VIRUSES -- THEIR EFFECT ON FBA PROCEDURES
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Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP91-01355R000300100002-4
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RIPPUB
Original Classification:
K
Document Page Count:
18
Document Creation Date:
December 23, 2016
Document Release Date:
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Sequence Number:
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Case Number:
Publication Date:
August 26, 1988
Content Type:
MEMO
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HACKERS, HIGH?TECH BANDITS, AND DISASTERS COST BUSINESS BILLIONS?AND AS
onald Gene Burleson resented au-
thority. He denounced federal in-
come taxes as unconstitutional
and boasted that he hadn't paid any
since 1970. The pudgy, 40-year-old pro-
grammer also complained that his salary
at USPA & IRA Co., a Fort Worth securi-
ties trading firm, was too low. He often
had heated arguments with superiors.
"He was so fanatical about everything,"
says former co-worker Patricia Hayden.
But she adds: "He could do anything
with a computer."
Evidently he could. Two days? after
USPA fired him in 1985, the company al-
leges, Burleson entered its headquarters
and planted a program that once each
month would wipe out all records of
sales commissions. USPA discovered the
break-in two days later. But it lost
168,000 records before disabling the pro-
gram. Burleson is now awaiting trial on
charges of "harmful access to a comput-
er," a felony in Texas. If convicted, he
faces up to 10 years in jail.
vunurr SHUTDOWN. The Burleson caper
is just one in a string of recent events
that point to the alarming vulnerability
of computer systems?and the business-
es and government agencies that rely on
them. Hackers have invaded sophisticat-
ed data networks?even those at the
Pentagon. Accidents, such as the May 8
fire at an Illinois Bell switching station
outside Chicago, have disrupted commu-
nications in entire towns for weeks at a
time. But experts agree that the No. 1
threat, which accounts for at least 80%
of security breaches, is internal: "The
real problem is errors, omissions, or
well-thought-out acts by individuals who
have authorized access to data," says
Lawrence L. Wills, who's in charge of
selling data security software for IBM.
Whether the fault lies with a disgrun-
tled employee, a hacker, simple human
ineptitude, or a natural disaster, dis-
abling a vital computer and communica-
tions system can be as easy as cutting a
critical power line or 'typing a few com-
mands on a keyboard. The threat is elo-
quently simple: Computer networks and
the information they handle are assets a
company can't do without. But often
they aren't adequately protected, and
the consequences of that exposure can
be disastrous. Without computers, "we
cannot run our plants, we cannot sched-
ule, we cannot bill or collect money for
our product, we can't design our prod-
uct," says G. N. Simonds, executive di-
rector of management information sys-
tems at Chrysler Corp. "In essence, we
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SECURE ? ---
PCs PROLIFERATE, THE PROBLEM CAN ONLY GROW WORSE
very quickly shut the company down."
The potential for trouble is even
greater in the service industries that
now dominate the economy. Every work-
day, U.S. computer networks transmit
close to $1 trillion among financial insti-
tutions, an amount equal to 2570 of the
gross national product. When a software
problem fouled up record-keeping in
Bank of New York's government securi-
ties trading operations in 1985, other
banks temporarily stopped trading with
it The Fed had to lend the bank $24
billion to keep operating until the prob-
lem was fixed. An airline the size of
American Airlines Inc. could lose as
much as $34,000 in booking fees each
hour its reservation system is down.
Little wonder that businesses are wor-
ried?and reacting. To protect its vast
reservations system in Tulsa, American
built a $34 million underground facility
with foot-thick concrete walls and a 42-
inch-thick ceiling. Anyone who scales the
barbed wire faces a security system that
includes a retina scanner, a James Bond-
ian device that detects unauthorized per-
sonnel by the unfamiliar pattern of
blood vessels in their eyeballs. Indeed, a
booming industry has developed to help
protect computers, ranging from scores
of consultants to sellers of hardware
and software impediments to intruders.
'HELL OF A MESS.' Despite such defenses,
however, systems remain vulnerable.
High-tech thieves steal $3 billion to
$5 billion annually in the U.S.
alone, according to consul- .'"
tants at accounting firm
Ernst & Whinney in./44.t
Cleveland. ' And
computer ?crime '14
pays well: In an average stickup, securi-
ty experts say, a bank robber grabs
$5,000. By contrast, the average elec-
tronic heist nets $500,000. In electronic
funds networks, "you have $15,000-a-
year clerks transferring $25 million a
day," says Ronald Hale, research man-
ager at the Bank Administration Insti-
tute in Chicago. For some, the tempta-
tion is too great
In early July, a group of insiders
wired $54 million from the London office
of Union Bank of
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ees, whose theft, sabotage, or inept':
tude can cause havoc Employees ?
, should have access only to the sys-' - ? ?
tents and data needed to do their . ? ?
jobs. Lock up machines that do criliad ?
frisks. Change passwords frequently.
BUSINESS WEEK/ALIGLIST 198S51
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Switzerland to another Swiss bank, com-
plete with the correct authorization
codes. A malfunction in the second
bank's computer delayed the transac-
tion, and auditors discovered it and froze
the funds before they could be collected.
First National Bank of Chicago foiled a
$70 million embezzlement scheme last
May only because the two employees
who masterminded it made a dumb mis-
take: They tried to overdraw on the ac-
counts they were stealing from.
Often, even hackers
depend on inside help. A
band of teenage pro-
grammers, calling them-
selves "phrackers," has
been giving fits to Pa-
cific Bell and other
phone companies with a
simple con game. Pos-
ing as fellow employees, ti
they call phone compa-
ny representatives and
cajole them into releas-
ing computer pass-
words. Says one 17-
year-old phracker: "It
workssurprisingly
well." Inside the phone
company computer,
phrackers cause may-
hem by disconnecting
service to customers or
changing work orders.
Now changes in com-
puter technology are
making mischief easier.
Increasingly, minicom-
puters and personal
computers are being
spread through offices
and networked togeth-
er. Such "distributed
processing" multiplies
the potential points of
access. "When comput-
erization was central-
ized, the computers
were in one room behind ocked doors,"
says Edwin B. Heinlein, a computer se-
curity consultant in San Rafael, Calif.
"Now it's a hell of a mess." With 33
million desktop machines in use, hun-
dreds of thousands of individuals have
acquired the technical skill to "penetrate
most systems," says Gerald E. Mitchell,
director of data security at Ins Financial
Services Inc. in Minneapolis.
Using international phone links, a
group of West German hackers took re-
peated strolls through NASA computers
last summer, as well as through several
13.5. military networks. NASA spent
three months changing passwords and
clearing out "trap door" programs that
the intruders had planted to give them
access. Another German hacker spent
nearly two years cruising through un-
classified data in U.S. Defense Dept
and other research computers around
the world until he was stopped last year.
And 'last May, Nasa's Jet Propulsion
Laboratory in Pasadena, Calif., was in-
vaded by hackers yet to be identified.
Even companies with good security
have run into a new and insidious prob-
lem: the computer virus. Like micro-
organisms, these replicate and spread.
They're tiny bits of software, often
though the company plays down the inci-
dent, last December a virus-like program
infiltrated mires 145-country electronic
mail network, forcing the entire system
to be shut down.
When such incidents occur, the victim
company often has failed to employ
some surprisingly simple measures. Ex-
perts say, for instance, that companies
should outlaw such mundane passwords
as a birthday or a spouse's name. NASA
concedes that it was using "inappropri-
ate" passwords that
were easy to guess.
limes Wills urges com-
panies to remind work-
ers not to log on to a
computer and then
leave it unattended, nor
share passwords with
co-workers. He is also a
proponent of written
computer security poli-
cies, complete with secu-
rity clearances.
NEED TO KNOW. tam has
five classes of data,
cbi n, from unclassified, with
no restrictions, to "reg-
istered IBM confiden-
tial," available only to
employees with a prede-
termined need to know.
After last year's inci-
dent, which began when
a West German law stu-
dent sent a self-replicat-
ing Christmas greeting
into a European aca-
demic research network,
mr4 tightened controls
over its electronic net-
works.
It's crucial, say ex-
perts, to treat computer
security as a manage-
ment, not a technology,
problem. For example,
programs running on
Marine Midland Bank's central computer
are "encapsulated" so that employees
can use only what's needed to perform
their jobs?and can't browse through
the system.
Physical barriers are important, too,
and there are lots of new ones. Electron-
ic card keys, or "smart cards," with em-
bedded microchip memories and proces-
sors, are starting to be used as I. D.
cards for workers. They can be pro-
grammed with volumes of personal data
and authorization codes that are hard to
fake. Some smart cards change pass-
words every 60 seconds. But even such
cards have a flaw: They can be stolen.
More secure, some experts think, are
biometric devices, which identify people
according to physical quirks. Machines'
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quickly written, that hide in larger pro-
grams and then pounce unpredictably.
