the telephone numbers assigned to a company known as "Santa Cruz Operations". The court order was issued in order to identify the telephone number being used by an individual who was illegally entering Santa Cruz Operations' computer and stealing information. On May 28, 1987, a telephone number was identified five separate times making illegal entry into Santa Cruz Operations' computer. The originating telephone number was 805-495-6191, which is listed to Bonnie Vitello, 1378 E. Hillcrest Drive, Apt. 404, Thousand Oaks, California. On June 3, 1987, a search warrant was served at 1378 E. Hillcrest Drive, Apt 404, Thousand Oaks, California. The residents of the apartment, who were not at home, were identified as Bonnie Vitello, a programmer for General Telephone, and Kevin Mitnick, a known computer hacker. Found inside the apartment were three computers, numerous floppy disks and a number of General Telephone computer manuals. Kevin Mitnick was arrested several years ago for hacking Pacific Bell, UCLA and Hughes Aircraft Company computers. Mitnick was a minor at the time of his arrest. Kevin Mitnick was recently arrested for compromising the data base of Santa Cruz Operations. The floppy disks that were seized pursuant to the search warrant revealed Mitnick's involvment in compromising the Pacific Bell UNIX operation systems and other data bases. The disks documented the following: o Mitnick's compromise of all Southern California SCC/ESAC computers. On file were the names, log-ins, passwords, and home telephone numbers for Northern and Southern ESAC employees. o The dial-up numbers and circuit identification documents for SCC computers and Data Kits. o The commands for testing and seizing trunk testing lines and channels. o The commands and log-ins for COSMOS wire centers for Northern and Southern California. o The commands for line monitoring and the seizure of dial tone. o References to the impersonation of Southern California Security Agents and ESAC employees to obtain information. o The commands for placing terminating and originating traps. o The addresses of Pacific Bell locations and the Electronic Door Lock access codes for the following Southern California central offices ELSG12, LSAN06, LSAN12, LSAN15, LSAN23, LSAN56, AVLN11, HLWD01, HWTH01, IGWD01, LOMT11, AND SNPD01. o Inter-company Electronic Mail detailing new login/password procedures and safeguards. o The work sheet of an UNIX encryption reader hacker file. If successful, this program could break into any UNIX system at will. Case No. 86-883 On November 14, 1986, Electronic Operations received a search warrant directing Pacific Bell to trap calls being made to the Stanford University computer. The Stanford Computer was being illegally accessed and was then being used to access other large computer systems throughout the country. The calls to the Stanford Computer were routed through several different common carriers and through numerous states. Through a combination of traps, traces and sifting through information posted on the Stanford computer, several suspects were identified throughout the United States. The group of computer hackers who illegally accessedd the Stanford computer system were known as "The Legion of Doom". Subsequent investigation indicated that the Legion of Doom was responsible for: o The use of Stanford University high-speed mainframes to attack and hack ESAC/SCC mini compuuters with an UNIX password hacker file. Password files were then stored on the Stanford systems for other members of the Legion of Doom to use. Login and passwords for every local exchange carrier as well as AT&T SCC/ESAC mini computers were on file. o The Legion of Doom used the Stanford computers to enter and attack other institutions and private contractors' computers. Some of the contractors' computers were used for national defense research. On July 21, 1987, eight search warrants were served in three states at homes where members of the Legion of Doom reside. Three of the searches were conducted in California. Steve Dougherty, Senior Investigator-Electronic Operations, accompanied Secret Service agents at the service of a search warrant at 2605 Trousdale Drive, Burlingame, California, which was the residence of Stan Cisnero, a sixteen-year-old member of the Legion of Doom. Dougherty interviewed Cisnero, who had used the pseudonym "O'Ryan Quest", when accessing computers. During the interview, Cisnero admitted the following: o The entering of central offices, (Burlingame, San Mateo, San Bruno, Millbrae) disguised as a Federal Express deliveryman. The entries were done to case out the CO's for the purpose of finding computer terminals with telephones, the locations of switches and bays, the names of Comtechs, and materials related to the operations of the central office. Cisnero also claimed to have been in the AT&T Administration office on Folsom Street, San Francisco. o Cisnero's telephone service had been disconnected twice for nonpayment, and twice he had his service restored by impersonating a service representative. o Learning to test circuits and trunks with his computer by using ROTL and CAROT test procedures. o Members of the Legion of Doom often accessed test trunks to monitor each other's liness for fun. o On several occasions Cisnero would post the telephone number of a public coin phone for access to his BBS, Digital IDS. He would then access teh Millbrae COSMOS wire center and add call forwarding to the coin phone. He would activate the call forwarding to his home telephone number, securing the identity of his location. o Cisnero would impersonate an employee who had authorization to use a Data Kit and have it turned on for him. When he was done, he would call back and have the Data Kit turned off. o Cisnero also would use his knowledge to disconnect and busyout the telephone services of individuals he did not like. Further, he would add several custom calling features to their lines to create larger bills. o It was very easy to use the test trunks with his computer to seize another person's dial tone and make calls appear on their bills. Cisnero did not admit charging 976 calls to anyone, but he knew of others who did. o When the Legion of Doom attacked a computer system, they gave themselves five minutes to complete the hacking. If they were not successful in five minutes, they would attempt another system. The Legion of Doom was able to crack a computer in under five minutes approximately 90% of the time. o Cisnero would impersonate employees to get non-published telephone listings. Cisnero received the non-published listing for Apple Computer Founder, Steve Wozniak, and members of The Beastie Boys rock group. o Cisnero told Dougherty of one New York member of the Legion of Doom, "Bill from Arnoc", who has been placing his own traps in New York. Bill from Arnoc helped Cisnero place traps in Pacific Bell. The review of the evidence seized at Cisnero's residence tends to corroborate all Cisnero's statements. CONCLUSIONS There are some important conclusions that can be drawn from the above two cases regarding future computer system concerns. o The number of individuals capable of entering Pacific Bell operating systems is growing. o Computer Hackers are becoming more sophisticated in their attacks. o Dial-up ports will always be a target for computer entry by a hacker. o Even dial-up ports with remote callbacks and manually controlled modems can be compromised. o A hacker can place a central office off-line by overloading a SCC mini computer by improperly placing traps or by putting traps on several DID multi-trunk groups such as MCI or Sprint groups. o Terrorist or Organized Crime organizations could use this underground computer technology against Pacific Bell or to their own advantage. o Pacific Bell proprietary data bases such as PTT ESAC or PB2 ESAC could be compromised. o The integrity of accurate customer billing statements have been compromised through access to the CEBS (Computerized Electronic Billing System) and will remain questionable. A customer can dispute large direct-dialed calls and claim his telephone was accessed by a computer hacker. RECOMMENDATIONS The information gained as a result of the above investigations should be shared with those individuals responsible for the integrity of our computer systems. Further, an ongoing business partnership between security and the individuals responsible for the integrity of our computer systems should be initiated and maintained to ensure prompt, effective resolution of future computer related security issues. (signature) JOHN E. VENN Manager-Electronic Operations