The First Cyber Spy

Summary

Podcast Summary: History Daily – "The First Cyber Spy"

Host: Lindsay Graham
Date: June 29, 2026 (episode date; story takes place up to 1987)
Episode Theme:
This episode delves into the gripping true story of Cliff Stoll, an unsuspecting astronomer-turned-computer-technician at the Lawrence Berkeley Laboratory, who stumbles across an accounting anomaly in 1986. His tenacity uncovers the world’s first documented case of cyber espionage—a digital cat-and-mouse game spanning continents, culminating in the 1987 arrest of a West German hacker and the exposure of a Cold War spy ring.

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Main Theme & Purpose

• Explores how a minor technical oddity—a 75-cent discrepancy—leads to the discovery of an international cyber espionage ring during the waning years of the Cold War
• Illustrates the dawn of cybercrime, the vulnerabilities of early computer networks, and the bureaucratic hurdles faced by early cybersecurity pioneers
• Highlights Cliff Stoll's persistence, the early digital forensics used to trace the hacker, and the dramatic international pursuit and ultimate capture

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Key Discussion Points & Insights

1. Discovery of the Intrusion

• Setting: Lawrence Berkeley Laboratory, California, September 1986
• Cliff Stoll, a new computer technician, discovers an unaccounted for "Hunter" username, sparking an investigation into a missing $0.75 in network usage charges (05:53)
• Realization that "Hunter" is not the only suspicious account; “Sventek” is another alias used, initially thought to belong to a former employee (06:50)
• Cliff’s ingenuity: connects every phone line in the lab to a printer, hoping to catch the hacker's activity in real time (08:35)

Quote:
“I spotted a username hunter with no account number associated with it. That means whoever was using that alias was able to log onto the system without being charged. That must be the source of the missing 75 cents.”
—Lindsay Graham as narrator (06:13)

2. Escalation – The Cat-and-Mouse Game

• The hacker leverages Berkeley's system as a gateway into U.S. military and government networks, seeking sensitive CIA information (09:30)
• Cliff alerts authorities; the local DA obtains a warrant, and the first successful trace leads to Virginia, but legal limitations stall deeper investigation (10:50)
• Frustration mounts as both the CIA and FBI dismiss Stoll’s warnings about compromised government files (11:35)

Quote:
“He just wants to know who he’s chasing. So back in his office, he checks the hacker’s latest activity. Hunter has been scouring the networks for information about the CIA. They found agents' names and even their phone numbers.”
—Lindsay Graham (11:10)

3. Chasing Shadows – International Tracing

• Cliff deduces the hacker is likely based outside the U.S., noticing significant connection delays suggesting transatlantic access (14:33)
• Satellite trace confirms hacker is operating through West Germany, specifically the city of Hanover (16:25)
• Collaboration with European authorities becomes crucial; Cliff creates a honeypot—fake documents filled with enticing keywords—to bait the hacker into staying online for a trace (17:44)

Quote:
“He decides to create a honeypot. A fake cache of documents seeded with tempting keywords like ‘classified,’ ‘nuclear,’ and ‘missile program.’ The hope is that the hacker will find this irresistible…”
—Lindsay Graham (17:44)

4. The Capture – Exposure of a Spy Ring

• With the honeypot trap, authorities pinpoint the hacker’s location; after exhaustive efforts, Marcus Hess (alias "Hunter") is arrested on June 29, 1987 (21:34)
• Investigation reveals it was not only an individual at work but an organized group selling military research to the Soviet KGB for profit (22:15)
• The ensuing trial – with Cliff testifying in Germany – results in suspended sentences (23:00), but the case becomes a milestone in cybercrime history

Quote:
“He didn’t set out to become a cyber spy. After he dropped out of college, hacking into computer systems became a hobby, a game he played with his programmer friends. But then Marcus and his buddies realized there was money to be made... a deal was made with the Soviet intelligence agency, the KGB.”
—Lindsay Graham (22:20)

