David Cassel

21st: AOL's insecurity complex

AOL's insecurity complex: By David Cassel. The online service can't even keep its own staff bulletin boards private.

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You’ve probably heard about the “other” Timothy McVeigh — the sailor who found himself the target of Navy discharge proceedings for violating its “don’t ask, don’t tell” policy, after America Online divulged the real-life name behind his online profile.

At this point, only a district judge has prevented the Navy from completing the discharge. After a firestorm of press coverage, AOL CEO Steve Case issued a special “Community Update” to try to mollify anger. “We have always recognized that privacy was an absolutely central building block for this medium,” Case argued, “so from day one we’ve taken steps to build a secure environment that our members can trust.”

But Case’s words rang hollow. The McVeigh affair wasn’t an isolated incident. In the ensuing coverage, other subscribers also came forward with stories about AOL’s loose lips. And only days after that controversy arose came the latest in a long sequence of disturbing AOL security breaches, undermining AOL’s claim that it provides a “secure environment.”

Around midnight Jan. 26, I received a mysterious e-mail message: “Before you miss the whole thing, you should really try and check out keyword: TA.”

Since I edit a mailing list about AOL, I sometimes receive tips about hacked content. So I dutifully visited AOL’s “Traveler’s Advantage” area, which normally promotes innocuous travel-related services. (“Win a romantic Getaway for Two OR $5,000 CASH!”)

It was different that Monday. As with many previous acts of high-tech vandalism, the title of the window had been changed in the middle of the night. Instead of “Welcome to AOL Travelers Advantage!” the page read, “Lithium Node was here.” (This wasn’t the first time AOL had heard from “Lithium Node”: Last June, the same group converted AOL’s “Academic Assistance Center” into a kind of hacker resource center, complete with manifesto.)

But this attack offered a new twist: Below the substitute title lay a menu linked to dozens of AOL staff bulletin boards. Following the links led to private boards reserved for conversations among AOL’s online staff — including staffers of “The Rosie O’Donnell Show” and AOL’s own army of volunteers. Ironically, one area included an essay on the word “confidentiality,” saying users should observe confidentiality policies, and “we should take pride in our ability to do so, and set an example for other staffs.”

Though the material was apparently meant to be off-limits to the public, it wasn’t. A week later, one of the boards sported an announcement outlining a pending policy change. Staffers were told that “Beginning February 4, 1998, Keyword TCB will be viewruled.” In other words, AOL was going to restrict access to “The Community Building,” a gathering place for AOL’s online staff. This tactic was “becoming increasingly important,” the memo stated, to assure that an area “is limited to its intended audience, and not available for viewing by others.”

The bulletin boards linked from the giant index that had appeared the week before were soon to be roped off. But the obvious question — why this no-brainer protection wasn’t already in place — went unaddressed. The announcement stated hopes that the board “remains a safe and secure area.”

I can’t say I was surprised by any of this; AOL has a long history of security and privacy problems. In 1995 hackers accessed the e-mail of CEO Case and other executives. One message — describing AOL’s meeting with the FBI to crack down on hackers — was even posted to Usenet newsgroups. The hacks continued over the years, and grew more sophisticated. Last April my mailing list uncovered a trick that allowed access to any subscriber’s credit card number if they’d revealed their password. AOL had stated this wasn’t possible.

While there’s no information on how many subscribers were affected, an omnipresent population of ill-wishers compounds any AOL security breach. In September 1996 the Washington Post reported that AOL canceled 370,000 accounts in one three-month period for “credit card fraud, hacking, etc.” I once counted over 300 troublemakers massing in chat rooms for an en masse demonstration of dissatisfaction.

What’s making users uneasy is the realization that hackers aren’t the only threat to privacy. Last August a parody of AOL’s CEO appeared in Mad magazine, addressing concerns about high-tech burglar Kevin Mitnick: “My subscribers’ card numbers are accessible to someone far more dangerous than him!” Case’s parody doppelgänger commented. “ME!!”

In a scramble for profits, AOL itself has resorted to varying degrees of invasiveness. In July, for instance, AOL faced controversy over plans to sell subscribers’ home phone numbers to telemarketers. AOL’s compromise solution wasn’t as well publicized: Users will still receive unsolicited calls, but only from AOL’s own stable of telemarketers. In addition, when customers now phone for technical support, staffers try to transfer them to outside telemarketing firms at the end of the call.

AOL has faced questions about its privacy policies since 1994, when Rep. Ed Markey, D-Mass., expressed concerns about AOL’s plan to sell information about customers to marketers. Three years later, privacy advocates at the Electronic Privacy Information Center remain concerned. AOL recently acknowledged that its current marketing plan includes gathering aggregate information about customers’ movement through the service, and then using the information to sell more targeted advertisements. The existence of such a database troubles privacy advocates, whether or not the information is attached to a user’s identity. And since a recent industry report calculates that nearly 60 percent of the time Americans spend online is spent on AOL, the company is in a unique position to compile records on how that time is spent.

