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Hackers Claim To Hit T-Mobile Hard

dasButcher writes "Hackers are claiming to own T-Mobile USA's servers and to have access to the cellular phone carrier's operations, finance and subscriber data." (Here's the seclists.org post of the claimed breach.)

82 of 302 comments (clear)

  1. Re:Why.... by tftp · · Score: 5, Insightful

    Why isn't this stuff encrypted?

    My guesses: legacy, convenience, lack of care, lack of duty.

  2. Look on the bright side.. by nanospook · · Score: 5, Insightful

    Maybe the hackers can offer better service?

    --
    Have you fscked your local propeller head today?
  3. Be warned! by siloko · · Score: 5, Interesting

    Funny - I get an fraud warning from the link disclosing the breach . . . Opera being over-sensitive I think. "This site is known to distribute malicious software" - NMap has got such a bad name!!

    1. Re:Be warned! by Ethanol-fueled · · Score: 5, Informative

      Noscript on Firefox throws a "potential XSS attempt" warning.

    2. Re:Be warned! by Anonymous Coward · · Score: 2, Insightful

      A warning does not hurt. Ignoring one might.

  4. Like competitors would ever pay for this by VampireByte · · Score: 4, Insightful

    From the "hackers" We already contacted with their competitors and they didn't show interest in buying their data -probably because the mails got to the wrong people- so now we are offering them for the highest bidder. Seriously, how do they think T-Mobile's competitors are going to legally pay and use such information?

    --

    Run and catch, run and catch, the lamb is caught in the blackberry patch.

    1. Re:Like competitors would ever pay for this by jack2000 · · Score: 2, Insightful

      You think they offered it legally to the competitors?

  5. Re:Why.... by bi_boy · · Score: 5, Insightful

    My guess is the conversations go like this:

    Front-line Manager: We need to encrypt our dataz.
    Middle Manager: How much will this cost?
    Front-line Manager: (insert any number)
    Middle Manager: No.

    --
    Chicken fried butter sticks? Do ... do you use a fork? - Black Mage, 8-Bit Theater
  6. They're in luck! by Anonymous Coward · · Score: 5, Funny

    I happen to know a Nigerian Prince who would be *very* interested in their offer.

  7. Re:Why.... by Tanktalus · · Score: 5, Insightful

    What stuff? You mean the raw database? Theoretically, there are various layers of security here: firewalls to the outside, authentication to particular views on the inside where only data you Need To Know is available to you, and proper firewalls on each database server to limit access to the database port(s) and probably ssh.

    If the hackers could get through all of this, they must be *very* good. More likely, however, is that they have someone on the inside which bypasses all of this. And it would bypass the encryption on the data anyway since s/he obviously already had Need To Know to get at the data anyway, and thus would have the decryption key. There isn't much a corporation can do against an insider that needs that info just to perform the job they were hired to perform.

  8. Re:Using the data for good purposes by 93+Escort+Wagon · · Score: 5, Insightful

    However, I'd like to see a silver lining to this by seeing the data employed to put paid to the idea that SMSes have to cost so much.

    Yeah, the hackers have sure demonstrated their high ideals by offering the data for sale to the highest bidder. I'm sure they're all just wonderful people who are only thinking of the greater good.

    And yes, that was sarcasm. In truth, my opinion of these guys couldn't be much lower than it currently is.

    --
    #DeleteChrome
  9. All UNIX/UNIX-likes by Anonymous Coward · · Score: 5, Funny

    All of their production servers are running UNIX- or UNIX-like operating systems. Had they been running a Windows-only setup, this would not have happened.

    Ever heard of a high-profile Windows shop being compromised during the last five years? No? Didn't think so.

    1. Re:All UNIX/UNIX-likes by 2phar · · Score: 5, Funny

      You do realize you can register for free Steve, right?

    2. Re:All UNIX/UNIX-likes by BronsCon · · Score: 5, Funny

      Ever heard of a high-profile Windows shop being compromised during the last five years? No? Didn't think so.

      Of course we don't hear about it anymore. It's not news!

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    3. Re:All UNIX/UNIX-likes by Anonymous Coward · · Score: 2, Funny

      Register now! And win FIVE CHAIRS to throw through the window. For a small additional fee we provide a stupid employee to throw the chairs at!

      ACT NOW! CALL 1-800-STEVEB

  10. Re:Why.... by jythie · · Score: 4, Interesting

    Who said it was not encrypted?

  11. Is that the list of compromised servers? by jsveiga · · Score: 2, Insightful

    Interesting. I only saw HP-UX, SunOS, AIX and Linux. No Windows used in T-Mobile, or they could not be cracked? Or T-Mobile just don't put anything important on Windows servers?

  12. Re:Using the data for good purposes by Anonymous Coward · · Score: 4, Insightful

    However, I'd like to see a silver lining to this by seeing the data employed to put paid to the idea that SMSes have to cost so much.

    They don't have to cost so much. In fact, the cost of providing SMS service is next to nothing - it's an afterthought that runs in the cell phone control channel.

    HOWEVER, in the real world, the price of a product/service doesn't depend on the cost to provide the service, it depends on what people are willing to pay. The fact that so many people are willing to pay high prices for SMS reflects supply & demand.

    Personally, I never send SMS. If I want to talk to you, I'll call you. Otherwise I'll send email. But I seem to be in the minority.

    A better question is why is there so little competition in SMS prices - is there collusion to avoid competition?

  13. Millions of credit cards, unprecedented access by Anonymous Coward · · Score: 5, Insightful

    And the best thing they can think of doing with it all is to offer it to T-Mobiles competitors? Seriously? I can think of tons of ways to profit off of all that information.

    However not one of those ways involves attempting to sell the information to companies that are legally required to report it. Or when that fails, announcing it to the public and getting every police agency in the world on my trail.

    1. Re:Millions of credit cards, unprecedented access by eimsand · · Score: 2, Informative

      It's my understanding that unauthorized access to a computer system is a crime in and of itself. The misuse of data and/or facilities after the hack just add separate charges and penalties. (It should be clear that I'm not a lawyer...)

    2. Re:Millions of credit cards, unprecedented access by John+Hasler · · Score: 2, Informative

      > I don't think there can be much in the way of law enforcement action. No damages, yet.

