Radnofsky, M. (2006). "Corporate and Government
Computers Hacked by Juveniles." The Public Manager 35(3), pp.
Corporate and Government Computers Hacked by Juveniles
Mary L. Radnofsky, Ph.D.
The Socrates Institute
Your government computer is probably being targeted for a hack right
now. There's a good chance the hackers are teenagers. There's also
a good chance they'll never be caught. And they know it.
Imagine a teenager in his pajamas at the computer
in his bedroom at 3 a.m., absorbed by the challenge of hacking into
the Pentagon. And then, finally, he comes across a list of thousands
of emails from top military brass with cool subjects about different
"operations." There, appearing on the screen before his
eyes, are the names and passwords of over a dozen US Department
of Defense (DOD) employees. He could be the proverbial fly on the
wall at DOD, listening to bio-weapon experts at the Defense Threat
Reduction Agency. Yeah, he'll get to that tomorrow night. OK. Save.
And maybe in a week or two, he'll get to that high-security software
for the International Space Station on the National Aeronautic and
Space Administration's (NASA) network. But it's 4 a.m. and there's
school tomorrow. Bookmark. Shut down.
Seem unlikely? It happened. Yes, this case was
"way back" in 1999, when most people hadn't realized the
transparency of computer communication. Except, well, many had.
So today in 2006, why are there even more of these cases? Thousands
of computer intrusions? Millions of identity thefts? And $67.2 billion
lost to cyber-crime last year? The lesson begins two decades ago.
First Hacker Caught - The Germans Learned
Their Lesson. But Did We?
The year was 1986. One lone American astronomer,
who fiddled with computers during his research, discovered a financial
discrepancy of seventy-five cents. From that, he followed a trail
of computer hacks over several years, eventually convincing the
FBI, military, international security and law enforcement agencies
to pursue a computer criminal for the first time in history. In
Germany, a college student had gained access to hundreds of computers
on Milnet and Arpanet, the US military versions of today's Internet.
The hacker downloaded data from our Army bases in Germany, Japan,
Alabama, and Georgia, from Air Force bases in Germany and California,
from Navy systems in Florida, from the Pentagon, from the Jet Propulsion
Lab, from an MIT computer, from the Lawrence Berkeley Lab, and from
other defense contractors.
Who else had seen the thousands of secret
files that a German college student (dubbed the "Hannover Hacker")
had been stealing for years? How does one measure the consequences
of unveiled defense strategies, proprietary software, and military
identities? Perhaps the more recent, though individual, case of
Valerie Plame's lost cover can illustrate this point for us today.
We won't know how bad things are until something happens based on
the lost intelligence. That could be tomorrow or in two months.
Hackers are patient, and sometimes wait years before acting on stolen
So since 1986, Germans have become the best enforcers
of IT security in Europe. Here in the US, however, we are still
struggling with postponed legislation (HR 5835), unclear and unevenly
enforced laws, and, worst, the battle to convince ourselves that
the problem of computer intrusions is in fact a very big deal -
not just to industry giants, but to every government agency, school,
The Current State of Cyber-Crime
Twenty years after the Hanover Hacker, we not
only still have these types of hacking crimes, but a plethora of
even more creative ones, despite the genuine (and expensive) industry
and government attempts to secure computer networks. Cyber-crime
is, of course, global. Although attacks come from all over the world,
twenty-six percent start in the US, followed by China with twenty-four.
Many such crimes are committed by students - not because they really
want state secrets, but just to prove they can do it. Many more
do it for the millions of dollars they can generate through extortion.
First they demonstrate they have access, and then threaten to shut
down a company's website for a day. So the company pays them not
to make a denial of service (DoS) hack, and the cyber-criminals
get paid time and again.
The most common type of computer crime is "merely"
a virus (eighty-four percent of respondents in a 2005 FBI survey
said they had experienced at least one), which has high nuisance
and economic consequences. But more menacing, and almost as pervasive,
are spying incidents (eighty percent also dealt with this). In fact,
spyware's legitimate function to help track your child's computer
use, for example, makes it freely available on the Internet.
