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Hackers victimize firms
Experts tell House panel breaking into networks is too simple
February 11, 1997: 6:17 p.m. ET
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WASHINGTON (Reuter) -- Hackers are finding it easier to break into
computer networks and steal money, partly because companies are
reluctant to admit that they are vulnerable, security experts said
Tuesday.
[INLINE] "If I want to steal money a computer is a much better tool
than a handgun," Daniel Geer, engineering director for Open Market,
Inc., told a House of Representatives technology subcommittee hearing
on computer security. "They start out stealing $1,000 a day and figure
they can get away with $2,000 a day and then they get greedy and hit
some figure which sets off alarm bells."
[INLINE] A panel of experts assembled by the subcommittee said many
companies refuse to report breaches in their security because they
want to avoid negative publicity and embarrassment.
[INLINE] "Most computer crimes are not reported," Eugene Spafford of
Purdue University told the panel. He estimated losses run into
"hundreds of millions of dollars" but said no one really knows since
so much goes unreported.
[INLINE] Daniel Farmer, a security consultant, said penetrating a
computer system is relatively easy. "Just using simple tests, I could
break into two-thirds of the systems I tried," he said, adding that he
could easily raise that figure to three-quarters if he wanted.
[INLINE] Farmer said that during his tests he even discovered a
problem with the White House World Wide Web site and told the system
manager about it. He said he never received a reply.
[INLINE] "Defensive programs have been overtaken by offensive
programs" developed by hackers, he said.
[INLINE] Spafford said law enforcement has kept pace with advances
made by hackers who are able essentially to take over entire networks
and run them by remote control.
[INLINE] In addition to banks and corporations, the experts said,
government secrets can be stolen and used to threaten national
security. They cited recent computer network tampering at the Justice
Department and the CIA.
[INLINE] A General Accounting Office study recently found that there
were 250,000 "hits" aimed at the Defense Department's computer
networks last year and 65 percent were successful. Link to top
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