Bruce Sterling

The Hacker Crackdown

Law and Disorder on the Electronic Frontier

CONTENTS

Preface to the Electronic Release of THE HACKER CRACKDOWN

Chronology of the Hacker Crackdown

Introduction

Part 1: CRASHING THE SYSTEM

A Brief History of Telephony / Bell's Golden Vaporware / Universal Service / Wild Boys and Wire Women / The Electronic Communities / The Ungentle Giant / The Breakup / In Defense of the System / The Crash Post-Mortem / Landslides in Cyberspace

Part 2: THE DIGITAL UNDERGROUND

Steal This Phone / Phreaking and Hacking / The View From Under the Floorboards / Boards: Core of the Underground / Phile Phun / The Rake's Progress / Strongholds of the Elite / Sting Boards / Hot Potatoes / War on the Legion / Terminus / Phile 9-1-1 / War Games / Real Cyberpunk

Part 3: LAW AND ORDER

Crooked Boards / The World's Biggest Hacker Bust / Teach Them a Lesson / The U.S. Secret Service / The Secret Service Battles the Boodlers / A Walk Downtown / FCIC: The Cutting-Edge Mess / Cyberspace Rangers / FLETC: Training the Hacker-Trackers

Part 4: THE CIVIL LIBERTARIANS

NuPrometheus + FBI = Grateful Dead / Whole Earth + Computer Revolution = WELL / Phiber Runs Underground and Acid Spikes the Well / The Trial of Knight Lightning / Shadowhawk Plummets to Earth / Kyrie in the Confessional / $79,499 / A Scholar Investigates / Computers, Freedom, and Privacy

Electronic Afterword to THE HACKER CRACKDOWN, Halloween 1993

Preface to the Electronic Release of THE HACKER CRACKDOWN

October 31, 1993--Austin, Texas

Hi, I'm Bruce Sterling, the author of this electronic book. Out in the traditional world of print, this book is still a part of the traditional commercial economy, because it happens to be widely available in paperback (for a while, at least).

Out in the world of print, THE HACKER CRACKDOWN is ISBN 0-553-08058-X, and is formally catalogued by the Library of Congress as "1. Computer crimes--United States. 2. Telephone-- United States--Corrupt practices. 3. Programming (Electronic computers)--United States--Corrupt practices." 'Corrupt practices,' I always get a kick out of that description. Librarians are very ingenious people.

If you go and buy the print version of THE HACKER CRACKDOWN, an action I encourage heartily, you may notice that in the front of the book, right under the copyright sign--"Copyright (C) 1992 by Bruce Sterling"--it has this little block of printed legal boilerplate from the publisher. It says, and I quote:

"No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage or retrieval system, without permission in writing from the publisher. For information address: Bantam Books."

This is a pretty good disclaimer, as such disclaimers go. I collect intellectual-property disclaimers, and I've seen dozens of them, and this one is at least pretty straightforward. Unfortunately, it doesn't have much to do with reality. Bantam Books puts that disclaimer on every book they publish, but Bantam Books does not, in fact, own the electronic rights to this book. I do. And I've chosen to give them away.

Bantam Books is not going to fuss about this. They are not going to bother you for what you do with the electronic copy of this book. If you want to check this out personally, you can ask them; they're at 1540 Broadway NY NY 10036. However, if you were so foolish as to print this book and start retailing it for money in violation of my copyright and the commercial interests of Bantam Books, then Bantam, a part of the gigantic Bertelsmann multinational publishing combine, would roust some of their heavy-duty attorneys out of hibernation and crush you like a bug. This is only to be expected. I didn't write this book so that you could make money out of it. If anybody is gonna make money out of this book, it's gonna be me and my publisher.

My publisher deserves to make money out of this book. Not only did the folks at Bantam Books commission me to write the book, and pay me a hefty sum to do so, but they bravely printed, in text, an electronic document the reproduction of which was once alleged to be a federal felony. Bantam Books and their numerous attorneys were very brave and forthright about this book. Furthermore, my former editor at Bantam Books, Betsy Mitchell, genuinely cared about this project, and worked hard on it, and had a lot of wise things to say about the manuscript. Betsy deserves genuine credit for this book, credit that editors too rarely get.

The critics were very kind to THE HACKER CRACKDOWN, and commercially the book has done well. On the other hand, I didn't write this book in order to squeeze every last nickel and dime out of the mitts of impoverished sixteen-year-old cyberpunk high- school-students. Teenagers don't have any money--no, not even enough for HACKER CRACKDOWN. That's a major reason why they sometimes succumb to the temptation to do things they shouldn't, such as swiping my books out of libraries. Kids: this one is all yours, all right? Go give the paper copy back. *8-)

Well-meaning, public-spirited civil libertarians don't have much money, either. And it seems almost criminal to snatch cash out of the hands of America's grotesquely underpaid electronic law enforcement community.

If you're a computer cop, a hacker, or an electronic civil liberties activist, you are the target audience for this book. I wrote this book because I wanted to help you, and help other people understand you and your unique, uhm, problems. I wrote this book to aid your activities, and to contribute to the public discussion of important political issues. In giving the text away in this fashion, I am directly contributing to the book's ultimate aim: to help civilize cyberspace.

Information WANTS to be free. And the information inside this book longs for freedom with a peculiar intensity. I genuinely believe that the natural habitat of this book is inside an electronic network. That may not be the easiest direct method to generate revenue for the book's author, but that doesn't matter; this is where this book belongs by its nature. I've written other books--plenty of other books--and I'll write more and I am writing more, but this one is special. I am making THE HACKER CRACKDOWN available electronically as widely as I can conveniently manage, and if you like the book, and think it is useful, then I urge you to do the same with it.

You can copy this electronic book. Copy the heck out of it, be my guest, and give those copies to anybody who wants them. The nascent world of cyberspace is full of sysadmins, teachers, trainers, cybrarians, netgurus, and various species of cybernetic activist. If you're one of those people, I know about you, and I know the hassle you go through to try to help people learn about the electronic frontier. I hope that possessing this book in electronic form will lessen your troubles. Granted, this treatment of our electronic social spectrum not the ultimate in academic rigor. And politically, it has something to offend and trouble almost everyone. But hey, I'm told it's readable, and at least the price is right.

You can upload the book onto bulletin board systems, or Internet nodes, or electronic discussion groups. Go right ahead and do that, I am giving you express permission right now. Enjoy yourself.

You can put the book on disks and give the disks away, as long as you don't take any money for it.

But this book is not public domain. You can't copyright it in your own name. I own the copyright. Attempts to pirate this book and make money from selling it may involve you in a serious litigative snarl. Believe me, for the pittance you might wring out of such an action, it's really not worth it. This book don't "belong" to you. In an odd but very genuine way, I feel it doesn't "belong" to me, either. It's a book about the people of cyberspace, and distributing it in this way is the best way I know to actually make this information available, freely and easily, to all the people of cyberspace--including people far outside the borders of the United States, who otherwise may never have a chance to see any edition of the book, and who may perhaps learn something useful from this strange story of distant, obscure, but portentous events in so-called "American cyberspace."

This electronic book is now literary freeware. It now belongs to the emergent realm of alternative information economics. You have no right to make this electronic book part of the conventional flow of commerce. Let it be part of the flow of knowledge: there's a difference. I've divided the book into four sections, so that it is less ungainly for upload and download; if there's a section of particular relevance to you and your colleagues, feel free to reproduce that one and skip the rest.

Just make more when you need them, and give them to whoever might want them.

Now have fun.

Bruce Sterling--bruces@well.sf.ca.us

CHRONOLOGY OF THE HACKER CRACKDOWN

1865 U.S. Secret Service (USSS) founded.

1876 Alexander Graham Bell invents telephone.

1878 First teenage males flung off phone system by enraged authorities.

1939 "Futurian" science-fiction group raided by Secret Service.

1971 Yippie phone phreaks start YIPL/TAP magazine.

1972 RAMPARTS magazine seized in blue-box rip-off scandal.

1978 Ward Christenson and Randy Suess create first personal computer bulletin board system.

1982 William Gibson coins term "cyberspace."

1982 "414 Gang" raided.

1983-1983 AT&T dismantled in divestiture.

1984 Congress passes Comprehensive Crime Control Act giving USSS jurisdiction over credit card fraud and computer fraud.

1984 "Legion of Doom" formed.

1984. 2600: THE HACKER QUARTERLY founded.

1984. WHOLE EARTH SOFTWARE CATALOG published.

1985. First police "sting" bulletin board systems established.

1985. Whole Earth 'Lectronic Link computer conference (WELL) goes on-line.

1986 Computer Fraud and Abuse Act passed.

1986 Electronic Communications Privacy Act passed.

1987 Chicago prosecutors form Computer Fraud and Abuse Task Force.

1988

July. Secret Service covertly videotapes "SummerCon" hacker convention.

September. "Prophet" cracks BellSouth AIMSX computer network and downloads E911 Document to his own computer and to Jolnet.

September. AT&T Corporate Information Security informed of Prophet's action.

October. Bellcore Security informed of Prophet's action.

1989

January. Prophet uploads E911 Document to Knight Lightning.

February 25. Knight Lightning publishes E911 Document in PHRACK electronic newsletter.

May. Chicago Task Force raids and arrests "Kyrie."

June. "NuPrometheus League" distributes Apple Computer proprietary software.

June 13. Florida probation office crossed with phone-sex line in switching- station stunt.

July. "Fry Guy" raided by USSS and Chicago Computer Fraud and Abuse Task Force.

July. Secret Service raids "Prophet," "Leftist," and "Urvile" in Georgia.

1990

January 15. Martin Luther King Day Crash strikes AT&T long-distance network nationwide.

January 18-19. Chicago Task Force raids Knight Lightning in St. Louis.

January 24. USSS and New York State Police raid "Phiber Optik," "Acid Phreak," and "Scorpion" in New York City.

February 1. USSS raids "Terminus" in Maryland.

February 3. Chicago Task Force raids Richard Andrews' home.

February 6. Chicago Task Force raids Richard Andrews' business.

February 6. USSS arrests Terminus, Prophet, Leftist, and Urvile.

February 9. Chicago Task Force arrests Knight Lightning.

February 20. AT&T Security shuts down public-access "attctc" computer in Dallas.

February 21. Chicago Task Force raids Robert Izenberg in Austin.

March 1. Chicago Task Force raids Steve Jackson Games, Inc., "Mentor," and "Erik Bloodaxe" in Austin.

May 7,8,9 USSS and Arizona Organized Crime and Racketeering Bureau conduct "Operation Sundevil" raids in Cincinnatti, Detroit, Los Angeles, Miami, Newark, Phoenix, Pittsburgh, Richmond, Tucson, San Diego, San Jose, and San Francisco.

May. FBI interviews John Perry Barlow re NuPrometheus case.

June. Mitch Kapor and Barlow found Electronic Frontier Foundation; Barlow publishes CRIME AND PUZZLEMENT manifesto.

July 24-27. Trial of Knight Lightning.

1991

February. CPSR Roundtable in Washington, D.C.

March 25-28. Computers, Freedom and Privacy conference in San Francisco.

May 1. Electronic Frontier Foundation, Steve Jackson, and others file suit against members of Chicago Task Force.

July 1-2. Switching station phone software crash affects Washington, Los Angeles, Pittsburgh, San Francisco.

September 17. AT&T phone crash affects New York City and three airports.

Introduction

This is a book about cops, and wild teenage whiz-kids, and lawyers, and hairy- eyed anarchists, and industrial technicians, and hippies, and high-tech millionaires, and game hobbyists, and computer security experts, and Secret Service agents, and grifters, and thieves.

This book is about the electronic frontier of the 1990s. It concerns activities that take place inside computers and over telephone lines.

A science fiction writer coined the useful term "cyberspace" in 1982. But the territory in question, the electronic frontier, is about a hundred and thirty years old. Cyberspace is the "place" where a telephone conversation appears to occur. Not inside your actual phone, the plastic device on your desk. Not inside the other person's phone, in some other city. THE PLACE BETWEEN the phones. The indefinite place OUT THERE, where the two of you, two human beings, actually meet and communicate.

Although it is not exactly "real," "cyberspace" is a genuine place. Things happen there that have very genuine consequences. This "place" is not "real," but it is serious, it is earnest. Tens of thousands of people have dedicated their lives to it, to the public service of public communication by wire and electronics.

