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From: InfoSec News (isn_at_c4i.org)
Date: Mon Oct 14 2002 - 02:12:42 CDT

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    http://www.thisislondon.com/news/business/articles/timid54179

    Lauren Chambliss in New York
    14 October 2002

    BY THE mid-1990s, when still in his twenties, computer hacker
    Christopher Tarnovsky already had the cyber equivalent of a PhD, a
    skill for pirating satellite technology and the nickname to match -
    the Big Gun.

    Now 31, Tarnovsky, has emerged as a central figure in a civil lawsuit
    and a US Justice Department investigation in California, where the
    murky world of corporate espionage is attracting authorities'
    attention and turning into a public relations and legal nightmare for
    Rupert Murdoch's News Corporation.

    News offshoot NDS, one of the satellite industry's top anti-piracy
    firms, hired Tarnovsky in 1997. Technology companies often lure
    talented hackers to help them build security-proof systems, figuring
    what better way to keep out thieves than to use their expertise to
    erect a more secure system. But employing the Big Gun has backfired on
    NDS, which last week received 31 subpoenas from the US Justice
    Department.

    While working at NDS, Tarnovsky was known as Mike Smith, maintaining a
    fake identity so that he could frequent hacker hotbeds without
    revealing his cross-over into the corporate world. The Justice
    Department is investigating whether there is merit to allegations by
    Vivendi Universal and Echo-Star Communications - two of the biggest
    satellite dish providers - that Tarnovsky did not end his pirating
    ways after being hired.

    NDS's rivals claim Tarnovsky continued to filter information to
    websites frequented by cyber hackers, enabling TV thieves to create
    false smart cards and, ultimately, to access pay TV free.

    Over the years, a flood of counterfeit smart cards robbed Canal Plus
    of more than $1bn and eventually helped cost former chief executive
    Jean-Marie Messier his job. Canal Plus was among Vivendi's
    under-performing units that caused the board to lose confidence in
    Messier.

    Vivendi recently pulled out of a civil suit filed against NDS after
    News agreed to buy a major stake in Vivendi's Italian pay TV unit. But
    the Justice Department continues to investigate NDS, led by chief
    executive Abraham Peled, and Tarnovsky.

    The corporate spy received his early training in computer technology
    courtesy of the US Army, where he had top-secret clearance as a
    satellite communications specialist in the mid-1990s while posted in
    Germany. At the time, Germany was well known as a haven for hacker
    activity through the Kaos Computer Club.

    Although Tarnovsky has never been charged with a crime, before
    secretly joining NDS he was thought to have been a programmer for a
    Canadian counterfeiter Ron Ereiser, who openly sold bogus smart cards
    that allowed users to bypass satellite TV providers and access the
    service for nothing.

    NDS is standing by its man, supplying him with an attorney and
    insisting his only job has been to make their newest smart cards
    resistant to cyber attack. In a Press release, NDS said the charges
    were 'baseless and motivated by a desire on the part of certain
    persons and entities to cause harm to NDS and to thwart legitimate
    competition'.

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