      Clear violation of the Computer Fraud and Abuse Act.

      > No idea where they might be operating from, so jurisdiction is an open question.

      Doesn't matter where they were operating from. T-Mobile is a US company and the computers that were cracked were in US territory so the US has jurisdiction. The question is custody: can the Feds find them and if so can they get them extradited (or otherwise gain custody).

      --
      Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  14. T-Mobile Customer? by cdrguru · · Score: 3, Interesting

    If you are, you better start thinking about where to go next. Their service is now wide open. Anything transferred through their network is now questionable.

    Can you afford to send an email from a smartphone and have a couple of bytes changed, say from "no" to "yes"? Or from $100 to $10,000?

    Can you afford to have your phone records available to everyone on the Internet? How far back could T-Mobile's records go? Two years? Five years?

    I'd say if this was played right to the media it could shut T-Mobile down in about two weeks. After all, wouldn't that be a great goal? Their inability to keep hackers out equals no reason to be in business.

    Of course this was almost certainly an inside-assisted job. But then you better watch who your employees are. If you're employing people that have access to potentially sensitive data, how do you know they aren't in a financial bind and will do anything to make next month's mortgage payment? Or have some gambling debts that they have to pay or their wife will work off?

    I won't be happy to see T-Mobile (really Vodaphone from Germany) go under, but if these hackers have half a brain they will take the company down. If they are just your average script kiddies this will not make to the nightly news and will have no effect on the company.

    1. Re:T-Mobile Customer? by 117 · · Score: 5, Informative

      T-Mobile (really Vodaphone from Germany)

      No, really T-Mobile (whose parent company is Deutsche Telekom) from Germany. Vodafone (not 'Vodaphone') are a UK-based company and T-Mobile's biggest rival.

    2. Re:T-Mobile Customer? by number11 · · Score: 5, Insightful

      I think we are entering an age where everyone knows the employee's loyality goes just as far as the permanence of their job, and no job is permanent anymore. So everyone is out for themselves, and if they see a chance to grab some kind of a big payoff they are going to take it. Or toss a wrench into the works just to see what happens.

      Well, over the last 20 years or so, companies in general have made it abundantly clear that they feel little or no obligation to their workers. Their stockholders and CEOs, yes, but not their workers. I'm not saying they really ever did, but for perhaps 50 years there was a facade (pensions, long-term employment, etc.).

      So it's entirely reasonable that workers return the favour.

    3. Re:T-Mobile Customer? by Anonymous Coward · · Score: 2, Insightful

      >Their service is now wide open.

              Oh, please. The servers listed are a tiny fraction of Tmo's network. You think they provide billing and data services to 30,000,000+ customers with 511 systems?

              Did you notice how many of those systems had their regions attached? Do all your systems in say Kansas, have the word Kansas in their /etc/ directory somewhere? This looks more like a "server deployment database dump" than an actual hacker's list of compromised systems.

              Did you notice the variety of systems they claim to have compromised HPUX, Sun and AIX, and Linux, but not one single Windows server? What are the odds, even if they were all equally secure (cough). The enterprise still uses plenty of Windows software, and it's obvious when dealing with tmo Customer Care that their desktops are Windows. 20k systems in the hands of low-wage employees and not one of them on this list?

              And what did you think the big companies do to keep your phone records safe? With the major carriers all having 20k+ customer care reps, did you expect "DOD Secret Level Clearance" was required to work there? Your phone records at any company are available for a price. ("pssst, no one cares who you're callling.").

      >Their inability to keep hackers out equals no reason to be in business.

              Maybe in BizarroLand. All the proof we have is a list of suspiciously Unix-centric systems that are likely on the T-Mobile network. Compromising a single DNS server in the DMZ might have given them access to some engineer's home directory where a .csv was sitting ready for a perl script to translate it to DNS entries as part of some routine maintenance task. And if they have a friendly customer care rep that will risk their job to provide 3 months worth of phone records for $100.... Well, that hasn't been news in 5 years.

              I think your tinfoil hat needs another layer. Have you tried Copper foil for better Chi alignment?

  15. Re:Using the data for good purposes by WhatAmIDoingHere · · Score: 2, Insightful

    Except that's not what's happening. Instead of competing, everyone's saying "we'll charge the same rate per message" while that same rate is still insanely high.

    --
    Not a Twitter sockpuppet... but I wish I was.
  16. Re:Using the data for good purposes by cdrguru · · Score: 2, Insightful

    So what? Are you just complaining because the price is high, or are you prevented from using SMS services because of the pricing?

    What possible relationship should the price to the consumer have to what is really costs? Do you believe there is any relationship between consumer products and the price charged? If you do, you are sadly mistaken. The prices to the consumer have nothing to do with "costs", especially material costs. It has to do with what the market will pay. If they charge $1 a message and people will pay it, that is the price.

    And why would you want the government to get involved? Do you think the government should regulate all prices? Did you think the price of a car is closely tied to the cost of the materials? How about books? Do you think a 100 page book absolutely has to cost less than a 200 page book? Aren't you confused when you go to the store and the prices do not reflect this? Should the government fix this problem?

    No, the government shouldn't have anything to do with this. A bit of education will teach you that prices have nothing whatsoever to do with costs - lots of stuff is sold for less than it costs to make it. Plenty more stuff is sold for way, way more than it costs to make it.

  17. Re:worthless data! by John+Hasler · · Score: 4, Insightful

    What is there in this data that would cause an AT&T executive to risk losing his job and perhaps going to prison?

    --
    Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  18. Re:Using the data for good purposes by otter42 · · Score: 4, Insightful

    Why should Congress bother with SMS pricing? Isn't that what competition is for?

    Why? Because the cell providers are monopolies, created in part through the (very necessary) restriction of broadcast frequencies. Contrary to popular opinion, government *is* supposed to do good things for its citizens. I really admire that the EU has chosen to take the cell providers over there head-on, forcing them to lower rates. I disagree with how they did it, but that's only because they chose to regulate maximum prices instead of just breaking the monopolies up.

    So when there were sufficient cell companies to have competition, American cell prices were the lowest in the world by far. Now that all the small players have been gobbled up, and we're only left with effectively three companies, there is no more competition.