Some simply deliver a surprise message
on the screen. Others can wipe out every
shred of information in a computer.
What especially worries corporate
computer managers is that somehow
these destructive programs could mi-
grate to mainframe computers and do
serious damage to the most sensitive
corporate data. Says Jeffrey M. Hoff-
man, a computer specialist at Atlantic
Richfield Co.: "The PC world is the light-
ly protected gateway to the host com-
puter world." Although most large com-
puter systems employ mechanisms that
isolate computer code, reducing the op-
portunity for a virus to spread, the
threat exists?even for Big Blue. Al-
52 BUSINESS WEEK/AUGUST 1,1988
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flections, hand prints,
even typing habits.
Still, common sense
may be the best protec-
tion?and less intrusive.
For example, USPA
could have thwarted
Donald Gene Burleson
by thinking faster. The
company procrastinated
before changing its
computer passwords, a
crucial mistake: As a
computer security offi-
cer, Burleson was one
of three people at the
company who knew ev-
eryone's password.
COVER-UP. A similar
mistake caught up with
Wollongong Group, a
software company in
Palo Alto, Calif. Ming
Jyh Hsieh, a 38-year-old
Taiwanese ?gr?ho
worked as a customer
support representative,
was fired in late 198%
Two months later, Wol-
longong noticed that
someone was logging
on to its computers at
night via modem. Some
files had been copied or
damaged. After tracing
the calls to Hsieh's
nearby home, police
seized her personal
computer, along with
disks containing N'ol-
longong's proprietary
software, estimated to
be worth millions of dol-
lars. She was arrested,
charged with illegal ac-
cess to computers, and
if convicted faces up to
five years in prison.
Wollongong had crip-
pled Hsieh's access code
but the company sus-
pects that she somehow
obtained another work-
er's. Since the incident,
Wollongong periodically
changes passwords and
account numbers. "Any
company that doesn't is
asking to be kicked," says Norman Lom-
bino, Wollongong's marketing communi-
cations manager.
One advantage for computer crooks is
that their victims often keep quiet, notes
consultant Robert H. Courtney Jr. Sta-
tistics are hard to come by. But experts
estimate that only 20% to 50% of com-
puter crimes are ever reported. Particu-
larly for banks, a successful fraud is a
public relations disaster. Burleson's
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break-in at USPA might never have come
to light had he not sued for back pay?
thus encouraging a countersuit. "No one
wants to display their managerial short-
comings," says Courtney. In one ex-
treme case, Courtney says, an insurance
company executive used his PC to scan
claim records needed to commit a $13
million fraud. The company found out
and fired him. But to avoid a scandal, it
gave him a lavish going-away party.
&lunging uiz problem
into the open may be
the only way to improve
security, however. Take
viruses. These wily pro-
grams most often find
their way into corporate
computer systems when
an employee inadver-
tently introduces them.
Computer enthusiasts
from New York'to New
Delhi use electronic bul-
letin boards on commu-
nications networks such
as The Source to "chat"
by computer. One of
their favorite pastimes
is swapping pro-
grams?any one of
which can include a vi-
rus that attaches itself
to other programs in a
computer.
No one knows how
many viruses have been
planted. But John D.
McAfee, a virus expert
at InterPath Corp, a se-
curity consulting firm
in Santa Clara, Calif.,
says there have already
been 250,000 outbreaks.
He estimates that 40 of
the nation's largest in-
dustrial companies have
been infected.
PAKISTANI FLU. World-
wide computer net-
works take viruses on
some remarkable jour-
neys. Recently, The
Providence Journal-
Bulletin was infected
by the Pakistani
Brain?two years after
that program began cir-
culating. Nobody knows
how it got to Rhode Is-
land. But before it was
through, it had infected
100 of the paper's per-
sonal computer hard
disks. Basit Farooq
Alvi, a 19-year-old pro-
grammer from Punjab
province, says he wrote
the virus not to destroy
data but as a warning
to would-be software pirates. The virus
would interfere only with bootlegged
copies of his package, a program for
physicians. Other programmers, howev-
er, have given it a pernicious twist: Now
versions of the brain often carry instruc-
tions to wipe out data files. And some of
these versions have spread to Israel, Eu-
rope, and the U.S.
Even a well-meant virus can have un-
fortunate side effects. Richard R. Bran-
COVER STORY
BUSINESS WEEK/AUGUST 1, 1988 53
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dow, the 24-year-old publisher of a Mon-
treal computer magazine, and co-worker
Pierre M. Zovile created a benign virus
to dramatize the pervasiveness of soft-
ware piracy. Point proved: In two
months, Brandow says, illegal copying
had transferred the virus to 350,000
Macintoshes around the world. When
the internal clocks on these machines hit
last Mar. 2, the first birthday of the Mac
II computer, each machine displayed
Brandow's "universal message of peace
to all Macintosh users."
'SAFE SEX.' It was a nice thought. But
Marc Canter, president of a small Chica-
go software publisher, says that Zovile's
virus wasn't innocuous. It caused Can-
ter's computer to crash and infected
disks that he supplied to software pro-
iducer Aldus Corp. in Seattle. For three
days, Aldus unwittingly transferred the
virus onto copies of its Freehand illus-
tration program on its assembly lines.
Aldus pulled back the tainted disks, but
not before some got to customers.
As with many computer security prob-
lems, the chief weapon against viruses is
employee awareness, says Arco's Hoff-
man. After a virus invaded Macs at Ar-
co's Dallas office, then spread to another
Arco office in Anchorage, the company
told employees not to use software of
questionable origin. "It's the PC equiva-
lent of safe sex," says Hoffman.
There also are more than a dozen
"vaccine" programs, including Interfer-
on, a package that Robert J. Woodhead,
an Ithaca (N.Y.) author of computer
games, offers free. Woodhead says each
virus has a unique pattern, which his
software can identify. It then erases the
virus. Another method, in use at Lehigh
University's computer labs since a virus
struck there last winter, is to test suspi-
cious software by setting the computer
clock to Christmas, New Year's, or April
Fools' Day?dates on which many virus-
es are set to detonate.
Viruses have caused such consterna-
tion that Congress is mulling tougher
federal laws. A House bill introduced on
July 19 would make it a federal crime to
insert a malicious virus into a computer.
Basic computer-crime laws are already
on the books in 48 states, and business
and industry leaders are looking for gov-
ernment agencies to set guidelines for
security standards. Under the Computer
Security Act of 1987, the National Bu-
reau of Standards is charged with doing
that But agency budget cuts are expect-
ed to slow the process, industry officials
say. In Japan, meantime, the govern-
ment gives a tax break to companies
purchasing facilities and hardware to
guard their systems.
Even without such incentives, U. S.
companies are spending huge sums on
computer chastity belts. They can be
anything from software to control ac-
cess to the mainframe, costing $35,000 a
copy, to hardware that scrambles data
so it can't be understood if a phone line
is tapped. In 1982 only 10% of IBM main-
frames had data security software, ac-
cording to a survey by market research-
er Computer Intelligence. Now the
figure is 35%.
To foil hackers, many companies are
installing dial-back systems on comput-
ers. These ensure that an incoming call
is from an authorized number. A large
mainframe may have hundreds of
"ports" for remote computers?with
call-back units costing $600 to $700 per
port. Additional encryption hardware
can cost $1,200 per communications line.
With the most to lose, banks are a big
market for such equipment. They dis-
guise data by encrypting it. and many
use message-authentication techniques
to ensure that what is received over
phone lines matches what was sent.
"mem MELTDOWN. In the wake of the
Chicago fire, there's also new interest in
"disaster recovery"?restoring opera-
tions after fires, floods, earthquakes, or
sabotage. For years, companies have
shipped computer tapes with sensitive
records to vaults such as that run by
Data Mountain Inc. in Phoenix, where
gun-toting guards watch over a 2,000-
square-foot room chiseled out of rock.
But the phone company blaze in the
Chicago suburb of Hinsdale lent a new
urgency to such planning. "The story
has gotten out to Europe, Asia, and Aus-
tralia," says Dave Haeckel, a principal
with Arthur Andersen & Co., a Big
Eight accounting firm that does comput-
er consulting. That's been a boon for
disaster recovery specialists such as
Comdisco Inc. "I've never seen anything
like this," says Raymond Hipp, president
of Comdisco Disaster, which collects
fees of $100 million annually from 1,000
customers to maintain backup systems.
Comdisco says it can restore computer
service in 24 hours.
