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FRAUD/HACKING NEWS Hacker crosses from Internet to intranet I n the United States, more than a dozen of security had to be shut down while new security software was consultant Richards Reiner’s clients have had their installed and several thousand new passwords allocated. intranets invaded by unauthorized If a company has gaps in its intranet invaders, some of whom changed security, snooping may be just the passwords on accounts they cracked first of many headaches. Without the to ensure exclusive access. The “the clients internal right protection in place, a snoop Globe and Mail reports that Reiner could go on to sabotage sensitive traced the problem to a teenage network was information by tampering with it. A hacker who had successfully crossed inundated with disgruntled employee could send out over from the Internet to companies’ embarrassing E-mail messages in private internal communications unauthorized users” another person’s name. The best way networks. The youth accomplished to prevent snooping and tampering is this by breaching a poorly configured firewall. to equip an intranet with software that enables it to sniff out hackers who have broken The young hacker then enlisted the help of a number of through the company firewall. The problem of E-mail other hackers and the client’s internal network was verification can be solved by forcing users to sign inundated with unauthorized users. The entire network messages with a digital signature. UK businesses threatened by phone fraud B usinesses in the UK are losing millions of pounds a year through telephone fraud. According to Computing the results of a report written by research company benchmark show that, “Unless the threat of telephone fraud is brought to the attention of the UK’s decision makers and action is taken to alleviate the problem, telephone fraud will be a chink in the corporate security of UK industry and will dramatically alter its financial success.” Though only 6% of respondents to the survey have knowingly been victims of telephone hacking, a third of the organizations admitted they would be unaware if they had suffered from it. Telephone fraud includes unauthorized access to a corporate telephone network via a company’s PBX system or theft of confidential information. One company admitted that telephone fraud had cost it A common hacking technique involves direct inward system access, a PBX-based function enabling employees who are not in the office to make use of facilities such as ‘onward dialling’ of long-distance calls. A spokesman for the Telecom Users’ Association said, “Telephone fraud is effectively computer hacking, and the business itself is responsible, rather than BT or Mercury, if it has a private 262 000 in just four days. Of the exchange. respondents, 30% had no idea how long it would take them to detect fraud. Edlf’OT:‘tiELEN MEYER Am&an Editor: CHARLES CRESSON WOOQ information integrity Investments, Sausallto,‘Oalifornia~:USA ‘Editdrfal Advlsars: ChLt%A&q~ UK; l&ns~ Gtiss, German?; David Hi&on, CEC, DGXIII:‘L& Labi-enge, New South Wales, Australia; P.,K%u&ee$,:Germanyny: WayneIb+&en, Virginia, USA: Saldan Mankus, Tenriesse~, USA; BIll:Yuiri& @%xwcticut, USA: Silvano Qngetta, Italy; Auetralasian Editor: BILL J. CAELLI Dorm 8. Parker, California; US& Peter Sommer, UK; Mark Tantam, UK; CXmansla~d’ lJniversity of Technology, Australia PetetThlngsted, Denmark: Hank Wolfe, New Zealand, European Editor: KEN WON0 Correspondents: Frank Rees, Metbourne, Austra[ia; John Sterllcchi, 4nsight Consulting, London, UK California, USA; Paul Gannon, Brussels, Belgium. 1996,Elsevier Science Ltd., Englaand/SS/lJS~l!5~OO Nopartof this publication may be reproduced, stor w;f! erartlqle mechanical, photoco in a retnevaf systeq or transmitted by any form or by an reaufatfons listed on g ying, recording or otherwise, without the prfor,perrn&on of the publishers. (Readers in K means, electronic, ack cover.) e USA -please see special 2 Computer Fraud & Security December 1996 0 1996 Elsevier Science Ltd

UK businesses threatened by phone fraud

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FRAUD/HACKING NEWS

Hacker crosses from Internet to intranet

I n the United States, more than a dozen of security had to be shut down while new security software was consultant Richards Reiner’s clients have had their installed and several thousand new passwords allocated.

intranets invaded by unauthorized If a company has gaps in its intranet invaders, some of whom changed security, snooping may be just the

passwords on accounts they cracked first of many headaches. Without the

to ensure exclusive access. The “the clients internal right protection in place, a snoop

Globe and Mail reports that Reiner could go on to sabotage sensitive

traced the problem to a teenage network was information by tampering with it. A

hacker who had successfully crossed inundated with disgruntled employee could send out

over from the Internet to companies’ embarrassing E-mail messages in

private internal communications unauthorized users” another person’s name. The best way

networks. The youth accomplished to prevent snooping and tampering is

this by breaching a poorly configured firewall. to equip an intranet with software

that enables it to sniff out hackers who have broken

The young hacker then enlisted the help of a number of through the company firewall. The problem of E-mail

other hackers and the client’s internal network was verification can be solved by forcing users to sign

inundated with unauthorized users. The entire network messages with a digital signature.

UK businesses threatened by phone fraud

B usinesses in the UK are losing millions of pounds a year through

telephone fraud. According to Computing the results of a report written by research company benchmark show that, “Unless the threat of telephone fraud is brought to the attention of the UK’s decision makers and action is taken to alleviate the problem, telephone fraud will be a chink in the corporate security of UK industry and will dramatically alter its financial success.”

Though only 6% of respondents to the survey have knowingly been victims of telephone hacking, a third of the organizations admitted they would be unaware if they had suffered from it. Telephone fraud includes unauthorized access to a corporate telephone network via a company’s PBX system or theft of confidential information. One company admitted that telephone fraud had cost it

A common hacking technique involves direct inward system access, a PBX-based function enabling employees who are not in the office to make use of facilities such as ‘onward dialling’ of long-distance calls. A spokesman for the Telecom Users’ Association said, “Telephone fraud is effectively computer hacking, and the business itself is responsible, rather than BT or Mercury, if it has a private

262 000 in just four days. Of the exchange. respondents, 30% had no idea how long it would take them to detect fraud.

Edlf’OT:‘tiELEN MEYER

Am&an Editor: CHARLES CRESSON WOOQ information integrity Investments, Sausallto,‘Oalifornia~:USA

‘Editdrfal Advlsars: ChLt%A&q~ UK; l&ns~ Gtiss, German?; David Hi&on, CEC, DGXIII:‘L& Labi-enge, New South Wales, Australia; P.,K%u&ee$,:Germanyny: WayneIb+&en, Virginia, USA: Saldan Mankus, Tenriesse~, USA; BIll:Yuiri& @%xwcticut, USA: Silvano Qngetta, Italy;

Auetralasian Editor: BILL J. CAELLI Dorm 8. Parker, California; US& Peter Sommer, UK; Mark Tantam, UK;

CXmansla~d’lJniversity of Technology, Australia PetetThlngsted, Denmark: Hank Wolfe, New Zealand,

European Editor: KEN WON0 Correspondents: Frank Rees, Metbourne, Austra[ia; John Sterllcchi,

4nsight Consulting, London, UK California, USA; Paul Gannon, Brussels, Belgium.

1996,Elsevier Science Ltd., Englaand/SS/lJS~l!5~OO Nopartof this publication may be reproduced, stor w;f!

erartlqle

mechanical, photoco in a retnevaf systeq or transmitted by any form or by an

reaufatfons listed on g ying, recording or otherwise, without the prfor,perrn&on of the publishers. (Readers in K

means, electronic,

ack cover.) e USA -please see special

2 Computer Fraud & Security December 1996 0 1996 Elsevier Science Ltd