Vernor Vinge's A Fire Upon the Deep and A Deepness in the Sky.
It's far future space opera science fiction.. but Vinge is an ex-Computer Science professor, and it shows the impact of security vulnerabilities. Wait until you read the bit about the guy who comes out of hibernation only to find these far-future space ships are running a variety of Unix, with a backdoor he wrote in hundreds of thousands of years ago.
Or if that's a bit much, Vinge's 1981 True Names[1] or 2007 Rainbow's End address the issues more directly.
My favorite 'hacker' story (It's really a phreaker story, but for the most part about the more benign, cooler parts of that culture.) is Evan Doorbell's three hour long "How Evan became a phone phreak" which starts at a place that's very rare for a hacker story, the beginning. (Compare The Matrix, where when we first meet Neo he's already searching for Morpheus in the opening scene.)
Evan recorded all the old phone sounds. (This is the man who brought you The Sounds of Long Distance) He includes these in the program as he talks, so it's almost like you took a time machine back to the seventies and stood by him with a pay phone as he tells the story.
He also makes sure to explain things in the order that he figured them out, which is a subtle detail that makes the story a lot more interesting.
The only thing I don't like about this entire series is that he never finished it. You never actually get to the point where Evan figures out how to Bluebox.
Not quite about surveillance, but a great hacker book:
"The Eudaemonic Pie" is a 1985 book by American author Thomas A. Bass, about a group of University of California, Santa Cruz physics graduate students (known as the Eudaemons) who in the late 1970s and early 1980s designed and employed miniaturized computers, hidden in specially modified platform soled shoes, to help predict the outcome of casino roulette games. The players knew, presumably from the earlier work of Shannon and Thorp,[1][2] that roulette wheels obey Newtonian physics, and that by capturing the state of the ball and wheel and taking into account peculiarities of the particular wheels being played they could increase their odds of selecting a winning number to gain a 44 percent advantage over the casinos. (from Wikipedia)
Goes back quite a ways. There's John Brunner's 1975 classic Shockwave Rider. See also early cyberpunk stuff (Gibson, Sterling et al): http://project.cyberpunk.ru/lib/. More recently, Stephenson Snow Crash, Stross Halting State.
Also thoroughly enjoyed both Cory's works, esp. LB.
I'd recommend _We, The Watched_ by Adam Bender[0]. It's available in ebook or print and the author has similarly licensed it under Creative Commons (NoDerivs as opposed to ShareAlike however).
it was actually fairly prescient about the whole current nsa scandal. Well, more like it stated the obvious before we had conclusive evidence... but still
In the book, the DHS's surveillance is revealed .. and everyone goes apeshit and protests. In real life it seems 90% of the population just keep drinking the Cool Aid
I've read Little Brother, liked a lot, even thought I'm not in the target audience. So I would like some 'grown up' recommendations.