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               ***  Volume 1, Issue #1.09 (May 16, 1990)   **
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***  Computer Underground Digest Issue #1.09 / File 3 of 6  ***
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                                          U.S. Department of Justice
                                          United States Attorney
                                          District of Arizona
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                                          4000 United States Courthouse
                                          Phoenix, Arizona 82505
                                          602-379-3011 /FTS/261-3011


                               PRESS RELEASE


FOR IMMEDIATE RELEASE:          CONTACT: Wendy Harnagel
Wednesday, May 9, 1990                   United States Attorney's Office
                                         (602) 379-3011


PHOENIX--Stephen M. McNamee, United States Attorney for the District of
Arizona, Robert K. Corbin, Attorney General for the state of Arizona, and
Henry R. Potosky, Acting Special Agent in Charge of the United States
Secret Service Office in Phoenix, today announced that approximately
twenty-seven search warrants were executed on Monday and Tuesday, May 7 and
8, 1990, in various cities across the nation by 150 Secret Service agents
along with state and local law enforcement officials. The warrants were
issued as a part of Operation Sundevil, which was a two year investigation
into alleged illegal computer hacking activities.

The United States Secret Service, in cooperation with the United States
Attorney's Office, and the Attorney General for the State of Arizona,
established an operation utilizing sophisticated investigative techniques,
targeting computer hackers who were alleged to have trafficked in and abuse
stolen credit card numbers, unauthorized long distance dialing codes, and
who conduct unauthorized access and damage to computers. While the total
amount of losses cannot be calculated at this time, it is
                                  (MORE)
estimated that the losses may run into the millions of dollars. For
example, the unauthorized accessing of long distance telephone cards have
resulted in uncollectible charges. The same is true of the use of stolen
credit card numbers. Individuals are able to utilize the charge accounts to
purchase items for which no payment is made.

Federal search warrants were executed in the following cities:

               Chicago, IL
               Cincinnati, OH
               Detroit, MI
               Los Angeles, CA
               Miami, FL
               Newark, NJ
               New York, NY
               Phoenix, AZ
               Pittsburgh, PA
               Plano, TX
               Richmond, VA
               San Diego, CA
               San Jose, CA

Unlawful computer hacking imperils the health and welfare of individuals,
corporations and government agencies in the United States who rely on
computers and telephones to communicate.

Technical and expert assistance was provided to the United States Secret
Service by telecommunication companies including Pac Bel, AT&T, Bellcore,
Bell South, MCI, U.S. Sprint, Mid-American, Southwestern Bell, NYNEX, U.S.
West, and by the many corporate victims. All are to be commended for their
efforts in researching intrusions and documenting losses.

McNamee and Corbin expressed concern that the improper and alleged illegal
use of computers may become the White Collar crime of the
                                  (MORE)
1990's. McNamee and Corbin reiterated that the state and federal government
will vigorously pursue criminal violations of statutes under their
jurisdiction. Three individuals were arrested yesterday in other
jurisdictions on collateral or independent state charges. The
investigations surrounding the activities of Operation Sundevil are
continuing.

The investigations are being conducted by agents of the United States
Secret Service and Assistant United States Attorney Tim Holtzen, District
of Arizona, and Assistant Arizona Attorney General Gail Thackery.

                                 END STORY

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