People have worked on this "frontier" for generations now. Some people became rich and famous from their efforts there. Some just played in it, as hobbyists. Others soberly pondered it, and wrote about it, and regulated it, and negotiated over it in international forums, and sued one another about it, in gigantic, epic court battles that lasted for years. And almost since the beginning, some people have committed crimes in this place.

But in the past twenty years, this electrical "space," which was once thin and dark and one-dimensional--little more than a narrow speaking-tube, stretching from phone to phone--has flung itself open like a gigantic jack-in-the-box. Light has flooded upon it, the eerie light of the glowing computer screen. This dark electric netherworld has become a vast flowering electronic landscape. Since the 1960s, the world of the telephone has cross-bred itself with computers and television, and though there is still no substance to cyberspace, nothing you can handle, it has a strange kind of physicality now. It makes good sense today to talk of cyberspace as a place all its own.

Because people live in it now. Not just a few people, not just a few technicians and eccentrics, but thousands of people, quite normal people. And not just for a little while, either, but for hours straight, over weeks, and months, and years. Cyberspace today is a "Net," a "Matrix," international in scope and growing swiftly and steadily. It's growing in size, and wealth, and political importance.

People are making entire careers in modern cyberspace. Scientists and technicians, of course; they've been there for twenty years now. But increasingly, cyberspace is filling with journalists and doctors and lawyers and artists and clerks. Civil servants make their careers there now, "on-line" in vast government data-banks; and so do spies, industrial, political, and just plain snoops; and so do police, at least a few of them. And there are children living there now.

People have met there and been married there. There are entire living communities in cyberspace today; chattering, gossiping, planning, conferring and scheming, leaving one another voice-mail and electronic mail, giving one another big weightless chunks of valuable data, both legitimate and illegitimate. They busily pass one another computer software and the occasional festering computer virus.

We do not really understand how to live in cyberspace yet. We are feeling our way into it, blundering about. That is not surprising. Our lives in the physical world, the "real" world, are also far from perfect, despite a lot more practice. Human lives, real lives, are imperfect by their nature, and there are human beings in cyberspace. The way we live in cyberspace is a funhouse mirror of the way we live in the real world. We take both our advantages and our troubles with us.

This book is about trouble in cyberspace. Specifically, this book is about certain strange events in the year 1990, an unprecedented and startling year for the the growing world of computerized communications.

In 1990 there came a nationwide crackdown on illicit computer hackers, with arrests, criminal charges, one dramatic show-trial, several guilty pleas, and huge confiscations of data and equipment all over the USA.

The Hacker Crackdown of 1990 was larger, better organized, more deliberate, and more resolute than any previous effort in the brave new world of computer crime. The U.S. Secret Service, private telephone security, and state and local law enforcement groups across the country all joined forces in a determined attempt to break the back of America's electronic underground. It was a fascinating effort, with very mixed results.

The Hacker Crackdown had another unprecedented effect; it spurred the creation, within "the computer community," of the Electronic Frontier Foundation, a new and very odd interest group, fiercely dedicated to the establishment and preservation of electronic civil liberties. The crackdown, remarkable in itself, has created a melee of debate over electronic crime, punishment, freedom of the press, and issues of search and seizure. Politics has entered cyberspace. Where people go, politics follow.

This is the story of the people of cyberspace.

PART ONE: Crashing the System

On January 15, 1990, AT&T's long-distance telephone switching system crashed.

This was a strange, dire, huge event. Sixty thousand people lost their telephone service completely. During the nine long hours of frantic effort that it took to restore service, some seventy million telephone calls went uncompleted.

Losses of service, known as "outages" in the telco trade, are a known and accepted hazard of the telephone business. Hurricanes hit, and phone cables get snapped by the thousands. Earthquakes wrench through buried fiber-optic lines. Switching stations catch fire and burn to the ground. These things do happen. There are contingency plans for them, and decades of experience in dealing with them. But the Crash of January 15 was unprecedented. It was unbelievably huge, and it occurred for no apparent physical reason.

The crash started on a Monday afternoon in a single switching-station in Manhattan. But, unlike any merely physical damage, it spread and spread. Station after station across America collapsed in a chain reaction, until fully half of AT&T's network had gone haywire and the remaining half was hard-put to handle the overflow.

Within nine hours, AT&T software engineers more or less understood what had caused the crash. Replicating the problem exactly, poring over software line by line, took them a couple of weeks. But because it was hard to understand technically, the full truth of the matter and its implications were not widely and thoroughly aired and explained. The root cause of the crash remained obscure, surrounded by rumor and fear.

The crash was a grave corporate embarrassment. The "culprit" was a bug in AT&T's own software--not the sort of admission the telecommunications giant wanted to make, especially in the face of increasing competition. Still, the truth WAS told, in the baffling technical terms necessary to explain it.

Somehow the explanation failed to persuade American law enforcement officials and even telephone corporate security personnel. These people were not technical experts or software wizards, and they had their own suspicions about the cause of this disaster.

The police and telco security had important sources of information denied to mere software engineers. They had informants in the computer underground and years of experience in dealing with high-tech rascality that seemed to grow ever more sophisticated. For years they had been expecting a direct and savage attack against the American national telephone system. And with the Crash of January 15--the first month of a new, high- tech decade--their predictions, fears, and suspicions seemed at last to have entered the real world. A world where the telephone system had not merely crashed, but, quite likely, BEEN crashed--by "hackers."

The crash created a large dark cloud of suspicion that would color certain people's assumptions and actions for months. The fact that it took place in the realm of software was suspicious on its face. The fact that it occurred on Martin Luther King Day, still the most politically touchy of American holidays, made it more suspicious yet.

The Crash of January 15 gave the Hacker Crackdown its sense of edge and its sweaty urgency. It made people, powerful people in positions of public authority, willing to believe the worst. And, most fatally, it helped to give investigators a willingness to take extreme measures and the determination to preserve almost total secrecy.

An obscure software fault in an aging switching system in New York was to lead to a chain reaction of legal and constitutional trouble all across the country.

Like the crash in the telephone system, this chain reaction was ready and waiting to happen. During the 1980s, the American legal system was extensively patched to deal with the novel issues of computer crime. There was, for instance, the Electronic Communications Privacy Act of 1986 (eloquently described as "a stinking mess" by a prominent law enforcement official). And there was the draconian Computer Fraud and Abuse Act of 1986, passed unanimously by the United States Senate, which later would reveal a large number of flaws. Extensive, well-meant efforts had been made to keep the legal system up to date. But in the day-to-day grind of the real world, even the most elegant software tends to crumble and suddenly reveal its hidden bugs.

Like the advancing telephone system, the American legal system was certainly not ruined by its temporary crash; but for those caught under the weight of the collapsing system, life became a series of blackouts and anomalies.

In order to understand why these weird events occurred, both in the world of technology and in the world of law, it's not enough to understand the merely technical problems. We will get to those; but first and foremost, we must try to understand the telephone, and the business of telephones, and the community of human beings that telephones have created.

Technologies have life cycles, like cities do, like institutions do, like laws and governments do.

The first stage of any technology is the Question Mark, often known as the "Golden Vaporware" stage. At this early point, the technology is only a phantom, a mere gleam in the inventor's eye. One such inventor was a speech teacher and electrical tinkerer named Alexander Graham Bell.

Bell's early inventions, while ingenious, failed to move the world. In 1863, the teenage Bell and his brother Melville made an artificial talking mechanism out of wood, rubber, gutta- percha, and tin. This weird device had a rubber- covered "tongue" made of movable wooden segments, with vibrating rubber "vocal cords," and rubber "lips" and "cheeks." While Melville puffed a bellows into a tin tube, imitating the lungs, young Alec Bell would manipulate the "lips," "teeth," and "tongue," causing the thing to emit high-pitched falsetto gibberish.

Another would-be technical breakthrough was the Bell "phonautograph" of 1874, actually made out of a human cadaver's ear. Clamped into place on a tripod, this grisly gadget drew sound-wave images on smoked glass through a thin straw glued to its vibrating earbones.

By 1875, Bell had learned to produce audible sounds--ugly shrieks and squawks-- by using magnets, diaphragms, and electrical current.

Most "Golden Vaporware" technologies go nowhere.

But the second stage of technology is the Rising Star, or, the "Goofy Prototype," stage. The telephone, Bell's most ambitious gadget yet, reached this stage on March 10, 1876. On that great day, Alexander Graham Bell became the first person to transmit intelligible human speech electrically. As it happened, young Professor Bell, industriously tinkering in his Boston lab, had spattered his trousers with acid. His assistant, Mr. Watson, heard his cry for help--over Bell's experimental audio-telegraph. This was an event without precedent.

Technologies in their "Goofy Prototype" stage rarely work very well. They're experimental, and therefore half-baked and rather frazzled. The prototype may be attractive and novel, and it does look as if it ought to be good for something-or-other. But nobody, including the inventor, is quite sure what. Inventors, and speculators, and pundits may have very firm ideas about its potential use, but those ideas are often very wrong.

The natural habitat of the Goofy Prototype is in trade shows and in the popular press. Infant technologies need publicity and investment money like a tottering calf need milk. This was very true of Bell's machine. To raise research and development money, Bell toured with his device as a stage attraction.

Contemporary press reports of the stage debut of the telephone showed pleased astonishment mixed with considerable dread. Bell's stage telephone was a large wooden box with a crude speaker-nozzle, the whole contraption about the size and shape of an overgrown Brownie camera. Its buzzing steel soundplate, pumped up by powerful electromagnets, was loud enough to fill an auditorium. Bell's assistant Mr. Watson, who could manage on the keyboards fairly well, kicked in by playing the organ from distant rooms, and, later, distant cities. This feat was considered marvellous, but very eerie indeed.

Bell's original notion for the telephone, an idea promoted for a couple of years, was that it would become a mass medium. We might recognize Bell's idea today as something close to modern "cable radio." Telephones at a central source would transmit music, Sunday sermons, and important public speeches to a paying network of wired-up subscribers.

At the time, most people thought this notion made good sense. In fact, Bell's idea was workable. In Hungary, this philosophy of the telephone was successfully put into everyday practice. In Budapest, for decades, from 1893 until after World War I, there was a government-run information service called "Telefon Hirmondo+." Hirmondo+ was a centralized source of news and entertainment and culture, including stock reports, plays, concerts, and novels read aloud. At certain hours of the day, the phone would ring, you would plug in a loudspeaker for the use of the family, and Telefon Hirmondo+ would be on the air--or rather, on the phone.

Hirmondo+ is dead tech today, but Hirmondo+ might be considered a spiritual ancestor of the modern telephone-accessed computer data services, such as CompuServe, GEnie or Prodigy. The principle behind Hirmondo+ is also not too far from computer "bulletin-board systems" or BBS's, which arrived in the late 1970s, spread rapidly across America, and will figure largely in this book.

We are used to using telephones for individual person-to- person speech, because we are used to the Bell system. But this was just one possibility among many. Communication networks are very flexible and protean, especially when their hardware becomes sufficiently advanced. They can be put to all kinds of uses. And they have been--and they will be.

Bell's telephone was bound for glory, but this was a combination of political decisions, canny infighting in court, inspired industrial leadership, receptive local conditions and outright good luck. Much the same is true of communications systems today.

As Bell and his backers struggled to install their newfangled system in the real world of nineteenth-century New England, they had to fight against skepticism and industrial rivalry. There was already a strong electrical communications network present in America: the telegraph. The head of the Western Union telegraph system dismissed Bell's prototype as "an electrical toy" and refused to buy the rights to Bell's patent. The telephone, it seemed, might be all right as a parlor entertainment--but not for serious business.

Telegrams, unlike mere telephones, left a permanent physical record of their messages. Telegrams, unlike telephones, could be answered whenever the recipient had time and convenience. And the telegram had a much longer distance-range than Bell's early telephone. These factors made telegraphy seem a much more sound and businesslike technology--at least to some.

The telegraph system was huge, and well-entrenched. In 1876, the United States had 214,000 miles of telegraph wire, and 8500 telegraph offices. There were specialized telegraphs for businesses and stock traders, government, police and fire departments. And Bell's "toy" was best known as a stage-magic musical device.

