United States General Accounting Office
 _____________________________________________________________________________
 GAO                    Testimony

                        Before the Subcommittee on Government Information and
                        Regulation, Committee on Governmental Affairs,
                        United States Senate

 _____________________________________________________________________________
 For Release            COMPUTER
 on Delivery            SECURITY
 Expected at
 1:00 p.m. EST
 Wednesday,
 November 20, 1991




                        Hackers Penetrate DOD
                        Computer Systems



                        Statement of
                        Jack L. Brock, Jr. Director
                        Government Information and Financial Management
                        Information Management and Technology Division
























 GAO/T-IMTEC-92-5
 _____________________________________________________________________________







         Mr. Chairman and Members of the Subcommittee:

         I am pleased to participate in the Subcommittee's hearings on
         computer security.  At your request, our work focused on hacker
         intrusions into Department of Defense (DOD) unclassified,
         sensitive computer systems during Operation Desert Storm/Shield.
         My testimony today is based on our review of intrusions by a
         group of Dutch hackers into Army, Navy, and Air Force computer
         systems.  In particular, we conducted a detailed review of the
         hacker intrusions and system administration responsibilities at
         three DOD sites.  While our focus was on unclassified, sensitive
         systems, some of the systems penetrated by this group of hackers
         did not contain sensitive information.

         The government faces increased levels of risk for information
         security because of greater network use and computer literacy,
         and greater dependency on information technology overall.  For
         years hackers have been exploiting security weaknesses of systems
         attached to the Internet--an unclassified network composed of
         over 5,000 smaller networks nationwide and overseas and used
         primarily by government and academic researchers.  Their
         techniques have been publicized in hacker bulletin boards and
         magazines, and even in a bestseller, The Cuckoo's Egg written by
         Clifford Stoll.  Hackers, however, continue to successfully
         exploit these security weaknesses and undermine the integrity and
         confidentiality of sensitive government information.

         Between April 1990 and May 1991, computer systems at 34 DOD sites
         attached to the Internet were successfully penetrated by foreign
         hackers.  The hackers exploited well-known security weaknesses--
         many of which were exploited in the past by other hacker groups.
         These weaknesses persist because of inadequate attention to
         computer security, such as password management, and the lack of
         technical expertise on the part of some system administrators--
         persons responsible for the technical management of the system.

         DUTCH HACKERS PENETRATE
         -----------------------
         DOD COMPUTER SYSTEMS
         --------------------
         Between April 1990 and May 1991, computer hackers from the
         Netherlands penetrated 34 DOD sites.  DOD officials, however, are
         still unable to determine the full scope of the problem because
         security measures for identifying intrusions are frequently
         lacking.  At many of the sites, the hackers had access to
         unclassified, sensitive information on such topics as (1)
         military personnel--personnel performance reports, travel
         information, and personnel reductions; (2) logistics--
         descriptions of the type and quantity of equipment being moved;
         and (3) weapons systems development data.

         Although such information is unclassified, it can be highly
         sensitive, particularly during times of international conflict.
         For example, information from at least one system, which was







         successfully penetrated at several sites, directly supported
         Operation Desert Storm/Shield.  In addition, according to one DOD
         official, personnel information can be used to target employees
         who may be willing to sell classified information.  Further, some
         DOD and government officials have expressed concern that the
         aggregation of unclassified, sensitive information could result
         in the compromise of classified information.

         Hackers Exploit Well-Known
         --------------------------
         Security Weaknesses
         -------------------
         The hackers generally gained access to the DOD computer systems
         by travelling through several networks and computer systems.
         Using commercial long-distance services, such as Tymnet, the
         hackers weaved their way on the Internet through university,
         government, and commercial systems, often using these sites as
         platforms to enter military sites.

         The hackers then exploited various security weaknesses to gain
         access into military sites.  The most common weaknesses included
         (1) accounts with easily guessed passwords or no passwords, (2)
         well-known security holes in computer operating systems, and (3)
         vendor-supplied accounts--privileged accounts with well-known
         passwords or no passwords at all that are used for system
         operation and maintenance.  Once the hackers had access to a
         computer at a given site, access to other computers at that site
         was relatively easy because the computers were often configured
         to trust one another.

         At several sites the hackers exploited a Trivial File Transfer
         Protocol#1 (TFTP).  Some versions of this program had a well-
         known security hole that allowed users on the Internet to access
         a file containing encrypted passwords without logging into the
         system.  Once the hackers accessed the password file, they (1)
         probed for accounts with no passwords or accounts where the
         username and password were identical, or (2) downloaded the
         password file to another computer and ran a password cracking
         program--a program that matches words found in the dictionary
         against the encrypted password file.  Finally, the hackers
         entered the system, using an authorized account and password, and
         were granted the same privileges as the authorized user.

         At two of the sites we visited the hackers were able to enter the
         systems because vendor-supplied accounts were left on the system
         with a well-known password or with no password at all.  Operating
         systems and software are often delivered to users with certain
         accounts necessary for system operation.  When delivered, these

         _________________________________________________________________
         1 TFTP is a file transfer program that permits the copying of
         files without logging in.

