tv The Willis Report FOX Business January 19, 2014 4:00am-5:01am EST
beyond race and i trust the matter what color you are if you were asking you're strong engh to hear the answer. matt welch the willis report is next. gerri: hello. tonight come on "the willis report." the scandal widens at least six other national retailers reportedly packed. is it legal? the man arrested for warning to other drivers about a speed trap is said morally wrong to make money on companies like apple and one is here to tell us why. on though "willis report." gerri: a shocking discovery
tonight more retailers across united states are under attack by the same now we're used to hit targets. the creator is a 17 year-old russian teenager the new york times says reporting thsecurity breach at neiman marcus started last summer, months ago. we have chairman of the commerce manufacturing and trade subcommittee that is a holding of hearing on the breach next month. we just heard as many as six national retailers may have been hit exactly like target what do you think of that? >> it is massive. this is a very dangerous, a sophisticated malware that is in the handsf russian
criminals and the kids. i want to compliment target. not only has this complicated now six others are currently endure attack but yet they are the obama and stews stand up to talk to us and congress while others walsh. i appreciate that. gerri: they will appear at you're hearing but i am not pleased with the target by a long shot. they have known for weeks the and weeks there were problems and did not alert consumers. that is not acceptab. >> neither did the others. since our investigation what we are told, especially by the investigators that they don't want to have the information released too soon because they don't want to support the investigation. we are past that point now. we want to with this massive
attack by the us in ticket even though it is a 70 neil deve that we know how to protect consumers going forward. question. but targets says what happened to the end of deceer will cost $80 million others say 1.8 billion 2 billion has been carved off with the value of the company and the stock market. millions and millions of dollars to reissue credit andebit cards. i saw the description for your hearing something lik checking out how consumers are doing. don't we have to do more than that? but europe absolutely, do you know, that north korea is ahead of this country they have a chip and tin technology.
we don't. what do you see -- say? >> i believe that will happen in the security of the customer card will now be the front line instead of relying on the retailer with their system to have all of the protections. no doubt the chip and kids is a highesecurity model. gerri: what is standing in the way? a lot of people like you and me and who are professionals say this is the way to go. >> there is a lot of equipment that would need to be changed out this billions of dollars of new spending there would need to be some training for consumers on what extra steps they nee to take but we have to move in that area. we have to up the levelof security. gerri: t.j. max their breach
happened six years ago. americans think everybody is protecting themsves but nobody is protecting me. at the end of the day a hearing is nice but when will you do something? >> we have to figure out what we need to do. first we have to protect the consumers with their personal identifiable information that is a dangerous combination. are their systems able to stop these? now what can we do more? and at what point in time is appropriate to notifthe consumer? that is the trigger point. when can say provide the informatnto the consumer that their information has been obtained by somebody else so they can protect themselves? >> garett is laws on the
book about battle ready. by the time you aae notified with the damages done. mean the protections before the hacker starts. not after. civic the potections have to be there. of chip and pin can help with that. gerri: i hope in have been sued. we look forward to your hearing. thank you for coming on. to drop the ball? we don't know wi more on this president and ceo of the national association of federal credit unions. you have been quite outspoken about your views. food you think is to blame it? >> it comes down to the retailer is not protecting the network. a the hacker's guide into
the point-of-sale terminal through the network. with strict guidelines of protects the consumer data retailers don't havethat. gerri: national retailer federation said it is not as we need the banks to do more. what could you do? chip and pin? >> that is one area people are moving to budget chip and pin is not the panac. no matter the outcome at the terminal the breach occurred at the network level at the point-of-sale system. of they have to have laws on the books that has to protect consumer information gerri: six national retailers have been hit.
not just the target and neiman-marcus is seems you will get a real outcry saying this has to be fixed. so far they have them lackadaisical but what are you prepared to do if it gets ugly? >> i was on the phone this afternoon with the congressman that his phone is ringing off the hk. i think we will. he wi have a hearing and we appreciate those. the time is now. the american sumer needs to have the national standard to protect consumer data just like credit unions. gerri: this is a really complicated string of transactions just for a simple credit card transaction. so what part of the transaction are they screwing up? gimmick they need to protect
their networks better. this is nothing new. a lot of these breaches will keep going o and you'll hear more than just six other retailers coming forward. they have to do a better job to protect consumers information into a plot up a better fireball. they have that technology and they can do that. gerri: you have to reassure cards, bank of america, a jpmorgan chase thomas to the group, i assume that is a cost to the bank? >> yes. we have to reissue cards to protect the consumer for credit unions that want to protect their account information and personal information so sometimes a new card is the best way to do that. that cou cost anywhere between five or $10 per account the plastic cost
many the postage, a printing and the labor. gerri: who would pay for the of chip and pin technology? >> the retailers as well as the financial institution. other retailers claim we ought to go to chip and pin but those who don't want to invest to change their terminal. gerri: are you willing to pay your part? >> they are moving foul play. gerri: and should just be faster. is industry agreement 2015 lie not this year? >> it should move sooner i agree. gerri: thank you for your time. what do you think it? our retailers pay lip service?