    --
    www.eissq.com/BandP.html Ball and Plate System. Amuse your friends. Crush your enemies.
  19. Re:Using the data for good purposes by bnenning · · Score: 4, Interesting

    A better question is why is there so little competition in SMS prices - is there collusion to avoid competition?

    Yes. The marginal cost is very close to zero, so when all the telecoms raise prices nearly simultaneously as they did a few years ago, collusion is by far the most likely explanation.

    --
    How to solve most of our problems: 1.Lots of nuclear plants. 2.Cure aging.
  20. Re:Why.... by AuMatar · · Score: 3, Funny

    I emailed them with my very serious offer. And from another account asking them to plz send me teh codez. No response yet :(

    --
    I still have more fans than freaks. WTF is wrong with you people?
  21. Re:Using the data for good purposes by otter42 · · Score: 4, Informative

    Please do so now, in detail, with references containing verifiable data on the costs.

    I'm guessing you don't understand how SMSes work. You do realize that they are effectively free for the cell phone company, right? Your cell phone is already sending this kind of message every time it reports back to a tower. It's just that most of the message is empty, but the bandwidth is still used. So, by piggy-backing a human-to-human message onto the cell-to-tower report, you get an SMS that has an effectively $0.00 incidental cost.

    That's point #1. Point #2 is that an SMS is an amazingly small amount of bandwidth compared to voice, and yet it costs far more than voice.

    Point #3 is linking back to /. http://tech.slashdot.org/article.pl?sid=08/01/29/0244208

    Of course, I could go on and on, but that would be saving you all the fun of independent research. I'm certain that if there are still things bothering you after you've read this (and don't miss the EU's current action against the European cell pseudo-monopolies!), people here will be happy to help.

    --
    www.eissq.com/BandP.html Ball and Plate System. Amuse your friends. Crush your enemies.
  22. Re:Using the data for good purposes by otter42 · · Score: 2, Insightful

    Ah, but these are not governmental-backed monopolies that are essential to life, now are they? Don't like GM, but something else (everyone else sure did). DVD too expensive? Rent it, watch another movie, or just pass it up.

    Telephone, internet, electricity, or water too expensive? Too bad, suck it up and pay, because by all normal metrics, these are the basic tenets of modern life.

    So when the few remaining cell phone operators pretty much simultaneously raised rates on SMSes, at a time when the whole gov't was turning a blind eye to any form of regulation (thus leading to the current world-wide crisis), smacks strongly of collusion. Which is when the gov't is supposed to intervene.

    Guys, busting up AT&T was the *best* thing that ever happened to American telecommunications. To believe some people here on /., that should never have happened.

    --
    www.eissq.com/BandP.html Ball and Plate System. Amuse your friends. Crush your enemies.
  23. Re:Using the data for good purposes by otter42 · · Score: 2, Interesting

    Why am I complaining? Because I believe very firmly that in the past few years the telecommunications market has fallen victim to collusion.

    It seems that many /.ers confuse the price people will pay with the correct price. See, the price you will pay is NOT the right price. The maximum price you will pay, correlated to the minimum price the supplier will charge, is the right price. That's where monopolies, duopolies, and collusion break things up. They make it so that the minimum price the supplier will charge is never reached, as they intentionally limit supply.

    If you want a more abstract example of the harm that high SMS prices do, in a market where it's nigh impossible to break in, ask yourself why SMSes aren't more integrated into everyday life. I don't just mean human-to-human messages. I mean things like controlling your home thermostat. Or having your bike or car report its location, speed, etc. There are lots of uses for these kinds of short messages, but the insanely high cost per byte makes it completely prohibitive.

    --
    www.eissq.com/BandP.html Ball and Plate System. Amuse your friends. Crush your enemies.
  24. Re:Why.... by ae1294 · · Score: 4, Funny

    Who said it was not encrypted?

    Yes, they used CSS encryption but those damn hackers broke the law and circumvented it using something called DeCSS...
    When is the government going to put a stop to this sort of thing and protect us!

  25. Before I hit the panic button by forgottenusername · · Score: 5, Insightful

    I'll wait for some validation. Cuz, you know;

    prodsrv1|192.168.1.200|root@cia.gov sekret files|for realz|RHEL4

    isn't especially convincing.

    Even if it's a real list, it could be something as simple as a pilfered company document off a laptop, a script-kiddie wannabe hacker employee showing off to his friends on IRC, or any of a hundred scenarios.

    Do I doubt it's difficult to own a bunch of HP-UX boxes? Nah.

    Have I learned to not spastically freak out every time some random people claim they hacked something? Yah.

    Trouble is, T-Mobile wouldn't exactly be forthcoming with any confirmations.

    At the end of the day, you just have to plan around being hacked. You have to ensure your payment method associated with external services can handle being owned. You have to be ready for people getting your SSN and private info, since it's moronically being used for frivolous purposes everywhere.

    Which is not to say you shouldn't do your best to keep your data protected and secure - I just try to plan around any data I give out to various companies being owned.

  26. Re:Why.... by blitzkrieg3 · · Score: 2, Insightful

    There is no way to know and it's a moot point. Presumably they attacked the systems while they were live, so the information would have been decrypted anyway in order for the database system to access it. There is also the inside job scenario that someone outlined above.

    Encryption doesn't really matter in this type of break in, it's more for "oh shit I left my hard drive and laptop in an airport" type of scenarios.

  27. Re:Why.... by N7DR · · Score: 5, Insightful

    As a purveyor of security software (to a different industry), I've seen countless times that almost always the conversation really does go along an only slightly-less direct route:

    A. We need to secure X
    B. How much does it cost?
    A. (insert any dollars)
    B. Do we have to spend that?
    A. We do if we want to be reasonably secure.
    B (thinks... We're smart people; we can install a few firewalls; that'll keep the Bad Guys out)
    B. (Having insight) But this is like insurance, right? If we keep people out of the network, we don't get anything for those dollars.
    A. Well, sort of, I suppose so.
    B. Right, we'll save those dollars.

    ---

    You have to assume that Bad Guys CAN get into your network if they really want to. Because the truth is, whatever your in-house people have told you, they can. Of you doubt me, talk to people whose job is to break into networks. All the ones I've known will tell you that 100% of targeted commercial networks fall to a concerted attack.