Other problems in cyber-crime include such recently-publicized
problems as cyber-stalking, cyber-pornography, child predators,
illegal downloading of songs and movies, and software piracy. In
addition, a 1999 Rand publication stated that Al Qaeda "appears
to have widely adapted information technology," and was building
a terrorist "communications network that relies on the Web,
e-mail, and electronic bulletin boards." Cyber-terrorism was
Other examples of cyber-crimes include the
In 2000, a disgruntled worker in Australia
hacked into a waste management control system and released millions
of gallons of raw sewage into town.
In 2001, two post-graduate students cracked
into a bank system used by the US Treasury Department for Internet
transactions, and then generously told the world how they did
In 2003, an 18-year-old who considered himself
a gray hat hacker (see sidebar) was arrested for spreading a
variant of the "Blaster" Virus, which had infected
or shut down millions of computers worldwide. A year later,
the Blaster's original creator was also caught. (Update: spam
and junk mail now account for seventy percent of office email,
and one in thirty-six such emails contains a virus.
In 2005, Chinese hackers penetrated US government
networks and stole military secrets, including future command
and control documents.
In 2005, the ID theft of 33,000 Air Force
officers from a computer at Randolph Air Force Base resulted
in the loss of their Social Security numbers, birthdates, and
other confidential data. In 2006, the personal information of
26.5 million US veterans and 2.2 million active service members
was lost when a laptop with the data was stolen.
Also in 2006, hundreds of thousands of US
and European bankcard numbers and PINS were stolen. Bank accounts
were looted, and people lost their life savings. Think Enron
losses, and multiply by one hundred.
The Basics of Cyber-Defense - Slow the Flood,
Verify Security Measures
So what's a company or agency to do? Money helps,
of course, but despite billions of dollars spent annually on security,
there is still an increase in the frequency of computer crimes,
many of which may sound like a foreign language to you: There are,
as briefly mentioned above, DoS attacks, viruses, malicious code,
spying and key-logging. In addition, we now have worms, trojan
horses, botnets and zombies, packet-sniffers, war-driving, pharming,
spear phishing, and controlling real-life vital services and
utilities such as sewage plants and power grids to entire cities.
Yes, hackers can actually disrupt and endanger our personal and
professional lives in concrete ways. Phone service can be interrupted;
traffic signals can be changed; harassing and threatening emails
can be sent in your name.
Let's say, though, that your budget doesn't include
billions of dollars for IT (and even if it did, would it want to
be constantly on the defensive against computer attacks?). In that
case, different solutions are needed, because hackers are persistent.
They will "knock at the back door" of your network not
just for hours, but for months, or years. Maybe the old software
used to keep them out. Double check, though; they may now be in.
So it almost goes without saying that you must
install and activate all security hardware and software - and do
so correctly. Let's assume you have firewalls and other security
on your system. You probably still experience dozens, maybe hundreds
of computer intrusions daily, especially spam with viruses or worms.
And what about the bots or malcode that were left behind? Your spam-blocker
may have slowed the flood of emails, but it didn't clean out the
system. Anti-virus software was installed to run continuously on
all employee computers, of course, but it's worth verifying that
no one has disabled any of the security measures, which commonly
interfere with many programs, and so are frequently "temporarily"
disabled. Often, in good faith, the employee intends to re-enable
it, but forgets. Other times, it is a conscious choice by dedicated
employees to keep it off, because it slows down their productivity.
In either case, the damage is done.
Let's also assume, though, that as a dedicated
manager, you've sent out positive memos reminding people to follow
security procedures. Maybe that's all you've been allowed to do.
It's been difficult to enforce cyber-security procedures in the
office or with subcontractors, even harder to find leaks, unclear
as to how to punish for noncompliance, and vague as to how to deal
with actual loss (financial, identity, property). Compliance is
still mostly voluntary, with no single government standard uniting
them. Until now.
