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CNN Today

Hackers Penetrate Microsoft Company Computer Network

Aired October 27, 2000 - 2:10 p.m. ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

LOU WATERS, CNN ANCHOR: Unknown hackers have penetrated the electronic blueprints behind some of the world's best-known computer programs made by Microsoft. The FBI is investigating what Microsoft officials say is a "deplorable act of industrial espionage."

Joining us now with the latest on the hijacking of Microsoft, CNN science correspondent Ann Kellan.

What happened, Ann?

ANN KELLAN, CNN SCIENCE CORRESPONDENT: Well, basically, people have been trying and trying this for years, Lou. But this is basically the first known time that anybody is able to infiltrate Microsoft's company computer network.

According to security experts, hackers used an infectious program. It's called QAZ. And they have -- may have snuck in through e-mail. They get Microsoft, they send this e-mail to a Microsoft employee and then it gives them access to the computer. They get passwords and they can access the system.

In this case, they got the blueprints for its latest versions of Windows and Office.

WATERS: Should that be of concern to those of us who use Microsoft?

KELLAN: Well, I think it is a concern, but Microsoft isn't saying much. As you said, the FBI is involved in the investigation. But Microsoft is saying their software has not been compromised. Security experts say you can bet Microsoft now is scouring these products to make sure someone isn't sneaking in another malicious code to give access to this new product.

WATERS: So I assume that the problem is still ongoing for Microsoft.

KELLAN: Absolutely. It's a puzzle for all the security experts because there is a way to block the QAZ now if you got it in your e- mail. For example, a program could automatically just wipe it out. But there's always new codes and new ways to break in.

(BEGIN VIDEO CLIP) CHRIS ROULAND, INTERNET SECURITY SYSTEMS: Internet security is, in a general state, very weak right now. I'd kind of rate it probably as a D on a grading scale. There are so many new ways to break into computers now. We saw a few years ago only a few different ways a month hackers found to break into computers. In 2000, in the year 2000, we're seeing over 100 ways to break into a computer every month. So over three ways a day.

(END VIDEO CLIP)

KELLAN: Keeps them busy. According to Rouland, it could be difficult to catch these thieves as well because even though it's reported that they've traced secret information leaving Microsoft to St. Petersburg, Russia, that could be just one of many stops where this code could be going, which means finding the thieves will be difficult.

WATERS: What could be the...

KELLAN: Motive?

WATERS: ... the motivation for this?

KELLAN: Well, knowing Microsoft's secret code and how their whole system works is valuable information for a lot of people. They could use it to threaten Microsoft or say, we have this code, pay us this, or they could do a lot of things. They could put it out in the open market. It's like having something proprietary out there in the open market.

WATERS: So the FBI is on the case, and I imagine the list of suspects would go on forever.

KELLAN: It's a troubling one. It's a challenge.

WATERS: All right, Ann Kellan. OK, we'll follow this story, Ann.

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