R Eveint Coinputer Fraus Inces

Continuous ' M IT News-Service Ca robridge Since 1881 Massachusetts Volume 98,-Number 53 · · ~~ s~s~ ~1 ~ ~c~j~s~gl$~8`b-"le~l~ )11 ~e~pp~s~E Tuesday, November 14, 1978 © 1978The Tech RentReveInt coinputercoputer fraudsfraus Incesinceas By Bruce Kaplan at least attempt to crack the Computer fraud is one of system." Regarding computer America's fastest growing and / rauLd, he states, "people too often most lucrative types of crime. perceive of it as a glame." Within the last month, a com- The following are some of the puter expert has managed to steal mnajor scandals that have been un- $10.2 million from a West Coast co vered: bank by abusing his consultant's I) The Equity Funding Cor- I status. and breaking the bank's poration of America: Facing secret code. He had the Federal bankruptcy in 1970, this in- INSDE- .Reserve Bank transfer the money I surance firm used a computer to to an-account in Switzerland. systematically dupe reinsurance i} This and other well-publicized firms. Over a two year period, the The Farll Blood Drive was not crimes of a similar type are computer maillntained thousands as successful as its organizers suspected to be only the tip of the of fake policies. Using statistical had hoped. iceberg of this new type of white data describing such routine collar crime.- -'This is something events as deaths, claims, and .. that's going to bother us a lot in loans aggainst policies, the com- -- p2 the forseeable future," says Dr. pany made windfall profits. Total Joseph Weizenbaum, Professor of of the seam before it was un- I ·Computer Science at MIT. A number of organizations are covered: over iwo billion dollars. "Somebody had better know Graphic by Benson Margulies 2) Over a six year period, an trying to shed lighton world something about it." know a lot about computers and there is no course here that deals hunger problems. Many accountant for a'fruit and The question arises as to what they're generally smart people." with the topic. vegetable wholesaler had over one related events are forthcom- methods are being developed to Pfof. Weizenbaum feels that a While he doesn't know of any ing. million dollars paid to dummy detect and prevent these types of subject dealing with the topic is instance where MIT graduates firms which he had created. Using crimes. Specifically, what:is MIT probably a good idea. Such a sub- have been involved in this sort of the firm's own computer to pad doing to prepare its computer ject could be developed jointly by crime, Prof. Weizenbaum notes, ~~~~~~~~~~~~~~~~~... , prices by fractions of a cent and science graduates to deal with this his department and the Sloan "MIT students have been known likewise reduce income, his fraud problem'? "There is no subject [at School of Management. "Com- in the past to respond to what rmight still be undetected if he had M IT] where this forms part of the puter security is damn near a field they perceive to be challenges. not turned himself in. It seems Al Stewart brought his slickly - syllabus," added Prof. Weizen- of its own. Certainly, a young For example, if it is asserted that that he wanted out, but could not produced show to Boston last baum. "I think MIT people might person can plan to make a career a certain computer system at MIT stop without causing a surge in week. be better equipped to deal with out of computer security, which is is absolutely secure... then you corporate income, drawing atten- the computer crimes than most just the other side of the coin can be sure that some students tion to the fraud. 7ps people, in part, because they from computer fraud." However, will be challenged by it, and will ( lhtt. ' tflurn to page 3) . "- 17 , -. 1 - - I -EditOrs not.-This-&:heb ooger the, co--n- WV IERT no.t-.:Twaissrthefnt~Edirr's ai kigger.ook~gover-hec - problems' of the emplbyees. At 'sfi 0rthemtakesolong to be a series of interviews with,-MiT tract, Parr and James Fandel, onepoint, Fandelsaid,"Timer ff settleidm Fndehad clear Mostly cloudy today with. management and lab union of- Manager of Labor Relations, for union business was made an answer to this; he said that rmany highs in the mid 50's. Some ficials on the new con-tract were unable to find any vast issue bythe union because of a or'f the grievances were due t,o the light showers are possible late proposal. improvements. There were small restriction of a union represen- union members' "unstruclLured in the day. Lows tonight in the By Kate Williams changes, and at least one looked tative by a supervisor." He later jobs" and to "bargaining unit low 40's. Clearing tomorrow According to Michael Parr, to be disadvantageous to the'un- said, however, "I first proposed work being