The probably first reported hacking incident (in the modern sense, as in computer assisted phone phreaking) was at MIT using a PDP-1 to connect various tie-line

The probably first reported hacking incident (in the modern sense, as in computer assisted phone phreaking) was at MIT using a PDP-1 to connect various tie-lines between MIT and Harvard, and reaching out on tie-lines to the Millstone Radar Facility, the Sudbury defense installation, IBM Kingston/NY, and to the MITRE Corporation, while redirecting the long distance call fees to a local radar station. As reported in "The Tech", 20 Nov. 1963 issue[0]. It doesn't seem that this had any serious consequences, though. Carlton Tucker, MIT’s telephone system administrator, is quoted with (while expressing warnings regarding future liabilities), "we don’t have too much trouble with the boys; we appreciate their curiosity." [0] http://tech.mit.edu/V83/PDF/V83-N24.pdf http://tech.mit.edu/V83/PDF/V83-N24.pdf