-Caveat Lector-

Hackers Break Into Microsoft's Computer Network
Blueprints to Latest Versions of  Windows and Office Software May Have Been
Stolen
Get Quote, Company Info: <A HREF="aol://4785:MSFT">MSFT</A>
By MICHAEL J. MARTINEZ
.c The Associated Press

SEATTLE (Oct. 27) - 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 Friday by The Associated Press.


AP-NY-10-27-00 0833EDT

Copyright 2000 The Associated Press. The information contained in the AP news
report may not be published, broadcast, rewritten or otherwise distributed
without the prior written authority of The Associated Press.  All active
hyperlinks have been inserted by AOL.

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