Hackers infiltrate Microsoft's network

October 27, 2000___________________________________________________________

 By Michael J. Martinez
The Associated Press
October 27, 2000 9:13 a.m. CDT

SEATTLE (AP) -- Hackers broke into Microsoft
Corp.'s computer network and may have stolen
blueprints to the latest versions of the company's
Windows and Office software.

Microsoft confirmed the electronic break-in late
Thursday night and said it was working with law
enforcement to investigate.

Microsoft spokesman Rick Miller would not
confirm whether the hackers may have accessed
any of Microsoft's source code, the blueprints for
such products as the Windows operating system.

"We're still looking into it. We're still trying to figure
out how it happened," Miller said. "This is a
deplorable act of industrial espionage and we will
work to protect our intellectual property."

Miller said there was no evidence that any source
code for Windows or other commercial software
made by Microsoft had been modified or corrupted
since the company's computer system had been
broken into.

The break-in was discovered Wednesday by the
software giant's security employees, according to
The Wall Street Journal, which first reported the
story, citing people familiar with the situation.

Security employees discovered that passwords
used to transfer the source code behind Microsoft's
software were being sent from the company's
computer network in Redmond, Wash., to an
e-mail account in St. Petersburg, Russia, the
Journal reported.

The identities of the hackers are unknown. They
are believed to have had access to the software
codes for three months.

A person familiar with the break-in told the Journal
that it appeared the hackers accessed Microsoft's
system by e-mailing software, called QAZ Trojan,
to the company's network and then opening a
so-called back door through the infected computer.

In hacking terms, a "trojan" is quite similar to the
Trojan Horse of Greek mythology. It looks like a
normal attachment in an e-mail, such as a Word
document or picture, but contains a hidden code
that can, in effect, take limited control of the
recipient's computer.

Once inside, the hacker software can be used to
deliver passwords from one computer to another or
even destroy files.

Microsoft is making sure the hackers cannot use
the stolen source code to change commercial
software used by businesses, governments and
consumers. The risk is said to be remote.

Microsoft was planning to investigate the break-in
without help from law enforcement authorities, the
Journal reported, but the company contacted the
FBI on Thursday.

The FBI declined comment when contacted early
today by The Associated Press. 

Copyright 2000 The Associated Press