done by othters." somewhat; under partly sunny MIT's Assistant Manager of ion members. There were also no pay for [anyone working on Asked further about the pro)blem skies, highs'in the upper 50's. Labor Relations, the new three-' several clauses pertaining to ho, the] trievance process to get their of non-union people doingg the High clouds coming in year contract proposed for the the union is to do its business. [the union's] attention." same jobs as union worker rs, he Wednesday night with lows in Research, Development, and "Time off for union business is Fandel complained about the said, "It's a fantastically com- the low 40's, showers likely Technical Employees Union the only real question for large number of grievances filed plicated argument" and wvould . Thursday. Chance of rain 50 (RDTEU) contains "vastly bargaining" in the opinion of by the RDTEU, "about fifty in a not go into it. Nor could he ex- percent today and tonight, 30 improved pay" and benefits.". He Fandel. He also claimed that year. N other union files this plain whysome grievances take so percent tomorrow, 60 percent pointed to the 7 percent annual "this question only affects union many. And they take ai long time long to settle. He answere,d, "I Thursday. wage increase. When it was officials," and he did not answer to process." However he added "! don't want to say where the b)lame pointed out that the last contract the comment thatall members are don't want to say 'win' or 'lose' lies." had identical 7 percent increases, affected by the time off for union but we usually come out well in it is clear that a large paart of he admitted Chat the only business issue because thewas pur- thethat theend"enprovementlnstitute's eId. he nstitue'scontract latestlatest contract Ioffer improvement was that the base pose of union business is to solvmay conteresoWhvany thre are so manyconcerns union activity, espe,cially [ EXCg7-E:RTS .... j .. .. ..... ... ,, I RDTEU grievances, and why.do I i'eas.xe tarn lo page 3) To the Editor:' ,ara iIv0en 1---- ·r -_-1 --- P--- i wouldjust like to comment By Richmond Cohenri was as a deterrent to those who on the present epidemic of DotresMIT dormitory poorresidents do investment.,might otherwise damage their geekishness which is pervading not gain interest on their requ red rooms. They-said that prior to the the ranksof freshmen here at $50 dorm security deposits, due to year in which the security deposit the college. I should correct a law which omits dormitories requirement was implemented, myself and say that this rare from the "apartment" classifica- dorm residents were generally lax disease seems to have been an iions. Apartment deposits must about cleaning their rooms and integral aspect of the class of be paid interest. If MIT dorms repairing damages done to them. '81 ever since it set foot in this were included in this category, But with the instatement of the once geekfree environment. then in four years time, interest $50 deposit, a substantial decline To document my accusation on the deposits would accrue to in the amount of damage done in I cite the incredibly weak almost $28,500. rooms took place. The security showing in their first bonfire However, these $50 deposits deposit covers any damage done building, and now their even are not stored in the bank. Ac- above the "normal wear and weaker show in. their second cording to Mr. H. E. Brammer, tear." attempt. Director of Housing and Food According to Brammer, most Where-is all their spirit'? Most Services, they become part of the liketvly it's to be found in the of the damage done now consists MIT cash flow during months merely of holes in the walls. stacks, or Kiewit [Computa- when income intake is low. He ex- tion Center), or the '02 room However, he did say that substan- plained that if :this money were tial prices were paid by one perhaps. I just don't know deposited into the bank, a short- what to make of it all. former New House member who fall in the MIT financial system "lost" a chair that he had taken I challenge these geeks to would result. He added that if the show a little spirit and produce from the dornm and put in his $50 security deposit were not apartment. He was forced to buy an I81tier bonfire by Fridajy paid, the difference would be night. it would also be nice to a new chair for New House. More Comedian and political activist Dick Gregory addressed a crowd made up for in tuition.. He recently, some MacGregor resi- see a few kegs and some spirit calculated that the sum of all the of about 400 in Kresge Auditorium at an LSC sponsored lecture around their awaited creation dents are being charged with ruin- last Wednesday.

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