The third stage of technology is known as the "Cash Cow" stage. In the "cash cow" stage, a technology finds its place in the world, and matures, and becomes settled and productive. After a year or so, Alexander Graham Bell and his capitalist backers concluded that eerie music piped from nineteenth-century cyberspace was not the real selling-point of his invention. Instead, the telephone was about speech--individual, personal speech, the human voice, human conversation and human interaction. The telephone was not to be managed from any centralized broadcast center. It was to be a personal, intimate technology.

When you picked up a telephone, you were not absorbing the cold output of a machine--you were speaking to another human being. Once people realized this, their instinctive dread of the telephone as an eerie, unnatural device, swiftly vanished. A "telephone call" was not a "call" from a "telephone" itself, but a call from another human being, someone you would generally know and recognize. The real point was not what the machine could do for you (or to you), but what you yourself, a person and citizen, could do THROUGH the machine. This decision on the part of the young Bell Company was absolutely vital.

The first telephone networks went up around Boston-- mostly among the technically curious and the well-to-do (much the same segment of the American populace that, a hundred years later, would be buying personal computers). Entrenched backers of the telegraph continued to scoff.

But in January 1878, a disaster made the telephone famous. A train crashed in Tarriffville, Connecticut. Forward- looking doctors in the nearby city of Hartford had had Bell's "speaking telephone" installed. An alert local druggist was able to telephone an entire community of local doctors, who rushed to the site to give aid. The disaster, as disasters do, aroused intense press coverage. The phone had proven its usefulness in the real world.

After Tarriffville, the telephone network spread like crabgrass. By 1890 it was all over New England. By '93, out to Chicago. By '97, into Minnesota, Nebraska and Texas. By 1904 it was all over the continent.

The telephone had become a mature technology. Professor Bell (now generally known as "Dr. Bell" despite his lack of a formal degree) became quite wealthy. He lost interest in the tedious day-to-day business muddle of the booming telephone network, and gratefully returned his attention to creatively hacking- around in his various laboratories, which were now much larger, better- ventilated, and gratifyingly better-equipped. Bell was never to have another great inventive success, though his speculations and prototypes anticipated fiber-optic transmission, manned flight, sonar, hydrofoil ships, tetrahedral construction, and Montessori education. The "decibel," the standard scientific measure of sound intensity, was named after Bell.

Not all Bell's vaporware notions were inspired. He was fascinated by human eugenics. He also spent many years developing a weird personal system of astrophysics in which gravity did not exist.

Bell was a definite eccentric. He was something of a hypochondriac, and throughout his life he habitually stayed up until four A.M., refusing to rise before noon. But Bell had accomplished a great feat; he was an idol of millions and his influence, wealth, and great personal charm, combined with his eccentricity, made him something of a loose cannon on deck. Bell maintained a thriving scientific salon in his winter mansion in Washington, D.C., which gave him considerable backstage influence in governmental and scientific circles. He was a major financial backer of the the magazines SCIENCE and NATIONAL GEOGRAPHIC, both still flourishing today as important organs of the American scientific establishment.

Bell's companion Thomas Watson, similarly wealthy and similarly odd, became the ardent political disciple of a 19th- century science-fiction writer and would-be social reformer, Edward Bellamy. Watson also trod the boards briefly as a Shakespearian actor.

There would never be another Alexander Graham Bell, but in years to come there would be surprising numbers of people like him. Bell was a prototype of the high-tech entrepreneur. High- tech entrepreneurs will play a very prominent role in this book: not merely as technicians and businessmen, but as pioneers of the technical frontier, who can carry the power and prestige they derive from high-technology into the political and social arena.

Like later entrepreneurs, Bell was fierce in defense of his own technological territory. As the telephone began to flourish, Bell was soon involved in violent lawsuits in the defense of his patents. Bell's Boston lawyers were excellent, however, and Bell himself, as an elocution teacher and gifted public speaker, was a devastatingly effective legal witness. In the eighteen years of Bell's patents, the Bell company was involved in six hundred separate lawsuits. The legal records printed filled 149 volumes. The Bell Company won every single suit.

After Bell's exclusive patents expired, rival telephone companies sprang up all over America. Bell's company, American Bell Telephone, was soon in deep trouble. In 1907, American Bell Telephone fell into the hands of the rather sinister J.P. Morgan financial cartel, robber-baron speculators who dominated Wall Street.

At this point, history might have taken a different turn. American might well have been served forever by a patchwork of locally owned telephone companies. Many state politicians and local businessmen considered this an excellent solution.

But the new Bell holding company, American Telephone and Telegraph or AT&T, put in a new man at the helm, a visionary industrialist named Theodore Vail. Vail, a former Post Office manager, understood large organizations and had an innate feeling for the nature of large-scale communications. Vail quickly saw to it that AT&T seized the technological edge once again. The Pupin and Campbell "loading coil," and the deForest "audion," are both extinct technology today, but in 1913 they gave Vail's company the best LONG-DISTANCE lines ever built. By controlling long-distance--the links between, and over, and above the smaller local phone companies--AT&T swiftly gained the whip-hand over them, and was soon devouring them right and left.

Vail plowed the profits back into research and development, starting the Bell tradition of huge-scale and brilliant industrial research.

Technically and financially, AT&T gradually steamrollered the opposition. Independent telephone companies never became entirely extinct, and hundreds of them flourish today. But Vail's AT&T became the supreme communications company. At one point, Vail's AT&T bought Western Union itself, the very company that had derided Bell's telephone as a "toy." Vail thoroughly reformed Western Union's hidebound business along his modern principles; but when the federal government grew anxious at this centralization of power, Vail politely gave Western Union back.

This centralizing process was not unique. Very similar events had happened in American steel, oil, and railroads. But AT&T, unlike the other companies, was to remain supreme. The monopoly robber-barons of those other industries were humbled and shattered by government trust-busting.

Vail, the former Post Office official, was quite willing to accommodate the US government; in fact he would forge an active alliance with it. AT&T would become almost a wing of the American government, almost another Post Office-- though not quite. AT&T would willingly submit to federal regulation, but in return, it would use the government's regulators as its own police, who would keep out competitors and assure the Bell system's profits and preeminence.

This was the second birth--the political birth--of the American telephone system. Vail's arrangement was to persist, with vast success, for many decades, until 1982. His system was an odd kind of American industrial socialism. It was born at about the same time as Leninist Communism, and it lasted almost as long--and, it must be admitted, to considerably better effect.

Vail's system worked. Except perhaps for aerospace, there has been no technology more thoroughly dominated by Americans than the telephone. The telephone was seen from the beginning as a quintessentially American technology. Bell's policy, and the policy of Theodore Vail, was a profoundly democratic policy of UNIVERSAL ACCESS. Vail's famous corporate slogan, "One Policy, One System, Universal Service," was a political slogan, with a very American ring to it.

The American telephone was not to become the specialized tool of government or business, but a general public utility. At first, it was true, only the wealthy could afford private telephones, and Bell's company pursued the business markets primarily. The American phone system was a capitalist effort, meant to make money; it was not a charity. But from the first, almost all communities with telephone service had public telephones. And many stores--especially drugstores--offered public use of their phones. You might not own a telephone-- but you could always get into the system, if you really needed to.

There was nothing inevitable about this decision to make telephones "public" and "universal." Vail's system involved a profound act of trust in the public. This decision was a political one, informed by the basic values of the American republic. The situation might have been very different; and in other countries, under other systems, it certainly was.

Joseph Stalin, for instance, vetoed plans for a Soviet phone system soon after the Bolshevik revolution. Stalin was certain that publicly accessible telephones would become instruments of anti-Soviet counterrevolution and conspiracy. (He was probably right.) When telephones did arrive in the Soviet Union, they would be instruments of Party authority, and always heavily tapped. (Alexander Solzhenitsyn's prison-camp novel THE FIRST CIRCLE describes efforts to develop a phone system more suited to Stalinist purposes.)

France, with its tradition of rational centralized government, had fought bitterly even against the electric telegraph, which seemed to the French entirely too anarchical and frivolous. For decades, nineteenth-century France communicated via the "visual telegraph," a nation-spanning, government-owned semaphore system of huge stone towers that signalled from hilltops, across vast distances, with big windmill-like arms. In 1846, one Dr. Barbay, a semaphore enthusiast, memorably uttered an early version of what might be called "the security expert's argument" against the open media.

"No, the electric telegraph is not a sound invention. It will always be at the mercy of the slightest disruption, wild youths, drunkards, bums, etc.... The electric telegraph meets those destructive elements with only a few meters of wire over which supervision is impossible. A single man could, without being seen, cut the telegraph wires leading to Paris, and in twenty-four hours cut in ten different places the wires of the same line, without being arrested. The visual telegraph, on the contrary, has its towers, its high walls, its gates well-guarded from inside by strong armed men. Yes, I declare, substitution of the electric telegraph for the visual one is a dreadful measure, a truly idiotic act."

Dr. Barbay and his high-security stone machines were eventually unsuccessful, but his argument--that communication exists for the safety and convenience of the state, and must be carefully protected from the wild boys and the gutter rabble who might want to crash the system--would be heard again and again.

When the French telephone system finally did arrive, its snarled inadequacy was to be notorious. Devotees of the American Bell System often recommended a trip to France, for skeptics.

In Edwardian Britain, issues of class and privacy were a ball-and-chain for telephonic progress. It was considered outrageous that anyone--any wild fool off the street--could simply barge bellowing into one's office or home, preceded only by the ringing of a telephone bell. In Britain, phones were tolerated for the use of business, but private phones tended be stuffed away into closets, smoking rooms, or servants' quarters. Telephone operators were resented in Britain because they did not seem to "know their place." And no one of breeding would print a telephone number on a business card; this seemed a crass attempt to make the acquaintance of strangers.

But phone access in America was to become a popular right; something like universal suffrage, only more so. American women could not yet vote when the phone system came through; yet from the beginning American women doted on the telephone. This "feminization" of the American telephone was often commented on by foreigners. Phones in America were not censored or stiff or formalized; they were social, private, intimate, and domestic. In America, Mother's Day is by far the busiest day of the year for the phone network.

The early telephone companies, and especially AT&T, were among the foremost employers of American women. They employed the daughters of the American middle-class in great armies: in 1891, eight thousand women; by 1946, almost a quarter of a million. Women seemed to enjoy telephone work; it was respectable, it was steady, it paid fairly well as women's work went, and--not least--it seemed a genuine contribution to the social good of the community. Women found Vail's ideal of public service attractive. This was especially true in rural areas, where women operators, running extensive rural party- lines, enjoyed considerable social power. The operator knew everyone on the party-line, and everyone knew her.

Although Bell himself was an ardent suffragist, the telephone company did not employ women for the sake of advancing female liberation. AT&T did this for sound commercial reasons. The first telephone operators of the Bell system were not women, but teenage American boys. They were telegraphic messenger boys (a group about to be rendered technically obsolescent), who swept up around the phone office, dunned customers for bills, and made phone connections on the switchboard, all on the cheap.

Within the very first year of operation, 1878, Bell's company learned a sharp lesson about combining teenage boys and telephone switchboards. Putting teenage boys in charge of the phone system brought swift and consistent disaster. Bell's chief engineer described them as "Wild Indians." The boys were openly rude to customers. They talked back to subscribers, saucing off, uttering facetious remarks, and generally giving lip. The rascals took Saint Patrick's Day off without permission. And worst of all they played clever tricks with the switchboard plugs: disconnecting calls, crossing lines so that customers found themselves talking to strangers, and so forth.

This combination of power, technical mastery, and effective anonymity seemed to act like catnip on teenage boys.

This wild-kid-on-the-wires phenomenon was not confined to the USA; from the beginning, the same was true of the British phone system. An early British commentator kindly remarked: "No doubt boys in their teens found the work not a little irksome, and it is also highly probable that under the early conditions of employment the adventurous and inquisitive spirits of which the average healthy boy of that age is possessed, were not always conducive to the best attention being given to the wants of the telephone subscribers."

So the boys were flung off the system--or at least, deprived of control of the switchboard. But the "adventurous and inquisitive spirits" of the teenage boys would be heard from in the world of telephony, again and again.