Such a promise may be worthless if
54 BUSINESS WEEK/AUGUST 1. 1988
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phone lines have melted, as they did in scenario dccurred. The automated phone
Hinsdale. "Nobody had really focused on switching facility was unstaffed and
the lack of redundancy in the Bell oper- lacked the kind of fire-suppression sys-
ating companies' networks," notes Hipp. tern used in computer centers. There
Local phone companies relay computer was no alarm at the local fire station,
signals to a long-distance carrier such as because Illinois Bell feared that the fire
American Telephone & Telegraph Co. or department couldn't put out a computer
a data network such as Tymnet, which fire without causing excessive damage.
relays the signal to a local phone compa- The result:: Thousands of homes and
ny that picks it up for the customer. businesses, including headquarters of-
Without that last link, the most sophisti? fices of McDonald's Corp. and Motorola
cated computer network may be useless. Corp., were cut off. Large businesses
Most of the time, phone company restored communications with emergen-
backup systems route calls around trou- cy microwave radio systems. But seven
ble spots. But in Hinsdale, a worst-case local businesses have filed lawsuits to
-01 355 R000300100002-4
recover losses caused by the outage.
Computer customers, as well, want
better security features from hardware
and software suppliers. Many companies
are considering making AT&T'S Unix
software?or its derivatives?a standard
to smooth the connections between dif-
ferent brands of machines. But since
Unix was designed to make it easy for
computers to share files and programs,
it's also susceptible to break-ins, says
Judith S. Hurwitz, editor of Unix in the
Office, a newsletter.
For instance, phrackers in California,
after cracking the password system on
A GERMAN HACKERS' CLUB THAT PROMOTES CREATIVE CHAOS
West German computer hack-
er Bernd Fix holds the eco-
nomic equivalent of a nucle-
ar bomb in his head. The University of
Heidelberg astrophysics student claims
it took him only 20 hours to write a
virus that could destroy all information
in a mainframe computer?erasing
tens of thousands of liages in minutes.
In the wrong hands, it could cripple
companies, the IRS, even the Pentagon.
Fix has no such plans: He says he
wrote the program as an intellectual
exercise?"for the experience
of doing it" He has since en-
crypted it so that it can't be
used by others.
Welcome to the oddball
world of hacking, German
style. Fix, 26, is a member of
the Hamburg-based Chaos
Computer Club, a group of
300 hackers who, says Her-
wart "Wau" Holland, the
club's founder and leader, are
a far cry from the teenage
thrill-seekers who prowl U.S..
computer networks. Despite
the club's name, Holland, 36,
says it's against electronic
mischief. His goal is more se-
rious: increasing the flow of
public information. In West
Germany, environmental and
scientific data, census fig-
ures, and government reports
are costly and difficult to get. " t's not
a very democratic system," Holland
says. Not until Chaos gets involved.
Holland's weekly newsletter, circula-
tion 3,000, and his "Hacker's Bible,"
25,000 copies sold, are filled with tips
on breaking into computer systems
around the world. "We believe we have
the right of access to information, and
we take it," says Holland. During the
Chernobyl nuclear disaster, he says,
German officials "fed the public a lot
of false [reassuring) statements." By
purloining hidden data, "we made sure
the press was well informed"?a claim
that German reporters confirm.
FORBIDDEN nm. Chaos members, who
meet weekly, hold an annual conven-
tion, and pay dues of $66 a year, revel
in showing up West Germany's obsti-
nate bureaucracies. In 1989, Chaos un-
covered a security hole in the videotex
system that the German telephone au-
thority, the Deutsche Bundespost, was
building. When the agency ignored
club warnings that messages in a cus-
the Bundespost now say the break-in
was a fluke.
The incident fits with Holland's goal
"of changing structures in society. Ev-
erything in Germany is so overly orga-
nized." He adds: "Some people throw
bombs. It's more effective to find the
absurdities and make people laugh."
Like hackers everywhere, however,
Chaos members can't resist a chal-
lenge. And that sometimes means
treading near the edge of West Ger-
man law, which prohibits manipulating
or destroying data, both for-
eign and domestic, or break-
ing into "extra secure" sys-
tems, which are undefined.
Holland denies that the club
was behind a NASA break-in
last year. Chaos members
may have done it, he con-
cedes, though none has con-
fessed. But he adds: "We do
not encourage illegal acts."
That's an assertion that
critics often discount, given
the club's key role in promot-
tfX hacking?and its record
of never having expelled any-
one for unsportsmanlike con-
duct. Still, Holland, who trad-
ed his blue jeans for blue
suits when he started a type-
setting business 18 months
ago, knows that hacking can
hurt.Three years ago, fellow
enthusasts stole his password to a
German data network and published it
in the tabloid BiId Zeitung. Soon glee-
ful computer fanatics had racked up
$1,500 in charges to Holland's account.
"I was broke at the time, and this inci-
dent made an impression on a lot of
hackers who knew me," he says.
Nonetheless, there's still the matter
of all that closely held government in-
formation. And until it's more public,
Chaos most likely will fill the void.
By Gail Schares in Heidelberg
NOLLANDI "WE HAVE TIM RIGHT OF ACCESS TO INFORMATION"
tomer's private electronic mailbox
weren't secure, Chaos members set out
to prove the point .They logged on to
computers at Hamburger Sparkasse, a
savings bank, and programmed them
to make thousands of videotex calls to
Chaos headquarters on one weekend.
After only two days of this, the bank
owed the Bundespost 875,000 in tele
phone charges. Uncaught, Chaos re
vealed its stunt on Nov. 19, the birth-
day of Bundespost Minister Christian
Schwartz-Schilling. Both the bank and
COVER STORY
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??? r
one Unix computer last year, used the
same approach to unlock Unix-based
systems at phone companies all over the
country. Now AT&T is making Unix more
secure. Similarly, Digital Equipment
Corp. says it has patched software holes
that let West German Chaos Club mem-
bers break into its VAX computers.
HIGH-TECH HIJACKING. Concern over
computer security will mount as compa-
nies do more electronic transactions. In
the $55 billion textile business, for in-
stance, sales data, new orders, shipment
information, inventory receipts, and in-
voices are beginning to flow directly
from one company's computer to anoth-
er's via a pipeline called Electronic Data
Interchange. Other companies, such as
auto parts makers, are using EDI to send
items directly to customers, bypassing
warehouses. The potential for fraud and
theft is huge. "There have always been
attempts to divert products," says Peter
Browne, president of Profile Analysis, a
Ridgefield (Conn.) consulting firm.
"Now it can be done electronically."
Corporations are left in a bind: They
need to expand computerized informa-
tion and transaction-processing systems
to compete. But the more they do, the
greater their risk. "Our society must do
something to control the problem," says
Ernest A. Conrads, director of corporate
security at Westinghouse Electric Corp.
"If not, our information system can't
grow the way technology will allow us
to." In the long run, that could have
more profound economic consequences
than all the hackers, viruses, and disas-
ter-induced computer failures combined.
By Katherine M. Hefner in New York,
with Geoff Lewis in New York, Kevin Kelly
in Dallas, Maria Shao in San Francisco,
Chuck Hawkins in Toronto, Paul Anglo-
in Boston, and bureau reports
HOW UNCLE SAM'S CLOAK-AND-DATA BOYS ARE FIGHTING BACK
Breaking into computer systems
might be a lark for hackers. But
penetration of government com-
puters?particularly military sys-
tems?is a deadly serious matter for
the National Security Agency (NSA) and
for counterintelligence agents at the
Federal Bureau of Investigation. After
all, who's to say whether a break-in is
a hacker's harmless prank or an at-
tempt by Soviet spies to
steal defense secrets?
The supersecret NSA,
an arm of the Pentagon
that for many years
didn't even exist official-
ly, has a double-edged
mission. It gathers elec-
tronic intelligence from
the Soviet bloc by inter-
cepting and decoding
telecommunications traf-
fic, including signals sent
from spy satellites. And-
to prevent foreign na-
tions from doing the
same to the U.S., the
NSA spends untold mil-
lions devising sophisticat-
.ed cryptographic codes
and trustworthy computer systems.
Protecting government computer
systems is becoming increasingly tax-
ing. Intelligence organizations, the mil-
itary, and other federal agencies now
operate more than 100,000 computer
sites?most with multiple computers
and communications links. Many thou-
sands of additional computers used by
defense contractors and high-tech man-
ufacturers hold data that the Adminis-
tration doesn't want leaked.
The Soviets leave no stone unturned
in their hunt for the tiniest morsels of
information. Even a routine electronic
mail message between a defense sup-
plier and a bank might provide an im-
portant clue. That's why the Soviet
missions in Washington, New York,
and San Francisco bristle with anten-
nae. They pick up phone conversations
and data transmissions relayed by cel-
lular radio and microwave links. In
Cuba, a giant KGB-operated dish pulls
in signals beamed down from satellites
to any point in the lower 48 states. And
Soviet snoop ships monitor both coasts
ALL MAIM SOVIET INSASST IN WASHINGTON
from just outside U.S. territorial wa-
ters. One intelligence expert estimates
that the Soviets listen in on more than
half of all U.S. telecommunications
traffic, one way or another.
