VOLUME 11 NUMBER 2 MAY 1996
  I am pleased to announce that my home page is up and running. It is still under construction and will have additional items uploaded on a continuing basis (something like those New York City "GOING OUT OF BUSINESS" sales). Stop by periodically and visit. Your comments, suggestions and recommendations, both pro and con, will be greatly appreciated. As part of the feedback, please indicate areas or items relating to security that you would like to see addressed. If you have articles you feel would be of interest to others, e-mail them and we'll review them.

  To be included will be copies of all the back issues of The Hot Micx available. I've checked and there appears to be two missing from the early years of TSCI. They'll be uploaded just as they were written those many years ago. I will probably reformat them for ease of reading, etc. but nothing will be changed.

  If you have an e-mail account on line, please take a moment to send me your full e-mail address. I can be reached at either of the two above addresses or through the home page.

  Why should you pass on your e-mail address to me? So you can be notified when a new The Hot Micx is published and uploaded or when an item of interest comes up that might be of interest to security people. Secondarily, it will cut down on my "snail mail" bill for mailing the newsletters (about 2000 @ $.20 each) and get the newsletter or other information to you as much as three weeks earlier.

  I promise, no sales pitches, no unnecessary or intrusive correspondence, and your address will not be passed on to others. I've had quite a few responses from the last newsletter and look forward to more this time. Eventually, I'd like to do away with the mailing list entirely. Also, if you find the home page interesting, please pass on its address to others.



I have endured a great deal of ridicule without much malice; and have received a great deal of kindness, not quite free from ridicule. I am used to it.
--Abraham Lincoln


ECONOMIC ESPIONAGE



  WASHINGTON, Feb 28 (Reuter) condensed from an article by Robert Green. Economic espionage by foreign countries and firms against U.S. companies is a growing threat to national security, FBI Director Louis Freeh warned Congress and involves billions of dollars, thousands of jobs and the health of our national economy. He indicated that current FBI investigations reflect 23 countries engaged in economic espionage activities against the United States. Other witnesses told of incidents involving companies and individuals from China, Germany and Japan. It was estimated that U.S. businesses were losing $100 billion a year to foreign spying and that at least 51 countries had spies in the United States trying to steal economic information. In addition, a recent report by the General Accounting Office, the congressional investigational agency, said some U.S. allies were trying to steal American military technology. The increased access to electronic information on computers and the use by some countries of students studying in the United States as intelligence agents, as well as paying employees of U.S. companies to obtain economic secrets or proprietary information were cited as examples of ways in which information is compromised. Among legislation being considered is a bill that would make theft of proprietary information a federal crime punishable by up to 15 years in prison and a $250,000 fine for individuals and to $10 million in fines for companies.

Tomorrow, and tomorrow, and tomorrow, creeps in this petty pace from day to day, to the last syllable of recorded time; And all our yesterdays have lighted fools the way to dusty death. Out, out, brief candle! Life's but a walking shadow, a poor player that struts and frets his hour upon the stage, and then is heard no more; it is a tale told by an idiot, full of sound and fury, signifying nothing.
---Macbeth by Shakespeare

I Forgot
We're Ten Years Old and Still Going



  When TSCI came into being as a full time operation in April 1986, those who felt we would celebrate our second anniversary could probably be counted on one hand. Theoretically, they were correct. Neither Toni nor I had any business skills, limited startup and operating capital, no clients, and I had just been laid off. Toni was a full time mother and housewife and enjoying it. When I told her I was unemployed and would start looking for work the next day, she asked why. She said that if I didnšt try to start my own company then, Išd never get another chance. So, if you need to blame anyone for our poverty and happiness, blame Toni.
 By the way, did I show you the picture of my newest grandson, born on April 20th.

Our country-whether bounded by the St John's and the Sabine, or however bounded or described, and be the measurements more or less-still our country, to be cherished in all our hearts, to be defended by all our hands.
---Robert Charles Winthrop

Japan Accused of Economic Spying



  WASHINGTON Feb 29 (Reuter) - The head of the U.S. Senate Intelligence Committee accused Japan Thursday of economic espionage, and said Washington should be "a lot tougher" on Tokyo in response. Sen. Arlen Specter told a defense writers' breakfast that łthe Japanese don't exactly play by the rules. I think we ought to be a lot tougher on the Japanese... about what they're doing. I'm talking about economic espionage. I'm talking about their own practices." His comments were made in response to an allegation the U.S. had bugged the Japanese during sensitive negotiations regarding access to Japan's auto market. Specter further stated that "I think when foreign governments engage in economic espionage, in corrupt practices, and we learn about it, I think we ought to disclose that sort of thing".
  What was unusual about this statement? It may have been the CIA doing the bugging.
Is it OK to bug someone else, but improper to be bugged? Food for thought.

It is impossible to reduce human society to one level.
---Pope Leo XIII


TELEPHONE HACKING



  When was the last time someone called in, identified them self as a telephone company employee and asked to be put through to Mr. X's office, extension 1234-56 as a trouble has been reported and they were troubleshooting the problem? Did you get a bill the following month with unexplainable charges to a Middle Eastern, African or Far Eastern country public phone? If so, you have been hit by a phone scam. Once your phone has been accessed, it is possible to call back out and charges are made to your company bill. That is just one of the reason company telephone books with names and extensions are considered, sensitive, proprietary or classified by most companies.

  The above happened to a client located at a mid western location just a week or two ago. The security department was contacted after working hours and released the information, not thinking anything about it. A few hours later, they were contacted by a telephone company operator and advised the phone company had detected what appeared to be fraudulent activity involving their system. That is not always the case, but this time the system worked.

There is the National flag. He must be cold, indeed, who cannot look upon its folds rippling in the breeze without pride of country. If in a foreign land, the flag is companionship, and country itself, with all its endearments.
---Charles Sumner

MORE TELEPHONE SECURITY



The following are just a few of the ways you can detect fraudulent phone activity (after the fact).
  1. Do you periodically check your phone bill to insure calls are legitimate?
  2. Do you look for patterns of calls to other long distance locations or foreign countries in which you have little or no interest or holdings.
  3. Are long distance calls made on weekends or after normal working hours? Are calls made from the same extension? Have you checked to see if the employee at that extension is actually making the calls? Your electronic telephone system is capable of doing a lot of things if you know what to ask of it. Get with you programmer and see if additional features are available to help detect/identify fraudulent or illegal use of the system.


AUDIO AND VIDEO SERVICES



   I mentioned this in the last issue and would like to do it again, just for information purposes. This is not an endorsement of the service or individual but if you have a requirement for audio or video tape enhancement (bringing up something in the background or getting rid of certain noises), you may want to consider Phil Parmenter of Secure Audio Services. He has been working with commercial audio business account for more than five years doing audio and video enhancements/cleaning up for commercials and productions and has recently made his services available to law enforcement department in the Central Arizona area. He can be contacted at 602-812 9420.

Cellular Privacy is Here



   MCLEAN, VA.. March 5, 1996--Cellular One in Boston has completed the purchase and installation of Cycomm's new Series 300 Cellular Privacy System and is the latest in a quickly growing number of cellular carriers that are in the process of ordering Cycomm's Series 300 equipment as a means of providing cellular privacy to their customers. When a carrier's customer roams away from their home market, privacy is provided through Cycomm's patented international 800-number privacy network PrivaCall. Your generic cellular phone will not work; youšll need their product.

   If you need more information, I'll be glad to fax you a copy of the full article. This applies to all the articles in The Hot Micx.