Australia's early hackers had it easy, until Michael Rosenberg arrived.

Rosenberg, known on-line simply as MichaelR, decided to clean up Minerva. An engineering graduate from Queensland University, Michael moved to Sydney when he joined OTC at age 21. He was about the same age as the hackers he was chasing off his system. Rosenberg didn't work as an OTC operator, he managed the software which ran on Minerva.

And he made life h.e.l.l for people like Force. Closing up security holes, quietly noting accounts used by hackers and then killing those accounts, Rosenberg almost single-handedly stamped out much of the hacker activity in OTC's Minerva.

Despite this, the hackers--'my hackers' as he termed the regulars--had a grudging respect for Rosenberg. Unlike anyone else at OTC, he was their technical equal and, in a world where technical prowess was the currency, Rosenberg was a wealthy young man.

He wanted to catch the hackers, but he didn't want to see them go to prison. They were an annoyance, and he just wanted them out of his system. Any line trace, however, had to go through Telecom, which was at that time a separate body from OTC. Telecom, Rosenberg was told, was difficult about these things because of strict privacy laws. So, for the most part, he was left to deal with the hackers on his own.

Rosenberg could not secure his system completely since OTC didn't dictate pa.s.swords to their customers. Their customers were usually more concerned about employees being able to remember pa.s.swords easily than worrying about warding off wily hackers. The result: the pa.s.swords on a number of Minerva accounts were easy pickings.

The hackers and OTC waged a war from 1988 to 1990, and it was fought in many ways.

Sometimes an OTC operator would break into a hacker's on-line session demanding to know who was really using the account. Sometimes the operators sent insulting messages to the hackers--and the hackers gave it right back to them. They broke into the hacker's session with 'Oh, you idiots are at it again'. The operators couldn't keep the hackers out, but they had other ways of getting even.

Electron, a Melbourne hacker and rising star in the Australian underground, had been logging into a system in Germany via OTC's X.25 link. Using a VMS machine, a sort of sister system to Minerva, he had been playing a game called Empire on the Altos system, a popular hang-out for hackers. It was his first attempt at Empire, a complex war game of strategy which attracted players from around the world.

They each had less than one hour per day to conquer regions while keeping production units at a strategic level. The Melbourne hacker had spent weeks building his position. He was in second place.

Then, one day, he logged into the game via Minerva and the German system, and he couldn't believe what he saw on the screen in front of him. His regions, his position in the game, all of it--weeks of work--had been wiped out. An OTC operator had used an X.25 packet-sniffer to monitor the hacker's login and capture his pa.s.sword to Empire. Instead of trading the usual insults, the operator had waited for the hacker to logoff and then had hacked into the game and destroyed the hacker's position.

Electron was furious. He had been so proud of his position in his very first game. Still, wreaking havoc on the Minerva system in retribution was out of the question. Despite the fact that they wasted weeks of his work, Electron had no desire to damage their system. He considered himself lucky to be able to use it as long as he did.

The anti-establishment att.i.tudes nurtured in BBSes such as PI and Zen fed on a love of the new and untried. There was no bitterness, just a desire to throw off the mantle of the old and dive into the new.

Camaraderie grew from the exhilarating sense that the youth in this particular time and place were constantly on the edge of big discoveries. People were calling up computers with their modems and experimenting. What did this key sequence do? What about that tone?

What would happen if ... It was the question which drove them to stay up day and night, poking and prodding. These hackers didn't for the most part do drugs. They didn't even drink that much, given their age.

All of that would have interfered with their burning desire to know, would have dulled their sharp edge. The underground's anti-establishment views were mostly directed at organisations which seemed to block the way to the new frontier--organisations like Telecom.

It was a powerful word. Say 'Telecom' to a member of the computer underground from that era and you will observe the most striking reaction. Instant contempt sweeps across his face. There is a pause as his lips curl into a noticeable sneer and he replies with complete derision, 'Telesc.u.m'. The underground hated Australia's national telephone carrier with a pa.s.sion equalled only to its love of exploration. They felt that Telecom was backward and its staff had no idea how to use their own telecommunications technology. Worst of all, Telecom seemed to actively dislike BBSes.