SPOOK-PROOF. Because almost any
transmission runs a high risk of being
intercepted, Washington goes to great
lengths to protect its secrets. Its most
secure lines are fiber-optic cables bur-
ied deep below the surface and sealed
in gas-filled pipes. There are no connec-
tions to outside phones, so no hacker
can gain access. If a spy cuts a pipe to
tap the cable, the drop in gas pressure
instantly sounds an alarm.
?But buried cables are of no use in
communicating with ships or planes. So
the NSA has developed elaborate cryp-
tographic ciphers for turning English
into digital gibberish. These codes are
so convoluted that any given string of
characters, such as this sentence,
would never yield two identical series
of encoded characters. The cipher is
changed frequently, so that the digital
code for an "e" in one word might
mean "k" in the next
To decode such a mes-
? sage, you need the key:
the starting cipher plus
the formula for switching
to the next variant. For
computers that handle
the most sensitive infor-
mation, crypto keys are
created in pairs, then de-
livered by courier to the
two computer sites. So
even if the key for the
link between the Penta-
gon and a particular base
is copied, it won't help de-
code traffic between any
other points.
Still, nothing offers to-
tal protection. Just as pri-
vate-sector computer crime is usually
traced to employees, the NSA'S worst
fear is that turncoats will sell crypto-
graphic secrets. Crypto details are so
secret that even the names used to
classify them are classified. That's why
federal officials say that former Navy
radiomen Jerry A. Whitworth and John
A. Walker Jr., who for years passed
top-secret crypto materials to the KGB,
did more harm than any other spies in
decades. Officials estimate that the
Kremlin used its ill-gotten gain to de-
code 1 million military messages. That
could make it the computer crime of
the century?so far.
By Otis Pori in New York
56 BUSINESS WEEK/AUGUST 1, 1988
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COVER STORM
A I 1 -I-/--'
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Every year 15 winter approaches, people
brace themselves for the flu season. They
take precautions that will help them stay
healthy, Or at least minimize the symp-
toms: lots of fluids, large doses of vitamin
C and sometimes flu shots. If you're
human?like most of us art?they're
pretty good deterrents. If you're 2
computer?like most of us aren't?you've got a problem.
Unless, however, you're 2 computer user?like most of US
arc?in which case you may face exposure to the latest PC
ailment as well: software viruses.
None of us probably ever thought of flu viruses affecting
machinery, but this year that's changed. In the last few
months, the personal computer community has lapsed into
its own flu season that knows not the bounds of winter or
cold weather. The talk of viruses has been rampant, with
cases reported across the United States, in Canada, Israel.
Germany and Great Britain.
In reality, though, few viruses have actually been found.
The media hype surrounding viruses has tended to distort
the situation. Nonetheless, the warning is Clear: we all need
to be aware of the potential damage 2 "virus" can MSC and
? implement appropriate safeguards against the problem.
A virus is a Small program that indeed operates much the
same as the common flu virus. In the right environment, it
can be highly contagious, moving rapidly from PC to PC. It
can spread in many different ways, but typically it is embed-
ded in an innocent program such as a disk utility. When the
utility is run, the virus program searches for target pro-
grams. When it finds them, it embeds itself and waits for
some predetermined event such as a date, time or operation.
When the system triggers that particular even:, the virus
attacks and erases whatever data it can find. The real danger
is twofold: the virus remains hidden until it strikes and it is
designed to spread before it acts.
Viruses are not new to the computer industry. In 1980,
researchers at the Xerox Palo Alto Research Center (PARC)
devised a virus-type program designed to spread through 1
network looking for idle machines that could help solve
large problems. The program eventually got away from
them, invading central processing units and locking up even
the active workstations on the network. The researchers
ultimately regained control by writing 2 "Vaccine" program
that erased all traces of the virus.
In September, 1984, Dr. Frederick Cohen of the University
of Cincinnati warned about the threat of computer viruses
in a paper presented 10 2 computer conference in Toronto,
Canada. According to Dr. Cohen, most mainframe computer
systems can generally be subverted by a virus in the space of
an hour. His paper drew wider attention in March. 1985,
when Scientific American published a letter from two Ital-
ian programmers in its "Computer Recreation" column The
letter gave a virtual blueprint for a virus that could attack
personal computers.
TIME BOMBS
Last fall in Israel. a virus spread widely Over a two-month
period, the apparent expression of a political protest. The
virus contained a "time bomb" designed to go off Friday.
May 13. 1988, on the 40th anniversary of the last clays of
Palestine; the State of Israel was established on May 14.
1948. Fortunately, a Raw in the virus led to its early discov-
ery in December. The flaw caused the virus to repeatedly
infect target pmgrarns until they grew so large that they
filled all available storage space. The virus itself Caused the
infected computer system to slow to one-fifth its normal
speed and to randomly display garbage on the screen.
Another virus Was discovered last December at Lehigh
University in Pennsylvania. Dubbed the Lehigh Virus, the
prcigram WIS designed to infect all Command.Com files on
whatever peripherals it found. Whenever an internal com-
mand ('lype, Copy. Delete, etc) Was executed, the program
immediately looked for other Comrnand.Coms to infect.
When it found one, the original virus implemented 2 counter.
When the counter reached four, the original virus deleted
everything it could. It didn't just execute a normal DEL to
erase a directory entry, however?it totally erased the file-
allocation table, boot tracks, directory and more. Lehigh stu-
dents lost several hundred diskettes' worth of information
before the MIS department discovered the Cause.
The ease with which viruses can spread through networks
is causing major concern among computer professionals. It
was a rapidly spreading virus known as the "Christmas
Virus" that caused IBM to shut its network down for several
hours last year. The work of 2 West German student, the
program was designed 10 look like a computerized Christ-
mas card. When run, it would move undetected into 2 user's
files and send copies of itself to everyone with whom the
user had exchanged messages. Originating at the European
link of Bitnet. the world's largest academic network, the
program eventually spread to five continents, including into
IBM's own Massive network, flooding its systems with the
Christmas Virus. While the program was not destructive, it
did Cause significant system degradation, eventually requir-
ing a system shutdown in order to remove all traces of it.
Virus infections haven't been limited to the IBM world. In
February, 1 virus was discovered in a HyperCard Suck
(HyperCard is 2 freeform database application for the
Macintosh, with its information arranged into stacks) on the
CompuServe network. The virus. written by the Canadian
magazine MACMAG. was programmed to send a message of
world peace on March 2, 1988, the first anniversary of the
Macintosh II computer. After CompuServe alerted its users
of the virus, there were reports of it in Italy, Belgium and
France, as well as in most areas of the U.S.
This particular virus also became the first known virus to
infect commercial software. A contractor for Aldus Corpora-
tion apparently came into contact with infected software
while traveling in Canada. Running the software just once
on his system was enough to spread the virus to his hard
disk. At the time, he was working on training software for
Aldus; the virus infected the disk he sent them as well. From
there, it spread through Aldus. eventually getting onto the
disk duplicating equipment used for its FrecHand program.
IMPLICATIONS FOR NETWORKS
Though viruses have a limited effect on single-user
machines. they Can Cause quite serious problems for a net-
work. Imagine, for instance, 2 network administrator plac-
ing the latest version of a handy utility he has used for years
in a general-access directory. Various "power" users then
Was the utility. As the virus goes out and copies itself to
all the Command.Com files it can find, its counter is Mi-
med. triggering the virus to erase everything it can access.
When the complaint Calls start coming in, the last thing
the administrator will look to is the utility he's been using
for years. At first. users are likely to be suspect; as the virus
continues to spread. attention will shift to the next most
common element, the network server Software
A ?111US
ORIGINATING
IN WEST
GERMANY
AND BEARING
CHRISTMAS
GREETINGS
EVENTUALLY
SPREAD
TO FIVE
CONTINENTS.
!usir;iarti
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Russ
GREENBERG
HAS DARED
ANYONE WHO
WRITES VIRUSES
WI TRY TO
DESTROY HIS
BULLETIN BOARD
SYSTEM,
SOME HAVE
TRIED
?NONE
SUCCESSFULLY.
42
One symptom that should help identify a virus to
network administrator is the manner in which data corrup-
tion occurs. Most viruses do not appear to be written with
networks in mind, so when the damage is done; it is usually
limited to the floppy and hard disk drives on a single
user's machine. According to Russ Greenberg, an authority
on viruses, most of them directly access the Pe hardware
when they corrupt data. When 2 PC is connected to a net-
work, it is addressed through software added to DOS. When
a virus does its work through DOS. all devices connected to
that PC are corrupted. As noted, to date no virus has been
encountered that was specifically written for PC networks.