The fourth stage in the technological life-cycle is death: "the Dog," dead tech. The telephone has so far avoided this fate. On the contrary, it is thriving, still spreading, still evolving, and at increasing speed.

The telephone has achieved a rare and exalted state for a technological artifact: it has become a HOUSEHOLD OBJECT. The telephone, like the clock, like pen and paper, like kitchen utensils and running water, has become a technology that is visible only by its absence. The telephone is technologically transparent. The global telephone system is the largest and most complex machine in the world, yet it is easy to use. More remarkable yet, the telephone is almost entirely physically safe for the user.

For the average citizen in the 1870s, the telephone was weirder, more shocking, more "high-tech" and harder to comprehend, than the most outrageous stunts of advanced computing for us Americans in the 1990s. In trying to understand what is happening to us today, with our bulletin-board systems, direct overseas dialling, fiber-optic transmissions, computer viruses, hacking stunts, and a vivid tangle of new laws and new crimes, it is important to realize that our society has been through a similar challenge before--and that, all in all, we did rather well by it.

Bell's stage telephone seemed bizarre at first. But the sensations of weirdness vanished quickly, once people began to hear the familiar voices of relatives and friends, in their own homes on their own telephones. The telephone changed from a fearsome high-tech totem to an everyday pillar of human community.

This has also happened, and is still happening, to computer networks. Computer networks such as NSFnet, BITnet, USENET, JANET, are technically advanced, intimidating, and much harder to use than telephones. Even the popular, commercial computer networks, such as GEnie, Prodigy, and CompuServe, cause much head-scratching and have been described as "user-hateful." Nevertheless they too are changing from fancy high-tech items into everyday sources of human community.

The words "community" and "communication" have the same root. Wherever you put a communications network, you put a community as well. And whenever you TAKE AWAY that network-- confiscate it, outlaw it, crash it, raise its price beyond affordability--then you hurt that community.

Communities will fight to defend themselves. People will fight harder and more bitterly to defend their communities, than they will fight to defend their own individual selves. And this is very true of the "electronic community" that arose around computer networks in the 1980s--or rather, the VARIOUS electronic communities, in telephony, law enforcement, computing, and the digital underground that, by the year 1990, were raiding, rallying, arresting, suing, jailing, fining and issuing angry manifestos.

None of the events of 1990 were entirely new. Nothing happened in 1990 that did not have some kind of earlier and more understandable precedent. What gave the Hacker Crackdown its new sense of gravity and importance was the feeling--the COMMUNITY feeling--that the political stakes had been raised; that trouble in cyberspace was no longer mere mischief or inconclusive skirmishing, but a genuine fight over genuine issues, a fight for community survival and the shape of the future.

These electronic communities, having flourished throughout the 1980s, were becoming aware of themselves, and increasingly, becoming aware of other, rival communities. Worries were sprouting up right and left, with complaints, rumors, uneasy speculations. But it would take a catalyst, a shock, to make the new world evident. Like Bell's great publicity break, the Tarriffville Rail Disaster of January 1878, it would take a cause celebre.

That cause was the AT&T Crash of January 15, 1990. After the Crash, the wounded and anxious telephone community would come out fighting hard.

The community of telephone technicians, engineers, operators and researchers is the oldest community in cyberspace. These are the veterans, the most developed group, the richest, the most respectable, in most ways the most powerful. Whole generations have come and gone since Alexander Graham Bell's day, but the community he founded survives; people work for the phone system today whose great-grandparents worked for the phone system. Its specialty magazines, such as TELEPHONY, AT&T TECHNICAL JOURNAL, and TELEPHONE ENGINEER AND MANAGEMENT, are decades old; they make computer publications like MACWORLD and PC WEEK look like amateur johnny-come-latelies.

And the phone companies take no back seat in high- technology, either. Other companies' industrial researchers may have won new markets; but the researchers of Bell Labs have won SEVEN NOBLE PRIZES. One potent device that Bell Labs originated, the transistor, has created entire GROUPS of industries. Bell Labs are world-famous for generating "a patent a day," and have even made vital discoveries in astronomy, physics and cosmology.

Throughout its seventy-year history, "Ma Bell" was not so much a company as a way of life. Until the cataclysmic divestiture of the 1980s, Ma Bell was perhaps the ultimate maternalist mega-employer. The AT&T corporate image was the "gentle giant," "the voice with a smile," a vaguely socialist- realist world of cleanshaven linemen in shiny helmets and blandly pretty phone-girls in headsets and nylons. Bell System employees were famous as rock-ribbed Kiwanis and Rotary members, Little- League enthusiasts, school-board people.

During the long heyday of Ma Bell, the Bell employee corps were nurtured top-to- bottom on a corporate ethos of public service. There was good money in Bell, but Bell was not ABOUT money; Bell used public relations, but never mere marketeering. People went into the Bell System for a good life, and they had a good life. But it was not mere money that led Bell people out in the midst of storms and earthquakes to fight with toppled phone- poles, to wade in flooded manholes, to pull the red-eyed graveyard-shift over collapsing switching- systems. The Bell ethic was the electrical equivalent of the postman's: neither rain, nor snow, nor gloom of night would stop these couriers.

It is easy to be cynical about this, as it is easy to be cynical about any political or social system; but cynicism does not change the fact that thousands of people took these ideals very seriously. And some still do.

The Bell ethos was about public service; and that was gratifying; but it was also about private POWER, and that was gratifying too. As a corporation, Bell was very special. Bell was privileged. Bell had snuggled up close to the state. In fact, Bell was as close to government as you could get in America and still make a whole lot of legitimate money.

But unlike other companies, Bell was above and beyond the vulgar commercial fray. Through its regional operating companies, Bell was omnipresent, local, and intimate, all over America; but the central ivory towers at its corporate heart were the tallest and the ivoriest around.

There were other phone companies in America, to be sure; the so-called independents. Rural cooperatives, mostly; small fry, mostly tolerated, sometimes warred upon. For many decades, "independent" American phone companies lived in fear and loathing of the official Bell monopoly (or the "Bell Octopus," as Ma Bell's nineteenth-century enemies described her in many angry newspaper manifestos). Some few of these independent entrepreneurs, while legally in the wrong, fought so bitterly against the Octopus that their illegal phone networks were cast into the street by Bell agents and publicly burned.

The pure technical sweetness of the Bell System gave its operators, inventors and engineers a deeply satisfying sense of power and mastery. They had devoted their lives to improving this vast nation-spanning machine; over years, whole human lives, they had watched it improve and grow. It was like a great technological temple. They were an elite, and they knew it-- even if others did not; in fact, they felt even more powerful BECAUSE others did not understand.

The deep attraction of this sensation of elite technical power should never be underestimated. "Technical power" is not for everybody; for many people it simply has no charm at all. But for some people, it becomes the core of their lives. For a few, it is overwhelming, obsessive; it becomes something close to an addiction. People--especially clever teenage boys whose lives are otherwise mostly powerless and put-upon--love this sensation of secret power, and are willing to do all sorts of amazing things to achieve it. The technical POWER of electronics has motivated many strange acts detailed in this book, which would otherwise be inexplicable.

So Bell had power beyond mere capitalism. The Bell service ethos worked, and was often propagandized, in a rather saccharine fashion. Over the decades, people slowly grew tired of this. And then, openly impatient with it. By the early 1980s, Ma Bell was to find herself with scarcely a real friend in the world. Vail's industrial socialism had become hopelessly out-of-fashion politically. Bell would be punished for that. And that punishment would fall harshly upon the people of the telephone community.

In 1983, Ma Bell was dismantled by federal court action. The pieces of Bell are now separate corporate entities. The core of the company became AT&T Communications, and also AT&T Industries (formerly Western Electric, Bell's manufacturing arm). AT&T Bell Labs become Bell Communications Research, Bellcore. Then there are the Regional Bell Operating Companies, or RBOCs, pronounced "arbocks."

Bell was a titan and even these regional chunks are gigantic enterprises: Fortune 50 companies with plenty of wealth and power behind them. But the clean lines of "One Policy, One System, Universal Service" have been shattered, apparently forever.

The "One Policy" of the early Reagan Administration was to shatter a system that smacked of noncompetitive socialism. Since that time, there has been no real telephone "policy" on the federal level. Despite the breakup, the remnants of Bell have never been set free to compete in the open marketplace.

The RBOCs are still very heavily regulated, but not from the top. Instead, they struggle politically, economically and legally, in what seems an endless turmoil, in a patchwork of overlapping federal and state jurisdictions. Increasingly, like other major American corporations, the RBOCs are becoming multinational, acquiring important commercial interests in Europe, Latin America, and the Pacific Rim. But this, too, adds to their legal and political predicament.

The people of what used to be Ma Bell are not happy about their fate. They feel ill-used. They might have been grudgingly willing to make a full transition to the free market; to become just companies amid other companies. But this never happened. Instead, AT&T and the RBOCS ("the Baby Bells") feel themselves wrenched from side to side by state regulators, by Congress, by the FCC, and especially by the federal court of Judge Harold Greene, the magistrate who ordered the Bell breakup and who has been the de facto czar of American telecommunications ever since 1983. Bell people feel that they exist in a kind of paralegal limbo today. They don't understand what's demanded of them. If it's "service," why aren't they treated like a public service? And if it's money, then why aren't they free to compete for it? No one seems to know, really. Those who claim to know keep changing their minds. Nobody in authority seems willing to grasp the nettle for once and all.

Telephone people from other countries are amazed by the American telephone system today. Not that it works so well; for nowadays even the French telephone system works, more or less. They are amazed that the American telephone system STILL works AT ALL, under these strange conditions.

Bell's "One System" of long-distance service is now only about eighty percent of a system, with the remainder held by Sprint, MCI, and the midget long-distance companies. Ugly wars over dubious corporate practices such as "slamming" (an underhanded method of snitching clients from rivals) break out with some regularity in the realm of long-distance service. The battle to break Bell's long-distance monopoly was long and ugly, and since the breakup the battlefield has not become much prettier. AT&T's famous shame-and-blame advertisements, which emphasized the shoddy work and purported ethical shadiness of their competitors, were much remarked on for their studied psychological cruelty.

There is much bad blood in this industry, and much long- treasured resentment. AT&T's post-breakup corporate logo, a striped sphere, is known in the industry as the "Death Star" (a reference from the movie STAR WARS, in which the "Death Star" was the spherical high-tech fortress of the harsh-breathing imperial ultra-baddie, Darth Vader.) Even AT&T employees are less than thrilled by the Death Star. A popular (though banned) T-shirt among AT&T employees bears the old-fashioned Bell logo of the Bell System, plus the newfangled striped sphere, with the before- and-after comments: "This is your brain--This is your brain on drugs!" AT&T made a very well-financed and determined effort to break into the personal computer market; it was disastrous, and telco computer experts are derisively known by their competitors as "the pole-climbers." AT&T and the Baby Bell arbocks still seem to have few friends.

Under conditions of sharp commercial competition, a crash like that of January 15, 1990 was a major embarrassment to AT&T. It was a direct blow against their much-treasured reputation for reliability. Within days of the crash AT&T's Chief Executive Officer, Bob Allen, officially apologized, in terms of deeply pained humility:

"AT&T had a major service disruption last Monday. We didn't live up to our own standards of quality, and we didn't live up to yours. It's as simple as that. And that's not acceptable to us. Or to you.... We understand how much people have come to depend upon AT&T service, so our AT&T Bell Laboratories scientists and our network engineers are doing everything possible to guard against a recurrence.... We know there's no way to make up for the inconvenience this problem may have caused you."

Mr Allen's "open letter to customers" was printed in lavish ads all over the country: in the WALL STREET JOURNAL, USA TODAY, NEW YORK TIMES, LOS ANGELES TIMES, CHICAGO TRIBUNE, PHILADELPHIA INQUIRER, SAN FRANCISCO CHRONICLE EXAMINER, BOSTON GLOBE, DALLAS MORNING NEWS, DETROIT FREE PRESS, WASHINGTON POST, HOUSTON CHRONICLE, CLEVELAND PLAIN DEALER, ATLANTA JOURNAL CONSTITUTION, MINNEAPOLIS STAR TRIBUNE, ST. PAUL PIONEER PRESS DISPATCH, SEATTLE TIME/POST INTELLIGENCER, TACOMA NEWS TRIBUNE, MIAMI HERALD, PITTSBURGH PRESS, ST. LOUIS POST DISPATCH, DENVER POST, PHOENIX REPUBLIC GAZETTE and TAMPA TRIBUNE.

