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.

http://www.lineone.net/express/00/10/29/news/n0220-d.html

-- Martin Thompson (mthom1927@aol.com), October 29, 2000

Answers

Bill Gates will probably just buy Russia!

-- K (infosurf@yahoo.com), October 31, 2000.