tv Boom Bust RT October 25, 2017 8:29am-9:01am EDT
you know speaker at syntax this week we get the latest on how tech is disrupting the finance industry by just outright. thousands of people from around the world have headed to hong kong for fin tech week fin tac is basically a technology in the financial industry everything from mobile banking all the way to ai investing it's organized by next change the financial networking site former u.s. trade commissioner bart chilton kicked off the event but the keynote speech he joins us now from hong kong part thanks for staying up so late actually so early to join us on this on me other side of the world outlook for those who don't know tell us about fin tech week why hong kong and what sorts of people are there
hi lindsay well yeah i mean people have really have come from all over the world this is sort of the the global fin nation in hong kong and hong kong unlike you know china itself is very proactive and trying to not only see baze business but to be a hub in asia and expanding throughout the world so we've got people from the states obviously but people from europe and people from throughout asia and it's really amazing is there are so many different people so many sorts of new exciting energetic ideas and it's just really cool to be here well it's interesting you say that because you know finance and technology it's very disruptive in a scares a lot of people so it seems like this is much more than the typical financial sector convention any particular highlight so far. well there are you know i
mean you have you have the sort of usual suspects surrounding financial conferences you have the the bankers the lawyers and the accountants and everything but there are there is much more and there are some highlights i mean there are inventors and these inventors aren't used to being at conferences like this i mean when when they're giving their presentations are sort of looking down and talking to softly and you really have to listen to them but you want to because what they are saying is fascinating and you've got to have people with different applications some in fin tech and some are sort of related business one that i really thought was cool by this company called essure and the applications called me ru and what it does is you take a selfie and then the three thousand or so pictures that were taken at this conference that will pull up all your pictures now that's just in to something there are some similar things on the web but they are developing visual artificial intelligence linsey that can be used in things like documents so you read
a document and it says ok we can teach give you other documents that have those sorts of sorts of words or those sorts of syntax and it was just really exciting thing off in tech stuff but even a little beyond tech like this stuff ok let's talk about blocking technology united discuss this aton is becoming more recognized as the wave of the future for payment systems and the exciting or innovative blocking projects that you learned about their. tripping all over themselves i mean i mean this and you know you and i look at this stuff all the time right and i still learn things so for example the jewelry business you know gems they're using block train to not the little trinkets but you know big valuable gems. they're line was look we already so very expensive gold chains and silver chains we're going to do the block
. now but they also are doing block chain for real estate transactions for intellectual property transactions it's just really a bevy of innovation here and you know that look everybody may not know what average people watching the show may not understand exactly what block chain is but essentially it is a distributed ledger a record of ownership passing from one entity to another and so you may not have to know much more about it than that because it will block chain will be operating sort of below what people see you know it'll be in the banking systems and everything else but it's fundamentally changing the way that not just payment systems are made but record systems are kept it's changing everything lindsay what's the word from people in tech week what are they saying are their biggest challenges with this. well a lot of it's money i mean you know we talked about all the money going into the
you know the tens of million dollars dollars into the initial coin offering the i c o's lindsay but there's lots of folks here trying to get money so they can you know hire developers there's a really neat that some people i was talking from from saying of talking to from singapore and they are developing also something new and exciting you know we know about exchange traded funds for example try to track the price of crude oil or gold or something but but you're not investing actually in crude oil or gold you're investing in the fun well now they're doing cryptocurrency funds so you could have a basket you know a bit coin in ether or pot coin or or waves or whatever it is you can have a basket of crypto currencies so maybe the biggest challenge for a lot of these folks is money but then clearly for the digital currencies themselves it's going to be regulation and dealing with people like me in my former
role exactly now the word is let's talk about this keynote speech the word is you delivered a barn burning speech and kerry said you gave the digital currency enthusiast any tough regulatory law now that you mention that. yeah i guess i did and i always do i mean look they are if they don't embrace regulation i'm not saying to be over regulated i think it's bad news as you've reported before lindsay just in the last several weeks i mean we've got china south korea and russia who have all banned digital currency trading and offering of these initial coin offering the i c o's and they're doing that i think and i've spoken with some of the regulators actually some are here is that while it looks like they're just saying no go slow i think what they're really doing is they're saying we don't know enough about this digital currency space yet we're nervous about the volatility that we've seen for example in bitcoin and ether the most popular digital currency is out there and so
i think what those nations are doing is saying step back try to get some regulations in place but if the the digital enthusiasm come forward and try to be part of that give and take conversation with regulators around the world we'll see more countries ban these things and that would be big bad news so my tough love was you know essentially deal with regulation or die right got to play by those rules like on a lighter note you end up delivering on the ad the goods on your trademark financial poetry that ask. i did you know i always tell them i wish with all modesty lindsey i say you know i am the best financial poet in the world. and say i'm the only financial poet in the world i'm also the worst but you know we gave them it's two it's you know four thirty in the morning here so i won't give you a poem but maybe sometime when we're together in washington absolutely i will hold
you to it and let's finally let on to have the rest that week. more exciting stuff the first two days were really organized by john lee and next change that you mentioned the social networking site for financial sector but today is being organized by the hong kong monetary authority so these are sort of my peeps want to panel in a matter of three hours or something here and we're talking about global regulation and my talk so far has been about everything all over the world today all focusing on the us my former agency and the f.c.c. and then for the rest of the week more innovators more networking just to full of energy here lindsey great can't wait to get to the studio after that wraps up thank you so much again very early in the morning over there in hong kong commissioner bart chilton thanks for joining us. think humans. china is the world's largest market for electric cars and it's about to get a tesla factory near shanghai the government levies a heavy twenty five percent tax on imported cars but as it shifts away from gas
powered vehicles it provides extensive subsidies for electric car manufacturing projects in the country. the want in on that deal however foreigners can't completely own their factories there and intellectual property rights are questionable in china decimated that two hundred ninety five thousand battery electric cars will be sold in china in two thousand and seventeen now that's compared with two hundred eighty seven thousand for the rest of the entire world tesla says it in talks with the municipal government in shanghai to build a factory in a so-called free trade zone where it can cut production costs. that's right your company aims to seduce french transportation officials it's making a deal with paris urban planners it work collects data on trips taken by customers the world over with billions of data points and now it's offer to share that important not to mention lucrative information with paris to help map out future
transport means it can show the most popular road clogging destinations and the time it takes to get from point a to point b. paris is already clamping down on gasoline powered cars it will be those cars actually will be banned in the city completely by two thousand and thirty so those drivers will have to convert. time now for a quick break stick around because when we return credit monitoring service equifax is in the hot seat in the u.k. it may have to cough up money for british citizens affected by the massive data breach and my guest joins me to discuss the terrifying ransomware attack people virtually held hostage by half it's costing billions. to go to break here the number doesn't.