In another press release, AT&T went to some pains to suggest that this "software glitch" MIGHT have happened just as easily to MCI, although, in fact, it hadn't. (MCI's switching software was quite different from AT&T's--though not necessarily any safer.) AT&T also announced their plans to offer a rebate of service on Valentine's Day to make up for the loss during the Crash.

"Every technical resource available, including Bell Labs scientists and engineers, has been devoted to assuring it will not occur again," the public was told. They were further assured that "The chances of a recurrence are small--a problem of this magnitude never occurred before."

In the meantime, however, police and corporate security maintained their own suspicions about "the chances of recurrence" and the real reason why a "problem of this magnitude" had appeared, seemingly out of nowhere. Police and security knew for a fact that hackers of unprecedented sophistication were illegally entering, and reprogramming, certain digital switching stations. Rumors of hidden "viruses" and secret "logic bombs" in the switches ran rampant in the underground, with much chortling over AT&T's predicament, and idle speculation over what unsung hacker genius was responsible for it. Some hackers, including police informants, were trying hard to finger one another as the true culprits of the Crash.

Telco people found little comfort in objectivity when they contemplated these possibilities. It was just too close to the bone for them; it was embarrassing; it hurt so much, it was hard even to talk about.

There has always been thieving and misbehavior in the phone system. There has always been trouble with the rival independents, and in the local loops. But to have such trouble in the core of the system, the long-distance switching stations, is a horrifying affair. To telco people, this is all the difference between finding roaches in your kitchen and big horrid sewer-rats in your bedroom.

From the outside, to the average citizen, the telcos still seem gigantic and impersonal. The American public seems to regard them as something akin to Soviet apparats. Even when the telcos do their best corporate-citizen routine, subsidizing magnet high-schools and sponsoring news-shows on public television, they seem to win little except public suspicion.

But from the inside, all this looks very different. There's harsh competition. A legal and political system that seems baffled and bored, when not actively hostile to telco interests. There's a loss of morale, a deep sensation of having somehow lost the upper hand. Technological change has caused a loss of data and revenue to other, newer forms of transmission. There's theft, and new forms of theft, of growing scale and boldness and sophistication. With all these factors, it was no surprise to see the telcos, large and small, break out in a litany of bitter complaint.

In late '88 and throughout 1989, telco representatives grew shrill in their complaints to those few American law enforcement officials who make it their business to try to understand what telephone people are talking about. Telco security officials had discovered the computer-hacker underground, infiltrated it thoroughly, and become deeply alarmed at its growing expertise. Here they had found a target that was not only loathsome on its face, but clearly ripe for counterattack.

Those bitter rivals: AT&T, MCI and Sprint--and a crowd of Baby Bells: PacBell, Bell South, Southwestern Bell, NYNEX, USWest, as well as the Bell research consortium Bellcore, and the independent long-distance carrier Mid-American--all were to have their role in the great hacker dragnet of 1990. After years of being battered and pushed around, the telcos had, at least in a small way, seized the initiative again. After years of turmoil, telcos and government officials were once again to work smoothly in concert in defense of the System. Optimism blossomed; enthusiasm grew on all sides; the prospective taste of vengeance was sweet.

From the beginning--even before the crackdown had a name --secrecy was a big problem. There were many good reasons for secrecy in the hacker crackdown. Hackers and code-thieves were wily prey, slinking back to their bedrooms and basements and destroying vital incriminating evidence at the first hint of trouble. Furthermore, the crimes themselves were heavily technical and difficult to describe, even to police--much less to the general public.

When such crimes HAD been described intelligibly to the public, in the past, that very publicity had tended to INCREASE the crimes enormously. Telco officials, while painfully aware of the vulnerabilities of their systems, were anxious not to publicize those weaknesses. Experience showed them that those weaknesses, once discovered, would be pitilessly exploited by tens of thousands of people--not only by professional grifters and by underground hackers and phone phreaks, but by many otherwise more-or-less honest everyday folks, who regarded stealing service from the faceless, soulless "Phone Company" as a kind of harmless indoor sport. When it came to protecting their interests, telcos had long since given up on general public sympathy for "the Voice with a Smile." Nowadays the telco's "Voice" was very likely to be a computer's; and the American public showed much less of the proper respect and gratitude due the fine public service bequeathed them by Dr. Bell and Mr. Vail. The more efficient, high-tech, computerized, and impersonal the telcos became, it seemed, the more they were met by sullen public resentment and amoral greed.

Telco officials wanted to punish the phone-phreak underground, in as public and exemplary a manner as possible. They wanted to make dire examples of the worst offenders, to seize the ringleaders and intimidate the small fry, to discourage and frighten the wacky hobbyists, and send the professional grifters to jail. To do all this, publicity was vital.

Yet operational secrecy was even more so. If word got out that a nationwide crackdown was coming, the hackers might simply vanish; destroy the evidence, hide their computers, go to earth, and wait for the campaign to blow over. Even the young hackers were crafty and suspicious, and as for the professional grifters, they tended to split for the nearest state-line at the first sign of trouble. For the crackdown to work well, they would all have to be caught red- handed, swept upon suddenly, out of the blue, from every corner of the compass.

And there was another strong motive for secrecy. In the worst-case scenario, a blown campaign might leave the telcos open to a devastating hacker counter- attack. If there were indeed hackers loose in America who had caused the January 15 Crash--if there were truly gifted hackers, loose in the nation's long- distance switching systems, and enraged or frightened by the crackdown-- then they might react unpredictably to an attempt to collar them. Even if caught, they might have talented and vengeful friends still running around loose. Conceivably, it could turn ugly. Very ugly. In fact, it was hard to imagine just how ugly things might turn, given that possibility.

Counter-attack from hackers was a genuine concern for the telcos. In point of fact, they would never suffer any such counter-attack. But in months to come, they would be at some pains to publicize this notion and to utter grim warnings about it.

Still, that risk seemed well worth running. Better to run the risk of vengeful attacks, than to live at the mercy of potential crashers. Any cop would tell you that a protection racket had no real future.

And publicity was such a useful thing. Corporate security officers, including telco security, generally work under conditions of great discretion. And corporate security officials do not make money for their companies. Their job is to PREVENT THE LOSS of money, which is much less glamorous than actually winning profits.

If you are a corporate security official, and you do your job brilliantly, then nothing bad happens to your company at all. Because of this, you appear completely superfluous. This is one of the many unattractive aspects of security work. It's rare that these folks have the chance to draw some healthy attention to their own efforts.

Publicity also served the interest of their friends in law enforcement. Public officials, including law enforcement officials, thrive by attracting favorable public interest. A brilliant prosecution in a matter of vital public interest can make the career of a prosecuting attorney. And for a police officer, good publicity opens the purses of the legislature; it may bring a citation, or a promotion, or at least a rise in status and the respect of one's peers.

But to have both publicity and secrecy is to have one's cake and eat it too. In months to come, as we will show, this impossible act was to cause great pain to the agents of the crackdown. But early on, it seemed possible--maybe even likely-- that the crackdown could successfully combine the best of both worlds. The ARREST of hackers would be heavily publicized. The actual DEEDS of the hackers, which were technically hard to explain and also a security risk, would be left decently obscured. The THREAT hackers posed would be heavily trumpeted; the likelihood of their actually committing such fearsome crimes would be left to the public's imagination. The spread of the computer underground, and its growing technical sophistication, would be heavily promoted; the actual hackers themselves, mostly bespectacled middle-class white suburban teenagers, would be denied any personal publicity.

It does not seem to have occurred to any telco official that the hackers accused would demand a day in court; that journalists would smile upon the hackers as "good copy;" that wealthy high-tech entrepreneurs would offer moral and financial support to crackdown victims; that constitutional lawyers would show up with briefcases, frowning mightily. This possibility does not seem to have ever entered the game-plan.

And even if it had, it probably would not have slowed the ferocious pursuit of a stolen phone-company document, mellifluously known as "Control Office Administration of Enhanced 911 Services for Special Services and Major Account Centers."

In the chapters to follow, we will explore the worlds of police and the computer underground, and the large shadowy area where they overlap. But first, we must explore the battleground. Before we leave the world of the telcos, we must understand what a switching system actually is and how your telephone actually works.

To the average citizen, the idea of the telephone is represented by, well, a TELEPHONE: a device that you talk into. To a telco professional, however, the telephone itself is known, in lordly fashion, as a "subset." The "subset" in your house is a mere adjunct, a distant nerve ending, of the central switching stations, which are ranked in levels of hierarchy, up to the long-distance electronic switching stations, which are some of the largest computers on earth.

Let us imagine that it is, say, 1925, before the introduction of computers, when the phone system was simpler and somewhat easier to grasp. Let's further imagine that you are Miss Leticia Luthor, a fictional operator for Ma Bell in New York City of the 20s.

Basically, you, Miss Luthor, ARE the "switching system." You are sitting in front of a large vertical switchboard, known as a "cordboard," made of shiny wooden panels, with ten thousand metal-rimmed holes punched in them, known as jacks. The engineers would have put more holes into your switchboard, but ten thousand is as many as you can reach without actually having to get up out of your chair.

Each of these ten thousand holes has its own little electric lightbulb, known as a "lamp," and its own neatly printed number code.

With the ease of long habit, you are scanning your board for lit-up bulbs. This is what you do most of the time, so you are used to it.

A lamp lights up. This means that the phone at the end of that line has been taken off the hook. Whenever a handset is taken off the hook, that closes a circuit inside the phone which then signals the local office, i.e. you, automatically. There might be somebody calling, or then again the phone might be simply off the hook, but this does not matter to you yet. The first thing you do, is record that number in your logbook, in your fine American public- school handwriting. This comes first, naturally, since it is done for billing purposes.

You now take the plug of your answering cord, which goes directly to your headset, and plug it into the lit-up hole. "Operator," you announce.

In operator's classes, before taking this job, you have been issued a large pamphlet full of canned operator's responses for all kinds of contingencies, which you had to memorize. You have also been trained in a proper non-regional, non-ethnic pronunciation and tone of voice. You rarely have the occasion to make any spontaneous remark to a customer, and in fact this is frowned upon (except out on the rural lines where people have time on their hands and get up to all kinds of mischief).

A tough-sounding user's voice at the end of the line gives you a number. Immediately, you write that number down in your logbook, next to the caller's number, which you just wrote earlier. You then look and see if the number this guy wants is in fact on your switchboard, which it generally is, since it's generally a local call. Long distance costs so much that people use it sparingly.

Only then do you pick up a calling-cord from a shelf at the base of the switchboard. This is a long elastic cord mounted on a kind of reel so that it will zip back in when you unplug it. There are a lot of cords down there, and when a bunch of them are out at once they look like a nest of snakes. Some of the girls think there are bugs living in those cable-holes. They're called "cable mites" and are supposed to bite your hands and give you rashes. You don't believe this, yourself.

Gripping the head of your calling-cord, you slip the tip of it deftly into the sleeve of the jack for the called person. Not all the way in, though. You just touch it. If you hear a clicking sound, that means the line is busy and you can't put the call through. If the line is busy, you have to stick the calling- cord into a "busy-tone jack," which will give the guy a busy-tone. This way you don't have to talk to him yourself and absorb his natural human frustration.

But the line isn't busy. So you pop the cord all the way in. Relay circuits in your board make the distant phone ring, and if somebody picks it up off the hook, then a phone conversation starts. You can hear this conversation on your answering cord, until you unplug it. In fact you could listen to the whole conversation if you wanted, but this is sternly frowned upon by management, and frankly, when you've overheard one, you've pretty much heard 'em all.

You can tell how long the conversation lasts by the glow of the calling-cord's lamp, down on the calling-cord's shelf. When it's over, you unplug and the calling-cord zips back into place.

Having done this stuff a few hundred thousand times, you become quite good at it. In fact you're plugging, and connecting, and disconnecting, ten, twenty, forty cords at a time. It's a manual handicraft, really, quite satisfying in a way, rather like weaving on an upright loom.

