Jul 29, 2014  Hacking traffic lights for fun and profit! By Dan Wallach on July 29, 2014. Tweet; In a few weeks, at WOOT (the USENIX Workshop on Offensive Technologies — an academic conference where security researchers demonstrate broken stuff), a team from the University of Michigan will be presenting a lovely paper, Green Lights Forever: Analyzing the.

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Matthew Delorey was a 26-year old with a business plan: selling hacked cable modems. This is the sort of business that a budding entrepreneur should probably keep on the down-low, or at least limit to those tiny text ads at the back of magazines where satellite descramblers are sold, but that's no way to rake in the cash.

That's why Delorey, of New Bedford, Massachusetts, posted ads on Craigslist and then—rather incredibly—put up YouTube videos with names like 'Massmodz.com How to Get Free Internet Free Cable Internet Comcast or any Cable ISP—100% works.'

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Delorey ran the Massmodz website, which sold the hacked modems. The devices allow a user to change the unique MAC identifier in the device to anything else. In conjunction with some profile hacking, users could trick a cable network into believing that the device belonged to a paying customer. Free service was the result.

But Delorey attracted some federal attention, and an FBI agent purchased two modems from Massmodz. The modems were sent to Motorola, which confirmed that they had been hacked, and the FBI arrested Delorey Thursday morning at his home.

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He is charged with wire fraud and conspiracy to commit wire fraud. Each charge carries a maximum of 20 years in jail and a $250,000 fine.

Selling hacked cable modems and advertising them openly may have been a decent business model a decade ago, but it hardly seems worth bothering about today. The ISPs have been familiar with the practice since the beginning, when hackers would try to alter modem profiles in order to get more bandwidth than they were paying for.

That practice quickly became commercialized, as hackers learned that MAC address spoofing could actually get a cable modem online without paying for service at all. The government has been cracking down on hacked cable modems sold online since early in 2009, though, busting one Thomas Swingler of cablehack.net in January 2009 and Ryan Harris of San Diego in November.

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The Harris arrest was noteworthy because the 26-year old was an expert on cable modem hacking and had even authored a book on the subject that was published by a reputable firm. Still, the clear message that the feds were cracking down on such online sales must not have resonated with Delorey.

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Perhaps, with his competitors tied up in trials and facing decades in prison, he saw a market opportunity.