5. Lasting Impact and Legacy

• Cliff reflects on the unforeseen repercussions stemming from a trivial accounting glitch, carrying him into the global sphere of counterespionage
• The case sets a precedent, launching a new era of cybersecurity and shifting attitudes within government agencies toward digital threats
• The rise of the internet will only accelerate the arms race between hackers and security experts; never again would agencies ignore the urgent signs Cliff once reported (24:10)

Quote:
“With just a phone line, a home computer, and the right knowledge, anyone can breach a computer network from thousands of miles away… The hackers have proved something terrifying.”
—Lindsay Graham (24:10)

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Memorable Moments & Quotes (with Timestamps)

• Wild chase across the phone lines:
  "Cliff paces the lab, jerking to a halt whenever the phone cord yanks him back... More people join in the call as the trace is followed from region to region."
  (00:56)

• Early reluctance from authorities:
  "When he reaches out to the CIA, the agency says domestic counterintelligence isn’t its responsibility, and the FBI shows no interest at all.”
  (11:35)

• The honeypot plan:
  "The next time the hacker logs in, they take the bait... the minutes tick by, Cliff doesn't dare move... but the honeypot does its job. The hacker can't tear themselves away.”
  (18:10)

• Arrest and revelation:
  “Now the authorities have caught up with him as well. Marcus is in his mid-20s and he didn’t set out to become a cyber spy.”
  (21:34)

• Aftermath and warning:
  “He’s helped break the world’s first cyber spy ring. But he knows that this is only the beginning.”
  (23:48)

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Important Segment Timestamps

• Opening dramatization of the climactic chase: 00:00–04:50
• Discovery and initial investigation: 05:53–09:30
• Tracing the hacker and legal complications: 10:50–12:30
• International pursuit and technical innovations: 14:15–18:00
• The sting operation and hacker’s capture: 18:00–21:34
• Aftermath, trial, and episode conclusion: 21:34–24:51

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Conclusion

This episode of History Daily dramatizes the extraordinary transformation of Cliff Stoll from lab technician to unwitting cyber sleuth. Through clever deduction, relentless surveillance, and creative problem-solving, Stoll uncovers a Cold War-era spy ring whose exploitation of nascent computer networks would change the global landscape of intelligence, cybersecurity, and law enforcement. As the digital world expands, the episode ends on a note of warning and wonder—reminding listeners just how much can change from the pursuit of a missing $0.75.

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For listeners:
If you’ve ever wondered how the digital era changed the face of espionage and why your organization needs cybersecurity, this episode gives a thrilling origin story—one that brilliantly combines suspense, historical insight, and the fallibility of early tech infrastructure.

Transcript

[Lindsey Graham]

