Kevin Poulsen, former hacker and currently Senior Editor at Wired.com, gives a captivating talk at RSA Conference on the intricate story of the cyber criminal named Max Ray Vision (Max Butler) who ended up going from white hat to black hat.
Thanks for coming, everybody. So, as you’ve heard, I’m a journalist, I’ve been at Wired for about 6 years, and before that I was at the securityfocus.com and I’ve done freelancing for magazines and the like. And if you go back far enough, I’m also a former black hat hacker, though the word didn’t really exist back then – it was a long time ago. I was into the phone company extensively, which means both I liked the phone company and I was into them, so I was into the switching systems and the ordering systems, and all the testing systems. And it started off as a purely recreational thing, an extension of the phone freaking – it began before I was born, and by the end I found a way to monetize it: I started using my access to phone company switches to cheat at radio station phone-in contests. By today’s standards of cyber crime it was kind of slim pickings, but I got like a Porsche and a bunch of trips to Hawaii, and some cash, in total like 70,000 dollars.
I got caught, should have mentioned that part, and I ended up serving about 5 years in jail, it was all pre-trial custody, I was ultimately sentenced to time served and released. When I got out, I was not allowed to use computers connected to the Internet for a time; I worked as a canvasser for a political organization and I started doing freelance writing, and that eventually turned into a journalism career because once you’re convicted felon, how can you possibly sink any lower than to become a reporter?
So I’ve covered over the years a huge number of hackers and hacker gangs, and law enforcement people that have tracked them, and I found the subject fascinating, not just because of my own past, but because of the way the cybercrime scene has evolved. And when it came time for me to write a book, it was about this particular hacker who I found particularly interesting because he kind of epitomized himself the transition that we have all seen over the last decade of hacking as being primarily recreational thing, the kids doing it in their bedrooms like Matthew Broderick in “WarGames”, to being a professional criminal enterprise.
So the white hat part of Max was very concerned about this, because he believed nobody was going to patch it, which was not at the time an unreasonable thing to assume. He’d begun doing some consulting for the FBI, and he actually got on the phone and called the FBI agent he worked with at home to say: “Hey, this is a major vulnerability and I’ll tell you what: the militaries can be particularly vulnerable, because there is no way that they are going to be on top of this.” He felt like they didn’t take him seriously enough, so he decided to write a program that would scan IP ranges and look for this vulnerability, exploit the vulnerability, go in and patch it automatically. So he ran this and he targeted in particular government agencies and military IP ranges.
So this thing got everywhere, there was never a final count on how many systems were affected, but it was in the thousands, which, again, in the late 90s was a pretty big number, and he basically made a lot of air force bases and cabinet agencies, and these all sorts of government networks more secure in a way, because they’d had this vulnerability before, and now, after this code ran, they didn’t have this vulnerability. But here he had a little bit of black hat in him, and he couldn’t resist also installing a rootkit on all of these systems with a packet sniffer and a backdoor, and he could come in at any time. He actually had an email conversation with one of his victims who had discovered this activity; he sent him an email from the root account on this administrator’s own system and said:
– Hey, congratulations on spotting this, but I think you’re overreacting.
– Yes, I put backdoors on all these systems, but before – they could be hacked by anybody, now they can only be hacked by me, so I’ve made the Internet a safer place.
Max was naive. So he thought that because he had good motives and because he was a nice guy that nobody would be terribly alarmed by this. He was doing it anonymously, of course, but he didn’t really cover his tracks so much. He had his rootkit program to report back to him every time it infected a system. At one point, when he got into the Navy’s IP range, he got so many pings from these cracked systems that his own computer crashed.And it was very easy for them to track him down from that feedback mechanism. So they wind up knocking at his door, it was the same FBI agent that he’d been working with plus a guy from the air force who’s done the detective work, and he immediately started apologizing and he confessed to everything. They tried to turn him at that point into an informer, they wanted him to go to Defcon and start gathering information on Defcon attendees. He was kind of well-respected as a white hat at the time, he also had one foot in the black hat community, so they thought that he could gather information. Then they asked him to wear a wire on one of his friends, he refused – and they charged him. So he wound up going here, to the Federal Correction Institute in Taft in Central California in the middle of nowhere as you can see, for an 18-month stretch.