gerri: with assault many questions we want to show you just what happens when you swipe your card at the store the process is pretty much the same on later in he real world. next the retaer says the information to a payment processing company for approval. it goes from there to the company that processes transactions then goes to the credit-card network like mastercard. then to the banks that issue the card than either your card is approved or declined
a and that goes back up the line began. the approval seen at the clark -- by the clerk can finish the sale. then at the bank sends money from your account to the retailer bank going back to the network with the transaction in to be complete. we have the president of optimum capital management. great to see you. we appreciate your time. we have been looking at this story four days. consumers don't realize how much goes on from when you swipe the card. >> there is a lot transacted at the same time. there is good guys the and bad guys they try to keep us secure but then you have the bad guys they get paid to take your information in. more and more than they are
paid to. they say the trojan malware was one of a percent not detectable by a nt software. they created something that was impenetrable. it got into this system at point of service. gerri: i don't accept the idea we can figure this out. we need to protect consumers >> talk about chip and pin that came out in the early '90s. it is well beyond but who will pay for it? merchants and banks say it will cost too much to roll it out. looking from another perspective lee b. make sure consumers are protected overall. but at the end of the day this seems the could guys are not as smart.
gerri: radiated to hire that bad guys. but we thought we would develop this graphic with 12 times your information flows those a all information but those that targets said we will make sure you are safe but the reality is the does not sit well. >> especially in with the credit monitoring i equated to go to a restaurant if you get food poisoning the would give to the free checkup. we want to make sure you don't get it in the first place. if is a shoe $15 per month but then with this information is your personal information. what about after that? these people are good to keep this information for years and i can say this much for consumers, th days
to make sure the only check their credit card statement at thend of the month those days are over every single day check your account. they have information where they can alk by you as use like your car they can magnetically take the information from thin air. gerri: should we move to cash? >> no. 1.4 billion and users of this only impacts about 0.1%. t.j. "maxim" marshals had about 60 million so these's appened but overall still less they and 0.1% i feel
like i'm rolling th dice. >> it will get worse before itets better and tell somebody steps up. gerri: do leadership. >> the technology is there and the bad guys are smarter than the good guys and the good guys are not paid as much. gerri: good to see you. later when do you continues with the energy boom leading to a millionaire oil where the richest americans live and what made them millionaires. stay with us. ♪ ♪
gerri: more americans joining of millionaires' club. what is the secret? one editorial board member joins me now. 53,000 more billionaires' at 6.15 million? >> that is very good news because they pay the taxes. the people at the top a doing very well with of middle-class. i think there are two factors. i think the stock market is raising peoples in comes. people also don't pay attention how did the billionaires' are created by the biggest oil and gas boom in american history. most not even aware of its.