    When they do fall, security's job is to make sure, at a minimum:
        1) the Bad Guys can't learn anything useful
        2) the Bad Guys can't interfere with the service you're selling
        3) there's a high probability that you'll detect the event and be able to track the Bad Guys

    B's insight isn't a bad one at all... security *is* a kind of insurance. Which means that most of the time, if you have a well-designed system you really are "wasting" the dollars. But one day you or your successor will regret those "saved" dollars.

    B's job really is to make a proper cost/benefit analysis. My experience is that that almost never happens. They either just "save" the dollars without thinking or, more often, either a) look to what their competition is doing or b) assume that the risk is so small ("we haven't been hacked so far") that it's not worth spending any money.

  28. Re:Using the data for good purposes by vlm · · Score: 2, Informative

    Well, I think DVD's cost too much. Shouldn't the government step in there as well?

    One, two, maybe three cellphone providers here, with the number of competitors artificially limited by government regulation to prevent interference and/or accept bribes. That is no free market and has no competition because of government force. So it needs price regulation.

    Seven pages of DVD manufacturers here to scroll thru:
    http://en.wikipedia.org/wiki/List_of_DVD_manufacturers
    Now that is a free market... No need for price regulation due to intense competition.

    How about cars? They cost too much, don't you think?

    One, two, maybe three cellphone providers here, with the number of competitors artificially limited by government regulation to prevent interference and/or accept bribes. That is no free market and has no competition, because of the government licenses. So it needs regulation.

    This page lists "44 top automobile manufacturers" Presumably there are far more than 44, if this is only the top 44. That is a free market, no need for price regulation due to extreme competition.
    http://en.wikipedia.org/wiki/Automotive_industry

    While the government is at it, shouldn't all prices have to be approved, regulated and reviewed periodically by the government? I mean if one grocery store in LA is charging $0.15 for an apple and one in Seattle is charging $0.30 isn't there some gouging going on here?

    Three, maybe four cellphone providers provide service here, with the number of competitors artificially limited by government regulation to prevent interference and/or accept bribes. That is no free market and no competition because of the government license structure. So it needs government price regulation to fix the problem the government caused.

    http://local.yahoo.com/CA/Los+Angeles/Food+Dining/Grocery+Stores
    Lists 5106 grocery stores in LA. Plenty of competition and free market. No need for price regulation due to intense competition.

    http://local.yahoo.com/WA/Seattle/Food+Dining/Grocery+Stores
    Only lists 897 grocery stores in Seattle. Plenty of competition and free market. No need for price regulation due to intense competition.

    Shouldn't we just have the goverment set all prices for all goods and services? Wouldn't that be more fair?

    For cellphone service, it sets all the operational rules and FCC regulations and basically controls the company with no difference between the small number of providers except capital structure, so the govt has the responsibility to complete it's work and set the price so as not to screw the customer, because it is an inherently non-capitalistic non-free market non-competitive system due to government interference (more so that usual, anyway).

    Short answer: no.

    Short answer: yes.

    --
    "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
  29. Re:nice! by hurfy · · Score: 5, Funny

    Does this mean service will improve?

  30. Re:worthless data! by plover · · Score: 5, Insightful

    If I were an AT&T official and they contacted me? I'd absolutely be interested. I'd also be on the phone to internal corporate security and the FBI before I finished reading the email.

    If this story is true, those are some mighty bold thieves. AT&T probably has more resources than anyone else on the planet for tracking down the originator of that communication. For that matter, AT&T are probably the ones the FBI contacts when they want to hunt down a bad guy, so you know there's a long relationship there, too.

    Times may be tough, but various competing corporations often have informal and even friendly relationships with each other when it comes to Loss Prevention departments. They share info on thieves and threats, and despite outward animosity between two competing companies, their L.P. departments do tend to help each other out with situations like these. I know that's the case in retail, where organized crime investigations actually can have cooperation between companies like Walmart and Best Buy. There's definitely an "old boy's network" behind the scenes as these employees shift between companies and don't forget their old friends. It's a lot like the cop brotherhood (in part because many of the L.P. staffs are actually retired cops.) AT&T likely wants these guys caught almost as much as T-Mobile does.

    --
    John
  31. Re:Using the data for good purposes by Anonymous Coward · · Score: 2, Insightful

    Also, since customers can't easily switch companies due to contract terms, there is not enough fluidity in the market such that a company which lowers prices can quickly attract customers from another corp, and lead to a price war or reduction in prices.

  32. Re:Why.... by plover · · Score: 3, Insightful

    What stuff? You mean the raw database? Theoretically, there are various layers of security here: firewalls to the outside, authentication to particular views on the inside where only data you Need To Know is available to you, and proper firewalls on each database server to limit access to the database port(s) and probably ssh.

    It seems your theory is kind of flawed, because if their protection was indeed that good the thieves probably wouldn't have gotten the data they did.

    I think the reality is they have a firewall, and probably overly simplistic authentication on the databases, and virtually nothing else. Consider an inept DBA running SQL Server 2005 who ties the SQL Server's SA account to the machine's administrator account. And add another inept system administrator who has a shared admin account across all the database servers, as well as some IIS servers and maybe some FTP servers as well. So the hacker worms his way to an admin account on ftp_serve_01.tmobile.com and ta-da! He's suddenly got admin rights to their data!

    Never ascribe to ingenuity that which can be adequately explained by stupidity.

    --
    John
  33. Re:Using the data for good purposes by Vancorps · · Score: 2, Interesting

    What? Are you 12? Seriously, with a response like that how do you not expect people to just ignore you since you don't even offer anything to the conversation. Just shouting "WRONG" doesn't change anything and only serves to strengthen the other side. Rather than childish name-calling perhaps you could add something of value rather than wasting everyone's time? Maybe not...

    There are those of us that intercept and redirect cell transmissions because of the absurdly high costs of everything. Why use cell minutes when you can create your own mini-tower and use your internal PBX? Many companies are investing many thousands of dollars in equipment because it pays off fast. If individual companies can do it cheaper then a single cellular provider simply has no excuse for such high rates, especially given the obvious collusion in the industry.

  34. Re:Why.... by Anonymous Coward · · Score: 2, Insightful

    Almost any risk can be covered one of two ways:

    1. Absorbing a large cost infrequently.
    2. Spread the cost over your average cases.

    This is simply an application of Murphy's law. Any outcome which is not systematically excluded will occur eventually. You can either incur the overhead of building a system that excludes the negative outcomes or you can accept the risk that they will occur.

