Operation Sundevil - Background

Background

Prior to 1990, people who manipulated telecommunication systems, known as phreakers, were generally not prosecuted within the United States. The majority of phreakers used software to obtain calling card numbers and built simple tone devices in order to make free telephone calls. A small elite, and highly technical segment of phreakers were more interested in information about the inner workings of the telecommunication system than in making free phone calls. Phone companies complained of financial losses from phreaking activities. The switch from analog to digital equipment began to expose more of the inner workings of telephone companies as hackers began to explore the inner workings, switches and trunks. Due to a lack of laws and expertise on the part of American law enforcement, few cases against hackers were prosecuted until Operation Sundevil.

However, starting in 1989, the US Secret Service (USS), which had been given authority from Congress to deal with access device fraud as an extension of wire fraud investigations under Title 18 (§ 1029), began to investigate. Over the course of the 18 month long investigation, the USS gathered alleged evidence of rampant credit card and calling card fraud over state lines.

Operation Sundevil allowed multiple Federal law enforcement agencies, particularly the Secret Service and the FBI, to gain valuable expertise on fighting this new form of criminal activity as well as expanding the agencies' budgets. New laws were created to allow federal prosecutors to charge individuals accused of phreaking, hacking, wire, and credit card fraud. Evidence gained from Operation Sundevil allowed law enforcement to convince the United States Congress of the need for additional funding, training, and overall expansion.