[comp.dcom.telecom] Five UK Banks Blackmailed by Hackers

wnp@relay.eu.net (wolf paul) (10/20/90)

Vienna's DER STANDARD reports the following in its Oct. 19, 1990 issue
(by Hans-Juergen Maurus, summarized in English w/o permission by Wolf
Paul):

Five UK banks are being blackmailed by a loosely-knit group of
computer hackers, but have not paid any ransom so far. According to
London's "Independent on Sunday" the hackers succeeded in penetrating
the computer systems of the banks. Experts speak of the most serious
breach of computer security in the "City" in years.

The penetrations started this past May, and included both the theft of
information as well as sabotage and the introduction of falsified
information, and are one more indication of a rise in computer crime
in London's financial center.  One expert called the expertise of the
unknown hackers (who seem to operate independently although they are
aware of each other) "truly frightening".

The banks affected have not called in the police, for fear of adverse
publicity which could damage their reputation. Instead, they are
relying on the services of Network Security Management, a subsidiary
of Hambros Bank, to uncover the culprits.

Experts are astonished at the ease with which highly complex systems
like these can be penetrated. Since most banks no longer could
function without these computer systems, the fear of a major hacker
attack is great. Experts say that most bank employees hardly
understand the systems they are working with, and are certainly
incapable of detecting unauthorized access.

Detective Superintendent Don Randell of Scotland Yard who specializes
in computer crime says that many businesses are extremely careless in
their approach to computer security. Losses due to computer crime in
the UK alone are estimated at approximately 2,5 billion Pounds to
date; since only about one third of cases are being reported by the
victims, the real damage may well be considerably higher.  


Wolf N. Paul, IIASA, A - 2361 Laxenburg, Austria, Europe 
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