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The Demon Morris, First Worm of the Net
Legend
In November 1988 a student, Robert Tappan Morris, released a worm that crawled between Unix machines through sendmail's debug mode, a buffer overflow in fingerd, weak passwords and the blind trust of rsh. It was only meant to count hosts, but a flaw in its reinfection logic made it multiply unchecked, until by one estimate a tenth of the young Internet was on its knees. That night gave birth to CERT/CC and to the first US conviction under the Computer Fraud and Abuse Act.
Exorcism
Cast it out by stripping network daemons of every forgotten debug feature or backdoor. No trust-based logins like rsh and rexec: every remote access must demand real authentication. And strong passwords, because this worm knew the easy ones by heart.