Computer Fraud & Security Buffetin
gave evidence of phone intercepts of the defendant's conversations, in which it was alleged that he had discussed using information gained from hacking to invest in the company or, alternatively, to sell confidential company information to competitors for substantial sums of money.
The defence counsel argued that no Australian court had jurisdiction in the matter because the charges related to alleged offences in the US, and that Australia's Commonwealth Crime Act did not empower Australian courts to judge crimes allegedly committed in foreign countries. Nor could this gap be bridged by arguing that the defendant had used Australian telephone lines to commit the offences. This argument was rejected by the magistrate who ordered the accused to stand trial and released him on a A$1000 bail. Frank Rees
Digital halts resale fraud In two separate incidents Digital Equipment (DEC) has moved to halt illegal sales of its hardware. Digital security employees aided Massachusetts State Police in the arrest of two employees of the used-computer dealer International Computer Exchange (ICE). The Digital security staff had recognized a stolen VAX 6510 CPU board offered for sale by ICE. DEC representatives identified the board as one that had been pilfered while in transit from a Puerto Rico DEC manufacturing site to EDS Personnel Communication in Waltham MA. After their arrest the ICE representatives claimed that they purchased the board in good faith from another Massachusetts used computer equipment dealer. Digital also filed a civil law suit in the Boston US District Court that charged four companies and 16 individuals with committing a multi-million dollar fraud against it. The swindle, the suit charged, encompassed several schemes for selling illegally obtained
CPU module boards, DECservers, peripherals, and other equipment. The conspiracies, according to Digital,called for manipulating contracts to destroy obsolete or rejected equipment, as well as the compromising of the DECmailer and DECdirect customer support programs. The alleged frauds took various forms and lasted from 1982 to 1990. They involved, the DEC suit claimed, among other things, bribing Digital property disposal supervisors, warehouse employees, and security guards. The stolen hardware, the DEC suit alleged, was in some instances resold several times. At the times the alleged conspirators made no attempt to modify or remove the original serial numbers. Belden Menkus
Europe sponsors EDI security The Commission of the European Communities (CEC) has announced the launch of the second phase of TEDIS project, which promotes the development and implementation of EDI across Europe. The CEC is said to be investing 31.5 million Ecu (about $22 million) in this project. They have published an open call for tenders for projects relating to EDI, and this includes a specific reference to EDI message security as one such project. Full details of this call for tenders are published in the Official Journal of the European Communities, C217 or S156 of the 20 August 1991. There is a strict deadline for the receipt of proposals which is fixed on Thursday 10 October 1991. For more infonnation contact the head of the TEDIS unit, Emile Peeters, on +32 2 236 0388.
Surveillance catches computer sabotage An Australian company secretly installed surveillance cameras in its computer room and caught an operator turned saboteur. In a Sydney
©1991 Elsevier Science Publishers Ltd