Complementary reading: "Services curtailed, Telephone hackers active" by By Henry Lichstein
The Tech, Vol. 83, No.24; MIT, Nov. 20, 1963, p.1
This is the remarkable tale of actual phone phreaking/hacking using the PDP-1 in 1963. According to the article, this wasn't the first incident, as a previous one "caused the expulsion from the Institute of one member of the Class of '63 one week before his graduation." Also, MIT's communication infrastructure was already hardened, because of this, when the article was written in Sept/Nov 1963.
From this we also learn that the PDP-1 at MIT had access to the telephone system before summer 1963 (something I have seen claimed as a pioneering feat for the PDP-4 before.) There may be still some to be learned about early networking.
Last, but not least, this also paints a quite different picture of hacking culture at MIT than Levy's portrayal.