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Hackers Generate Windfall
03:23EST

By DAVID E KALISH
AP Business Writer
02/12/00


NEW YORK (AP) -- Sure, the World Wide Web was savagely assaulted this week. But there's a silver lining in the hacker attacks.

While leading Internet companies were toiling overtime to avert more crippling acts, the outside experts who help them -- consulting firms and software makers -- were reaping a windfall.

"We're almost getting swamped with the number of calls we're getting,'' said Simon Perry, security business manager at Computer Associates International, a leading maker of business software.

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The jump in customer inquiries and sales of anti-hacker software and services began Tuesday, when it became apparent that a coordinated campaign of attacks had been launched at major Web sites, from the popular Yahoo! destination to the ETrade online brokerage site.

The hacker technique involved planting software programs in dozens of "host'' computers, which at designated times can zap an overwhelming volume of electronic data to other computers that manage Web sites. Federal law enforcers were investigating.

Network ICE Corp., of San Mateo, Calif., said sales of its anti-hacker software jumped by up to 50 percent this past week. The software, costing $39.95 and called Black ICE Defender, allows computers to detect whether a hacker is scanning a computer to see if can be used to launch attacks. It also can identify the scanning individual.

About 50 customers using the software sent e-mails in recent weeks saying they may have been scanned, said chief executive Greg Gilliom. Aided by this knowledge, he said, the customers took steps to avert being turned into launching pads for attacks. It was not known whether people scanning the computers were this week's hackers.

SecurE-Com Solutions Inc., an Atlanta-based seller of security services and software, saw phone inquiries jump by more than half during the week, said executive vice president Pat McBride. He expects higher sales over the next few months as companies put more stringent protections into place.

Publicly traded stock of security consultancies enjoyed a nice ride on the three-day attack by computer hackers.

Seattle-based WatchGuard Technologies Inc. shot up more than 60 percent from Monday's close by week's end. Axent Technologies Inc., of Rockville, Md., saw its shares rise about 25 percent, and RSA Security Inc. of Bedford, Mass., rose by a similar percentage.

Companies were not idly waiting for business to increase but actively sought new customers.

Seizing on the greater awareness of the Internet's vulnerability, iDefense took out full-page newspaper ads Friday declaring "We Warned You.'' The Alexandria, Va., consulting business said it first warned of denial of service attacks nearly three months ago.


Copyright 2000 Associated Press. All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.
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