Pending Legislation May Help Enforce Cyber
HR 5835, the Veterans Identity and Credit Security
Act of 2006, (proposed following the veterans' ID thefts), has been
approved by the House Veterans Affairs Committee as of this writing,
and could be signed into law this coming session. The bill, if enacted,
would give chief information and security officers the power to
enforce cyber-security policies "to the extent determined necessary
and explicitly by the head of the agency."
This bill is significant because prior legislation
(the 2002 Federal Information Security Management Act, FISMA) was
criticized for not having given that power to CIOs, leaving them
only able to make cyber-security recommendations. HR 5835 would
establish federal standards to notify and provide credit protection
services for cyber victims, and enforce instant warnings to Congress
or other federal offices impacted by security violations. A controversy
now exists as to whether agency undersecretaries or their IT departments
should ultimately have IT security enforcement power.
At this point, maybe you're saying that the few
intrusions into your network have been fairly innocuous - a few
redirected web links to a porn site, or some fake e-mails. But they
can escalate in the punch of a key. If someone has the access to
send fake emails, they may also be able to read all of yours, and
everything else on your hard drive.
Hackers have created an international community
that openly shares malicious code, cracker programs, how-to-hack
articles, books, workshops, and sites on the Internet and at national
conventions. Frequent postings on hacker blogs publicize specific
weaknesses in commonly-used applications. Code-specific hacking
instructions are accompanied by a disclaimer, "for educational
purposes only," but names have been named and weaknesses revealed,
making entire networks - government and private -vulnerable to attack.
So even though there is hope that agencies will
be able to protect the cyber-infrastructure with new laws or hardware,
it may still seem that you have very little control over your own
department's computer security. And if you think about the sheer
number of human sources as potential data leaks, your control seems
even more limited. Cause to worry.
Now, added cause to worry: international cyber-criminals
are increasingly linked to organized crime. And as cyber-security
software and hardware improve, IBM notes "it is anticipated
that many of these criminals may target the most vulnerable access
point within a company or organization - its personnel - to execute
In fact, however, and despite the outcome of pending
legislation, you actually have as much power with a few well-executed
leadership decisions as with your arsenal of cyber-defense measures.
There's no physical warehouse to storm, no getaway car to outrun,
and no clear-cut bad guy to catch. You have to outwit this enemy,
and on his turf. That means education. You have to teach everyone
else how to outwit him, too. It all comes back to learning a lesson.
Call it training. Call it professional development. Call it continuing
ed. Just make sure that the receptionist learns it as does the boss.
Increase Cyber-Security through Education
One agency that has taken an aggressive stance
in educating its personnel is DOD, which has developed computer
security simulations. They regularly put computer trainees through
network attack exercises to learn to thwart actual intrusions.
In fact, the Annual Cyber Defense Exercise (CDX)
is the ultimate National Security Agency (NSA) cyber challenge,
with the military to educate future officers in the art and science
of computer network security. In a simulated military operation,
teams of cadets and midshipmen defend a closed computer network
they designed, built and configured. Such cyber education is officially
acknowledged as essential to this country.
So shouldn't all agencies, businesses and schools
be just as dedicated and allocate just as many resources to educating
their own communities in the secure, legal, safe, and ethical online
practices? The Socrates Institute, a non-profit educational organization
founded by this author, certainly thinks so. We began building a
cyber-ethics curriculum for schools in 2003, but the problems of
cyber-crime had not yet sufficiently caught the public's eye. And
since no state department of education required any type of cyber-safety,
cyber-security, or cyber-ethics instruction in schools, the federal
government did not yet see the need for it either. That's all changing
The US Department of Justice (DOJ) Computer Crime
and Intellectual Property Section Web site states that "Some
individuals exploit the power of the Internet for criminal or terrorist
purposes. We can minimize the harm that such individuals do by learning
ourselves, and teaching young people how to use the Internet
safely and responsibly."
