Date: 18 Apr 92 19:34:30 EDT From: Net Wrider Subject: File 8--Those Evil Hackers (San Jose Busts AP Reprint) Just FYI, here's more hyperbole from the Associated Press, this time courtesy of the local cops in San Diego and the ignorance of the San Diego Times-Union: ===================================================================== R,A,7 - AM-COMPUTERHACKERS, 04-17 0481 - AM-Computer Hackers,0448 Police Uncover Nationwide Fraud Ring Of Computer Hackers SAN DIEGO (AP) _ Authorities say they've cracked a nationwide electronic network of young computer hackers who were able to make fraudulent credit card purchases and break into confidential credit rating files. "These kids can get any information they want on you _ period," San Diego police Detective Dennis Sadler said. "We didn't believe it until it was demonstrated to us." The investigation has led to two arrests in Ohio and seizures of computers and related material in New York City, the Philadelphia area and Seattle, Sadler said. But those cases are just an offshoot of the main investigation, he said. He refused to discuss details, saying an investigation is continuing and scores of arrests are pending nationwide. Members of the informal underground network know how to break computer security codes, make charges on other people's cards and create credit card accounts, said Sadler. "There's one kid who bragged about using the same credit card number for eight months," he said. As many as 1,000 hackers nationwide have shared such information for at least four years. Sadler estimated that illegal credit card charges could total millions of dollars. Fraudulent credit card charges typically are made by computer criminals who illegally gather detailed information from computerized accounts on file at credit reporting agencies, banks and other businesses. The hackers also have learned how to break personal security codes for automatic teller machines, Sadler said, and can obtain telephone access codes to make long-distance calls without paying. A crucial break in the case occurred in late March when an out-of-state hacker was picked up in San Diego and agreed to cooperate with local police and the FBI, Sadler told The San Diego Union-Tribune in a story published Friday. At least part of the investigation is focusing on information that hackers obtained illegally from computers at Equifax Credit Information Services, an Atlanta-based credit reporting agency that provides information to lenders. "We're still in the process of investigating, and we're working very closely with San Diego police," company spokeswoman Tina Black said. Equifax, one of the nation's three largest credit bureaus, has a database of about 170 million credit files. The company suffered no financial losses itself and is notifying the few consumers whose accounts were compromised, Black said. MasterCard International reported $381 million in losses from credit card fraud worldwide in 1991, said Warner Brown, MasterCard's director of security and fraud control. Visa International's losses amounted to $259 million in 1989, about one-tenth of 1 percent of Visa's worldwide sales volumes, spokesman Gregory Holmes said. Downloaded From P-80 International Information Systems 304-744-2253