Cable Modem Hacker Accused of Facilitating Computer Fraud

Federal authorities have indicted Ryan Harris, an embedded device hacker, for aiding computer intrusion and facilitating fraud. Harris' company sold modified cable modem devices which allowed users to remove the bandwidth limitation imposed by ISPs.

Cable modems allow computers to connect to the Internet through the same cable used to deliver TV signals. Internet service providers lend such devices to their customers for free or in exchange of a monthly fee. The modems come pre-configured by ISPs to limit the bandwidth allowed for the customer, depending on the service they subscribe to.

Ryan Harris of San Diego is the founder and owner of a company called TCNISO, which started out as a group of modem modding enthusiasts. The hacker and his friends developed ways of modifying the operating system of many cable modem models in order to remove the bandwidth limitations, also known as caps, imposed by ISPs.

Through his website, 26-year-old Harris, known online as "DerEngel," sold and provided support for cable modem hacking applications that he had been developing since 2003. This software also made it possible for users to spoof the MAC address, a unique network adapter identifier of the device in order to steal the Internet service of other legit customers.

The prosecutors claim that his company also commercialized modems pre-loaded with his software. Evidence in this respect is the testimony of a Boston undercover FBI agent, who in December 2008 acquired such a device from TCNISO.

An infamous teenage hacker known as "Dshocker," who pleaded guilty to multiple offenses in November last year, was also one of Harris' customers. According to the indictment, Dshocker used cable modems acquired from TCNISO to steal bandwidth from ISPs.

The authorities claim that Harris earned more than $1 million from his cable modem hacking business. He has been charged with multiple counts of conspiracy to commit computer and wire fraud, as well as aiding and abetting computer and wire fraud.

The hacker says he is innocent and plans to plead not guilty. "The only evidence they have is the business I’ve been running for the last five years. It’s like arresting every firearms dealer, because handguns can be used to commit murder," he commented for Wired.