Line noise interfered with one modem talking to another, and in the eyes of the computer underground, Telecom was responsible for the line noise. A hacker might be reading a message on PI, and there, in the middle of some juicy technical t.i.tbit, would be a bit of crud--random characters '2'28 v'1';D>nj4'--followed by the comment, 'Line noise.

d.a.m.n Telesc.u.m! At their best as usual, I see'. Sometimes the line noise was so bad it logged the hacker off, thus forcing him to spend another 45 minutes attack dialling the BBS. The modems didn't have error correction, and the faster the modem speed, the worse the impact of line noise. Often it became a race to read mail and post messages before Telecom's line noise logged the hacker off.

Rumours flew through the underground again and again that Telecom was trying to bring in timed local calls. The volume of outrage was deafening. The BBS community believed it really irked the national carrier that people could spend an hour logged into a BBS for the cost of one local phone call. Even more heinous, other rumours abounded that Telecom had forced at least one BBS to limit each incoming call to under half an hour. Hence Telecom's other nickname in the computer underground: Teleprofit.

To the BBS community, Telecom's Protective Services Unit was the enemy. They were the electronic police. The underground saw Protective Services as 'the enforcers'--an all-powerful government force which could raid your house, tap your phone line and seize your computer equipment at any time. The ultimate reason to hate Telecom.

There was such hatred of Telecom that people in the computer underground routinely discussed ways of sabotaging the carrier. Some people talked of sending 240 volts of electricity down the telephone line--an act which would blow up bits of the telephone exchange along with any line technicians who happened to be working on the cable at the time. Telecom had protective fuses which stopped electrical surges on the line, but BBS hackers had reportedly developed circuit plans which would allow high-frequency voltages to bypa.s.s them. Other members of the underground considered what sweet justice it would be to set fire to all the cables outside a particular Telecom exchange which had an easily accessible cable entrance duct.

It was against this backdrop that the underground began to shift into phreaking. Phreaking is loosely defined as hacking the telephone system. It is a very loose definition. Some people believe phreaking includes stealing a credit card number and using it to make a long-distance call for free. Purists shun this definition. To them, using a stolen credit card is not phreaking, it is carding. They argue that phreaking demands a reasonable level of technical skill and involves manipulation of a telephone exchange. This manipulation may manifest itself as using computers or electrical circuits to generate special tones or modify the voltage of a phone line. The manipulation changes how the telephone exchange views a particular telephone line. The result: a free and hopefully untraceable call. The purist hacker sees phreaking more as a way of eluding telephone traces than of calling his or her friends around the world for free.

The first transition into phreaking and eventually carding happened over a period of about six months in 1988. Early hackers on PI and Zen relied primarily on dial-outs, like those at Melbourne University or Telecom's Clayton office, to bounce around international computer sites. They also used X.25 dial-outs in other countries--the US, Sweden and Germany--to make another leap in their international journeys.

Gradually, the people running these dial-out lines wised up. Dial-outs started drying up. Pa.s.swords were changed. Facilities were cancelled.

But the hackers didn't want to give up access to overseas systems.

They'd had their first taste of international calling and they wanted more. There was a big shiny electronic world to explore out there.

They began trying different methods of getting where they wanted to go. And so the Melbourne underground moved into phreaking.

Phreakers swarmed to PABXes like bees to honey. A PABX, a private automatic branch exchange, works like a mini-Telecom telephone exchange. Using a PABX, the employee of a large company could dial another employee in-house without incurring the cost of a local telephone call. If the employee was, for example, staying in a hotel out of town, the company might ask him to make all his calls through the company's PABX to avoid paying extortionate hotel long-distance rates. If the employee was in Brisbane on business, he could dial a Brisbane number which might route him via the company's PABX to Sydney. From there, he might dial out to Rome or London, and the charge would be billed directly to the company. What worked for an employee also worked for a phreaker.

A phreaker dialling into the PABX would generally need to either know or guess the pa.s.sword allowing him to dial out again. Often, the phreaker was greeted by an automated message asking for the employee's telephone extension--which also served as the pa.s.sword. Well, that was easy enough. The phreaker simply tried a series of numbers until he found one which actually worked.

Occasionally, a PABX system didn't even have pa.s.swords. The managers of the PABX figured that keeping the phone number secret was good enough security. Sometimes phreakers made free calls out of PABXes simply by exploited security flaws in a particular model or brand of PABX. A series of specific key presses allowed the phreaker to get in without knowing a pa.s.sword, an employee's name, or even the name of the company for that matter.

