08x39 - Hack Attack

Episode transcripts for the TV show, "Forensic Files". Aired: April 23, 1996 – June 17, 2011.*
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Documentary that reveals how forensic science is used to solve violent crimes, mysterious accidents, and outbreaks of illness.
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08x39 - Hack Attack

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a mysterious computer crash pushes a

thriving manufacturing company to the

brink of collapse jeopardizing the jobs

of dozens of employees there is no

apparent cause no obvious clues forensic

investigators had to find out whether

the disaster was caused by a computer

defect human error or sabotage

today there are over 700 million

computers at work in the world any one

of those holds millions of records vital

to people governments and industries but

millions of pieces of information in one

small box can make that information mul

neural Omega engineering manufactured

hi-tech measurement devices for the

United States Navy NASA and clients

around the world

a state-of-the-art computer system at

their New Jersey plant enabled Omega to

quickly customize their products to suit

their customers needs the business was

growing and revenues were up then came

July 31st 1996 it was a bad day to make

on July 31st of 96 one of the workers

get in about 8:00 8:30 in the morning

went to his or her workstation like they

always did and they flipped on the

system they booted up the computer and

instead of coming on though it said

fixing and the worker didn't know what

was going on but fixing sounded pretty

positive so he let it run and within

seconds the machine was down but it

wasn't that one machine that was in

trouble the manufacturing equipment at

Omega got its instructions from the

computer server the brains of a

sophisticated system that could store

over 1,000 different programs those

1,000 programs built 25,000 different

products and they could customize those

products into 500,000 different pieces

so you're talking about everything that

the company can make

but now in the span of just a few

seconds omegas vital computer system had

crashed the plants manager tried to get

the server up and running again with no

luck

typically crucial files are periodically

copied from a server onto a backup tape

Omega thought they could restore the

missing programs from their backup and

the backup tape was kept in a filing

cabinet in the Human Resources office

but the tape wasn't there with no

computer programs to drive the

manufacturing process plant operators

had only one option to complete the jobs

that had already been started before the

crash just to keep the machines running

to keep producing to keep people working

they just kept producing until they ran

out of raw materials but they ultimately

created such a vast inventory of those

specific items that they couldn't

justify continuing anymore so they had

to shut the plant down one big problem

that Omega had was that they hadn't

hired a new network administrator the

former network administrator a longtime

employee named Tim Lloyd was now working

for another company he was the one who

actually built the network in the omegas

health plant he was the genesis of their

whole network he knew it inside and out

he built it and he was friends with

these people he was the designer for all

the computer programming he was the

overseer of of their network he

maintained that he secured it he

nurtured it the plant manager Jim

Ferguson called Lloyd to see if he could

help solve the serious problem with

omegas computer system did you come

across any uh you mentioned that you

might want to look in the bait you were

going to look in the basement for some

old tapes and backup technology okay

was there one tape or two tapes of

backups do it there was one tape that

was

filing cabinet drei Omega was teetering

on the brink of collapse

with hundreds of jobs at stake and no

clues about what had caused the

catastrophic shutdown of the computers

Omega engineering faced a crisis so

immense it could force the company out

of business two weeks earlier the

computer system that contained the plans

for all their products had inexplicably

crashed time was running out if Omega

couldn't get its computer system back up

layoffs would be inevitable what they

lost was the ability to manufacture and

when you're a manufacturing company

you're dead in the water

Omega hired Kroll Ontrack a Minnesota

based company that resurrects data from

crashed computers all over the world any

kind of media that actually store data

onto any time they lose access to this

or for some reason becomes unreadable we

get involved to help restore the data

Bob Hackett a computer forensic expert

began by examining the hard drive on

omegas server it's the heart of a

computer where information is

magnetically encoded on a disk spinning

at 10,000 revolutions for a minute

physically the hardware which could be a

hard drive or anything components used

to power or drive the hardware could

have failed but everything seemed to be

operational the drive was physically

undamaged but retrieving the data would

mean examining the electronic contents

contents that might reveal important

evidence but Omega management now

wondered if the crash might have been

sabotage

so to safeguard the hard drive they

turned it over to the Secret Service

experts in computer fraud The Secret

Service new hunting for the lost

programs might alter records on the

drive even just turning on a computer

alters or overwrite some of the

information from

forensic standpoint you don't want to

write to that hard drive the secret

service made an exact digital replica of

omegas hard drive a clone that enabled

on track to examine all the data stored

in the original what Ontrack

investigators discovered was startling

all that remained was fragmented

computer code mostly unintelligible even

to computer experts this indicated the

programs had not been simply deleted

deleting a computer file erases only the

name of the file the data actually

remains in the computer's memory until

it is replaced by something else so it's

often possible to recover the