Should a long-distance call come up, it would be different, but not all that different. Instead of connecting the call through your own local switchboard, you have to go up the hierarchy, onto the long-distance lines, known as "trunklines." Depending on how far the call goes, it may have to work its way through a whole series of operators, which can take quite a while. The caller doesn't wait on the line while this complex process is negotiated across the country by the gaggle of operators. Instead, the caller hangs up, and you call him back yourself when the call has finally worked its way through.

After four or five years of this work, you get married, and you have to quit your job, this being the natural order of womanhood in the American 1920s. The phone company has to train somebody else--maybe two people, since the phone system has grown somewhat in the meantime. And this costs money.

In fact, to use any kind of human being as a switching system is a very expensive proposition. Eight thousand Leticia Luthors would be bad enough, but a quarter of a million of them is a military-scale proposition and makes drastic measures in automation financially worthwhile.

Although the phone system continues to grow today, the number of human beings employed by telcos has been dropping steadily for years. Phone "operators" now deal with nothing but unusual contingencies, all routine operations having been shrugged off onto machines. Consequently, telephone operators are considerably less machine-like nowadays, and have been known to have accents and actual character in their voices. When you reach a human operator today, the operators are rather more "human" than they were in Leticia's day--but on the other hand, human beings in the phone system are much harder to reach in the first place.

Over the first half of the twentieth century, "electromechanical" switching systems of growing complexity were cautiously introduced into the phone system. In certain backwaters, some of these hybrid systems are still in use. But after 1965, the phone system began to go completely electronic, and this is by far the dominant mode today. Electromechanical systems have "crossbars," and "brushes," and other large moving mechanical parts, which, while faster and cheaper than Leticia, are still slow, and tend to wear out fairly quickly.

But fully electronic systems are inscribed on silicon chips, and are lightning- fast, very cheap, and quite durable. They are much cheaper to maintain than even the best electromechanical systems, and they fit into half the space. And with every year, the silicon chip grows smaller, faster, and cheaper yet. Best of all, automated electronics work around the clock and don't have salaries or health insurance.

There are, however, quite serious drawbacks to the use of computer-chips. When they do break down, it is a daunting challenge to figure out what the heck has gone wrong with them. A broken cordboard generally had a problem in it big enough to see. A broken chip has invisible, microscopic faults. And the faults in bad software can be so subtle as to be practically theological.

If you want a mechanical system to do something new, then you must travel to where it is, and pull pieces out of it, and wire in new pieces. This costs money. However, if you want a chip to do something new, all you have to do is change its software, which is easy, fast and dirt-cheap. You don't even have to see the chip to change its program. Even if you did see the chip, it wouldn't look like much. A chip with program X doesn't look one whit different from a chip with program Y.

With the proper codes and sequences, and access to specialized phone-lines, you can change electronic switching systems all over America from anywhere you please.

And so can other people. If they know how, and if they want to, they can sneak into a microchip via the special phonelines and diddle with it, leaving no physical trace at all. If they broke into the operator's station and held Leticia at gunpoint, that would be very obvious. If they broke into a telco building and went after an electromechanical switch with a toolbelt, that would at least leave many traces. But people can do all manner of amazing things to computer switches just by typing on a keyboard, and keyboards are everywhere today. The extent of this vulnerability is deep, dark, broad, almost mind- boggling, and yet this is a basic, primal fact of life about any computer on a network.

Security experts over the past twenty years have insisted, with growing urgency, that this basic vulnerability of computers represents an entirely new level of risk, of unknown but obviously dire potential to society. And they are right.

An electronic switching station does pretty much everything Letitia did, except in nanoseconds and on a much larger scale. Compared to Miss Luthor's ten thousand jacks, even a primitive 1ESS switching computer, 60s vintage, has a 128,000 lines. And the current AT&T system of choice is the monstrous fifth- generation 5ESS.

An Electronic Switching Station can scan every line on its "board" in a tenth of a second, and it does this over and over, tirelessly, around the clock. Instead of eyes, it uses "ferrod scanners" to check the condition of local lines and trunks. Instead of hands, it has "signal distributors," "central pulse distributors," "magnetic latching relays," and "reed switches," which complete and break the calls. Instead of a brain, it has a "central processor." Instead of an instruction manual, it has a program. Instead of a handwritten logbook for recording and billing calls, it has magnetic tapes. And it never has to talk to anybody. Everything a customer might say to it is done by punching the direct-dial tone buttons on your subset.

Although an Electronic Switching Station can't talk, it does need an interface, some way to relate to its, er, employers. This interface is known as the "master control center." (This interface might be better known simply as "the interface," since it doesn't actually "control" phone calls directly. However, a term like "Master Control Center" is just the kind of rhetoric that telco maintenance engineers--and hackers--find particularly satisfying.)

Using the master control center, a phone engineer can test local and trunk lines for malfunctions. He (rarely she) can check various alarm displays, measure traffic on the lines, examine the records of telephone usage and the charges for those calls, and change the programming.

And, of course, anybody else who gets into the master control center by remote control can also do these things, if he (rarely she) has managed to figure them out, or, more likely, has somehow swiped the knowledge from people who already know.

In 1989 and 1990, one particular RBOC, BellSouth, which felt particularly troubled, spent a purported $1.2 million on computer security. Some think it spent as much as two million, if you count all the associated costs. Two million dollars is still very little compared to the great cost-saving utility of telephonic computer systems.

Unfortunately, computers are also stupid. Unlike human beings, computers possess the truly profound stupidity of the inanimate.

In the 1960s, in the first shocks of spreading computerization, there was much easy talk about the stupidity of computers--how they could "only follow the program" and were rigidly required to do "only what they were told." There has been rather less talk about the stupidity of computers since they began to achieve grandmaster status in chess tournaments, and to manifest many other impressive forms of apparent cleverness.

Nevertheless, computers STILL are profoundly brittle and stupid; they are simply vastly more subtle in their stupidity and brittleness. The computers of the 1990s are much more reliable in their components than earlier computer systems, but they are also called upon to do far more complex things, under far more challenging conditions.

On a basic mathematical level, every single line of a software program offers a chance for some possible screwup. Software does not sit still when it works; it "runs," it interacts with itself and with its own inputs and outputs. By analogy, it stretches like putty into millions of possible shapes and conditions, so many shapes that they can never all be successfully tested, not even in the lifespan of the universe. Sometimes the putty snaps.

The stuff we call "software" is not like anything that human society is used to thinking about. Software is something like a machine, and something like mathematics, and something like language, and something like thought, and art, and information.... but software is not in fact any of those other things. The protean quality of software is one of the great sources of its fascination. It also makes software very powerful, very subtle, very unpredictable, and very risky.

Some software is bad and buggy. Some is "robust," even "bulletproof." The best software is that which has been tested by thousands of users under thousands of different conditions, over years. It is then known as "stable." This does NOT mean that the software is now flawless, free of bugs. It generally means that there are plenty of bugs in it, but the bugs are well- identified and fairly well understood.

There is simply no way to assure that software is free of flaws. Though software is mathematical in nature, it cannot by "proven" like a mathematical theorem; software is more like language, with inherent ambiguities, with different definitions, different assumptions, different levels of meaning that can conflict.

Human beings can manage, more or less, with human language because we can catch the gist of it.

Computers, despite years of effort in "artificial intelligence," have proven spectacularly bad in "catching the gist" of anything at all. The tiniest bit of semantic grit may still bring the mightiest computer tumbling down. One of the most hazardous things you can do to a computer program is try to improve it--to try to make it safer. Software "patches" represent new, untried un-"stable" software, which is by definition riskier.

The modern telephone system has come to depend, utterly and irretrievably, upon software. And the System Crash of January 15, 1990, was caused by an IMPROVEMENT in software. Or rather, an ATTEMPTED improvement.

As it happened, the problem itself--the problem per se -- took this form. A piece of telco software had been written in C language, a standard language of the telco field. Within the C software was a long "do... while" construct. The "do... while" construct contained a "switch" statement. The "switch" statement contained an "if" clause. The "if" clause contained a "break." The "break" was SUPPOSED to "break" the "if clause." Instead, the "break" broke the "switch" statement.

That was the problem, the actual reason why people picking up phones on January 15, 1990, could not talk to one another.

Or at least, that was the subtle, abstract, cyberspatial seed of the problem. This is how the problem manifested itself from the realm of programming into the realm of real life.

The System 7 software for AT&T's 4ESS switching station, the "Generic 44E14 Central Office Switch Software," had been extensively tested, and was considered very stable. By the end of 1989, eighty of AT&T's switching systems nationwide had been programmed with the new software. Cautiously, thirty-four stations were left to run the slower, less-capable System 6, because AT&T suspected there might be shakedown problems with the new and unprecedently sophisticated System 7 network.

The stations with System 7 were programmed to switch over to a backup net in case of any problems. In mid-December 1989, however, a new high-velocity, high- security software patch was distributed to each of the 4ESS switches that would enable them to switch over even more quickly, making the System 7 network that much more secure.

Unfortunately, every one of these 4ESS switches was now in possession of a small but deadly flaw.

In order to maintain the network, switches must monitor the condition of other switches--whether they are up and running, whether they have temporarily shut down, whether they are overloaded and in need of assistance, and so forth. The new software helped control this bookkeeping function by monitoring the status calls from other switches.

It only takes four to six seconds for a troubled 4ESS switch to rid itself of all its calls, drop everything temporarily, and re-boot its software from scratch. Starting over from scratch will generally rid the switch of any software problems that may have developed in the course of running the system. Bugs that arise will be simply wiped out by this process. It is a clever idea. This process of automatically re- booting from scratch is known as the "normal fault recovery routine." Since AT&T's software is in fact exceptionally stable, systems rarely have to go into "fault recovery" in the first place; but AT&T has always boasted of its "real world" reliability, and this tactic is a belt-and- suspenders routine.

The 4ESS switch used its new software to monitor its fellow switches as they recovered from faults. As other switches came back on line after recovery, they would send their "OK" signals to the switch. The switch would make a little note to that effect in its "status map," recognizing that the fellow switch was back and ready to go, and should be sent some calls and put back to regular work.

Unfortunately, while it was busy bookkeeping with the status map, the tiny flaw in the brand-new software came into play. The flaw caused the 4ESS switch to interacted, subtly but drastically, with incoming telephone calls from human users. If--and only if--two incoming phone-calls happened to hit the switch within a hundredth of a second, then a small patch of data would be garbled by the flaw.

But the switch had been programmed to monitor itself constantly for any possible damage to its data. When the switch perceived that its data had been somehow garbled, then it too would go down, for swift repairs to its software. It would signal its fellow switches not to send any more work. It would go into the fault-recovery mode for four to six seconds. And then the switch would be fine again, and would send out its "OK, ready for work" signal.

However, the "OK, ready for work" signal was the VERY THING THAT CAUSED THE SWITCH TO GO DOWN IN THE FIRST PLACE. And ALL the System 7 switches had the same flaw in their status-map software. As soon as they stopped to make the bookkeeping note that their fellow switch was "OK," then they too would become vulnerable to the slight chance that two phone-calls would hit them within a hundredth of a second.

At approximately 2:25 p.m. EST on Monday, January 15, one of AT&T's 4ESS toll switching systems in New York City had an actual, legitimate, minor problem. It went into fault recovery routines, announced "I'm going down," then announced, "I'm back, I'm OK." And this cheery message then blasted throughout the network to many of its fellow 4ESS switches.

Many of the switches, at first, completely escaped trouble. These lucky switches were not hit by the coincidence of two phone calls within a hundredth of a second. Their software did not fail--at first. But three switches--in Atlanta, St. Louis, and Detroit--were unlucky, and were caught with their hands full. And they went down. And they came back up, almost immediately. And they too began to broadcast the lethal message that they, too, were "OK" again, activating the lurking software bug in yet other switches.

As more and more switches did have that bit of bad luck and collapsed, the call- traffic became more and more densely packed in the remaining switches, which were groaning to keep up with the load. And of course, as the calls became more densely packed, the switches were MUCH MORE LIKELY to be hit twice within a hundredth of a second.

It only took four seconds for a switch to get well. There was no PHYSICAL damage of any kind to the switches, after all. Physically, they were working perfectly. This situation was "only" a software problem.