As a fashionable pastime on BBSes, phreaking began to surpa.s.s hacking.

PI established a private phreaking section. For a while, it became almost old hat to call yourself a hacker. Phreaking was forging the path forward.

Somewhere in this transition, the Phreakers Five sprung to life. A group of five hackers-turned-phreakers gathered in an exclusive group on PI. Tales of their late-night podding adventures leaked into the other areas of the BBS and made would-be phreakers green with jealousy.

First, the phreakers would scout out a telephone pod--the grey steel, rounded box perched nondescriptly on most streets. Ideally, the chosen pod would be by a park or some other public area likely to be deserted at night. Pods directly in front of suburban houses were a bit risky--the house might contain a nosy little old lady with a penchant for calling the local police if anything looked suspicious. And what she would see, if she peered out from behind her lace curtains, was a small tornado of action.

One of the five would leap from the van and open the pod with a key begged, borrowed or stolen from a Telecom technician. The keys seemed easy enough to obtain. The BBSes message boards were rife with gleeful tales of valuable Telecom equipment, such as 500 metres of cable or a pod key, procured off a visiting Telecom repairman either through legitimate means or in exchange for a six-pack of beer.

The designated phreaker would poke inside the pod until he found someone else's phone line. He'd strip back the cable, whack on a pair of alligator clips and, if he wanted to make a voice call, run it to a linesman's handset also borrowed, bought or stolen from Telecom. If he wanted to call another computer instead of talking voice, he would need to extend the phone line back to the phreakers' car. This is where the 500 metres of Telecom cable came in handy. A long cable meant the car, containing five anxious, whispering young men and a veritable junkyard of equipment, would not have to sit next to the pod for hours on end. That sort of scene might look a little suspicious to a local resident out walking his or her dog late one night.

The phreaker ran the cable down the street and, if possible, around the corner. He pulled it into the car and attached it to the waiting computer modem. At least one of the five was proficient enough with electronics hardware to have rigged up the computer and modem to the car battery. The Phreaker's Five could now call any computer without being traced or billed. The phone call charges would appear at the end of a local resident's phone bill. Telecom did not itemise residential telephone bills at the time. True, it was a major drama to zoom around suburban streets in the middle of the night with computers, alligator clips and battery adaptors in tow, but that didn't matter so much. In fact, the thrill of such a cloak-and-dagger operation was as good as the actual hacking itself. It was illicit. In the phreakers' own eyes, it was clever. And therefore it was fun.

Craig Bowen didn't think much of the Phreakers Five's style of phreaking. In fact, the whole growth of phreaking as a pastime depressed him a bit. He believed it just didn't require the technical skills of proper hacking. Hacking was, in his view, about the exploration of a brave new world of computers. Phreaking was, well, a bit beneath a good hacker. Somehow it demeaned the task at hand.

Still, he could see how in some cases it was necessary in order to continue hacking. Most people in the underground developed some basic skills in phreaking, though people like Bowen always viewed it more as a means to an end--just a way of getting from computer A to computer B, nothing more. Nonetheless, he allowed phreaking discussion areas in the private sections of PI.

What he refused to allow was discussion areas around credit card fraud. Carding was anathema to Bowen and he watched with alarm as some members of the underground began to shift from phreaking into carding.

Like the transition into phreaking, the move into carding was a logical progression. It occurred over a period of perhaps six months in 1988 and was as obvious as a group of giggling schoolgirls.

Many phreakers saw it simply as another type of phreaking. In fact it was a lot less ha.s.sle than manipulating some company's PABX. Instead, you just call up an operator, give him some stranger's credit card number to pay for the call, and you were on your way. Of course, the credit cards had a broader range of uses than the PABXes. The advent of carding meant you could telephone your friends in the US or UK and have a long voice conference call with all of them simultaneously--something which could be a lot tougher to arrange on a PABX. There were other benefits. You could actually charge things with that credit card. As in goods. Mail order goods.

One member of the underground who used the handle Ivan Trotsky, allegedly ordered $50000 worth of goods, including a jet ski, from the US on a stolen card, only to leave it sitting on the Australian docks.

The Customs guys don't tend to take stolen credit cards for duty payments. In another instance, Trotsky was allegedly more successful.