What can be dont to keep 2 virus off of a network? The
initial tendency is to suggest banning all public domain
software and unauthorized programs. It's an unrealistic
approach, however, because, as we saw with the Aldus
virus, it is possible for 2 virus to infect virtually any type of
software without being detected. On a network with many
users requiring full access, a software ban would also be dif-
ficult to enforce. Every user has favorite utilities, SO trying
to ban outside programs could force at least some users
"underground." and outside programs might still be used
anyway. A better route would be to publish guidelines for
the use of outside programs.
A program of network security awareness is another
effective measure. It requires getting everyone involved,
because network security is only as good as its weakest
link. In a large network, you may want to designate an indi-
vidual in each department to be responsible for security in
that area.
NETWORK SECURITY
Even with well-planned security guidelines, 2 virus (or an
unhappy employee) can still corrupt your data. The ultimate
resort is to use backups. Horror stories abound about com-
panies losing thousands of dollars worth of data, yet the.
fact remains that many users and administrators alike 'don't
worry about backup until they actually encounter the prob-
lem of restoring lost data. You can never back up your
system often enough. Even after your data is safely backed
up onto a tape or cartridge, verify that it is indeed there. If
you don't have a regular backup program, develop one (see
sidebarj and stick to it.
Although the hope is that you never experience 2 virus
destroying your system's data, the recent flurry of symp-
toms have served to increase our awareness of the threat.
Now, as We move from single-user machines to networks
capable of storing gigabytes of data, we need to adopt the
measures that can and will protect the integrity of our data.
Mainframe computer systems have had such safeguards for
years. By adopting Similar guidelines and taking reasonable
measures. We can protect Our systems from most threats and
still enjoy the freedom of sharing data with others.
Rick Bunzel is Manager of Core Course Development at 3Com
Corporation.
FIVE GUIDELINES FOR KEEPING
YOUR NETWORK HEALTHY
I. Write-protect boot diskettes. Many viruses attack COM-
mand.Com files and a simple way to protect boot diskettes
is to make Sure 2 program can't Write to it. The write-
protect tab on a diskette is a physical device, so it is difficult
to bypass.
2. Do not give network users more network aCCeSS than
they require. A local area network gives us plenty of data
access, and when a virus is triggered it can potentially
delete or corrupt every directory that 1 user can write to or
delete files from. All users should review their sharenarnes
and links and ask themselves: Do I need to have
Read/Write/Create access? Do I need to maintain that net-
work directory link? Can I link to network directories as the
need arises?
3. Maintain at least several generations of backup tapes.
Due to their nature, it is possible for a Vials to hide in your
'system for several weeks or more before it is discovered.
Before you restore a tape, you will want to go back to your
last reliable backup and start restoring from there. And last
but not least, archive tapes on a regular basis. Tape is cheap
in comparison to the cost of rebuilding data from scratch.
4. Do not use new programs (or updated versions) unless
they have been in the public domain for at least four weeks.
On most bulletin board systems. users can check the mes-
sage board to sec if anyone has commented on a particular
program. Most bulletin boards also contain a file Called
'The Dirty Dozen:' This file alerts users about programs
that are known to be a "%On'. (programs that 2C1 instantly
to corrupt data) and potential viruses.
5. All programs should be tested with utilities such as
CHK4BOMB or BOMBSQUAD. These public domain utili-
ties ermine code for potentially dangerous disk activity
such as a command to format a disk or to delete a directory.
STEPS THE BULLETIN BOARDS ARE
TAKING TO AVOID AN EPIDEMIC
The electronic bulletin board systems (BBS) industry is
concerned about the potential damage that viruses or
"Trojan" programs could Cause, and so BBS operators have
been aggressively policing themselves. Two operators in
particular have gone to great lengths to stop foul play.
Russ Greenberg, the operator of a bulletin board in New
York, has written 2 program called Flu-Shot that counters
viruses. Since December of last year an estimated 25,000
users have added the program to their systems. Greenberg
challenges anyone who writes viruses or hidden bomb pro-
grams to upload any program they want in an effort to ?
destroy his bulletin board system. So far, a few have tried,
without success.
This year, Greenberg has released three versions of
Flu-Shot. The current version, Flu-Shot +, has become a
shareware program with 2 slight twist. Normally, SturCW2te
authors ask the user to send them 2 contribution if they like
and use the author's program. Greenberg is willing to
donate users' contributions to their favorite charity.
Eric Newhouse. System Operator of the CrestBBS,
authored the current "Dirty Dozen Upload Program Alert
List." Distributed Via bulletin boards across the country. the
"Dirty Dozen" was originally created by a BBS system oper-
ator named Tom Neff, who kept it as 2 simple list. It has
evolved over three years 10 become a comprehensive docu-
ment that lists pirate programs (copyrighted programs dis-
tributed without the author's knowledge) as well as Trojan
and virus programs. The listing also includes instructions
on how to handle a program that has corrupted data and
glossary of commonly used BBS terms.
Russ Greenberg can be contacted at (212)889-6431; Eric
Newhouse can be reached at GrestBBS at (213)471-2518.
?Rick Runic!
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? Bulletin
Computer Viruses Can be Hazardous
In recent months, a great deal of interest and cons
cern has been generated by the appearance of sev-
eral computer viruses in both IBM PC's and Ap-
ple Macintoshes. Such programs have two
primary characteristics: I) They spread themselves
from machine to machine using self-reproducing
code, infecting other systems and stashing away
code into as many "carriers" as possible. 2) They
exhibit the "symptoms" intended by the author of
the virus. This could be any number of things,
even the erasure of one's disk on a specific date.
Viruses have been designed to attack mainframes,
minicomputers and desktop microcomputers, and
they aren't partial to any particular brand name.
One of the more recent mainframe incidents was a
virus that invaded IBM's mail system and brought
it to its knees for a couple of days. IBM PC users
have experienced viruses for several years, most
commonly through the COMMAND.COM file.
Viruses are not all meant to be damaging. The pro-
grammer may just want to prove he can do it and
have the satisfaction of some notoriety. The Mac-
intosh community got their first taste this winter.
The "MacMag virus" was put on a national bulle-
tin board system hidden in a HyperCard stack. It
displayed a "universal message of peace" on one's
computer on March 2, then removed itself
Most viruses spread via public bulletin board sys-
tems and are hidden in public domain programs.
"Sexy Lathes," distributed at MacWorld Expo in
San Francisco, erased whatever hard disk or flop-
py disk it was on when it was launched!
Virus Hunting
When your computer begins to do things out of
the ordinary, or when it stops being able to do
things it has always done in the past, a virus may
be involved. However, corrupted system files can
also lead to similar symptoms. When problems
occur, they are much more likely to be the result
of non-virus diffic-ulties. When you have excluded
normal problem areas, you should look into the
possibility that your system has been infected by a
virus.
Use a general disk editor to look for invisible
files. Unless you have an application that creates
them, every such file is suspect. Also, a general
check of all the files in your system for resources
that don't belong in those files is well worth the
effort. A virus might infect any and all applica-
tions, system files, or COMMAND.COM and
AUTOEXEC.BAT files. A virus might corrupt
any file on an infected volume or system, includ-
ing system files, documents; applications, etc.
Some viruses insidiously alter numeric values
within spreadsheets just slightly.
The use of networks can easily enhance the spread
of a virus. Different scenarios are possible, with
the simplest being a public domain area on a serv-
er from which everyone gets public information.
Also, shared applications residing on a server
could become infected, which would then infect
every machine on which they were run.
Vaccination
The following precautions help prevent problems:
Write-protect your master diskettes, This prevents
a virus from spreading to your original disks.
Disk locking mechanisms are typically hardware
based?viruses can't infect locked disks!
Protect your networks. Network administrators
should not allow just anyone to put software on
the server. Applications on a network server
should come only from known good masters.
Be wary of public domain software. It should be
checked quite thoroughly on an isolated system
for any infections before being used on produc-
tion systems. This also protects one from "Trojan
Horse" programs such as "Sexy Ladies."
Quarantine infected systems. If a system is identi-
fied as infected with a virus, immediately isolate
(quarantine) it from other systems. This means
disconnecting it from any network and not allow-
ing anyone to take any files from the exposed sys-
tem to another system. Once the system has been
"disinfected," the files can be copied or moved.
ItiticroSystems Technology - 13- July 1988
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Ar -1-ic le IP/
Computer viruses?Your PC could be at risk!
A PC coordinator 'swat team" is
being formed to deal, on a company-
wide basis, with problems related to
computer 'viruses."
Computer "viruses" are so-called
because they behave like viruses that
invade the human body: they are mis-
chief-making programs that get into
computers, propagate arid spread?in
some cases "lethally," wiping out entire
contents of hard disks.
Computers can be exposed to
"vinises" in a variety of ways: from
freeware or shareware downloadable
from bulletin boards, from software
acquired from friends, or from share-
ware ordered by mail.