information but in this case

investigators discovered that omegas

programs had not only been deleted they

had also been purged if we take the

analogy of a piece of paper on a desk if

I was to take that crumple it up and

throw it in the wastebasket

that would be cooled into a deletion on

a computer system I could still go grab

that piece of paper out of the garbage

can unfold it and look at it a purge

would take that same piece of paper run

it through a shredder take what came out

through the shredder throw it up in the

air

Omega's data could never be recovered

the focus now shifted to a forensic

investigation into how and why the data

was purged Greg Olson an expert in the

operating system used by Omega examined

the drive for signs of a virus a virus

corrupts data by inserting its own code

into whatever program is being run there

are no viruses that would cause this

particular damage user error was another

possibility

an accidental deletion very common we

find that a data loss has happened

because computer system system

administrators come in and reinstalled

an operating system or made a mistake by

reformatting a hard drive and I was able

to rule that out effect

by looking at the system that clearly

that that did not happen because the

deletion was to surgical to be

accidental only the key manufacturing

programs had been destroyed if it was

intentional

it could mean it was an inside job they

would have to know where these specific

programs are being kept it's not going

to be some kid home alone after school

who just randomly breaks into Omega

system and knows where those specific

files are you need someone who's on the

inside someone who knows where the keys

to the castle are hidden and they know

how to hurt the company The Secret

Service first looked at Tim Lloyd the

man who had designed omegas computer

system he had recently left Omega for a

job at another company supervisors had

given him a positive reference they said

he was a good worker they said that he

was excellent

technically they didn't want to prevent

him from getting another job

Lloyd had left omega three weeks before

the computer crash so he didn't have

access to the building to purge the

manufacturing programs on the day of the

crash they were kind of in a quandary as

to who else besides him could have done

it they thought maybe hacked in from the

outside but they said that they had

disconnected any contact from an outside

modem so they know that couldn't have

been done only supervisors had access to

omegas computer system at a level

necessary to cause this much damage but

there was a problem just about everybody

had supervisory rights and there were

even some a council was set up with a

name like one two three four five it's

really strange name with absolutely no

password so there was no security on

this which meant

that the perpetrator could have been

anyone

six months after the massive computer

crash Omega was struggling to stay

afloat how had its proprietary software

been completely deleted troll on tracks

Greg Olson an expert in the Novell

operating system that controlled the

server sifted the electronic flotsam of

the company's hard drive the problem is

is when you do a delete in the purge the

entire roadmap to know where this data

is is completely gone so it's literally

a needle in the haystack and impossible

to piece this information together all

your scene is a collection of letters

and numbers that don't really mean

anything

Olson relied on sophisticated software

to help him search for any suspicious

commands what I'm looking for is bits of

code that I know in the computer world

caused deletion in this particular case

what I when I was zeroing in on was any

type of a delete or even any type of a

purge so from here

you are search for purge

we have a hit where I really hit gold

was when I started taking hits on the

search for purge eventually Olsen found

a purge command tied to five other lines

of code that one seven thirty 96 all six

lines of these colder

it was a dangerously efficient bit of

programming we called it a time b*mb and

the actual fuse was six lines of code

and what it was is really a set of steps

that the computer would go through some

checks the first line simply checked the

date and compared it to July 30th 1996

the day before the server crash this

fuse can be attached to anybody that's

logging in so when you come in what the

fuse does is it checks the date and if

it's after the date and the fuse it

would actually light the time b*mb to

actually do the deletion the second line

of code accessed the server the third

line was a logon command for the

mysterious user one two three four five

a kind of computer ghost the

unsuspecting user and one two three four

five were logged in on the same machine

but one two three four five provided the

supervisory status needed to perform

deletions the next line accessed the

manufacturing programs the fifth line

launched a program labeled fix dot exe

when Olson looked at the code for this

program he found a troubling clue the

code had been generated from a commonly

available deletion program but it had

been reconfigured to fool anyone using

the system it did modify the intensive

deletion but the message that appears on

the screen that would normally say

deleting this file to leave this file

actually said fixing this file fixing

this file the code was also rewritten to

ignore safeguards automatically

answering yes to the question are you

sure you want to delete these files the

last line of code was the purge command

making the material unrecoverable

it would happen relatively fast you

could go get a cup of coffee read the

front page of the paper and come back

and it's all done it's all gone and all

the user had to do was turn on the

computer but Olson and Hackett found

other purge commands as well that one

has a test directory three similar sets

of code dated for February April and May

but they only deleted a useless test

folder which would have gone undetected

by the company what I deduced from that

is essentially this was somebody was

doing some testing of the application

this particular time b*mb to make sure

that it would work before it was truly

