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To: PJ Strifas who wrote (34491)10/29/2000 12:33:40 PM
From: Paul Fiondella  Read Replies (1) | Respond to of 42771
 
Yours is too paranoid an analysis --- here is the conventional one

Daily Express (UK)
29 October 2000
Hackers 'pass Microsoft code to the Kremlin'
BY VICTORIA FLETCHER AND KEN HYDER

Russian hackers behind the raid on Bill Gates's computer giant Microsoft's
innermost secrets have stolen the capability to hack into virtually any
on-line PC in the world.

And experts fear that information may now also be in the hands of the
successor to Russia's fearsome KGB.

Detectives also admit that the technology used to get the company's programs
from its own headquarters is now so advanced it makes the hackers virtually
impossible to trace and they are almost certain to escape justice.

They believe the crimes are part of a highly sophisticated intelligence
operation that can be linked with elite members of Russian high society.

One international detective said: "These are very young, extremely
intelligent computer experts who are committing these crimes.

"They are highly organised and cover their tracks very well by using a
complicated network of people and computers. With the poor economy in Russia,
it is not surprising that they see the wealth in Europe and want some of
that.

"And with the computer skills they have, they know they can get it. It can
take months to find out who they are, and even then, pinning evidence on them
is almost impossible."

Experts are terrified by the implications of the latest raid. Whoever stole
the formula at the heart of the ubiquitous Windows program will be able to
hack into any PC in the world which uses it and is connected to the internet.

The hack has already been traced back to St Petersburg and it is thought that
the FSB - the new, post-Soviet KGB - will themselves have a copy of the
formula because they have access to all local telephone lines.

A computer security expert said: "The whole telephone network in St
Petersburg was configured to ensure that the KGB had access to everything
passing through the lines, so they will have a copy of these source codes
somewhere.

"Whether they are going to keep them, or whether the material will find its
way into the hands of criminal gangs is unclear."

Over the past few years, Russia has become a breeding ground for computer
hackers as the large number of technical colleges has spawned a generation of
IT experts.

Most hackers who have been caught are young graduates, often under the age of
25. Many answer internet adverts for computer programmers, planted by
organised crime outfits in Moscow, St Petersburg and Murmansk. With their
vast technological knowledge, it can take them a matter of mere hours to hack
into companies around the world to steal data, credit card details and phone
numbers.

Last month, experts from banks across Europe warned that the biggest threat
to security was from Russian hackers.

At a conference in Geneva, fraud specialists said the scam could be traced
back to some of the most powerful figures in Russia, who they believe protect
the hackers from prosecution.

Earlier this year, a 25-year-old hacker in Moscow stole credit card details
which were placed onto blank cards and used at ATMs throughout Europe.The 50
people involved in the scam managed to steal millions of pounds before they
were caught. The hacker has still not been arrested because of a lack of
evidence.

==========================

other than the formula at the heart of Windows, which is pure nonsense, the comment "the FSB - the new, post-Soviet KGB - will themselves have a copy of the formula because they have access to all local telephone lines." should wake up a few people because it is absolutely true. All ISPs in Russia are required to have the equivalent of of the FBIs carnivore box located onsite. And you can believe that they avidly record all international data transmissions and downloads.

So whatever the Microsoft Empire lost the FSB now has.