In the McVeigh incident, AOL originally stated it was confident that its policies had been followed. Later, Case’s “Community Update” conceded that “this should not have happened, and we deeply regret it.” He closed by telling members that “AOL’s commitment to protecting the privacy of our members is stronger than ever.” Ironically, Case’s apology appeared above an icon reading “Click Here to Keep Your Resolutions.” It often seems that AOL is more interested in appearing to honor privacy and security than in actually providing it.

In the last 10 months, at least 28 areas of AOL have been altered by hackers. Most fell to human error — someone with “publishing rights” divulged their password. But AOL’s performance in the face of these problems hasn’t inspired confidence. Content partners say a memo distributed in October acknowledged that one of AOL’s own employees had lost control of a privileged account. Seven areas were modified that night, including Reebok, AOL’s Jewish Community Area and even Case’s Community Update. (Its second page was retitled “Hey there, Sexy.”)

The attacks are getting more sophisticated. After vandals left a manifesto criticizing AOL’s NetNoir area, its producer dispensed a carefully crafted response to reporters. But the graffiti artists got a second chance — weeks later they returned on another purloined account and posted a rebuttal.

AOL has a ways to go before it regains my trust. By the morning after I received that mysterious e-mail message, keyword “TA” had been restored to its original travel pitches. But for nine days afterward, most of the staff areas remained accessible to anyone who’d added them to their bookmark file.

Case needs to work a little harder on his resolutions.

A Killer Site

After AOL shut down a Web site devoted to the musings of serial killers, free speech advocates helped to rebuild the site and get it back up on the Web.

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in 1964, Sondra London and Gerard John Schaefer were high school sweethearts. They explored the Florida Everglades, hung out on her grandma’s porch swing and vacationed together. London’s relatives adored him. But as young lovers often do, they eventually went their separate ways. In 1972, London learned that her ex was a convicted killer who had committed at least two murders, and perhaps many more.

In Feb. 1989, she wrote Schaefer a letter in prison, asking if he remembered her. “How could I not?” he immediately replied. They decided to collaborate on a book. In 1995 Schaefer died in his cell. London published their book, “Killer Fiction,” posthumously, and created a Web site displaying an excerpt — “The Serial Killer Who Loved Me,” which was carried on America Online.

Three weeks ago, a friend forwarded a distressed e-mail message from London to me. “The Governor of Wyoming is trying to get AOL to terminate me,” the message read. London’s Web site contained information about three other serial killers, including nine documents written by Keith Hunter Jesperson — the “Happy Face Killer” — from an Oregon penitentiary. The governor wanted to extradite Jesperson to stand trial for a murder in Wyoming. On Sept. 4, the governor held a press conference saying he would “call on parents in Wyoming who are using America Online to discuss whether they can support a company that allows the promotion of torture, rape and murder.”

Others would argue that the online documents provided some interesting insights into the mind of a serial killer. One included Jesperson’s answer to the question, why did he kill people? “My father witnessed me throwing a cat against the pavement and then strangling it to death … Instead of telling me it was wrong, he was kind of proud of the way I took care of it. He even bragged about the way I took care of the stray cats and dogs in our mobile home park.” The “promotion” to which Gov. Geringer was likely referring was a 147-word rant titled “the self start serial killer kit.”

There was no movement from AOL for over a week — though the governor of South Carolina joined in the condemnation. Then, on Sept. 11, calls for a boycott came from victims’ rights activist Marc Klaas, father of 12-year-old Polly Klaas who was kidnapped and murdered in California in 1993. Twenty-four hours later, as I was reading through the site’s pages, the links went dead. AOL had closed the site.

But there was a second act. A roster of censorship foes volunteered their time and resources to resurrect the page. In a kind of Internet barn-raising last Thursday night — as “Banned Books Week” drew to a close — London announced that her site was back online, displaying the words “banned by AOL” and with a smiley face drawn by the “smiley face” killer at the bottom of the home page. “I was dismayed when AOL first banned my Web sites,” said London, “but this experience has brought me into contact with some of the best and the brightest netizens in the cyberverse.”

John Barlow, co-founder of the Electronic Freedom Foundation, had predicted as much, pointing out the day before AOL pulled London’s site that Internet service providers would provide a new home for controversial pages “simply because some authority from the physical world has attempted to deny them one.” Within days, London received 20 offers to take AOL’s place. “It took me a week just to sift through all the offers and form the development team,” London recalls. Ironically, the governor’s actions triggered national coverage which ultimately resulted in a higher profile for the controversial site. Despite his attentions, London’s page is back on the Web, “bigger and better than ever,” she says.