The Federal Energy Regulatory Commission (FERC)
requires online courses for employees, managers, and technical personnel
to "minimize disclosing sensitive information," and to
"teach caution using the web/Internet media."
At the state level, Virginia enacted a new Internet
Safety Law on March 7, 2006. Merely distributing acceptable use
policies has not been effective. The law now has a provision to
"include a component on Internet safety for students that is
integrated in a division's instructional program." In
the business sector, Symantec puts its employees through an ethics
training program not just once, but yearly and supports Virginia's
initiative in protecting children online through classroom instruction.
They also add that, "As part of a safety program, the Virginia
Department of Education should be looking holistically at Internet
safety to incorporate cyber security and cyber ethics as
Three Aspects of Cyber-Crime Education
These three aspects of cyber-crime education (cyber-safety,
cyber-security, and cyber-ethics) form the foundation of the annual
C3 Conference at the University of Maryland. The organizer, Dr.
Davina Pruitt-Mentle, speaks to its educational focus: "We
can use many materials out there in schools, but cyber-ethics, cyber-safety,
and cyber-security education won't make an impact until it's fully
integrated throughout an entire state curriculum. It can't just
be an add-on or a school assembly. It needs to become ingrained
into everyone's daily routine."
Emphatically, The Cyber Security Industry Alliance
states that, "What is missing here is a focused and organized
national effort to teach children cyber security, cyber ethics,
and cyber safety with national security in mind." In addition,
"it is incomprehensible that we are not teaching cyber security,
ethics, and safety at an early age. Poor awareness by children about
cyber security may ...ultimately threaten the fabric of our nation's
critical cyber infrastructure."
Not surprisingly, one other community also agrees
on the importance of cyber crime education. Computer hackers themselves
seized the Internet long ago to build a following, create gangs,
and challenge each other. As a result, we are dealing today with
the somewhat chaotic cyber-culture they built. But as with any culture,
this one must evolve in order to survive.
International cooperation in criminal cyber-activity
is already underway (the Senate has finally ratified the Council
of Europe's 2001 Convention on Cybercrime, making us the sixteenth
of forty-three countries to sign). While the treaty sends the signal
that we are building a united front to pursue cyber-criminals, it
is up to leaders in the cyber-culture to re-establish a united set
of values (admittedly an extremely difficult task), and create a
common link between what are now tragically disparate nations, at
Changing Cyber-Culture through Education
Anyone in your office with access to an electronic
communication device (from a cell phone to a fax or podcast) risks
opening your network to hackers. It doesn't have to be a high-tech
piece of equipment either. Information leaks have been happening
without laptops for centuries through "Social Engineering."
But there are ways to minimize these risks.
So how do employees deal with the cyber-culture
in which they work eight hours a day? They make up the rules as
they go along. Yes, really. As a result, the cyber-world has as
much the freedom, excitement, and danger as the wild-west. But as
the Internet reaches a critical mass of users who demand safe, ethical,
and secure interactions, it also moves closer to creating a more
To facilitate that move, people need to learn
why they must implement certain security protocols, why
following one procedure cannot replace all the others, why certain
online activities interfere with security, why verifications,
back-ups, passwords and firewalls are all needed, etc. Mostly, though,
they need to know why each and every person should bother
with all that even if they are "just" a receptionist or
"even though" they're the boss.
It's not enough, of course, to tell people why
they should change. To increase the chance of policy being correctly
implemented, people need both an understanding of why as well as
hands-on training in how to change. In computer security,
this means letting each employee go through the keystrokes themselves
(ideally in a safe, simulated environment) to best understand the
importance, relevance, and logic of procedures.