    Of course, in practice you can't absolutely exclude negative outcomes, but as you say, you may be able to analyze them and break them down into manageable cases.

  35. Re:Why is this a story? by colinrichardday · · Score: 2, Funny

    Come on, how is your gibberish any different from the rest of Slashdot?

  36. Re:Using the data for good purposes by Mr2001 · · Score: 2, Insightful

    The prices to the consumer have nothing to do with "costs", especially material costs. It has to do with what the market will pay. If they charge $1 a message and people will pay it, that is the price.

    No, you're missing an important part of how markets are supposed to work.

    In a free market, if providers A and B are charging $1 for a message, then even if people are willing to pay $1, provider C will notice that they can grab a lot of customers by charging, say, $0.75. They'll lower their prices, and customers will jump at the opportunity to save 25% on their messaging. Then A and B will have little choice but to lower their own prices... and this process will repeat every so often, until the price is so low that it can't be lowered any more (without becoming unprofitable).

    But that hasn't happened. SMS prices have gone up, not down, despite strong evidence that the current price could be slashed dramatically while still remaining profitable (i.e. forwarding an SMS message costs almost nothing). Perhaps the providers are colluding to keep prices high, or perhaps the cost of switching providers is so high that there's effectively no competition. Either way, this is clearly a market failure, and resolving market failures is a duty of the government.

    --
    Visual IRC: Fast. Powerful. Free.
  37. Re:Using the data for good purposes by fgelias · · Score: 2, Interesting

    Well, under perfect competition, the price *does* equal the marginal cost in equilibrium. The complaint that SMS prices are too high is legitimate in a situation where there is a high cost to entry preventing competition from driving the price down, as in the telecommunications industry. In these situations governments have a potentially important role to play (think about how other major utilities, like power companies, are run). So, yes, many folks may be willing to pay $X for SMS messages, but this may not be the socially efficient price due to the uncompetitiveness of the industry.

  38. Re:Using the data for good purposes by ScottCooperDotNet · · Score: 2, Informative

    And why would you want the government to get involved? Do you think the government should regulate all prices?

    When a company gets a license to exclusively use a certain radio frequency, yes, We the People should have the ability to set certain restrictions.

  39. Re:Using the data for good purposes by socsoc · · Score: 4, Insightful

    Guys, busting up AT&T was the *best* thing that ever happened to American telecommunications.

    So the baby bells could reform their monopoly as SBC? Oh and then change back to AT&T and rebuy the spun-off AT&T Wireless? Yeah that worked out well.

  40. Re:Using the data for good purposes by Joe+U · · Score: 2, Insightful

    Short answer: no.

    Here's the longer answer:

    I, as a US citizen am one of the many people who allow corporations to exist. They exist to serve me and other people around me.

    That's it. That's the end of the story, they don't exist to make boatloads of cash. They don't exist to make money for shareholders. They don't exist for any other reason except to improve my life, and the lives of the people around me.

    If a corporation is acting in a poor manner, my government, as a representative of the people, has the right to dictate every detail of how the company can and will act. The company can either dissolve or follow the rules that we set for them.

    If you don't like it, go vote in another form of government.

  41. Re:If you were smart, you used a prepaid phone by dbcad7 · · Score: 4, Insightful

    Well, unless you bought your phone at a store with cash, and buy refills the same way..

    I guess I am the "not smart" T-Mobile user, as I bought my prepaid phone through their web site.. You seem to be imply that T-Mobile is somehow a flyby night company ... They are in fact 8th largest in the world.. Verizon is 14th., AT&T is 15th., Sprint doesn't make the top 20 and they have slightly more than half as many subscribers as AT&T... Of all these companies, why should I not have trust in T-Mobile ?

    --
    waiting for ad.doubleclick.net
  42. Re:Pay some smart $$$ get smart security by Anonymous Coward · · Score: 2, Informative

    Umm, once you're on the corporate WAN (as they clearly are from the listing) the OS' being used are kind of irrelevant. They probably sniffed login credentials from client machines rather than attacking the backend servers directly, indeed such systems should be in no way directly connected to the internet.

  43. Re:Using the data for good purposes by Unequivocal · · Score: 2, Insightful

    Are you arguing that between the time that AT&T was broken up in the 80's and the time that it essentially reformed as a unified National telecom corporation, there wasn't much innovation and price competitiveness in the US telecom market? Seems like that period of time worked out pretty well in terms of lower prices and new services for commercial and residential customers.

  44. Re:Why.... by jesset77 · · Score: 5, Funny

    It seems your theory is kind of flawed, because if their protection was indeed that good the thieves probably wouldn't have gotten the data they did.

    I think your assumption that "the theives did get data" is premature. I am not seeing corroborative data anywhere.

    Speaking of which, based upon analyzing the deleted video files on your primary partition, you should get the old lady a membership at the local gym or something. :P

    --
    People willing to trade their freedom of expression for temporary entertainment deserve neither and will lose both.
  45. Re:Why.... by Antique+Geekmeister · · Score: 4, Insightful

    And the US export encryption laws, described at http://www.bis.doc.gov/encryption/default.htm. It would also interfere with the Patriot Act warrant and supervision free phone tapping, and whatever the NSA has put in lately to tap the major fiber optic backbones without warrant or any appeal to inappropriate monitoring available, as they've previously done to AT&T.

  46. Re:Why.... by Venik · · Score: 4, Interesting

    Security is a process - not a state. Computer security is like a horizon - an imaginary line that seems to move farther away as you move toward it. The only way any network and systems on that network can be reasonably protected is if there is a recurring yearly budget. In most companies computer security is an afterthought in the IT budget. Sort of, like, if there's money left, we'll spend it on security. Or save it. The bottom line is that most companies simply can't afford meaningful security measures and most of those that can, choose not to spend the money. This entire IT security business is usually just good enough to keep the amateurs out.

  47. Re:Using the data for good purposes by Unequivocal · · Score: 2, Insightful

    Perhaps this is getting pedantic but:

    Health laws for restaurants are applied across the board to all of a certain type of business. Not just corporations. Sole proprietorships, partnerships, llc and corporations.

