-Caveat Lector- from: http://www.telegraph.co.uk:80/et?ac=003709246602319&rtmo=fqosMYvs&atmo=rrrrrrv s&pg=/et/00/10/28/wmic28.html Click Here: <A HREF="http://www.telegraph.co.uk:80/et?ac=003709246602319&rtmo=fqosMYvs&atmo=r rrrrrvs&pg=/et/00/10/28/wmic28.html">Microsoft humiliated as hackers crack Windows</A> ----- ISSUE 1982 Saturday 28 October 2000 Microsoft humiliated as hackers crack Windows By Robert Uhlig and Andrew Cave in New York Microsoft Security (or lack of it) Issues Concerning Microsoft Products - International Anti-Microsoft Campaign Press releases - FBI Hacking - dmoz Virus Bulletin Data Protection AntiOnline L0pht Heavy Industries 2600 'It's like tackling a cryptic crossword' Program code is top trophy for computer raider Obsession led to top job in net security Why Russia excels in new cybercrime See City Comment MICROSOFT, the world's leading computer software firm, called in the FBI yesterday to investigate one of the most embarrassing breaches of computer security in corporate history. Hackers were reported to have copied the source code blueprints of the latest versions of its flagship Windows and Office products, which are installed on 90 per cent of the world's personal computers. The break-in was discovered when security employees detected passwords being remotely sent to an e-mail account in St Petersburg, Russia. Electronic footprints reportedly showed that the passwords had been used to transfer source code outside Microsoft's campus at Redmond, near Seattle. The hackers are believed to have used a "trojan" computer program known as Qaz, which was first identified in China in July. Microsoft was unable to say how long the hacking had been going on, although some reports said the attack could date back three months. The Windows source code is one of the world's most closely-guarded industrial secrets and a M icrosoft spokesman condemned the intrusion as "a deplorable act of industrial espionage". However, the company later played down its initial announcement that the codes had been copied after rivals revelled in the firm falling prey to a rather banal security breach. Steve Ballmer, the chief executive, when asked how damaging the break-in was, said: "Not very, but we want to make sure it doesn't get that way and that's why we called in the FBI." He denied that any source codes had been stolen, but added: "It is clear that hackers did see some of our source code." Microsoft has been repeatedly castigated for woeful levels of security on its products. Yesterday's humiliation did not come as a great surprise within the industry. The break-in was the latest in a string of security breaches of Microsoft products and networks that the company has addressed often only after hackers have pointed out the loopholes. The Lovebug and Melissa viruses were able to wreak such major destruction, costing corporate e-mail systems tens of billions of pounds, only because Microsoft repeatedly ignored criticisms of software security. A similar complacency led to Bill Gates's company being forced to close its Hotmail e-mail service last year after a security breach allowed anyone to read subscribers' personal messages. Of most embarrassment to Microsoft is that the latest breach was made by the Qaz "trojan", a remarkably well-known attacker that ought to be barred by the most basic anti-virus software. If the code has been copied, Microsoft could face a demand for a "ransom" to prevent it being released on the internet. The code could also be used to make malicious software to attack Windows and Office products. The company will also be anxious to ensure that highly-saleable research and development files, litigation papers, government discussion documents and corporate strategy information have not been accessed. Graham Satchwell, a former senior Microsoft investigator who now runs a security consultancy, said: "If it was a prankster, it is most unlikely that they would do nothing to advertise their success. That leaves the possibility that it is something more sinister." The development had no adverse impact on Microsoft shares yesterday, which rose $3.5 to $68 in early trading. © Copyright of Telegraph Group Limited 2000 <A HREF="http://www.ctrl.org/">www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are unwelcomed. Substance—not soap-boxing—please! 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