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And sure enough, within the week, a red-faced software company, DSC Communications Corporation of Plano, Texas, owned up to "glitches" in the "signal transfer point" software that DSC had designed for Bell Atlantic and Pacific Bell. The immediate cause of the July 1 Crash was a single mistyped character: one tiny typographical flaw in one single line of the software. One mistyped letter, in one single line, had deprived the nation's capital of phone service. It was not particularly surprising that this tiny flaw had escaped attention: a typical System 7 station requires *ten million* lines of code. On Tuesday, September 17, 1991, came the most spectacular outage yet. This case had nothing to do with software failures -- at least, not directly. Instead, a group of AT&T's switching stations in New York City had simply run out of electrical power and shut down cold. Their back-up batteries had failed. Automatic warning systems were supposed to warn of the loss of battery power, but those automatic systems had failed as well.

This time, Kennedy, La Guardia, and Newark airports all had their voice and data communications cut. This horrifying event was particularly ironic, as attacks on airport computers by hackers had long been a standard nightmare scenario, much trumpeted by computer- security experts who feared the computer underground. There had even been a Hollywood thriller about sinister hackers ruining airport computers -- *Die Hard II.* Now AT&T itself had crippled airports with computer malfunctions -- not just one airport, but three at once, some of the busiest in the world. Air traffic came to a standstill throughout the Greater New York area, causing more than 500 flights to be cancelled, in a spreading wave all over America and even into Europe. Another 500 or so flights were delayed, affecting, all in all, about 85,000 passengers. (One of these passengers was the chairman of the Federal Communications Commission.)

Stranded passengers in New York and New Jersey were further infuriated to discover that they could not even manage to make a long distance phone call, to explain their delay to loved ones or business associates. Thanks to the crash, about four and a half million domestic calls, and half a million international calls, failed to get through.

The September 17 NYC Crash, unlike the previous ones, involved not a whisper of "hacker" misdeeds. On the contrary, by 1991, AT&T itself was suffering much of the vilification that had formerly been directed at hackers. Congressmen were grumbling. So were state and federal regulators. And so was the press. For their part, ancient rival MCI took out snide full- page newspaper ads in New York, offering their own long- distance services for the "next time that AT&T goes down."

"You wouldn't find a classy company like AT&T using such advertising," protested AT&T Chairman Robert Allen, unconvincingly. Once again, out came the full-page AT&T apologies in newspapers, apologies for "an inexcusable culmination of both human and mechanical failure." (This time, however, AT&T offered no discount on later calls. Unkind critics suggested that AT&T were worried about setting any precedent for refunding the financial losses caused by telephone crashes.)

Industry journals asked publicly if AT&T was "asleep at the switch." The telephone network, America's purported marvel of high-tech reliability, had gone down three times in 18 months. *Fortune* magazine listed the Crash of September 17 among the "Biggest Business Goofs of 1991," cruelly parodying AT&T's ad campaign in an article entitled "AT&T Wants You Back (Safely On the Ground, God Willing)."

Why had those New York switching systems simply run out of power? Because no human being had attended to the alarm system. Why did the alarm systems blare automatically, without any human being noticing? Because the three telco technicians who *should* have been listening were absent from their stations in the power-room, on another floor of the building -- attending a training class. A training class about the alarm systems for the power room!

"Crashing the System" was no longer "unprecedented" by late 1991. On the contrary, it no longer even seemed an oddity. By 1991, it was clear that all the policemen in the world could no longer "protect" the phone system from crashes. By far the worst crashes the system had ever had, had been inflicted, by the system, upon *itself.* And this time nobody was making cocksure statements that this was an anomaly, something that would never happen again. By 1991 the System's defenders had met their nebulous Enemy, and the Enemy was -- the System.

PART TWO: THE DIGITAL UNDERGROUND

The date was May 9, 1990. The Pope was touring Mexico City. Hustlers from the Medellin Cartel were trying to buy black-market Stinger missiles in Florida. On the comics page, Doonesbury character Andy was dying of AIDS. And then.... a highly unusual item whose novelty and calculated rhetoric won it headscratching attention in newspapers all over America.

The US Attorney's office in Phoenix, Arizona, had issued a press release announcing a nationwide law enforcement crackdown against "illegal computer hacking activities." The sweep was officially known as "Operation Sundevil."

Eight paragraphs in the press release gave the bare facts: twenty-seven search warrants carried out on May 8, with three arrests, and a hundred and fifty agents on the prowl in "twelve" cities across America. (Different counts in local press reports yielded "thirteen," "fourteen," and "sixteen" cities.) Officials estimated that criminal losses of revenue to telephone companies "may run into millions of dollars." Credit for the Sundevil investigations was taken by the US Secret Service, Assistant US Attorney Tim Holtzen of Phoenix, and the Assistant Attorney General of Arizona, Gail Thackeray.

The prepared remarks of Garry M. Jenkins, appearing in a U.S. Department of Justice press release, were of particular interest. Mr. Jenkins was the Assistant Director of the US Secret Service, and the highest-ranking federal official to take any direct public role in the hacker crackdown of 1990.

"Today, the Secret Service is sending a clear message to those computer hackers who have decided to violate the laws of this nation in the mistaken belief that they can successfully avoid detection by hiding behind the relative anonymity of their computer terminals.(...) "Underground groups have been formed for the purpose of exchanging information relevant to their criminal activities. These groups often communicate with each other through message systems between computers called 'bulletin boards.' "Our experience shows that many computer hacker suspects are no longer misguided teenagers, mischievously playing games with their computers in their bedrooms. Some are now high tech computer operators using computers to engage in unlawful conduct."

Who were these "underground groups" and "high- tech operators?" Where had they come from? What did they want? Who *were* they? Were they "mischievous?" Were they dangerous? How had "misguided teenagers" managed to alarm the United States Secret Service? And just how widespread was this sort of thing? Of all the major players in the Hacker Crackdown: the phone companies, law enforcement, the civil libertarians, and the "hackers" themselves -- the "hackers" are by far the most mysterious, by far the hardest to understand, by far the *weirdest.* Not only are "hackers" novel in their activities, but they come in a variety of odd subcultures, with a variety of languages, motives and values. The earliest proto-hackers were probably those unsung mischievous telegraph boys who were summarily fired by the Bell Company in 1878.