    Beyond that, health laws aren't micromanaging any one particular business, but managing the behavior of a class of businesses. Which was my point. Laws/regs of corps or business = gov't's main avenue for management.

    Gov't mandating the specific behavior of a single business/corp. = micromanagement (it's done but not nearly as often)

    Probably we're just in violent agreement on this.

  48. As a longtime T-mobile customer... by funkify · · Score: 2

    I, for one, welcome our new hacker overlords. Who cares who sees my cell phone records or texts. Besides, you'd have to be stupid to do anything REALLY private over the airwaves these days anyway, what with Bush and Obama both agreeing that warrantless wiretaps are a good idea.

    Seriously though, I've done PLENTY of shopping around over the years, and T-Mobile always has the best rates, best coverage, and best customer service out of all the US cellular providers. That might be like calling them a tall midget, but the best is the best. I get 2 lines with completely unlimited calling for less than $90.

    If this is real and T-Mobile's networks actually DO get shut down temporarily, then that will just be one less way that I get bothered.

  49. Worked there a few years ago... by Anonymous Coward · · Score: 4, Interesting

    This doesn't surprise me at all. I used to work there a few years ago. Security was not something they were concerned with in the least. RSH was used everywhere and they refused even use telnet let alone ssh. The root passwords on all the Unix servers that controlled the switch was the name of the switch manufacturer. So Nokia was nokia and Nortel was nortel. Frankly this wasn't the worst thing there, don't try to do anything that might improve service or change the way things are done because that would upset the norm.

  50. Hmmmmm.... by IonOtter · · Score: 4, Funny

    Now's my chance to call all those phone-sex lines I've always been curious about!

    Sir, you owe $15,239 and 33 cents.

    "But I never made those calls!?! You people got hacked last month, didn't you? They must have stolen my info!"

    Oh, that's right. Alright sir, we'll take care of it. Uhmmm...by the way, sir? I can barely hear you. Why do you sound so far away?

    "Oh, I can't hold my phone. I uhhh...I sprained my wrists."

    --
    [End Of Line]
  51. Proud hacker, by Anonymous Coward · · Score: 2, Informative

    Is anyone else getting tired of the media's and even Slashdot's own misuse of the word 'hacker'?

    Crackers Claim To Hit T-Mobile Hard

    Fixed it for you.

  52. Re:Using the data for good purposes by John+Hasler · · Score: 2, Interesting

    Far more likely: one did a market study, noticed that the customers neither knew nor cared what the price was, and so tried a price increase. The others quickly noticed that he lost no business and so followed suit.

    --
    Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  53. Re:nice! by capnkr · · Score: 4, Interesting

    FWIW - I don't know if it could be related or quite how, exactly, but I am a T-mobile client in the SE US, and noticed yesterday and the evening before that calls were dropping like crazy. Very, very inconsistent from their usual service, IME. T-mobile has shown good network 'uptime' since they bought out a smaller cellular company I was with about 18 months ago. (They *have* tried to dick me for a little extra cash here and there on my bill, but were good after a call to billing.) The unusual poor performance I was witness to yesterday in conjunction with this story makes me go "Hmmm...", while hoping it bears out as untrue.

    --
    "...there are some things that can beat smartness and foresight. Awkwardness and stupidity can." ~ Mark Twain
  54. Yeah...right by TechnoGrl · · Score: 4, Funny

    Anyone who does not have the wherewithal and sense to not make public their extortion demand, very likely does not have the sense and wherewithal to actually harvest information. I see a text depiction of a list of alleged connections to T-Mo servers.

    I do not see actual data - show me a 500 data item sample if you have anything at all.

    My best guess: Some 15 year old in an Eastern European country will shortly have some 'splainin to do.
     

    --
    ----- In Your Cubicle No One Can Hear You Scream...
  55. Re:nice! by Brad1138 · · Score: 3, Insightful

    nice!

    We all joke, and to some extent say, "good job" to the hackers. We forget these guys are no different than the robbers and thugs you see on "cops" or the evening news, they are just more covert. No one cheers on the armed gunman, robbing a convenience store. It bothers me these guys aren't viewed in the same light.

    --
    If you could reason with religious people, there would be no religious people
  56. Re:worthless data! by rilian4 · · Score: 2, Interesting

    Why? Because their grammar is less than perfect? I hope you have more to go on then that. TFA had a poster who said he was a former employee and recognized server names from the posted log file. He could be a plant or a wannabe but its worth mentioning at least. Frankly if there was nothing to this, I'd expect t-mobile to be yelling from the roof tops. The fact that they are fairly quiet suggests there could be trouble. -rilian

    --

    ...quicker, easier, more seductive the darkside is...but more powerful, it is not.
  57. Re:nice! by jamesh · · Score: 3, Insightful

    No doubt that they are bad guys, but to say that they are 'no different' is taking it a little far. How many convenience store robberies have you heard of that have ended badly for the staff? There is a good chance that a convenience store robber is willing to deprive someone of their life to get what they want. A hacker is merely willing to deprive someone of property. They are more like the guy who breaks into the convenience store after hours, with the intent to run away if confronted.

    The curious thing is that the typical slashdotter would have some appreciation for the skills required to pull off such a hack (assuming they didn't just find a backup tape full of passwords in the trash :) - we can more readily identify with the nerd in his basement with the world at his fingertips 'sticking it to the man' than we could with the armed robber desperate to get cash for his next drug hit. And we all hate cell phone companies. I don't know what's on the agenda for these guys though... presumably blackmail or extortion.

    But when you are king and are rounding up all the hackers, remember to include the guys who are unlawfully downloading copyright material too :)

  58. Re:Using the data for good purposes by dgcaste · · Score: 2, Insightful

    The cell companies are not monopolies, they are an oligopoly. They DO compete, but their prices are sticky and their demand is relatively inelastic. What Congress needs to do is outlaw anything that's more than 6 months or a year of a contract. It's not about subsidy since most cell phones are worth pennies, but this would really force them to compete amongst themselves.

    The truth is that cell networks are incredibly expensive to expand and maintain, and even though cell companies are gobbling up profits, something that has become pretty much a necessity is not that expensive. We enjoy a great deal of consumer surplus since people would pay more than what we pay now for cell service. In fact, if it cost the average citizen $300 a month to have a cell phone, many people (including myself) would still have it. Then again, land lines wouldn't be extinct.