gerri: you were sayi if you factor out the oil and gas boom the economy would not even turn over. >> most of the growth of the last four years has come from this one industry. is a major employer provide fn to west virginia, north dakota, texas, the last four years, texas has tripled the oil output. gerri: that is so unbelievable. midland is the fastest growing town in america. gerri: we have the matapan it is texas and north dakota you can see right away the power tell us more. >> those are not just people in the wheel industry -- loyola industry. these all our wheat farmers
all the sudden it is there land. gerri: nothing wrong with that. >> the irony is at a time the president is not a supporter could you imagine if he did? >> barack obama presided over the biggest oil and gas boom over the history over the country. the biggest irony. [laughter] the only thing right now that is holding him back one is we're not doing enough leasing. but we need pipelines. all lots of the drilling is stalled because the dollar tumbled way to get it to the market. of much chper way to get it to the market is through the pipeline. we need the keystone pipeline the president talks about infrastructure but this is priority number one. >> we talk about the
[heart beating] [heartbeat continues] [heartbeat, music playing louder] ♪ i'm feeling better since you know me... ♪ announcer: this song was created with heartbeats of children in need. find out how it can help frontline health workers bring hope to millions of children at everybeatmatters.org. gerri: we are 17 days into the new year. how is your fitness plan coming? our users guide comes to the rescue to stay motivated. joining me now celebrity fitness trainer founder of
akt in ocean. you are a celebrity trader. tell us about the celebrities you train. >> i have wonderful clients that are great friends. kelly ripa. great arms, a beautiful lakes. sarah jessica parker even shakira. gerri: you are the place to go but i know people are already ding out of the program. >> absolutely. every year. gerri: how do you stay motivated? jump in ahead of what you are able to do. don't make a you drizzles and baby -- resolution. maybe just to today's. and not everything out of
your diet but blinder to things for you probably last longer. gerri: that is very difficult. there are some tough programs out there to get involved and people get hurt then they are turned off. >> start with something fun and like we we're doing or you will not go back. also stepped you up maybe with a beginner class or worth -- with a personal trainer at a beginner level then progress versus jumping into something so difficult you cannot keep track. gerri: i think for so many people it is so easy to set your desk but never moved around a. >>. >> day been taking the stairs the great thing about nike is it encourages you to
move. i don't think they give you all the information how hard you are working but they do encourage you to take as many stepsas possible. >> what about for christmas. [laughter] >> we to. gerri: we talk about the best diet. >> i am not a big and diapers said we should eat what we like to eat but try to eat small portions five times a day keep your blood sugar going instead of eating three big meals try to eat five small meals about 400 calories each. gerri: do you ever eats a snickers bar? rebecca never craved a snickers bar. [laughter] >> my dad saying is pizza
the civic is the carbonation of cards and proteins and fats. [laughter] >> that sounds like an excuse. >> show us some stuff. show us the easy than something more complicated. i will move out of the way. >> did not try this with high heels. [laughter] >> a full body moved so you come down into the squawked shoulders down then jump up to collect your stes. a place like home. [laughter] 123. when to three. don't john david just reach out and come down. come down on the other leg. although way through to
stretch and all-out to we come down on tuesday of matt into plank drop the shoulders and tried to pick up one leg. don't open the hip. then take it down before the beginning clients i will take that laid-back and hold that there. everything. how did tat feel? gerri: a and you would talk through all of that. we were hoffman and puffing it was pretty sad. [laughter] >> so nice to meet you.
>> i feel better and i did nothing. >> dan toinvestigate the craze of the biggest trend out there. crosste. -- crossfit. it is like a religion. why is it so popular? >> three things that people would result, community and find. people what to keep coming back. gerri: it seems so informal spirit we have the instructor up front like a group or private trading
that gets people to push harder. gerri: this is not the only way to you do that but you could get free instruction? >> the guy who started it started a restaurant and gave away the recipes. they post every day the workout of the day on your all dash day local gym. that is either because they are looking for instructions or do with faithfully or duet well. gerri: sometimes you don't want to do by yourself. i know there are some issues with injuries. >> with the vote research out it is the same as any of their athletic pursuits for a good you have never done a movement before people
sometimes injure themselves. >> what do you do to get ready? sova fatah i have seen. >> in the same workout class somebody produce 500 pounds or a qvc pipe. we have people who are losing weight, and they can mix and match. gerri: at any level? >> on 2014 with this idea? >> no faster way. i would say 80 percentof the members come in and all of them are doing polyps. [laughter]
>> is there any special food? >> although a lot of people from the of pleo diet of the things that you were evolves to eat. gerri: i just like food. if you tell someone you avenue year's resolutions and what is the one thing you would tell them? >> do something every dayy if you let the dishes pile up you will not clean them. if you r walking or playing flag football if you get into the habit is a lot easier. gerri: the man arrested for
of a stock analyst downgrading accompanied on the basis of morality. by did you downgrade apple? that is one of the most extreme examples i have ever seen in my 15 years on wall street. sitting on one digit $50 billion in cash and workers in asia are paid less than an $3 per hour they are abused and have depression and some there were suicides at the plant of the supplier. gerri: you are a big defender of capitalism. the stock analyst sees something he does not like and what do you say? >> i appreciate him for speaking but why did he stop at three? if you look at the stock market, capitalism. free markets. profitability. you are looking at a lot of companies that effectively