But the 4ESS switches were leaping up and down every four to six seconds, in a virulent spreading wave all over America, in utter, manic, mechanical stupidity. They kept KNOCKING one another down with their contagious "OK" messages.

It took about ten minutes for the chain reaction to cripple the network. Even then, switches would periodically luck-out and manage to resume their normal work. Many calls-- millions of them--were managing to get through. But millions weren't.

The switching stations that used System 6 were not directly affected. Thanks to these old-fashioned switches, AT&T's national system avoided complete collapse. This fact also made it clear to engineers that System 7 was at fault.

Bell Labs engineers, working feverishly in New Jersey, Illinois, and Ohio, first tried their entire repertoire of standard network remedies on the malfunctioning System 7. None of the remedies worked, of course, because nothing like this had ever happened to any phone system before.

By cutting out the backup safety network entirely, they were able to reduce the frenzy of "OK" messages by about half. The system then began to recover, as the chain reaction slowed. By 11:30 pm on Monday January 15, sweating engineers on the midnight shift breathed a sigh of relief as the last switch cleared-up.

By Tuesday they were pulling all the brand-new 4ESS software and replacing it with an earlier version of System 7.

If these had been human operators, rather than computers at work, someone would simply have eventually stopped screaming. It would have been OBVIOUS that the situation was not "OK," and common sense would have kicked in. Humans possess common sense --at least to some extent. Computers simply don't.

On the other hand, computers can handle hundreds of calls per second. Humans simply can't. If every single human being in America worked for the phone company, we couldn't match the performance of digital switches: direct- dialling, three-way calling, speed-calling, call-waiting, Caller ID, all the rest of the cornucopia of digital bounty. Replacing computers with operators is simply not an option any more.

And yet we still, anachronistically, expect humans to be running our phone system. It is hard for us to understand that we have sacrificed huge amounts of initiative and control to senseless yet powerful machines. When the phones fail, we want somebody to be responsible. We want somebody to blame.

When the Crash of January 15 happened, the American populace was simply not prepared to understand that enormous landslides in cyberspace, like the Crash itself, can happen, and can be nobody's fault in particular. It was easier to believe, maybe even in some odd way more reassuring to believe, that some evil person, or evil group, had done this to us. "Hackers" had done it. With a virus. A trojan horse. A software bomb. A dirty plot of some kind. People believed this, responsible people. In 1990, they were looking hard for evidence to confirm their heartfelt suspicions.

And they would look in a lot of places.

Come 1991, however, the outlines of an apparent new reality would begin to emerge from the fog.

On July 1 and 2, 1991, computer-software collapses in telephone switching stations disrupted service in Washington DC, Pittsburgh, Los Angeles and San Francisco. Once again, seemingly minor maintenance problems had crippled the digital System 7. About twelve million people were affected in the Crash of July 1, 1991.

Said the New York Times Service: "Telephone company executives and federal regulators said they were not ruling out the possibility of sabotage by computer hackers, but most seemed to think the problems stemmed from some unknown defect in the software running the networks."

And sure enough, within the week, a red-faced software company, DSC Communications Corporation of Plano, Texas, owned up to "glitches" in the "signal transfer point" software that DSC had designed for Bell Atlantic and Pacific Bell. The immediate cause of the July 1 Crash was a single mistyped character: one tiny typographical flaw in one single line of the software. One mistyped letter, in one single line, had deprived the nation's capital of phone service. It was not particularly surprising that this tiny flaw had escaped attention: a typical System 7 station requires TEN MILLION lines of code.

On Tuesday, September 17, 1991, came the most spectacular outage yet. This case had nothing to do with software failures-- at least, not directly. Instead, a group of AT&T's switching stations in New York City had simply run out of electrical power and shut down cold. Their back-up batteries had failed. Automatic warning systems were supposed to warn of the loss of battery power, but those automatic systems had failed as well.

This time, Kennedy, La Guardia, and Newark airports all had their voice and data communications cut. This horrifying event was particularly ironic, as attacks on airport computers by hackers had long been a standard nightmare scenario, much trumpeted by computer-security experts who feared the computer underground. There had even been a Hollywood thriller about sinister hackers ruining airport computers--DIE HARD II. Now AT&T itself had crippled airports with computer malfunctions--not just one airport, but three at once, some of the busiest in the world.

Air traffic came to a standstill throughout the Greater New York area, causing more than 500 flights to be cancelled, in a spreading wave all over America and even into Europe. Another 500 or so flights were delayed, affecting, all in all, about 85,000 passengers. (One of these passengers was the chairman of the Federal Communications Commission.)

Stranded passengers in New York and New Jersey were further infuriated to discover that they could not even manage to make a long distance phone call, to explain their delay to loved ones or business associates. Thanks to the crash, about four and a half million domestic calls, and half a million international calls, failed to get through.

The September 17 NYC Crash, unlike the previous ones, involved not a whisper of "hacker" misdeeds. On the contrary, by 1991, AT&T itself was suffering much of the vilification that had formerly been directed at hackers. Congressmen were grumbling. So were state and federal regulators. And so was the press.

For their part, ancient rival MCI took out snide full- page newspaper ads in New York, offering their own long-distance services for the "next time that AT&T goes down."

"You wouldn't find a classy company like AT&T using such advertising," protested AT&T Chairman Robert Allen, unconvincingly. Once again, out came the full-page AT&T apologies in newspapers, apologies for "an inexcusable culmination of both human and mechanical failure." (This time, however, AT&T offered no discount on later calls. Unkind critics suggested that AT&T were worried about setting any precedent for refunding the financial losses caused by telephone crashes.)

Industry journals asked publicly if AT&T was "asleep at the switch." The telephone network, America's purported marvel of high-tech reliability, had gone down three times in 18 months. FORTUNE magazine listed the Crash of September 17 among the "Biggest Business Goofs of 1991," cruelly parodying AT&T's ad campaign in an article entitled "AT&T Wants You Back (Safely On the Ground, God Willing)."

Why had those New York switching systems simply run out of power? Because no human being had attended to the alarm system. Why did the alarm systems blare automatically, without any human being noticing? Because the three telco technicians who SHOULD have been listening were absent from their stations in the power-room, on another floor of the building--attending a training class. A training class about the alarm systems for the power room!

"Crashing the System" was no longer "unprecedented" by late 1991. On the contrary, it no longer even seemed an oddity. By 1991, it was clear that all the policemen in the world could no longer "protect" the phone system from crashes. By far the worst crashes the system had ever had, had been inflicted, by the system, upon ITSELF. And this time nobody was making cocksure statements that this was an anomaly, something that would never happen again. By 1991 the System's defenders had met their nebulous Enemy, and the Enemy was--the System.

PART TWO: THE DIGITAL UNDERGROUND

The date was May 9, 1990. The Pope was touring Mexico City. Hustlers from the Medellin Cartel were trying to buy black-market Stinger missiles in Florida. On the comics page, Doonesbury character Andy was dying of AIDS. And then.... a highly unusual item whose novelty and calculated rhetoric won it headscratching attention in newspapers all over America.

The US Attorney's office in Phoenix, Arizona, had issued a press release announcing a nationwide law enforcement crackdown against "illegal computer hacking activities." The sweep was officially known as "Operation Sundevil."

Eight paragraphs in the press release gave the bare facts: twenty-seven search warrants carried out on May 8, with three arrests, and a hundred and fifty agents on the prowl in "twelve" cities across America. (Different counts in local press reports yielded "thirteen," "fourteen," and "sixteen" cities.) Officials estimated that criminal losses of revenue to telephone companies "may run into millions of dollars." Credit for the Sundevil investigations was taken by the US Secret Service, Assistant US Attorney Tim Holtzen of Phoenix, and the Assistant Attorney General of Arizona, Gail Thackeray.

The prepared remarks of Garry M. Jenkins, appearing in a U.S. Department of Justice press release, were of particular interest. Mr. Jenkins was the Assistant Director of the US Secret Service, and the highest-ranking federal official to take any direct public role in the hacker crackdown of 1990.

"Today, the Secret Service is sending a clear message to those computer hackers who have decided to violate the laws of this nation in the mistaken belief that they can successfully avoid detection by hiding behind the relative anonymity of their computer terminals.(...)

"Underground groups have been formed for the purpose of exchanging information relevant to their criminal activities. These groups often communicate with each other through message systems between computers called 'bulletin boards.'

"Our experience shows that many computer hacker suspects are no longer misguided teenagers, mischievously playing games with their computers in their bedrooms. Some are now high tech computer operators using computers to engage in unlawful conduct."

Who were these "underground groups" and "high-tech operators?" Where had they come from? What did they want? Who WERE they? Were they "mischievous?" Were they dangerous? How had "misguided teenagers" managed to alarm the United States Secret Service? And just how widespread was this sort of thing?

Of all the major players in the Hacker Crackdown: the phone companies, law enforcement, the civil libertarians, and the "hackers" themselves--the "hackers" are by far the most mysterious, by far the hardest to understand, by far the WEIRDEST.

Not only are "hackers" novel in their activities, but they come in a variety of odd subcultures, with a variety of languages, motives and values.

The earliest proto-hackers were probably those unsung mischievous telegraph boys who were summarily fired by the Bell Company in 1878.

Legitimate "hackers," those computer enthusiasts who are independent-minded but law-abiding, generally trace their spiritual ancestry to elite technical universities, especially M.I.T. and Stanford, in the 1960s.

But the genuine roots of the modern hacker UNDERGROUND can probably be traced most successfully to a now much-obscured hippie anarchist movement known as the Yippies. The Yippies, who took their name from the largely fictional "Youth International Party," carried out a loud and lively policy of surrealistic subversion and outrageous political mischief. Their basic tenets were flagrant sexual promiscuity, open and copious drug use, the political overthrow of any powermonger over thirty years of age, and an immediate end to the war in Vietnam, by any means necessary, including the psychic levitation of the Pentagon.

The two most visible Yippies were Abbie Hoffman and Jerry Rubin. Rubin eventually became a Wall Street broker. Hoffman, ardently sought by federal authorities, went into hiding for seven years, in Mexico, France, and the United States. While on the lam, Hoffman continued to write and publish, with help from sympathizers in the American anarcho-leftist underground. Mostly, Hoffman survived through false ID and odd jobs. Eventually he underwent facial plastic surgery and adopted an entirely new identity as one "Barry Freed." After surrendering himself to authorities in 1980, Hoffman spent a year in prison on a cocaine conviction.

Hoffman's worldview grew much darker as the glory days of the 1960s faded. In 1989, he purportedly committed suicide, under odd and, to some, rather suspicious circumstances.

Abbie Hoffman is said to have caused the Federal Bureau of Investigation to amass the single largest investigation file ever opened on an individual American citizen. (If this is true, it is still questionable whether the FBI regarded Abbie Hoffman a serious public threat--quite possibly, his file was enormous simply because Hoffman left colorful legendry wherever he went). He was a gifted publicist, who regarded electronic media as both playground and weapon. He actively enjoyed manipulating network TV and other gullible, image-hungry media, with various weird lies, mindboggling rumors, impersonation scams, and other sinister distortions, all absolutely guaranteed to upset cops, Presidential candidates, and federal judges. Hoffman's most famous work was a book self-reflexively known as STEAL THIS BOOK, which publicized a number of methods by which young, penniless hippie agitators might live off the fat of a system supported by humorless drones. STEAL THIS BOOK, whose title urged readers to damage the very means of distribution which had put it into their hands, might be described as a spiritual ancestor of a computer virus.

Hoffman, like many a later conspirator, made extensive use of pay-phones for his agitation work--in his case, generally through the use of cheap brass washers as coin-slugs.

During the Vietnam War, there was a federal surtax imposed on telephone service; Hoffman and his cohorts could, and did, argue that in systematically stealing phone service they were engaging in civil disobedience: virtuously denying tax funds to an illegal and immoral war.

But this thin veil of decency was soon dropped entirely. Ripping-off the System found its own justification in deep alienation and a basic outlaw contempt for conventional bourgeois values. Ingenious, vaguely politicized varieties of rip- off, which might be described as "anarchy by convenience," became very popular in Yippie circles, and because rip-off was so useful, it was to survive the Yippie movement itself.