History Daily is brought to you by Progressive Insurance. Do you ever think about switching insurance companies to see if you could save some cash? Progressive makes it easy. Just drop in some details about yourself and see if you're eligible to save money when you bundle your home and auto policies. The process only takes minutes, and it could mean hundreds more in your pocket, so visit progressive.com after this episode to see if you could save Progressive Casualty Insurance Company and affiliates. Potential savings will vary. Most not available in all states. It's early afternoon on September 16, 1986, at the Lawrence Berkeley Laboratory in California. Clifford Stohl sprints through the office, dashing past cubicles and startled colleagues. A 36 year old technician with a wild mess of dark, curly hair, Cliff has just been alerted to an unverified user inside Berkeley's computer network. Although their true identity is hidden, Cliff knows who it is. It's the same hacker he's been chasing for almost a month. Cliff bursts into the computer lab, squinting against the sudden harsh white light. All around him, terminals glow, printers chatter, and disk drives rattle like washing machines. Cliff grabs the phone beside his monitor and immediately dials Ron Vivere at timenet, the company that runs the international computer network used by Berkeley. Gasping for breath, Cliff says the hacker. He listens as Ron quickly contacts the local phone company to set up a trace. Cliff then paces the lab, jerking to a halt whenever the phone cord yanks him back. More people join in the call as the trace is followed from region to region, phone company to phone company. Cliff struggles to follow the telecommunications jargon about rerouting codes, rotary PBX systems, and other technical details. All he wants to know is if the trace has worked. That's when a woman with a thick southern drawl dials in. She explains the hack is coming from Virginia, but to double check she needs to interrupt the connection for a second. If the hacker is ejected from the system, they'll know they've traced the right line. Cliff stares at his blue monitor, and sure enough, the hacker drops off. Cliff lets out a cheer because they've got him this time. They've figured out where the hacker is dialing in from. Now they can finally find out who it is. Cliff Stohl will soon realize he's not just chasing a hacker, he's chasing a spy. They're using Berkeley's system to access other connected networks and sensitive government data. But Cliff is the one who really understands what the hacker is up to. His game of virtual cat and mouse will become the world's first case of cyber espionage, a new frontier in the Cold War that will eventually culminate in an arrest on June 29, 1987. History Daily is sponsored by Shopify. Now I shop online. Like all of us I assume, but it's startling how different the shopping experience can be store to store. Finding what you're looking for is often tough enough, but some sites make the actual purchase so difficult. I know I've abandoned full carts because of a bad UI or poor experience and it's infuriating. So I'm always glad to see that little purple Shop pay button clean checkout with all my information pre filled. It's a small thing, but I'm here to buy something, not do a bunch of data entry. Well, behind that purple shop pay button is Shopify, the commerce platform powering millions of businesses around the world and 10% of all e commerce in the US from household names like Heinz and Mattel to brands just getting started. With Shopify you can easily create email and social media campaigns wherever your customers are scrolling or scrolling. And best yet, Shopify is your commerce expert with world class expertise in everything from managing inventory to international shipping to processing returns and more. So see less carts go abandoned and more sales go. Choose Shopify and their Shop Pay Button. Sign up for your $1 per month trial today at shopify.comhistorydaily go to shopify.comhistorydaily that's shopify.com historydaily history daily is brought to you by Progressive Insurance. Do you ever think about switching insurance companies to see if you could save some cash? Progressive makes it easy. Just drop in some details about yourself and see if you're eligible to save money. When you bundle your home and auto policies. The process only takes minutes and it could mean hundreds more in your pocket. So visit progressive.com after this episode to see if you could save Progressive Casualty Insurance Company and affiliates. Potential savings will vary. Not available in all states.