implemented and ready to go it appeared

the tests were done while omegas former

computer manager Tim Lloyd was still at

the company The Secret Service ran a

background check and learned that Lloyd

had been disciplined for run-ins with

coworkers shortly before leaving the

company there was conflict that broke

out between other employees between

management between supervisors he would

bottleneck projects just because he was

in charge of the projects that he hadn't

tested projects before they went into

production and so there were a lot of

problems one person even testified that

he had elbowed a female co-worker in the

workplace on August 21st Secret Service

agents searched Lloyd's home and garage

looking for evidence to tie him to the

malicious code

they found circuit boards computers more

than 500 disks several hard drives and

data tapes what immediately stuck out

was a tape labeled backup with the dates

May 14 1996 and July 1st 1996

authorities suspected it was the missing

backup tape

megha but it was blank the dates that we

found on some of the tapes had a format

date of early August we learned that the

backup tape had been reformatted or

essentially erased a matter of days

before the search warrant was ex*cuted

the next thing we had to do was try to

establish additional evidence that would

support our theory that Lord was the guy

so what we did was for example once was

time cards Lloyd's time card showed that

he worked late on days in February April

and May each time just prior to the test

runs of the time b*mb then Hackett and

Olson found a copy of the time b*mb on

one of Lloyd's hard drives

so the same lines of code that on-track

had pieced together from the downed

server they found those lines intact in

Tim's home a relatively new statute made

computer sabotage a federal offense if

it affected a computer used in

interstate commerce and caused more than

five thousand dollars worth of damage

Tim Lloyd was indicted by a grand jury

his case would be the first test of the

new law prosecutors in New Jersey say

the computer crashed

devastated Omega engineering leading to

10 million dollars of lost business two

million dollars of reprogramming costs

and 80 employee layoffs probably done

less damage to the company if you had

done it with a real b*mb doesn't matter

really what happens to billing if your

data is gone it is a white-collar crime

but it's a very serious crime it's a non

violent crime but you know what you

don't know what the implications are

people losing their jobs you know maybe

maybe there was v*olence that occurred

as a result of some of these folks

losing their jobs maybe domestic

v*olence

Timothy Lloyd's four week trial began in

April 1998 it would be one of the first

criminal cases to explore the arcane

world of computer code how would an

attorney who hadn't before this had a

lot of technical expertise go into a

really high tech field and explain it to

a jury you're not going to show them

fingerprints you're not going to show

them smoking g*n or bag of coke at trial

prosecutors argue that Lloyd had fallen

out of favor with his supervisors and

grown resentful when he was reassigned

investigators had been able to prove

that Lloyd developed the time b*mb code

home then worked late so that he could

install and test the code in secret he

planned on quitting and was in the

process of interviewing with another

company when he was fired in fact he

told the recruiter at his new company

that everybody's job at Omega is in

jeopardy he made the remark on July 31st

the same day the computer crashed how

would he know that on the day that that

time b*mb nobody even had omegam do that

they thought they had a computer problem

that's all they knew

but everybody's job I think that that

was a remarkable find and something that

the jurors were able to pick up on the

most compelling evidence was the bits of

code the computer experts found and to

have this maliciously damage and delete

and purge all the data from this point

without really having any idea that this

was actually happening and to do it in

such a short and quick fashion was very

clever and he was gone being fired

actually helped him and he probably sat

back there and said now they'll never

connect me to this but we were able to

find a hard drive in his house that had

that command on it had we not found that

then he would have gotten away with it

once you find that at his house how do

you explain that away

the jury found Lloyd guilty various

appeals kept him free for almost four

years but in 2002 he began serving a

prison term of three and a half years

and ordered to pay two million dollars

in restitution

Lloyd claims he is innocent and that

someone at Omega accidentally deleted

the programs he says he could have

proved that at trial but his attorney

advised him not to take the stand he's

the consummate egotist I think he is

absolutely livid that he was discovered

I think that he was

fully intent on getting away with it in

fact I think consistent with his

personality he was actually prepared

perhaps to ride to the rescue I think

that there was point in time when he was

actually prepared to say I found it and

I'll ride to the rescue but I think when

Ferguson says we're bringing in the

Secret Service we're at a very very

serious stage we're actually bringing in

the federal authorities at this point I

don't blame me on that they've taken a

real genuine interest in coming in here

about a fact they may be in tomorrow I

think that that changed his mind

Omega engineering never fully recovered

but is still in business Kroll Ontrack

was given an award by the Secret Service

for the unique role they played in a

case that paved new legal ground it was

interesting simply because it was one of

the first cases of its type you know

that we had seen no mega made a lot of

technical mistakes but their biggest

mistakes were caused by human factors it

was because they trusted Tim it was

because they had real affection for Tim

and they thought that he was family and

you let family get away with a lot more

than you would anybody else you give him

a lot more rope to hang themselves with

Oh

Oh
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