Following are some suggestions
offered by security experts:
V Don't download executable
programs for use at work. Avoid the
the following known contaminated
public bulletin board PC programs:
ARC (not the GE version)
ARCS IS
ARC600
DISCSCAN.F.XE
DOSKNOWS.EXE
EGABTR
FILER.EXE
LIST60
QNIDNI110.EXE
QNID M 1 1 0A.ARC
QUIKRILS.COM
SECRF.T.RAS
STRIPES.EXE
VDER.CONI
Use only site licensed software and
software that comes in factory sealed
containers from reputable dealers.
V Never run your system from the
original program disks. Always make a
backup of the software and put the
originals in a safe place. If you have to
reinstall software, you want to guaran-
tee that it is not infected.
V Do not use public domain soft-
ware.
V Do not accept copied or pirated
software.
V Never allow an unfamiliar disk to
be put on your system.
V Back up your data files often, for
disaster recovery. All applications,
including operating system files, must
be deleted to remove viruses.
A Macintosh virus called SCORES has
been found within Apple and a num-
ber of government agencies in Wash-
ington. To determine if your Macin-
tosh has been infected, follow these
procedures:
I. Open the system folder and locate
the notepad file and scrapbook Md.'
2. Examine the icons used on these
files and check that they resemble the
small Macintoshes seen on the system
and finder icons.
3.1f they do not, and instead re-
semble the standard Macintosh doc-
ument icon (an upright piece of paper
with the upper right corner folded
forward), your computer is infected.
If your Macintosh computer is
infected, a program is available that
will attempt to eradicate the virus from
any infected files. A program named
Varcinewill alert you if a virus tries to
attack yip-lir computer. ?
If you have questions or feedback on com-
puter "viruses,." please contact your local PC
coordinator.
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ff,;, ?
o You Kiztho Where Your Software's Been .
by Mark Hiatt
There's been a lot of
talk lately about "The
Computer Virus
Problem." The news-
papers and TV networks have
carried stories about "infec-
tions" and the problems that
result when trying to clean an
"infected" system.
However, there is just as
much talk that the whole virus
scare is like an urban legend
(like the poodle in the micro-
wave)... hard to pin down as a
fact. But whether the threat is
real or imagined, it is better to
be informed about these
thin s... just in case.
So, what is a computer virus
(also referred to as a Trojan
Horse)? Usually, it is a piece of
"The newspapers and TV
networks have carried stories
about large mainframe
systems becoming infected?'
code within a program that has
nothing to do with the program
itself. It copies itself onto other
programs or system files and
often "sleeps" until a certain
date or event occurs. Because it
copies itself onto other files, it
can easily jump from disk to
. 4. "
disk. If you use more than one
computer, say one at work and a
similar machine at home, you
could carry an infected disk
from one to the other and
spread the problem around the
office.
The name "Virus" stems
from this contagious quality in
the program. Just as a child
picks up a cold at school and
brings it home, where a parent
gets it and takes it to the of-
fice?a computer virus can be
caught from a disk a friend
gives you or from a local BBS
and spread to machines in your
011 S,.,40
froarrovr: '
?
te
?
user's group, workplace and
beyond.
A computer virus may be
relatively benign. rising up now
and again to flash a nasty pic-
ture or cause your machine to
beep. That's not serious, just an
annoyance (unless you're show-
ing the boss your latest spread-
sheet figures). However, a virus
can also be vicious?lurking
on your system for just the right
situation, waiting to erase the
files on your hard disk?and
that can be several megabytes
of data.
On GEnie's RoundTables, the
sysops go over every upload
before it is made available to
subscribers to make sure you
won't find a virus in the files
you download.
.. How at risk are you? It der
pends on several factors. Do
(aver)
Declassified in Part - Sanitized Copy Approved for Release 2013/07/08: CIA-RDP91-01355R000300100002-4
Si S:
?
Declassified in Part - Sanitized Copy Approved for Release 2013/07/08 : CIA-RDP91-01355R000300100002-4
(Continued from page 3)
you trade or share software with
friends? Do you log onto several
local BBS systems? If you do,
do you download a lot of files?
Do you put these files directly
on your hard disk, if you own
one? You may be at risk if you
answer yes to any of these ques-
tions. Another big factor is the
type of computer you own and
the software available for it.
But what do you do if you
don't write programs, can't read
,programming languages and
'wouldn't know a core-dump
from the city dump? There is
probably an anti-virus program
on GEnie in your computer's
RT library. Many of these are
very thorough and are either
free or shareware.
Charles Strom, of the IBM
RT recommends "Flushot"
(FSP-12.Arc), CHK4BOMB
and STRINGS to owners of
IBM (and compatible) com-
puters, and assures IBMers that
the paranoia is not warranted
by what the IBM sysops have
seen so far. Still, Charles says
that you can search their soft-
"GEnie sysops go over every
upload before they are made
available to subscribers."
ware library for the keywords
"Trojan" (as in Trojan Horse)
or "Virus?' These will turn up
dozens of files dealing with
protection.
David Kozinn (also an IBM
sysop) adds that many pro-
grammers are taking the threat
into account, by including virus-
checking routines in their pro-
grams. If something tries to
attach itself to one of these new
programs, it's detected. Over
at the Apple II Library, check
into "Apple.Rx" from ProSel's
Glen Bredon. It's a shareware
program that Tom Weishaar,
Apple II Manager recommends.
If you own a Macintosh, try
"Vaccine" from CESoftware's
Don Brown. It's a free file you
place in your System folder and
forget about?until it finds
something questionable. Then
"Never put a disk in your
machine unless you're sure of
where it's been."
you can quit what you're doing
and have a look, or ignore the
warning and proceed at your
own risk. Bart Barton says that
a search of the Library will turn
up other anti-virus programs
as well.
What do you do if you're
infected? In most cases, simply
destroying the affected software
will do the trick (you do still
have the originals, right?).
Of course, you'll want to stop
sharing or trading software,
and it would be a good idea to
let your friends know, so they
can check for themselves. Once
you've restored everything from
the originals, you should be
alright again. But be careful
not to contaminate your original
disks, othenvise you'll just end
up making multiple copies of
the virus.
What can you do to make
sure you're not at risk? We can
learn a lesson from Dr. Ruth
Westheimer here?stay mono-
gamous and use protection!
Don't share software with just
anyone, and never put a disk in
your machine unless you're
sure of where it's been!
Rx for Computer Viruses
Several anti-virus programs are available on GEnie. These can be
found in the machine-specific RoundTables. Below is a list of
programs you can download from the RT libraries which provide
virus-checking routines. However, files are frequently updated,
if you have trouble finding these, try searching the RT libraries
under the keyword TROJAN or VIRUS.
Roundtable
IBM
Apple 11
Macintosh
Atari
Amiga
File Name
Flushot (FSP-12, Arc)
CHK4BOMB
STRINGS
Apple.Rx
Vaccine
Protect.Acc
Trojan_Horse_Warning
Declassified in Part - Sanitized Copy Approved for Release 2013/07/08: CIA-RDP91-01355R000300100002-4
Ar.6.4.-ti&reff....t-Piecr-4,44-0,freervw
Declassified in Part - Sanitized Copy Approved for Release 2013/07/08 : CIA-RDP91-01355R000300100002-4
'
JUNE 2.8. .r:;
FIRST LOOKSTAT
Confronting the Growing Threat of
Harmful Computer Software Viruses
cANAtiy
BY JIM SEYMOUR AND
JONATHAN MATZKIN
Now you see it: now you don't.
Or maybe you never really saw
it at all.
That will-o'-the-wisp nature
of computer viruses, and the in-
credible difficulty of proving
their role in the loss or destruc-
tion of data, have made tracking
them down, defeating them.
and protecting against them in-
credibly difficult.
It is so easy to lose data in a
computer system?any comput-
er, from a PC to a Cray super-
computer?that often, over the
last few months, what was al-
most certainly operator error, or
magnetic media wear, or
power-line fluctuations, or
any of a hundred other
quite normal if no less frus-
trating events, has been
misidentified as the work
of computer viruses.
But that is not the
whole story.
The skeptics insist that
the computer virus alarms
heard this spring arc over-
stated. That skepticism has
been fed by wild and un-
confirmed reports, impossib e
to track down, of such infec-
tions as one that supposed y
brought the Unix systems of a
telecommunications giant o
their knees, or a "PLO" virus
aimed at shutting down the Is-
raeli defense computer system.
VACCINES BLOCK itly.licrietir:T:
Yo-iktEftsigaranggi
.
It isn't surprising that these
stories should have persuaded
the skeptics that viruses are cru-
el jokes, this year's brand of
black humor.
But the skeptics are wrong.
Computer viruses, written
specifically to destroy programs
and data residing in personal
computers, are real and have
been widely distributed: Many
PC users have lost important
work, at substantial cost.