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from

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Noiser and Airshift, I'm Lindsey Graham and this is History. Daily. History is made every day on this podcast. Every day we tell the true stories of the people and events that shaped our world. Today is June 29, 1987. The first cyber spy. It's August 26, 1986, at the Lawrence Berkeley Laboratory in California, three weeks before the hacker is finally traced. Cliff Stoll stares at his computer in confusion. The monochrome screen flickers back at him, the only source of light in his dim cubicle office. He's just started a new job as a technician at the lab, and he wants to make a good impression. But this first problem has him stumped. Cliff is an astronomer by training, but when his grant ran out, the Lawrence Berkeley Laboratory hired him to run their computers. And on just his second day, Cliff's boss, Dave Cleveland, asked him to decipher a shortfall in the accounts. Hundreds of people use Berkeley's computers every day. Charged by the minute, it adds up to thousands of dollars. But Dave wants to know who still owes the lab $0.75. After some thinking, Cliff believes he's cracked the mystery. He spotted a username hunter with no account number associated with it. That means whoever was using that alias was able to log onto the system without being charged. That must be the source of the missing 75 cents. Cliff shuts the account down. But the very next day, a new problem appears. Dave receives a warning that someone inside the lab has been trying to break into a computer network in Maryland. Once again, it's Cliff who's asked to solve the mystery. Cliff soon discovers that only one Berkeley user is connected to the Maryland network, and they call themselves Sventek. But when Cliff takes that information to his boss, Dave just laughs. Sventech is the username of a well respected software engineer who doesn't even work at the lab anymore. There's no way it can be him. But there's no denying the evidence. If it wasn't that engineer, then someone else must have stolen Sventek's login, and Cliff is determined to find out who. He programs his computer to alert him the moment anyone logs into the system. And after 100 false alarms, Sventek finally signs back in. Whoever is using the account disconnects only a minute later. But they leave behind a clue. A terminal number. Tracing that number, Cliff discovers the hacker isn't in the lab at all. They're accessing the system from outside Berkeley using a phone line. But the lab has a lot of phone lines, and Cliff doesn't know which one the hacker is using. To find out, he connects every line in the office to a printer. And when the hacker logs in, the connected printer will unspool a paper trail of exactly what he's up to. But rushing around the office is exhausting. And after connecting the final printer, Cliff falls asleep in his office. When he wakes up, he's surrounded by 80ft of printed paper. Cliff scans through the pages with growing alarm. The hacker hasn't just logged in this time. They've taken over Berkeley's entire computer system. They can now see every document and every file. They can change them, move them, erase them, and leave without a trace. Whoever this hacker is, they're good. And they're interested in far more than what the researchers at Berkeley are up to. The next time the hacker logs in, Cliff finds something extraordinary. According to the printout, the hacker is using Berkeley's system as a gateway into US Military and government networks. Cliff grabs a pen and paper and scribbles down the aliases the hacker is using. There's Hunter again, but also Jaeger, Benson and Hedges. Cliff tries to find a link that might give him some clue about the hacker's identity. But all he can come up with is that jaeger is the German word for hunter, and the hacker probably smokes Benson and Hedges cigarettes. Cliff alerts the authorities, and the local district attorney obtains a warrant to trace the hacker. So when they next log in, Cliff immediately speed dials Ron Bevere, a network manager at TimeNet. He successfully tracks the hacker across the country to a computer in Virginia. But when Cliff asks for more precise information, Ron throws a curveball. The district attorney's warrant only applies to California. It has no jurisdiction across state lines. The phone company can tell Cliff that the signal came from Virginia, but they're not authorized to give him anything more than that. Cliff is exasperated. After a month of relentless work, he just wants to know who he's chasing. So back in his office, he checks the hacker's latest activity. Hunter has been scouring the networks for information about the CIA. They found agents names and even their phone numbers. Cliff feels he has to do something. But when he reaches out to the CIA, the agency says domestic counterintelligence isn't its responsibility, and the FBI shows no interest at all. But the stakes are high. National security is at risk, and no one except Cliff seems to realize how safe serious the situation is. So Cliff won't give up. He'll keep pursuing his faceless enemy, and soon Hunter will become the hunted. History Daily is sponsored by Shopify Now I shop online. Like all of us, I assume, but it's startling how different the shopping experience can be store to store. Finding what you're looking for is often tough enough, but some sites make the actual purchase so difficult. I know I've abandoned full carts because of a bad UI or poor experience and it's infuriating. So I'm always glad to see that little purple Shop pay button clean checkout with all my information pre filled. It's a small thing, but I'm here to buy something, not do a bunch of data entry. Well behind that purple Shop pay button is Shopify, the commerce platform powering millions of businesses around the world and 10% of all e commerce in the US from household names like Heinz and Mattel to brands just getting started with Shopify, you can easily create email and social media campaigns wherever your customers are scrolling or strolling. And best yet, Shopify is your commerce expert with world class expertise in everything from managing inventory to international shipping to processing returns and more. So see less carts go abandoned and more sales go. Choose Shopify and their Shop Pay button. Sign up for your $1 per month trial today at shopify.comhistorydaily go to shopify.comhistorydaily that's shopify.comhistoryd history daily is brought to you by Progressive Insurance. Do you ever think about switching insurance companies to see if you could save some cash? Progressive makes it easy. Just drop in some details about yourself and see if you're eligible to save money. When you bundle your home and auto policies, the process only takes minutes and it could mean hundreds more in your pocket. So visit progressive.com after this episode to see if you could save Progressive Casualty Insurance Company and affiliates. Potential savings will vary. Not available in all states.