  59. Re:If you were smart, you used a prepaid phone by dbcad7 · · Score: 2, Informative
    --
    waiting for ad.doubleclick.net
  60. Re:Why.... by DigitAl56K · · Score: 2, Insightful

    Maybe some of it is encrypted. But perhaps with some pilfered credentials a database or other internal system will happily respond to your queries and pass back the results as plaintext. After all, somebody somewhere has to be able to decrypt the customer/billing information or it's useless.

    Encryption isn't the be-all and end-all of security. For example, using TrueCrypt on your laptop is a great idea to reduce your risk in case of theft, but when you've mounted an encrypted partition and someone is rooting your box over the network it's not going to help you.

  61. Re:Using the data for good purposes by Art+Popp · · Score: 4, Informative

    Collusion would be the best explanation in a void of facts. Here I think I can be of assistance.

    I am a telecommunications engineer. I am reading this article because it relates to my industry, not because of any belief that these data thieves have done anything remotely interesting. Given that it may be "on topic" to assume this could affect SMS pricing, it seems then "on topic" to relate why it cannot.

    Here are the Big Secrets:

    Except for one hour a day, SMSs don't cost anything.

    Except for one hour a day, Voice calls don't cost anything.

    There. It's out. The servers that process these things on average draw 4.0 amps per 2U at idle and 4.5 amps per 2U at busy. That's the total power savings ratio going from peak-hour to 4 a.m.

    Since the equipment is already sitting there and the bandwidth is already leased and a large carrier rarely has to use another carrier's network for Long Distance transport. The fix costs burn whether you are yammering away on your phone or not.

    Where adding customers to the network costs money is when those customers make a call during the busy hour. A "blocked call rate" is the % of people who get a network-busy signal or some sort of error when they try to make a call while the system is already at full capacity. Large carriers try to keep this number below 1%.

    So where you cost them money in added infrastructure is when you make calls that contribute to busy hour traffic. The rest of the time the cost of your calls rounds comfortably down to zero.

    Since the cost of support in a given month is 90% sunk whether you have zero calls or spend the whole month busy, your marketing department is given a large dollar figure they have to get from the subscribers so you can stay in the black.

    The question then is "How to bill for it?" Enter game theory.

    If you announced to the world what your busy hour is (say 9 a.m.), and that you were only charging for calls during that time, naturally no one would call during that time. You could then announce the new busy hour (now 10 a.m.), and then people would avoid that.... I'm sure you see where this is going. As a carrier with a growing subscriber base you'd still have to be adding cell-sites for the constantly roving busy hour and people on your network would constantly have to update their calling habits to dodge it.

    So they pick large chunk of the day where the business users can't really avoid making calls and they divide cost of busy hour infrastructure across those hours. It's not all that tricky. The rest of the day is given away free or near free as the marketing gimmick enthusiasts see fit.

    Slightly trickier, is the math to relate people's usage to the probability that they will cost you money in infrastructure upgrades. It's convoluted, but there isn't even any calculus involved. I've seen the spreadsheets where this is done. They generally just tweak a number here and a number there and hit F9 until they see the numbers they like.

    The same issues apply to SMS. If you announced that "on your network all SMSs are free" you'd get people switching over just because of that (more money == good), but then they'd be SMS enthusiasts who would shortly saturate your SS7 infrastructure with messages. That equipment is very expensive. You can argue that it shouldn't be and what a great value it would be to create a nationwide wireless topology consisting entirely of WRT54Gs, but in the real world, the only people buying SS7 gear are large carriers, and the people selling it know that and charge much like they would charge the government.

    So you want

  62. Rotten customer service, rotten company by SL+Baur · · Score: 2, Interesting

    I do not applaud law-breaking, but nobody deserves it more than you do. Worst company I've ever had the displeasure of doing business with.

    Where do I sign up for the class action suit? I long-ago canceled my account, but I couldn't delete my private information out of your system.

  63. Well, frankly, the "insurance" sucks too..... by King_TJ · · Score: 2, Insightful

    I've worked in I.T. long enough to know that the vast majority of security products and services out there are little more than selling companies a "bill of goods". Sometimes, it's a great investment, simply as a CYA move. (As a systems administrator, you're a lot less likely to get fired because of a hack if you can show you tried your best to secure everything, using products X, Y and Z, right?)

    But ultimately, you can go with the most highly regarded firewall product, the top-rated anti-spyware and anti-virus solutions, implement policies requiring employees change their passwords every 30 days, encrypt sensitive information, and the whole 9 yards. But one employee who has been given access is all it takes to make it all come tumbling down. (And I imagine the vast majority of the time, that's a key component of successful hacks anyway. Remember the AOL credit card leaks a while back? Total inside job.)

    In most cases, you really don't have much of a guarantee that a given product truly gives you the security it claims either. How do you REALLY know that expensive firewall doesn't have some kind of back-door in it that's never been publicized? Maybe one of their developers stuck it in there secretly, knowing he'd made FAR more than his salary selling the password to a few key hackers in the underground later?

    Unless a product offers to cover all your expenses to recover from a hack, if their product or service is hacked, it's pretty weak insurance.

  64. Hard to tell yet. by Kadin2048 · · Score: 5, Insightful

    They might have technical chops or they might just be taking advantage of a disgruntled employee or other low-tech hole; it's impossible to say so far. What's clear is that they obviously had no idea what to do with the data once they got their hands on it.

    I mean, did they really think they could just grab a dump of T-Mobile's customer database and sell it to AT&T? C'mon. Let's think about that for a minute -- what the hell is AT&T going to do with it? I'm sure their marketing department knows all about T-Mobile's demographics versus their own, and if not (and if they care) they could find out with a few calls and some relatively small payments to a research firm. Same with just about anything else I can possibly imagine them extracting from T-Mobile's servers. If AT&T or Verizon is really dying to know something about T-Mobile's operations, they have lots of easier ways to figure it out that involve a lot less risk than buying red-hot DB dumps from criminals.