Viruses nisi.
The bad news: they can rep-
resent a clearand present danger
to the programs and data stored
on your computer's disks. But
there's good news: you can
avoid viruses through reason-
able measures, and counterviral
products arc available to help
detect viruses lurking on your
disks and to protect against fu-
tune infections.
Kenneth VanWyk knows
computer viruses are real, be-
cause he's been lighting them.
A Senior Consultant at Lehigh
(continues on page 34)
Why It's Time to Talk About Viruses
Over the last three months, the
computer-virus story has ripped
through the computer commu-
nity like a prairie fire Reports
at program- and data-killing vi-
ruses have made for sensational
reading in daily papers, busi-
ness magazines, and some com-
puter publications.
Many of those stories have
been grotesquely exaggerated,
%tole others have gone to the
oppkisitc extreme, denying the
existence of viruses or branding
them as bizarre hackers' jokes.
At PC Muearine we, too.
tha% e worried about computer
nruses. We have had our own
encounters with them. But too
mans of the stories we have
been and heard were self-cvi-
deal} false. Too few facts sup-
ported claims of viral disasters.
We have investigated every
report we have found of com-
puter virus infections. We have
talked with those who believe
they have suffered through
those infections, with those who
have beaten them back, and
with those who have created
programs to detect and, some-
times, defeat viruses.
And we have learned the
chilling truth: computer viruses
are very real threats. We have
satisfied ourselves of their exis-
tence, of their very real damage,
and of the importance of alert-
ing computer users.
Even though we acknowl-
edge that turning the light of
publicity on those who take
pleasure in destroying the work
of others will inevitably encour-
age some of these vandals, we
cannot turn away from a respon-
sibility to warn our readers.
And to help them counter
that risk. Because this has got to
stop.
In the words of Don Brown,
whose efforts to stop the
SCORES virus on the Macin-
tosh have been a beacon for oth-
ers. "The whole thrust of the
personal computer has been
bringing control of the comput-
er to the user. Viruses steal that
control away, and replace it
with fear, uncertainty, and
doubt. Why would anyone want
to take such a gigantic step
backwards?"
Why, indeed?
?The Editors
.:11:11ANDS4N
PROFESSIONAL WRITE 2J)
Software Publishing adds
document conversion, font
support 38
REFERENCE FILE
A pop-up database 38
PIPELINE
The first P5/2 clones are
announced by Tandy and
Dell 40
QUICKSHARE, LAWN(
Two ways to make PCs and
Macs work together 43
PACESETTER 386
Easy upgrade for AT
machines 46
PAGEVIEW
Page preview for Microsoft
Word documents 56
PC MAGAZINE ? JUNE 28.] 988
33
Declassified in Part - Sanitized Copy Approved for Release 2013/07/08: CIA-RDP91-01355R000300100002-4
/eclassified in Part - Sanitized Copy Approved for Release 2013/07/08 CIA-RDP91-01355R000300100002-4
Virus is downloaded
via modem and
hidden in a free
? ?
When virus is executed. it
performs the utility function
and inserts instructions
into COMMAND.00M
on the hard disk.
disk. And the university has
also begun using "notchless"
floppy disks and encouraging
the use of write-protect tabs as
protective measures.
"If you don't take precau-
tions. you're just asking fora di-
saster to happen." Van Wyk
says. And. chillingly. "Given
how easy it is to write even a
simple computer virus like this
one. I think we have seen only
the tip of the iceberg . .."
The virus that infected disks
SCORES. yet another strain, on
its Macintoshes.
"Once the epidemic was
recognized, panic set in here."
Simpson says. "A lot of people
lost data to these viruses. We
still don't feel we have a com-
plete understanding of what
happened at Miami."
If you boot a PC from a flop-
py disk containing BRAIN, the
virus copies itself onto any disk
for which you subsequently ask
DOS to show a DIRectory. The
11111111111111111111111
Virus copies itself
onto floppies when
a DOS DWI Is
executed,
VACCINES BLOCK ANY ATTEMPT
'TO ALTER SYSTEM FILES
typiCal vaccine Nodal
g;illtarri;Pi tv cflFge
'S'-aOOMMM4D.ccM end
,cr1.1/.41tkideti *tamales. .17*
also issuei a warning
(Reimer knows the
:kV virus luresenr
v?
COMMANO.COsf
Virus is not apparent on
infected floppies and will
travel through, an
organization.
Viruses
(continued from page J.1)
University's Computing Cen-
ter, VanWyk has seen hundreds
of IBM PC users' floppy disks
erased by a runaway virus
launched by a computer vandal.
"This thing was discovered
about two Jays before Thanks-
giving break last fall." Van-
Wyk recalls. "If some students
had not discovered it then, and
people had gone home for the
break, it could have gotten a lot
worse. Because if students had
taken infected floppy disks
home with them it could have
gone a lot farther . . . to their
home machines. and from
there, with Mom and Dad into
their offices."
Lehigh has developed its
own "vaccine," a program that
checks the COMMAND.COM
file at boot-up and, if it finds the
virus, writes over that part of the
saw
about those programs, si
only that they were-',,,
etary trade-secret
Program'.
With a wealth of program
talent 0 call on. the co
was able to stamp out the vat
in a matter of days.
EDS won't he specific alma
what they're doing to prelim ,-
future infections, noting. "We )3/4
(continues on pago.bb
When system reads
floppies, virus in RAM
deletes files and copies
virus code into
hidden files.
11111111111111111111111
When corrupted floppy
Is read, virus loads
Instructions into RAM.
?????,.. ,a ?
How One Virus Destroys and Moves On
Virus programs have taken many forms and some are
innocuous, but here's a typical destructive virus. The
author alters a popular public4omflin or shareware
program offered one public bulletin board to Include
the virus code. The host program runs as expected
after It's downloaded, but the virus sets often a
different path, targeting the system flies on a hard disk.
Most vaccine programs are designed to prevent changes
to the system flies. They'll also flash a warning that
the active program is attempting to make such changes,
a sign that this Is a program you want to erase
immediately.
at Lehigh was typical of simple
viral code. About 300 bytes of
assembler, it looked for the
COMMAND.COM file present
in DOS and attached itself to it.
It was then spread by duplica-
tion of that disk, or insertion of
that disk into a PC with a boota-
ble hard disk. Later, the virus
began its dirty work, erasing the
disk.
Then Miami University was
hit by another virus. BRAIN.
Joe Simpson, Assistant Manag-
er of Academic Computing Ser-
vices at Miami, had to deal si-
multaneously with BRAIN on
the university's PCs and
strain that infected hundreds of
disks at Miami University was
relatively benign.
SCORES, the most widely
distributed Macintosh virus, is
much more pernicious. It ?
looks for specific program-
ming "signatures." It has ap-
peared at many academic and
business computing centers,
from NASA to the huge Texas
computer firm EDS (a subsid-
iary of General Motors).
-At EDS. two dozen Macs
were quickly infected with
SCORES. The programs it was
affecting were first developed at
EDS: the company won't talk
Since data loss occurs.
Infected floppies may load
ID discovery of virus. but
tracking virus to original
system may no longer
be possible.
PC MAGAZINE348 JUNE2 8,198 8
DrAP.0,7arnAvio,
tn-n-iftSanitized Copy 'Approved for Release 2013/07/08 : CIA-RDP91-01355R000300100002-4
ia
Declassified in Part - Sanitized Copy Approved for Release 20-13/67103 : -CIA-RDP91-01355R0663901001002-4
IS
at
it
'c
Si
Viruses
(continued from page 34)
have security and other mea-
sures in effect: we wouldn't
want to go into those. One of the
things we sell a customer is our
ability to secure our customers'
data, so we're very. very cau-
tious with that."
Exactly. Which is why few
businesses that have been at-
tacked by viruses will even ac-
knowledge the problem. let
alone say how (hey countered
it?or what they've done to pro-
tect against future infections.
Would you leave your mon-
ey in a bank that had its comput-
er syclem corrupted by outside
software?
Moreover, no company
wants to become, through fool-
ish claims of invulnerability.
The Big Test?the number-one
target of those loosing these vi-
ruses on the world.
Harold Highland. Editor in
Chief of Compmers et Security
magazine and a recognized ex-
pert. says it well: "My recom-
mendation to a corporate entity
would he to deny it immediate-
I) . I have advised industry that
if anything like this happens.
and you can kill it by denying it.
kill it.
"Even the government
agencies will deny it. If you go
back to the invasion of NASA's
physics space network. last
September when they were pen-
etrated 11) the Hamburg Chaos
Club, and the club announced
thai the had planted viruses.
the NASA director of data secu-
rit) admitted that there was a
' penetration and the planting of
Viruses.
"But within one week the
? in came back that. yes. there
"a' a penetration. but there are
ni '!ruses, And since then it has
been denied that there is a vi-
als "
What to do?