In the early 1970s, it required fairly limited expertise and ingenuity to cheat payphones, to divert "free" electricity and gas service, or to rob vending machines and parking meters for handy pocket change. It also required a conspiracy to spread this knowledge, and the gall and nerve actually to commit petty theft, but the Yippies had these qualifications in plenty. In June 1971, Abbie Hoffman and a telephone enthusiast sarcastically known as "Al Bell" began publishing a newsletter called YOUTH INTERNATIONAL PARTY LINE. This newsletter was dedicated to collating and spreading Yippie rip-off techniques, especially of phones, to the joy of the freewheeling underground and the insensate rage of all straight people.

As a political tactic, phone-service theft ensured that Yippie advocates would always have ready access to the long- distance telephone as a medium, despite the Yippies' chronic lack of organization, discipline, money, or even a steady home address.

PARTY LINE was run out of Greenwich Village for a couple of years, then "Al Bell" more or less defected from the faltering ranks of Yippiedom, changing the newsletter's name to _TAP_ or TECHNICAL ASSISTANCE PROGRAM. After the Vietnam War ended, the steam began leaking rapidly out of American radical dissent. But by this time, "Bell" and his dozen or so core contributors had the bit between their teeth, and had begun to derive tremendous gut-level satisfaction from the sensation of pure TECHNICAL POWER.

_TAP_ articles, once highly politicized, became pitilessly jargonized and technical, in homage or parody to the Bell System's own technical documents, which _TAP_ studied closely, gutted, and reproduced without permission. The _TAP_ elite revelled in gloating possession of the specialized knowledge necessary to beat the system.

"Al Bell" dropped out of the game by the late 70s, and "Tom Edison" took over; TAP readers (some 1400 of them, all told) now began to show more interest in telex switches and the growing phenomenon of computer systems.

In 1983, "Tom Edison" had his computer stolen and his house set on fire by an arsonist. This was an eventually mortal blow to _TAP_ (though the legendary name was to be resurrected in 1990 by a young Kentuckian computer-outlaw named "Predat0r.")

Ever since telephones began to make money, there have been people willing to rob and defraud phone companies. The legions of petty phone thieves vastly outnumber those "phone phreaks" who "explore the system" for the sake of the intellectual challenge. The New York metropolitan area (long in the vanguard of American crime) claims over 150,000 physical attacks on pay telephones every year! Studied carefully, a modern payphone reveals itself as a little fortress, carefully designed and redesigned over generations, to resist coin-slugs, zaps of electricity, chunks of coin-shaped ice, prybars, magnets, lockpicks, blasting caps. Public pay-phones must survive in a world of unfriendly, greedy people, and a modern payphone is as exquisitely evolved as a cactus.

Because the phone network pre-dates the computer network, the scofflaws known as "phone phreaks" pre-date the scofflaws known as "computer hackers." In practice, today, the line between "phreaking" and "hacking" is very blurred, just as the distinction between telephones and computers has blurred. The phone system has been digitized, and computers have learned to "talk" over phone- lines. What's worse--and this was the point of the Mr. Jenkins of the Secret Service--some hackers have learned to steal, and some thieves have learned to hack.

Despite the blurring, one can still draw a few useful behavioral distinctions between "phreaks" and "hackers." Hackers are intensely interested in the "system" per se, and enjoy relating to machines. "Phreaks" are more social, manipulating the system in a rough-and-ready fashion in order to get through to other human beings, fast, cheap and under the table.

Phone phreaks love nothing so much as "bridges," illegal conference calls of ten or twelve chatting conspirators, seaboard to seaboard, lasting for many hours-- and running, of course, on somebody else's tab, preferably a large corporation's.

As phone-phreak conferences wear on, people drop out (or simply leave the phone off the hook, while they sashay off to work or school or babysitting), and new people are phoned up and invited to join in, from some other continent, if possible. Technical trivia, boasts, brags, lies, head-trip deceptions, weird rumors, and cruel gossip are all freely exchanged.

The lowest rung of phone-phreaking is the theft of telephone access codes. Charging a phone call to somebody else's stolen number is, of course, a pig-easy way of stealing phone service, requiring practically no technical expertise. This practice has been very widespread, especially among lonely people without much money who are far from home. Code theft has flourished especially in college dorms, military bases, and, notoriously, among roadies for rock bands. Of late, code theft has spread very rapidly among Third Worlders in the US, who pile up enormous unpaid long-distance bills to the Caribbean, South America, and Pakistan.

The simplest way to steal phone-codes is simply to look over a victim's shoulder as he punches-in his own code-number on a public payphone. This technique is known as "shoulder- surfing," and is especially common in airports, bus terminals, and train stations. The code is then sold by the thief for a few dollars. The buyer abusing the code has no computer expertise, but calls his Mom in New York, Kingston or Caracas and runs up a huge bill with impunity. The losses from this primitive phreaking activity are far, far greater than the monetary losses caused by computer-intruding hackers.

In the mid-to-late 1980s, until the introduction of sterner telco security measures, COMPUTERIZED code theft worked like a charm, and was virtually omnipresent throughout the digital underground, among phreaks and hackers alike. This was accomplished through programming one's computer to try random code numbers over the telephone until one of them worked. Simple programs to do this were widely available in the underground; a computer running all night was likely to come up with a dozen or so useful hits. This could be repeated week after week until one had a large library of stolen codes.

Nowadays, the computerized dialling of hundreds of numbers can be detected within hours and swiftly traced. If a stolen code is repeatedly abused, this too can be detected within a few hours. But for years in the 1980s, the publication of stolen codes was a kind of elementary etiquette for fledgling hackers. The simplest way to establish your bona-fides as a raider was to steal a code through repeated random dialling and offer it to the "community" for use. Codes could be both stolen, and used, simply and easily from the safety of one's own bedroom, with very little fear of detection or punishment.

Before computers and their phone-line modems entered American homes in gigantic numbers, phone phreaks had their own special telecommunications hardware gadget, the famous "blue box." This fraud device (now rendered increasingly useless by the digital evolution of the phone system) could trick switching systems into granting free access to long-distance lines. It did this by mimicking the system's own signal, a tone of 2600 hertz.

Steven Jobs and Steve Wozniak, the founders of Apple Computer, Inc., once dabbled in selling blue-boxes in college dorms in California. For many, in the early days of phreaking, blue-boxing was scarcely perceived as "theft," but rather as a fun (if sneaky) way to use excess phone capacity harmlessly. After all, the long-distance lines were JUST SITTING THERE.... Whom did it hurt, really? If you're not DAMAGING the system, and you're not USING UP ANY TANGIBLE RESOURCE, and if nobody FIND OUT what you did, then what real harm have you done? What exactly HAVE you "stolen," anyway? If a tree falls in the forest and nobody hears it, how much is the noise worth? Even now this remains a rather dicey question.

Blue-boxing was no joke to the phone companies, however. Indeed, when RAMPARTS magazine, a radical publication in California, printed the wiring schematics necessary to create a mute box in June 1972, the magazine was seized by police and Pacific Bell phone-company officials. The mute box, a blue-box variant, allowed its user to receive long-distance calls free of charge to the caller. This device was closely described in a RAMPARTS article wryly titled "Regulating the Phone Company In Your Home." Publication of this article was held to be in violation of Californian State Penal Code section 502.7, which outlaws ownership of wire-fraud devices and the selling of "plans or instructions for any instrument, apparatus, or device intended to avoid telephone toll charges."

Issues of RAMPARTS were recalled or seized on the newsstands, and the resultant loss of income helped put the magazine out of business. This was an ominous precedent for free-expression issues, but the telco's crushing of a radical- fringe magazine passed without serious challenge at the time. Even in the freewheeling California 1970s, it was widely felt that there was something sacrosanct about what the phone company knew; that the telco had a legal and moral right to protect itself by shutting off the flow of such illicit information. Most telco information was so "specialized" that it would scarcely be understood by any honest member of the public. If not published, it would not be missed. To print such material did not seem part of the legitimate role of a free press.

In 1990 there would be a similar telco-inspired attack on the electronic phreak/hacking "magazine" PHRACK. The PHRACK legal case became a central issue in the Hacker Crackdown, and gave rise to great controversy. PHRACK would also be shut down, for a time, at least, but this time both the telcos and their law- enforcement allies would pay a much larger price for their actions. The PHRACK case will be examined in detail, later.

Phone-phreaking as a social practice is still very much alive at this moment. Today, phone-phreaking is thriving much more vigorously than the better-known and worse-feared practice of "computer hacking." New forms of phreaking are spreading rapidly, following new vulnerabilities in sophisticated phone services.

Cellular phones are especially vulnerable; their chips can be re-programmed to present a false caller ID and avoid billing. Doing so also avoids police tapping, making cellular- phone abuse a favorite among drug-dealers. "Call-sell operations" using pirate cellular phones can, and have, been run right out of the backs of cars, which move from "cell" to "cell" in the local phone system, retailing stolen long-distance service, like some kind of demented electronic version of the neighborhood ice-cream truck.

Private branch-exchange phone systems in large corporations can be penetrated; phreaks dial-up a local company, enter its internal phone-system, hack it, then use the company's own PBX system to dial back out over the public network, causing the company to be stuck with the resulting long-distance bill. This technique is known as "diverting." "Diverting" can be very costly, especially because phreaks tend to travel in packs and never stop talking. Perhaps the worst by-product of this "PBX fraud" is that victim companies and telcos have sued one another over the financial responsibility for the stolen calls, thus enriching not only shabby phreaks but well-paid lawyers.

"Voice-mail systems" can also be abused; phreaks can seize their own sections of these sophisticated electronic answering machines, and use them for trading codes or knowledge of illegal techniques. Voice-mail abuse does not hurt the company directly, but finding supposedly empty slots in your company's answering machine all crammed with phreaks eagerly chattering and hey-duding one another in impenetrable jargon can cause sensations of almost mystical repulsion and dread.

Worse yet, phreaks have sometimes been known to react truculently to attempts to "clean up" the voice-mail system. Rather than humbly acquiescing to being thrown out of their playground, they may very well call up the company officials at work (or at home) and loudly demand free voice-mail addresses of their very own. Such bullying is taken very seriously by spooked victims.

Acts of phreak revenge against straight people are rare, but voice-mail systems are especially tempting and vulnerable, and an infestation of angry phreaks in one's voice-mail system is no joke. They can erase legitimate messages; or spy on private messages; or harass users with recorded taunts and obscenities. They've even been known to seize control of voice-mail security, and lock out legitimate users, or even shut down the system entirely.

Cellular phone-calls, cordless phones, and ship-to-shore telephony can all be monitored by various forms of radio; this kind of "passive monitoring" is spreading explosively today. Technically eavesdropping on other people's cordless and cellular phone-calls is the fastest-growing area in phreaking today. This practice strongly appeals to the lust for power and conveys gratifying sensations of technical superiority over the eavesdropping victim. Monitoring is rife with all manner of tempting evil mischief. Simple prurient snooping is by far the most common activity. But credit-card numbers unwarily spoken over the phone can be recorded, stolen and used. And tapping people's phone-calls (whether through active telephone taps or passive radio monitors) does lend itself conveniently to activities like blackmail, industrial espionage, and political dirty tricks.

It should be repeated that telecommunications fraud, the theft of phone service, causes vastly greater monetary losses than the practice of entering into computers by stealth. Hackers are mostly young suburban American white males, and exist in their hundreds--but "phreaks" come from both sexes and from many nationalities, ages and ethnic backgrounds, and are flourishing in the thousands.

The term "hacker" has had an unfortunate history. This book, THE HACKER CRACKDOWN, has little to say about "hacking" in its finer, original sense. The term can signify the free- wheeling intellectual exploration of the highest and deepest potential of computer systems. Hacking can describe the determination to make access to computers and information as free and open as possible. Hacking can involve the heartfelt conviction that beauty can be found in computers, that the fine aesthetic in a perfect program can liberate the mind and spirit. This is "hacking" as it was defined in Steven Levy's much-praised history of the pioneer computer milieu, HACKERS, published in 1984.

Hackers of all kinds are absolutely soaked through with heroic anti-bureaucratic sentiment. Hackers long for recognition as a praiseworthy cultural archetype, the postmodern electronic equivalent of the cowboy and mountain man. Whether they deserve such a reputation is something for history to decide. But many hackers--including those outlaw hackers who are computer intruders, and whose activities are defined as criminal--actually attempt to