Computer Search Warrants Executed in Various Cities Across The Nation

Phoenix -- Wednesday, May 9, 1990  -- Stephen M. McNamee, United States Attorney District of Arizona, Robert K. Corbin, Attorney General for the State of Arizona, and Henry R. Potosky, Acting Special Agent in Charge of the United States Secret Service Office in Phoenix, today announced that approximately twenty-seven search warrants were executed on Monday and Tuesday, May 7 and 8, 1990, in various cities across the nation by 150 Secret Service agents along with state and local law enforcement officials. The warrants were issued as a part of Operation Sundevil, which was a two year investigation into alleged illegal computer hacking activities.

The United States Secret Service, in cooperation with the United States Attorney's Office, and the Attorney General for the State of Arizona, established an operation utilizing sophisticated investigative techniques, targeting computer hackers who were alleged to have trafficked in and abuse stolen credit card numbers, unauthorized long distance dialing codes, and who conduct unauthorized access and damage to computers. While the total amount of losses cannot be calculated at this time, it is estimated that the losses may run into the millions of dollars. For example, the unauthorized accessing of long distance telephone credit cards have resulted in uncollectible charges. The same is true of the use of stolen credit card numbers. Individuals are able to utilize the charge accounts to purchase items for which no payment is made.

Federal search warrants were executed in the following cities:

Chicago, IL
Cincinatti, OH
Detroit, MI
Los Angeles, CA
Miami, FL
Newark, NJ
New York, NY
Phoenix, AZ
Pittsburgh, PA
Plano, TX
Richmond, VA
San Diego, CA
San Jose, CA

Unlawful computer hacking imperils the health and welfare of individuals, corporations and government agencies in the United States who rely on computers and telephones to communicate.

Technical and expert assistance was provided to the United States Secret Service by telecommunication companies including Pac Bel, AT&T, Bellcore, Bell South, MCI, U.S. Sprint, Mid-American, Southwestern Bell, NYNEX, U.S. West, and by the many corporate victims. All are to be commended for their efforts for their efforts in researching intrusions and documenting losses.

McNamee and Corbin expressed concern that the improper and alleged illegal use of computers may become the White Collar crime of the 1990's. McNamee and Corbin reiterated that the state and federal government will vigorously pursue criminal violations of statutes under their jurisdiction. Three individuals were arrested yesterday in other jurisdictions on collateral or independent state charges. The investigations surrounding the activities of Operation Sundevil are continuing.

The investigations are being conducted by agents of the United States Secret Service and Assistant United States Attorney Tim Holtzen, District of Arizona, and Assistant Arizona Attorney General Gail Thackery.

Attorney General Bob Corbin Announced Computer Search Warrants

United States Attorney's Office -- May 9, 1990 -- Attorney General Bob Corbin announced today that in connection with an eighteen-month joint investigation into computer crime conducted with the United States Secret Service and the United States Attorney's office, the Arizona Attorney General's office has executed seven search warrants in which computers, electronic bulletin boards, telephone test equipment and records have been seized.

The Organized Crime and Racketeering Division investigation involved complaints by Arizona and out of state victims of substantial financial losses resulting from credit card fraud and theft of long distance telephone and data communications services, and by victims of attacks on computer systems operated by government agencies, private corporations, telephone companies, financial institutions, credit bureaus, and a hospital.

The Arizona Attorney General's office received information and technical assistance from the Glendale, Arizona Police Department's Computer Crime Unit, and from many private sector sources, including Bellcore (Bell Communications Research), American Express, Communications carriers U.S. Sprint, AT&T, MCI, Com Systems, MidAmerican Communications, LDL Communications, and Shared Use Network. Without the cooperation of these companies and of numerous federal, state and local law enforcement agencies around the country, this investigation would have been impossible.

The privacy of our citizens and the health of our economy depend upon secure, reliable computer systems. Computer fraud and attempts to compromise sensitive public and private computer systems will not be tolerated. Individuals who commit these offenses in Arizona can expect to be prosecuted.