Internet free speech advocates say the London case is an example of what they see as a disturbing new trend toward “soft” censorship. According to Ed Pechan, the general manager of London’s new host Crosslink, large corporations like AOL “are subject to influence by pressure groups who are willing to sacrifice core values enjoyed by all Americans in order to suppress views held by others which may be distasteful.” AOL insists the decision was the online service company’s alone.

“We find the information that is in this site … offensive and objectionable and we did not wish to have our name associated with it,” an AOL spokesperson told the Associated Press. Yet a subscriber’s page recruiting for the Texas Ku Klux Klan remains on AOL, five months after complaints from the Anti-Defamation League that AOL was not adhering to its own policy regarding “hate material.”

The Klan page is still online. Apparently some content is more “offensive and objectionable” to AOL than others.

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Newsreal: The Banana Peel Syndrome

The critic who exposed America Online's ill-fated telemarketing scheme explores why the nation's biggest online service keeps making such PR gaffes.

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on July 1, America Online quietly rewrote its Terms of Services, giving subscribers 30 days notice of certain changes, along with a warning that continued use of AOL “constitutes acceptance of all such changes.” Buried among the changes were plans to “make available” the phone numbers of their 8 million subscribers to telemarketers.

I stumbled across it by accident July 16, and mentioned it in an AOL newsletter I send out to more than 12,000 e-mail subscribers. Last Tuesday — nine days before the changes were to go into effect — Bloomberg picked up the story, followed by CNET, the Wall Street Journal and CNN. Two days later, according to the Wall Street Journal, New York Attorney General Dennis Vacco, who has been something of a thorn in AOL’s side, contacted the Virginia-based company. Thursday afternoon, reportedly minutes before Vacco took to the airwaves on CNBC, and with a firestorm of criticism raging, AOL withdrew the telemarketing scheme and has since spent considerable time attending to damage control.

This is hardly the first time. A journalist friend kidded that AOL doesn’t just shoot itself in the foot — it blasts away at every toe. Last November, AOL thought $20 a month for unlimited access for all its members was irresistible, but Vacco, who heads the consumer protection committee for the National Association of Attorneys General, thought it should still be the customers who decide. In January, he also pointed out that many AOL members “are getting no access whatsoever.” One day before Vacco was to file a lawsuit on the matter, and with bad publicity rising, AOL “heard the footsteps” and amended the plan.

AOL members have suffered through numerous infuriating service problems. Many subscribers still remember the 10 days in December when AOL blocked any Web page from its browser that was using Apache’s Web server. E-mail brownouts are a recurring event. Last August, just days after an AOL executive assured reporters that it was immune to nationwide outages, AOL made headlines when the entire service went down for 19 hours. Last month, after major delivery problems were noted, we were told that AOL’s e-mail system was “more reliable than ever.” Test messages I sent five days later still took 12 hours to arrive — on four consecutive days. In tests I conducted up to July 17, the mail rarely arrived in less than eight hours. Mailing list subscribers reported delays of several days. The service is also plagued by unreported mini-outages affecting subsets of subscribers or parts of the service.

Yet, as AOL’s latest marketing campaign insists, “We’re ready for you,” and to prove it, consumers are being barraged with a new avalanche of television ads and software CD-Rom and floppy disk mailings. Life goes on and everything’s fine.

But is it? AOL may be a masterpiece of marketing, but after nearly a decade of deficit-financed growth, it needs to morph into profitability, and soon. Last September it abandoned its dubious accounting practice that had marketing and promotion expenses treated as assets. And those expenses are huge. Burying the nation in floppy disks — 3.5 AOL disks for every U.S. household, according to one estimate, — has cost AOL over $500 million dollars, or $200 per subscriber in one quarter’s tally. Writing off $385 million of accumulated expenses, AOL gambled on getting subscriber and revenue growth by matching the Internet’s standard all-you-can-eat pricing. Besides leaving them strapped for capacity, it has left them even further strapped for cash.

To compensate, AOL is now looking to cultivate “alternate revenue streams,” like selling subscriber lists to telemarketers. At least one recent advertising deal on AOL, with Tel-Save, included provisions for a cash advance. AOL users now find their mailboxes and chat rooms include mini-billboards. Signing onto the service triggers pop-up ads, which are on by default. (At the little-publicized “Marketing Preferences” keyword, deactivating them is choice No. 15 — below “If you own a CD-ROM drive, enter ‘X’ here.” Last week it was so clogged with users trying to opt-out of the telemarketing phone calls, the Washington Post reported some subscribers couldn’t even access it.)

CEO Steve Case has said all along that his plan was for AOL to corner a significant chunk of the online world’s users, even if it involved some loss-leader economics, and then use them as leverage for money-making schemes. So, subscribers should expect more unwelcome surprises as AOL seeks to reward its investors’ patience. AOL should also know, if it doesn’t already, that it is being carefully watched. Earlier this month, Vacco raised concerns about how AOL’s all-you-can-eat pricing gels with last week’s new $2-an-hour rates for AOL’s game areas.

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