Computer Fraud & Security Bulletin
Authorities obtained a search warrant for the computers believing a company employee was involved in transferring a supposedly stolen copy of a computer file belonging to Bellsouth Corp. The firm’s computers and data were retained for months after the seizure, although no one associated with the company was accused of a crime. Because the machines also contained the manuscript for the company’s next product, the seizure left the company without income, and it had to lay off half its workers, owner Steve Jackson said. The case is expected to strengthen legal protections available to the users of computer services such as mail and computer bulletin boards. On the other hand, law-enforcement officials see the decision as a barrier in their ability to investigate hackers and computer crime. The case may still be appealed by the Secret Service, whose legal councel said it is still reviewing the decision to see what effect it will have on its operations. Charlotte Dunlap
Hacker acquitted on ‘addiction’ defence Paul Bedworth, a 1g-year old member of the UK hacking group the 8 Legged Groove Machine (8LGM), has been acquitted of three charges under the 1990 UK Computer Misuse Act. Bedworth used a BBC PC and random dialling programs to hack into telephone accounts at the Financial Times and the European Organization for the Research and Treatment of Cancer. Through the use of these accounts and by running up phone bills in excess of f30 000, Bedworth then proceeded to hack into hundreds of systems internationally. Bedworth was charged of: conspiracy to obtain telecommunications services dishonestly, conspiracy to cause unauthorized modification in computer material and conspiracy to secure unauthorized access to computer material. Bedworth’s defence was based upon the argument that the hacking arose because of his ‘addiction’ to computers. He was therefore
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suffering from an illness and could be said to have been unable to form the criminal intent necessary if charges of conspiracywere to be upheld. Giving evidence for the defence, Professor James Griffith Edwards, an expert on addictive behaviour, said that Bedworth had a “nonchemical dependence” on using computers. That because of Bedworth’s obsession with computers it was impossible to judge what his intentions had been. Bedworth’s barrister, Alistair Kelman, commented: “This law should never be invoked against the most vulnerable members of society. Mr Bedworth had no option but to follow the dictates of his illness.”
Card watch reducing fraud More than 5000 plastic cards go missing every day in the UK with losses running at f5 every second, said Richard Allen, chief executive of the Association for Payment Clearing Services (APACS), when he launched the 1993 Card Watch campaign aimed at encouraging retailers and Britain’s 34 million cardholders to help combat plastic card crime. APACS, which represents the major high street banks and building societies, acknowledges that technology will provide the long term solution to card fraud, but while the research to find that solution continues, it is believed to have spent about one third of its f500 million Card Watch budget last year to reduce 1991 losses of f 165.6 million by f600 000. This may not seem much at first glance, but it was achieved during a year when card fraud losses were expected to increase by more than 35%. This year there is to be a multimedia nationwide advertising campaign, and retail staff who retain a stolen card will continue to be rewarded. Last year card issuers paid out over f7 million in reward money to more than 100 000 shop staff. Meanwhile the industry is working on a number of technological solutions, but Mr Allen said they were still in the research and development phase. Preventing the fraudulent
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