    Also, anyone with half a brain ought to realize that all the telco companies live in fear of being broken into, and that a major breakin is going to hurt the public's perception of the entire industry. The U.S. cellular telcos are, basically, a cartel: and if there's one thing cartel members hate more than each other, it's disruptive outsiders. T-Mobile's competitors probably didn't respond because they thought it was a joke, or some sort of Nigeria scam; if they'd known it was serious, they almost certainly would have done what Pepsi did and called the cops. Not for altruistic reasons, but for sound business ones: having basically mercenary criminals screwing around, stealing data, scaring customers, and generally upsetting the normal business environment is not to any legitimate player's advantage.

    The other red-flag that screams amateur hour about the whole thing is what they did after being turned down by the "competitors" -- they posted what amounts to a "for sale" ad to the Full Disclosure list. They thought that was the best venue for selling a shitload of customer financial records? Really? There are bulletin boards, whole online communities, where criminals trade identity information. It's a mature underground economy; the information they had -- names, addresses, CC numbers, SSNs -- would have been a fungible, commodity product, well-understood and easy to resell for cash.

    However they got the information in the first place, it's pretty clear they didn't think their cunning plan all the way through.)

    --
    "Ladies and gentlemen, my killbot features Lotus Notes and a machine gun. It is the finest available."
  65. Re:worthless data! by Swampash · · Score: 2, Insightful

    It's not worthless - it's so valuable that it's radioactive. Any competitor coming anywhere near this data would get sued into oblivion.

  66. Re:Scamtastic!? by Architect_sasyr · · Score: 2, Insightful

    As if they would confirm this. You'd have to be insane to turn around and go "yes, we have been compromised and any calls you make can and probably will be monitored by hackers". There would be a mass exodus from T-Mobile within the hour, and they would effectively go broke by the end of the month. If I was them, I'd be coordinating teams to vet every single one of the machines to be sure - not adding to the potential for a public hysteria in already troubled environments.

    Even if this is a hoax, which it may well be, you don't want to be talking about it until afterwards when you can say something like "We had hackers breach our perimiter systems, but our superb security teams saw and stopped them before they were able to get anything but our publically available user manuals". It might be bullshit, but it sounds better than "we've been hacked, you're in the shit". Your average person could deal with the former, but doubtful that they could deal with the latter.

    --
    Me failed English...
    FreeBSD over Linux. If my comments seem odd, this may explain...
  67. Re:Using the data for good purposes by Reservoir+Penguin · · Score: 2, Informative

    In a free market as soon as C appears the already well established A and B will use their fat pocket's to lower the price to 0.10, undercut the new guy, bankrupt him and then raise the prices back to $1. Now D and E will think twice about entering the market. It is well known in ecomomics theory that free markets can not deal with this problem and the endgame is always monopoly.

    --
    US-UK-Israel: The real Axis of Evil
  68. Re:Using the data for good purposes by sdnoob · · Score: 2, Insightful

    Congress needs to do is outlaw anything that's more than 6 months or a year of a contract

    they need to get rid of the contracts for not only wireless carriers, but wireline and cable, too. you should not have to signup for a year or two just to get a couple bucks off your telephone or cable bill.

    AND separate cost of hardware from service -- you should be able to buy a handset from anywhere and signup with whoever you want and have your phone JustWork.

  69. Re:Why.... by tinkertim · · Score: 2, Insightful

    And the US export encryption laws, described at http://www.bis.doc.gov/encryption/default.htm [doc.gov]. It would also interfere with the Patriot Act warrant and supervision free phone tapping, and whatever the NSA has put in lately to tap the major fiber optic backbones without warrant or any appeal to inappropriate monitoring available, as they've previously done to AT&T.

    What part of that did you mistake to read "I can't encrypt server side even if I must make clients use clear text" ?

  70. Plausible based upon server names. by luftmatraze · · Score: 4, Informative

    I am working for a Relatively Large Teleco in Europe and can say from the list of server names that this is a plausible hack.

    Whether or not however they have real information or just DNS entries however is yet to be seen.

    What is the basis for this conclusion?

    protib02 Prod IHAP TIBCO 582 Tibco 10.1.81.21 HP-UX 11.11 BOTHELL_7 582 #N/A 1 - Tibco. An application layer messaging bus used heavily in FAB (Fulfilment Assurance Billing) area of large telecos
    proetl02 Prod IHAP Teradata 576 teradata 10.133.17.51 HP-UX 11.11 NEXUS #N/A #N/A 1 - Teradata.... another product I know we are using (unknown however exactly what it does)
    prowac06 Prod IHAP EAI 151 EAI - Middleware 10.1.80.91 HP-UX 11.11 BOTHELL_7 151 #N/A 1 - EAI - Middleware application used also in telecos.

    Similarly the SAP Naming convention used roughly translates to some deployments I have seen in the past.

    What does this whole thing give away....

    Looking at the naming conventions they have three "defined" network zones:
    TAMPA - Management (HP OVO, DNS, Backup Servers)
    BOTHELL - Application Server zone with all sorts of stuff. Big flat topology....(ugly with lots of different services using the same subnets and DB Servers not seperated from AS)
    NEXUS - Another Application Server Zone with a mix of stuff within it. This appears smaller and newer than the other from the server names.

    What does this show from a security perspective?

    - No clear Security Architecture ... No 3 tier architecture DMZ/Application Server/DB Server split.
    - No clean separation of Backup network (backup mixed with Management functions... this should be in a seperate network).
    - No clean separation of Management Network (SAN/Backup/OVO located together)

    In any Teleco situation with thousands of servers it is impossible to prevent a security breach. There is always going to be servers somewhere which are unpatched, legacy, forgotten etc.
    What is important is a "defence in depth" principle to limit any disclosure. In this instance that appears not to have been followed. The topology is "Flat" with an emphasis on easier communications between systems rather than minimizing communications to minimum required. This essentially stopped any chance of them being able to limit a breach.

    Hopefully someone will get some lessons learned out of this. I know I will be presenting some points to our management where we should be focusing based upon this. Our security is definitely better but nothing is perfect.

    I'm interested in any points that anyone else could offer here, I have not discussed all points however I am interested in the perspective of others from what they can mine there.

    Please more comments!

    http://streetstyles.ch/ - Schweiz Band & Fashion Tshirts

  71. Re:nice! by Civil_Disobedient · · Score: 2, Interesting

    We forget these guys are no different than the robbers and thugs you see on "cops" or the evening news

    When thieves rob ordinary citizens, it's sad.

    When thieves rob other thieves, it's schadenfreude.