should be in his cross hairs if you are in an investor buying stock you buy it to make money and if the company makes moves that may or may not be moral. i agree you should not treat them badly but in a lot of countries poverty's uplifting happens so there is a free market somewhere. >> just as we are in disbelief as people lived to 000 years from now in 100 years there will be in disbelief the way we find out the way we treat the poor people. gerri: but let's get bac to your stock ratings. look at the behavior and you rate them not just performance but also how good a citizen they are? you downgraded amazon? >> sitting on $27 billion in cash and in there are widespread reports that
employees were mistreated and abused in wehouses. you hit a couple of buttons on your computer but nobody in the stevens what happens to get the package to you. they are running around the warehouse for $10 an hour so you get your christmas gift on time. gerri: are you concerned a amazon employees are mistreated? civic no. it is a great stock. to his point people of running around with rats with their head cut off aid may not have a job for food while or a christmas. that is the point. he made a comment about the poor people in america. they could have a living@ wage and they have a supportive government you
get very much support in this country that is why people move here. gerri: do find it mo understandable with apple employees overseas the and american employees. here is another idea. we just got news of fiat cruise cio was fired walking up the door wit $40 million cash for i am not sure that should call for a change of reading but stockholders should be up in arms because this is not the way the money should be spent. >> they were. the stock dropped a couple las% to vilify th us see '04 it. but the street for dads stuff like that because somebody will do a good job and then make profits for the company. gerri: buttery warding for
performance it is not a good >> that is not to a news /. >> what i am saying is i am disgusted with what this guy is saying that it has to be a redistribution of wealth in this country with my a self included a relative to the bottom 20%. gerri: now you lost me. >> you could lift everybody up with $15 per hour with health care coverage. gerri: is that what america is about? >> no. you are rewarded for performance and to win well d what you should be doing. that disappoint.
will next guest is here. you are squaring off but let's hear from this young man directly. >> they hide behind signs come up with the sun going down without lights i felt it was not safe notust for citizens but for the police officers having to do their job. gerri: that is a good point. doesn't he have free speech? >> he is in the media and of the six lane roadway wave being the us a line around. that is a danger. gerri: it says that there is a speed trap. >> that is not why they ever arrested him that he was advertising on private property.
thereis no statute that says you couldn't. >> it was the fact he was on public property. >> but it's is it is the crux of the issue they cannot get him for what they wanted. it'd is illegal. >> but it is illegal in some stat because it is prohibiting you from using your headlights is intended jake on free speech but if the state is interested in safety why do they care that he tells people to slow down? is. >> because other people looked at him. what is he doing in the middle of the road? >> the real reason is they
cannot give tickets because they all want to say you cannot do that. he wants people to go slower. why dohey have to pay a ticket? >> he does this all the time. also there is a state of texas they got her on another church -- a charge. they have to get them on another charge. but look at the issue in the greater sense. is this a violation or freedom of expression that has a public purpose? >> it is the public endangerment issue. >> he was on public property >> what is the problem? >> is dangerous and reckless
>> the key is really endangering. >> also himself. you are in the middle of six lanes. veddas the endangerment. >> my last point is it costs them money. gerri: date you for coming on. it is a great segment. we will be right back. the answer to our question of the day. to retailers pay lip service to privacy? if you wear a denture,
take this simple test. press your tongue against it, like this. it moves! doou feel it? it can happen with every denture. these movements mairritate your gums. but you don't have to bear with it. you can try fixodent plus gum care. thanks to its formula, your gums become one with your denture. this helps stop movement and helps prevent gum irritation so you can keep enjoying life. [ apple crunches ] fixodent. and forget it. gerri: earlier this hour we delve deeper into the massive security breach a target over the holidays, looking at having happened, where we go from here, and, of course, is to blame. leading retailers just pay lip service to privacy? we ask the question on gerriwillis.com. 88 percent said yes, to a percent said no.
here are some of your e-mails. bill from the hampshire rights, don't forget that ckers break into the most secure sites in the world. when the hacker, not target, the victim. and liie from new jersey says credit card companies in my opinion did not provide enough security for consumers. the security prevention's can be accomplished by selling of the consumer chosen panda and the consumer should be required to change its quarterly. more security. final rehab. it seems everybody is struggling -- shrugging their shoulders as if the problem won't go away. it won't unless we take steps now to protect american wallets. the step above the technology we use now routine in europe and even north korea. we're beyond -- behind p'yongyang and technology. not acceptable. banks say is th retailer's
fault. i say fix it. that's my "2 cents more." that's it for tight and "the willis report." thank you for joining us. have a great night and a great weekend. ♪ you beauty president oama region with little more than a slap of a secret decoder come a decode this. no way. he still has carte blanche to snoop on you and me. welcome,veryone, i am neil cavuto. president obama said he had no idea. so much of the metadata mining.