Jerry Schneider
Encyclopedia
Jerry N. Schneider is a social engineer and security
consultant. While still in high school
in 1968, Schneider started a company called "Creative Systems Enterprises" and began selling his own invented electronic communication devices. Schneider obtained parts by scavenging from Pacific Telephone and Telegraph
's dumpsters. During this scavenging, he built up a collection of PTT documents including invoices and training manuals. After a few years, he reportedly knew more about PTT's procedures than its own employees.
1970–1971: Schnieder expanded his telephone wholesale business while majoring in Electrical Engineering
in college.
June, 1971: Schneider started a plan to acquire new telephone equipment from PTT, market it as "refurbished," and sell it through CSE, his own company. The exact details of his scam are currently not available. He also acquired equipment from Western Electric Company in a similar manner. He sold equipment back to Pacific and to others.
January, 1972: A former employee of CSE (presumably disgruntled) tips off law enforcement. Police raid CSE's offices and warehouse. The District Attorney
estimates the found equipment is worth $8,000. At this time, they learn that Schneider had made off with $125,000 worth of gear. Schneider later admits to nearly $900,000.
He was arrested on February 8, 1972. Contemporary newspapers rate his caper as one of the most famous computer crimes in history.
After plea bargaining, Schneider eventually pleaded guilty on May 15, 1972 to one count of grand theft of $5,000 worth of equipment. In July 1972, he was sentenced to two months in a minimum security facility. He only served forty days and paid a $500 fine.
1972: Schneider, at 21, formed a security consultancy that targeted companies wishing to protect themselves from computer criminals.
November 26, 1974: Date of final judgement of civil suit from PTT. Suit stated that Schneider had stolen equipment valued at $214,649.63, and that equipment valued at $73,452.81 had been returned.
1977: Schneider left the security consulting firm.
Computer security
Computer security is a branch of computer technology known as information security as applied to computers and networks. The objective of computer security includes protection of information and property from theft, corruption, or natural disaster, while allowing the information and property to...
consultant. While still in high school
High school
High school is a term used in parts of the English speaking world to describe institutions which provide all or part of secondary education. The term is often incorporated into the name of such institutions....
in 1968, Schneider started a company called "Creative Systems Enterprises" and began selling his own invented electronic communication devices. Schneider obtained parts by scavenging from Pacific Telephone and Telegraph
Pacific Bell
The Pacific Telephone and Telegraph Company was the name of the Bell System's telephone operations in California. It gained in size by acquiring smaller telephone companies along the Pacific coast, such as Sunset Telephone & Telegraph in 1917...
's dumpsters. During this scavenging, he built up a collection of PTT documents including invoices and training manuals. After a few years, he reportedly knew more about PTT's procedures than its own employees.
1970–1971: Schnieder expanded his telephone wholesale business while majoring in Electrical Engineering
Electrical engineering
Electrical engineering is a field of engineering that generally deals with the study and application of electricity, electronics and electromagnetism. The field first became an identifiable occupation in the late nineteenth century after commercialization of the electric telegraph and electrical...
in college.
June, 1971: Schneider started a plan to acquire new telephone equipment from PTT, market it as "refurbished," and sell it through CSE, his own company. The exact details of his scam are currently not available. He also acquired equipment from Western Electric Company in a similar manner. He sold equipment back to Pacific and to others.
January, 1972: A former employee of CSE (presumably disgruntled) tips off law enforcement. Police raid CSE's offices and warehouse. The District Attorney
District attorney
In many jurisdictions in the United States, a District Attorney is an elected or appointed government official who represents the government in the prosecution of criminal offenses. The district attorney is the highest officeholder in the jurisdiction's legal department and supervises a staff of...
estimates the found equipment is worth $8,000. At this time, they learn that Schneider had made off with $125,000 worth of gear. Schneider later admits to nearly $900,000.
He was arrested on February 8, 1972. Contemporary newspapers rate his caper as one of the most famous computer crimes in history.
After plea bargaining, Schneider eventually pleaded guilty on May 15, 1972 to one count of grand theft of $5,000 worth of equipment. In July 1972, he was sentenced to two months in a minimum security facility. He only served forty days and paid a $500 fine.
1972: Schneider, at 21, formed a security consultancy that targeted companies wishing to protect themselves from computer criminals.
November 26, 1974: Date of final judgement of civil suit from PTT. Suit stated that Schneider had stolen equipment valued at $214,649.63, and that equipment valued at $73,452.81 had been returned.
1977: Schneider left the security consulting firm.