                                         3







         accounts--some of which include system administrator privileges
         that allow them to do anything on the system without restriction-
         -are often unprotected or are protected with known passwords, and
         are therefore vulnerable until the password is changed.

         Hackers Established
         -------------------
         Methods For Reentry
         -------------------
         The majority of the hackers' activities appeared to be aimed at
         gaining access to DOD computer systems and then establishing
         methods for later entry.  In many of the intrusions, the hackers
         modified the system to obtain system administrator privileges and
         to create new privileged accounts.  For example, at some sites
         where the hacker entered the system using a vendor-supplied
         password, the hackers ran a program that elevated the privileges
         of the account and then erased evidence of the intrusion by
         removing the program.  The hackers then created new privileged
         accounts with passwords known only to them and that blended in
         with the sites' naming conventions, making detection more
         difficult.

         While there was little evidence that the hackers destroyed
         information, in several instances the hackers modified and copied
         military information.  In a few cases, the hackers stored this
         information at major U.S. universities.  They modified system
         logs to avoid detection and to remove traces of their activities.
         The hackers also frequently browsed directories and read
         electronic messages.  In a few cases, they searched these
         messages for such key words as military, nuclear, weapons,
         missile, Desert Shield, and Desert Storm.

         Agencies' Response
         ------------------
         to the Incidents
         ----------------
         In most cases, system administrators did not identify the
         intrusion, but were instead notified of the intrusion by
         university, contractor, or DOD officials.  Once the system
         administrators were notified, they usually secured their system--
         such as changing the password of a vendor-supplied account.  In a
         few cases, however, the sites left the vulnerability open
         temporarily in an effort to determine the intruder's identity.
         At one site we visited where this was done, the intruders' access
         to sensitive information was contained, and coordinated with law
         enforcement agencies.

         Only one of the three military services had written procedures
         for incident handling prior to the intrusions.  Since the
         intrusions, however, the other two services have established
         written procedures.  Despite the lack of procedures, at two of
         the sites we visited security personnel prepared an incident

                                         4







         report after they were notified about the intrusion.   In
         addition, one site we visited established computer hacker
         reporting procedures for their organization.  They also included
         security tips, such as changing default passwords, using
         randomly-selected passwords, and maintaining audit trails.

         HACKER INTRUSIONS HIGHLIGHT
         ---------------------------
         INADEQUATE ATTENTION TO
         -----------------------
         COMPUTER SECURITY
         -----------------
         The security weaknesses that permitted the intrusions and
         prevented their timely discovery highlight DOD's inadequate
         attention to computer security.  Poor password management,
         failure to maintain and review audit trails, and inadequate
         computer security training all contributed to the intrusions.

         DOD directives and military service regulations and instructions
         require both adequate computer security training for those
         responsible for systems, and audit trails--records of system
         activities--that are reviewed periodically and detailed enough to
         determine the cause or magnitude of compromise.  In addition, the
         military services require password management procedures.  The
         intrusions, however, indicate that these requirements were not
         always followed.

         Poor password management--easily-guessed passwords and vendor-
         supplied accounts whose password had not been changed--was the
         most commonly exploited weakness contributing to the intrusions,
         including those at each of the sites we visited.   At one site we
         visited the hacker exploited a vendor-supplied account, left on
         the system without a password, that in turn provided system
         administrator privileges.

         In addition, officials also noted that failure to maintain or
         periodically review audit trails was a key reason why most system
         administrators were unable to detect the intrusions or determine
         how long their system had been compromised.  For example, few of
         the 34 sites whose systems were penetrated were able to identify
         or verify the intrusions.

         Several officials stated that system administration duties are
         generally part-time duties and that administrators frequently
         have little computer security background or training.  At one
         site, for example, the system administrator had little knowledge
         of computers and system administrator responsibilities.  In
         addition, with the exception of a brief overview of computer
         security as part of the introductory training for the system, the
         system administrator had not received any computer security
         training.  Moreover, after the intrusion occurred, the newly
         appointed system administrator did not receive any additional

                                         5







         computer security training and did not know the proper security
         reporting chain.

         The security weaknesses that I have described here today have
         been and continue to be exploited by various hacker groups.  Two
         years ago we issued a report, Computer Security:  Virus
         Highlights Need for Improved Internet Management, (GAO/IMTEC-89-
         57), highlighting some of the same weaknesses--poor password
         management and system administrators who lacked the technical
         expertise to deal with security problems--that we discussed here
         today.  In addition, numerous Computer Emergency Response Team
         (CERT) security advisories, available to anyone on the Internet,
         have addressed these weaknesses.  Yet, despite these warnings,
         these security weaknesses continue to exist.  Without the proper
         resources and attention, these weaknesses will continue to exist
         and be exploited, thus undermining the integrity and
         confidentiality of government information.

         This concludes my remarks.  I will now answer any questions you
         or members of the Subcommittee may have concerning these issues.

































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