It was a fraud-crime device that would trick switching systems into granting free access to long distance lines. This would enable the government to track the hackers. Most of the solution do have flaws. The solution that is used most often, is to do nothing. Passwords are used to lock an accidental intruder out of a file or system.
Passwords work only if the user keeps it a secret.
Many computer owners do not realize that hackers will find the password, even if the owners throw away the paper the password is written on. Hackers can get a password by a user's mistake. For instance, leaving the code on the screen or writing it down on a piece of paper will allow a hacker to get access to the password. The administration did not want students to access files they were not allowed into. Therefore, they needed a security system.