A try-hard hacker who kept pictures of Karl Marx and Lenin taped to the side of his computer terminal, Trotsky regularly spewed communist doctrine across the underground. A self-contained paradox, he spent his time attending Communist Party of Australia meetings and duck shoots. According to one hacker, Trotsky's particular contribution to the overthrow of the capitalist order was the arrangement of a shipment of expensive modems from the US using stolen credit cards. He was rumoured to have made a tidy profit by selling the modems in the computer community for about $200 each. Apparently, being part of the communist revolution gave him all sorts of ready-made rationalisations. Membership has its advantages.

To Bowen, carding was little more than theft. Hacking may have been a moral issue, but in early 1988 in Australia it was not yet much of a legal one. Carding was by contrast both a moral and a legal issue.

Bowen recognised that some people viewed hacking as a type of theft--stealing someone else's computer resources--but the argument was ambiguous. What if no-one needed those resources at 2 a.m. on a given night? It might be seen more as 'borrowing' an under-used a.s.set, since the hacker had not permanently appropriated any property. Not so for carding.

What made carding even less n.o.ble was that it required the technical skill of a wind-up toy. Not only was it beneath most good hackers, it attracted the wrong sort of people into the hacking scene. People who had little or no respect for the early Australian underground's golden rules of hacking: don't damage computer systems you break into (including crashing them); don't change the information in those systems (except for altering logs to cover your tracks); and share information. For most early Australian hackers, visiting someone else's system was a bit like visiting a national park. Leave it as you find it.

While the cream seemed to rise to the top of the hacking hierarchy, it was the sc.u.m that floated at the top of the carding community. Few people in the underground typified this more completely than Blue Thunder, who had been hanging around the outskirts of the Melbourne underground since at least 1986. The senior hackers treated Blue Blunder, as they sometimes called him, with great derision.

His entrance into the underground was as ignominious as that of a debutante who, delicately descending the grand steps of the ballroom, trips and tumbles head-first onto the dance floor. He picked a fight with the grande doyenne of the Melbourne underground.

The Real Article occupied a special place in the underground. For starters, The Real Article was a woman--perhaps the only female to play a major role in the early Melbourne underground scene. Although she didn't hack computers, she knew a lot about them. She ran The Real Connection, a BBS frequented by many of the hackers who hung out on PI. She wasn't somebody's sister wafting in and out of the picture in search of a boyfriend. She was older. She was as good as married. She had kids. She was a force to be reckoned with in the hacking community.

Forthright and formidable, The Real Article commanded considerable respect among the underground. A good indicator of this respect was the fact that the members of H.A.C.K. had inducted her as an honorary member of their exclusive club. Perhaps it was because she ran a popular board. More likely it was because, for all their bluff and bl.u.s.ter, most hackers were young men with the problems of young men. Being older and wiser, The Real Article knew how to lend a sympathetic ear to those problems. As a woman and a non-hacker, she was removed from the jumble of male ego hierarchical problems a.s.sociated with confiding in a peer. She served as a sort of mother to the embryonic hacking community, but she was young enough to avoid the judgmental pitfalls most parents fall into with children.

The Real Article and Blue Thunder went into partnership running a BBS in early 1986. Blue Thunder, then a high-school student, was desperate to run a board, so she let him co-sysop the system. At first the partnership worked. Blue Thunder used to bring his high-school essays over for her to proofread and correct. But a short time into the partnership, it went sour. The Real Article didn't like Blue Thunder's approach to running a BBS, which appeared to her to be get information from other hackers and then dump them. The specific strategy seemed to be: get hackers to logon and store their valuable information on the BBS, steal that information and then lock them out of their own account. By locking them out, he was able to steal all the glory; he could then claim the hacking secrets were his own. It was, in her opinion, not only unsustainable, but quite immoral. She parted ways with Blue Thunder and excommunicated him from her BBS.

Not long after, The Real Article started getting hara.s.sing phone calls at 4 in the morning. The calls were relentless. Four a.m. on the dot, every night. The voice at the other end of the line was computer synthesised. This was followed by a picture of a machine-gun, printed out on a cheap dot matrix printer in Commodore ASCII, delivered in her letterbox. There was a threatening message attached which read something like, 'If you want the kids to stay alive, get them out of the house'.

After that came the brick through the window. It landed in the back of her TV. Then she woke up one morning to find her phone line dead.

Someone had opened the Telecom well in the nature strip across the road and cut out a metre of cable. It meant the phone lines for the entire street were down.