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[Lindsey Graham]

It's mid October 1986, inside the Lawrence Berkeley Laboratory in California, a month after the hacker was traced to Virginia. Cliff Stoll sits in front of a small monitor on the floor of the computer lab, scribbling notes. Colleagues weave around him, carefully stepping over tangled wires and crumpled pieces of paper. By now, they know better than to disturb Cliff when he's on the hunt for his digital nemesis. But to Cliff's frustration, the trail has gone cold. He's finally been informed that the phone line in Virginia belongs to the US Military contractor Mitre. But it turns out the hacker was accessing their computer from another unknown location. To narrow down the list of possibilities, Cliff has gone back to what he knows best. Science. So on the lab floor, he's calculating the distance between Berkeley and the hacker's location. And the results are intriguing. It takes around a second for Cliff's computer to communicate with the east coast. But the hacker's signal takes more than double that, almost three full seconds. So the hacker must be breaking into Berkeley's computers from outside the country. But exactly where remains a mystery. And while Cliff puzzles that out, the hacker continues to delve deeper into the secrets of the United States government. Although Mitre has shut down the hacker's account, it doesn't take them long to find another way in. And over the next few weeks, Cliff watches them break into another 40 military computers. It's impressive. Whoever this hacker is, they're making a mockery of US Cybersecurity. Soon, Cliff is obsessed. He constantly checks his computer and even starts sleeping in his office, hoping to catch the hacker online for long enough to launch another trace. One Saturday morning, Cliff is at home when he learns that Sventek has logged in again. Cliff quickly calls Ron Verveer from Timenet. Ron is at home watching his van when Cliff calls. But he agrees to run the trace. And this time Ron can see that the hacker is accessing the system through Vestar 3, a satellite that connects the United States with Europe. It's confirmation of Cliff's theory that the hacker is somewhere abroad. From his house, Cliff bikes over to the lab. Luckily, by the time he gets there, the hacker is still online. Maybe because it's the weekend, they think no one will be paying attention. But the longer they're online, the more Cliff can find out about them. That's when the phone rings. It's another technician, an Englishman at timenet International. He's taken up the trace from Ron and can confirm that the hacker is somewhere in West Germany. But that's about as much as he can say right now. The authorities there will have to take up the search from this point. Cliff hangs up and stares at the blinking machines around him. It all makes sense. The connection lag, the German username. He just hopes that the West Germans are able to put the final pieces of the puzzle together. And by Monday, they have traced the hacker to the city of Hanover. But he isn't staying online long enough to establish a precise location. So they come back to Cliff for help. By now, Cliff knows exactly the kind of information that interests the hacker. And he decides to create a honeypot. A fake cache of documents seeded with tempting keywords like classified nuclear and missile program. The hope is that the hacker will find this irresistible and stay online long enough for the German authorities to track them down. Cliff creates the folder and lays his trap. The next time the hacker logs in, they take the bait. As Cliff watches them trawl through the fake classified documents, he alerts the German authorities. This could be it. And as the minutes tick by, Cliff doesn't dare move from his computer terminal. He just stares at the screen. If the hacker disconnects before the trace is confirmed, they'll be back to square one. But the honeypot does its job. The hacker can't tear themselves away. And finally, the phone rings again. Clif snatches up the receiver. The German authorities have found him. And Cliff punches the air. After a grueling months long hunt, he's finally trapped the hunter. But Clif still isn't told the identity of the hacker. It will be another six months before German authorities have enough evidence to make an arrest. And only then will Cliff Stoll finally learn the truth. That he wasn't just dealing with a spy, but an entire spy ring. History Daily is sponsored by Shopify. Now I shop online, like all of us, I assume. But it's startling how different the shopping experience can be store to store. Finding what you're looking for is often tough enough, but some sites make the actual purchase so difficult. I know I've abandoned full carts because of a bad UI or poor experience and it's infuriating. So I'm always glad to see that little purple Shop pay button clean checkout with all my information pre filled. It's a small thing, but I'm here to buy something, not do a bunch of data entry. Well behind that purple shop pay button is Shopify, the commerce platform powering millions of businesses around the world and 10% of all e commerce in the US from household names like Heinz and Mattel to brands just getting started. With Shopify, you can easily create email and social media campaigns wherever your customers are scrolling or strolling. And best yet, Shopify is your commerce expert with world class expertise in everything from managing inventory to international shipping to processing returns and more. So see less carts go abandoned and more sales go. Choose Shopify and their Shop Pay Button Sign up for your $1 per month trial today at shopify.comhistorydaily go to shopify.comhistorydaily that's shopify.comhistoryd history daily is brought to you by Progressive Insurance. Do you ever think about switching insurance companies to see if you could save some cash? Progressive makes it easy. Just drop in some details about yourself and see if you're eligible to save money. When you bundle your home and auto policies. The process only takes minutes and it could mean hundreds more in your pocket. So visit progressive.com after this episode to see if you could save Progressive Casualty Insurance Company and affiliates. Potential savings will vary. Not available in all states.