In such simulated environments, we know that learners
improve decision-making, make faster choices, apply learned behaviors,
and move more easily from novice level to expert. The good news
is that simulations can help people learn to avoid Internet credit
scams or worms, and to make wise decisions using their own "talents"
online. They can learn how to securely instant-message (IM), blog,
and use their cell phone without revealing critical information.
And throughout the simulation, they will learn the consequences
of making wrong decisions.
The bad news is that providing such educational
training takes a great deal more time than adding security software,
but both strategies are essential to cyber-security.
Leaders in both the public and private sectors
advocate direct instruction for employees and students in the proper
use of cyber-technology. In the spirit of fulfilling this need,
The Socrates Institute has been developing NetEdGE (Internet Educational
Game of Ethics) with seed money from Symantec. Our purpose is to
create a training program that guides young people through different
scenarios of cyber-crimes from three perspectives: elite hacker,
innocent cyber-victim, and undercover FBI agent. In each role, the
individual learns how to interact in a simulated cyber-culture through
decision-making, risk-taking, and especially by making mistakes
inside the protected environment. We even give players the chance
to hack into a fictitious organization, and then have to deal with
the legal, economic, and social consequences.
Reaching the current workforce is undeniably important.
But we must also reach young people at the start of their career.
Nationwide, there are over18.8 million teens on the Internet for
an average of ninety minutes a day. Over half (fifty-one percent)
of their parents do not have or do not know of software on their
computers to monitor where the teens go or with whom they interact
But we do know that organized crime has been recruiting
teens in great numbers, turning their computer skills into big business.
In fact, teens are even recruiting other teens in increasingly organized
ways to commit DoS, fraud, and extortion.
We also know that only about five percent of all
cyber-criminals are ever caught, and few are punished. In fact,
ninety percent of computer intrusions are never even reported; companies
prefer not drawing attention to themselves, less they risk losing
consumer confidence. So our best chance, and one thing you can do
as a leader, to reduce the numbers of cyber-criminals, is to educate
the incoming workforce, giving them simulated opportunities to make
both right and wrong choice in the cyber-world, and show the real-life
consequences of both.
There doesn't need to be an army of computer hackers
to cause damage to an agency infrastructure. All it takes is one
young person in a single reckless cyber-crime, and no idea of the
social, legal, economic, and emotional damage it can cause. All
it takes is one teenager who figures that no one will ever find
him. And at three o'clock in the morning, with the world at his
fingertips, he's running password-guessing programs. And he's not
We exist in an unpredictable era of technological
evolution that seems to outpace our laws, cultural mores, and sense
of personal safety. But we try and keep up with the new cyber-world.
So we create new laws. We sit at the same table with security experts
and hackers. We invent new strategies to observe it, new tools to
probe it, new portals to access it, and new words to define it.
Now it's time we developed new ways to teach others (and ourselves)
how to successfully, honorably, and safely live in the cyber-world
as we do in the real world. The purpose of this article has been
neither to recommend nor criticize any particular brand or trademark
of computer security; use the system best for your organization,
depending on its size, security clearances, or budget. And educate
your whole team in how and why to use it - all the time.
Berg, A. January 4,.2006. THREAT MONITOR: "Seven
trends to expect from virus and worm authors in 2006." SearchSecurity.com.
Computer Security Industry Alliance (CSIA). July
2005. Teaching Children Cyber Security and Ethics. White paper.
Department of Justice. 2006. Computer Crime &
Intellectual Property Section. Link
Federal Bureau of Investigation, "2005 Computer
Crime Survey Report," 18 January 2006
- Webster's New World Hacker Dictionary (2006).
- The Jargon File. Glossary of Hacking Terms Link
IBM, January 2006 Global Business Security
Index report Link
Mary L. Radnofsky, PhD is director, The
NetEdGE Project and president and CEO of The Socrates Institute.
This article has been adapted from a more thorough-going treatment
of the topic, including citations for all quotes and references,
a glossary of cyber-world terms and other details. For more on NetEdGE
or to communicate directly with the author, go to www.socratesinstitute.org.