One corporate answer has
been to ban shareware,
trees( arc . or other programs that
base been downloaded from
bulletin hoards. That's the new
cumpan) policy at a Fonune Sit
multinational petroleum corn-
N?' 1 he company has had
? 01 reports of viral infec-
tion( PC-using emplo)?
? though it ha. not vet been
How Vaccine Plograins Wolk;:
? ..,c? ? ? - -
Virus progrihis `replicate them - many different' levels Some.'
'selves, Run'one and it Will In-", Oentimoit techniques include the
feet otherprograms on your sys.:. 'following.' - . ?
.tern: Share one ? of those
Origrams with friends and the KEEPING VIRUSES OUT
virus will infect their systeMs: ' Approved Program Licit
If it did nothing else, a virus Block any program not on the
would still slow your work. list. Naturally, this doesn't stop
Each infected file grows, some- you from accidentally approv-
times repeatedly, so it loads ing an infected program. ?
slower. But most viruses in:: Known Virus Check: Scan
elude added malicious features.' all executable files for known
After they've infected your viruses.
? whole system, or on a given Suspicious Text Search:
'date, they May reformat your Display all text strings in a pm-
hard diSk, corrupt data files, or gram. If you see "Art, ad,
simply cause constant. small GOTCHA!", don't run it! -
problems. ? ? Suspicious Code Search:
, Antivirus programs attempt Check for suspicious corn-
to foil viruses by keeping ;hem mends such as low-level disk
out olyour system, preventing "
them from replicating if they do -?Approved TSR List: Want ?
,get in, and blocking their' ?nal if.anyprop,ram not on the list at-
' cious tricks. A good antivirus: minors to:terminateand Stay'res;
, will also proteit against "Teo- ' ?
Jan Horse" programs--these ?
are like Viruses without the abil- PREVENTING . ?
ity to replicate. And it will pro- REPLICATION
:.tect you from accidentally darn- Write-protectian:' Prevent
aging your data.' writing to protected files. This
Antivirus programs work on should be more than merely set-
tta 4-4;irat., 5442
Alt ReadrOtily ?.=1.(4
Signatiire Cheek: Take at'
.:tlignaltire,',of al I, approttS
'programs Ind tornpare the Prot,-
.*gram With the signature:a
Run-Time Signature.
-Check: Whenever DOS load's p'
program', cheek it 'against the'
signature. Block it if it doesn't
BLOCKING MALICIOUS:
TRICKS
Disk Access Lockout: A-1
-
law access only through DOS.
file functions. This will prevent
reformatting and erasure of the
file Allocation Table. ?
TAT Copy: Save a copy of,
the File Allocation Table in case
a virus manages to damage it.
Various 1.4tinformat" programs
already proiHde this protection.
CMOS Copy: Saves copy
of the CMOS information just in
case a virus does manage to
.damage it. ? .
Hard Disk Lack: Tempo-
rarily block all access to the
'hard disk while testing suspect
software. Easiest to do on AT-
class machines.
?Neil J. Rubenking
able to confirm that viruses
were, in fact, responsible for the
incidents,
To forestall the threat, and to
calm the nerves of skittish exec-
utives. the company issued a
formal policy banning down-
loaded software.
called "vaccine*' programs.
(See antivirus program reviews.
page 36.)
Few individual PC owners
will want to deny themselves
the wealth of useful software
available from bulletin boards.
and while write-proofing your
Finally, you should consider one of
? the various vaccine programs. They
can go a long way towards
protecting your disks as well
as your peace of mind.
In academic computing set-
tings?long the target of such
vandalism, though rarely so ma-
liciously and destructively as
we have seen this spring?that
kind of ban won't stand up. So
colleges and universities have
been trying to get facult) and
students to use write-protected
floppy disks, and to install so-
bootahle floppies may be a good
ste), its inconvenient and hard-
ly a complete answer.
Common-sense measZres.
such as not loading new public-
domain and shareware pro-
grams from unknown sources.
certainly help. Most user-group
disk librarians arc now inoculat-
ing library disks against viral in-
fections: if your group isn't on
guard against viruses. find out
why it isn't. And stop using li-
brary disks until you are satis-
fied that adequate security is in
place.
Finally, you should consider
one of the I..arious vaccine pro-
grams. They can go a long way
towards protecting your disks as
well as your peace of mind. But
none are complete answers, and
none guarantee that you won't
fall victim to the next round of
cleverness in this escalating
germ warfare.
Lehigh's Kenneth VanWyk
again: "If you as a user recog-
nize the vulnerabilities of the
antivirus package you're using
and don't rel) on it 100 per cent.
then there is certainly a place for
these antivirus programs. The
problem comes in when a user
says. 'Oh. I'm running XYZ an-
tivirus software?nothing can
happen tome.'
A sense of invulnerability
can he a very dangerous thiny.
these days in computing.
PC MAGAZINE ? JUNE2R.l9ttt:
Declassified in Part - Sanitized Copy Approved for Release 2013/07/08: CIA-RDP91-01355R000300100002-4
Declassified in Part - Sanitized
--. a f44,--? ReAnnroved for lease 2013/07/08 2013/07/08 : C IA-R D P91-01355 R000300100002-4
?
Antivirus Programs Fight Data Loss
Fit
HANDS. ON _
BY NEIL J. RUBENKING
FLUSHOT PLUS
Antivirus programs are aggra-.
vating by nature because they.
can prevent you from doing per-
fectly normal tasks like format-
ting a floppy disk. Flushot Plus,
from Software Concepts.De-..
sign, provides flexibility to off:.
set the annoyance. You can tell
it to allow low-level disk acCesi.:
only until the end of the next
program. That sviillet you run
FORMAT without interruption;,
forexample: You can also turn'
its protection oh and off easily.
Flushot. Plus is shareware.,
but it has more features than
many commercial programs
These include .approved TSR
list, write-protection. sead-pna;.;
.tection, signature check ,;.ruti
time signature check, disk ac7..
cess lockout, FAT copy, and..
CMOS copy. r.. :- ?
. The FLUSHOT.DAT daut'
table lists the types of files you
Want tcr.writi-protect or read-
protect, along with any excep-
tions to the type. For example,
you could write-protect all.
.COM files except those in the
"DEVELOP" . subd irectory.. ?
The table also lists your ap-
proved TSRs and any files you
want signiture-checked.
You're advised to hide this data.
file under a different name to
avoid "smart viruses" targeted
to damage it. .
VACCINE, VERSION 1.2.
FoundationWare's Vaccine pro:
vides a six-part protection pror..
' I )Installation and Check-,
Up: Checks out your hard disk
arrangement and adds useful.
commands to your AUTOEJC-
EC.BAT. and CONFIG.SYS ?
files. Makes listed executable:
files read-only.:
dteei:Signatukcheek..:`,
e.t.3)kuntime Qualls;
, . . .
once: Runtime signature check ?;'?
.\53c4)Survellkuice:Disk:
lOckoii 4
t.';'?C"
,-
: 5) Bomb Shelter: Hard disk ?
- ; ?
6) Critical Disk: FAT Copy,
and CMOS copy. If a virus dims
damage your system.; reboot;
with the Critical disk for..rio-
hands restoration-. . ?quj
??ine proteeis all filesi
with yOut chosen extensions. ;
This is handy,' since
cOuld.as well infect an'overlay;,
die ccom 6:1;.;EXE!
rilefile' Thi RuntjmemoduIe
that Dos .16als;.
..for'eXeCirtionY..but :Only: gated
files.getcheelced at boot-uptit.?...program-Theprograrn is sample
? -
?
grams, handling critical disks,
and managing.soft ware up-
dates. This vaccine is strict, but
it will protect your system..
MACE VACCINE
Mace Vaccine, from Paul Mace
Software,' offers two levels of.
'pretection. At level I, ? it gives
, write-protection to system files,'
the boot sector; and the partition
table.-ILalso guards against
.coinmon tricks that disable the
.root :directory/Protection level
:!3-..i.dds.drik access loaout..
Maceyaieine is best itsed with
theMaCe Utilities,which
in-
Ikd#Y!T Copy and restore
- ?
' seder festal _
-
Please select 'coal fly ass...sect level .
0 Sea 'lest ciegree of sss .. IKE ii?Tt e
. Creaiest iesree ofssssss nee ISlas i safe)
Systro WY-
-6 Dish Delves: i?-?
a..
2 f NOS Delves
4:r.5.25 Nati' 1.0riv ?
".5,25 9601..110.100.6
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liere Drives.
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.2 1291336 Bytes. free
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1992316 Bytes tote!
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-299903)6- Bytes, free-
Path to-DOS File..: CCPRiCNI3053%
"1,"".0'"f ? 7..v!.. -
ToundationWares Viccine