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It's June 29, 1987, in Hanover, West Germany, six months after a hacker was traced to the city in the backseat of an unmarked police car, Marcus Hess stares out at the streets rolling by and the people going about their everyday business. Marcus wonders if he'll ever be one of them again. Marcus is the hacker known as Hunter, and he's just been arrested by German police. He knew this was coming. A few days ago, his apartment was raided. He wasn't at home at the time, but his computer notebooks and dozens of floppy disks were seized as evidence. Now the authorities have caught up with him as well. Marcus is in his mid-20s and he didn't set out to become a cyber spy. After he dropped out of college, hacking into computer systems became a hobby, a game he played with his programmer friends. But then Marcus and his buddies realized that there was money to be made. One of them had a contact in East Berlin. And soon a deal was made with the Soviet intelligence agency, the kgb. The offer was tens of thousands of deutsche marks in exchange for sensitive information from US Military and research computers. Now, though, Marcus and his co conspirators have been caught and they're facing a landmark trial in the world's first case of cyber espionage. Cliff Stoll flies in from California to testify as an expert witness. And as he walks to the courthouse in the quaint German town of Zella, Cliff can't help thinking about the strange turn his life has taken. A 75 cent accounting error has carried him from Berkeley to the other side of the world. Eventually, the German court finds all defendants guilty. They receive suspended sentences up to two years. A surprisingly light punishment given that the hackers sold information to the kgb. Following the trial, Cliff returns to the United States and his computer lab on the west coast. He's helped break the world's first cyber spy ring. But he knows that this is only the beginning. The hackers have proved something terrifying. With just a phone line, a home computer, and the right knowledge, anyone can breach a computer network from thousands of miles away. In the decades that follow, the world will become even more interconnected. The advent of the Internet will spark an arms race between hackers and cybersecurity experts. And the CIA and the FBI will never again be as dismissive as they were when Cliff Stoll warned them about the hacker infiltrating their systems. A young German man on the other side of the ocean who was finally arrested on June 29, 1987. Next on History Daily, June 30, 1934. Adolf Hitler consolidates his grip on the Nazi party with the deadly purge of his political enemies. From noiser and airship. This is History Daily Hosted, edited and executive produced by me, Lindsey Graham Audio Editing by Mohammad Shazi Sound design by Molly Bach this episode is written and researched By Angus Gavin McLaren Edited by William Simpson Managing Producer Emily Burke Executive Producer are William Simpson for Airship and Pascot Hughes for Noiser.

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