feel to be a share of the greatest job in the world it's as close to being a king as any job there is what business model helps to run a prison now we do or don't like it nobody you know visitation i don't know what comes even more we don't have to serve them anymore is. this what they want to do that they don't give a damn if you do. their best to put it back in. the louisiana incarceration rate is twice as high as the u.s.n. breach what she could is behind such success.
here's what people have been saying about rejected in the senate it's full on. the only show i go out of my way to lunch you know what it is that really packs a punch oh yeah it is the john oliver of r t america is doing the same we are apparently better than. a c. people you've never heard of low down for the night. president of the world bank hate to tell me seriously send us an e-mail. or an.
equifax is in trouble after revealing a data breach in september which hit around one hundred forty five million people most of them in the united states but that has also hit the sensitive data of nearly seven hundred thousand british citizens it has the credit rating agency in hot water with ukase financial conduct authority one piece of the investigation includes whether equifax violated terms of its license to operate in the country and whether it will be forced to compensate customers who had information stolen involved in the hacker records on fifteen point two million british citizens for seven hundred thousand though credit accounts user credentials partial credit card details and driver license numbers were accessed and these are the ones who used equifax is credit protection services.
a senior intelligence official in canada says that critical infrastructure has been targeted by hackers so far no damage has been done but as you might guess cyber security is a growing global concern in this area at the latest happening in ukraine and russia artie's alex with high level she joins us from toronto with more alex let's start with canada the government is quote really worried about cyber attacks so what do we know now well as it should be because technically speaking a cyber attack can happen at any time and they're becoming more and more advanced what we're talking about here in canada pretty much echoes what we heard last week in the states as well critical infrastructure so things like nuclear power plants any type of energy for that matter evasion anything on the water so you know boats that are moving from a to b. when you have the tankers out there or they get power to all you could have a major accident also many. that's also been a target in the past so what we're hearing is that everything is pretty much in
danger when it comes to cyber attacks now there's a summit in toronto that's the reuters a cyber security summit and we heard from a former senior official from cease this which is canada spy agency they're saying that we need to improve no matter why in canada we need to dip improve our defenses because these guys are getting more savvy a time and there are not enough is being done to coming at it when these attacks do happen so get this this is a really interesting statistic now there are about sixty countries in this world that have the ability to conduct offensive cyber warfare five years ago there were only five countries that could do this so this is growing exponentially but the flip side of this all is some positive news the fact of the matter is that most companies are taking this as well as government organizations are taking this very seriously so even with the capability of more countries to hide the fact of them actually being successful the chances of them being successful are lower because
the defenses are high and they're getting stronger and stronger by the day devastating consequences of this a cyber attacks are on the rise as we've talked about ukraine and russia are a couple of the latest victims that we're seeing what happened in these countries. yeah and so this actually happened just just very recently happened today so what we're looking at is a cyber attack that hit odessa airport in the ukraine as well as their metro system so there they are subway system the taxi for the airport itself what happened was that a lot of planes were delayed because the people at the airport had to go back to giving up manual tickets the systems were basically down so a number of delays there for the metro the trains were going as usual but the payment system was down and this was all due to this hack to the malware it's called. bad rabbit always some fancy name for this one bad rabbit and it went on to
also attack russia now and in russia the big company that was hit is interfax now interfax is one of the largest use agencies in russia saying it was unprecedented a virus attack there the attack also went on to hit a few other places like turkey and germany according to the labs war the people that build these security system the system against a mouse where the software that which many of us use so what we're seeing here is that you know there's a lot of countries outside of north america that are in danger as well we saw worldwide attack earlier this this year with want to cry we're even hospitals were down is that there's another fancy name for you want to cry so this is the way that these things work and fortunately as i said companies are taking this more and more seriously there's literally you said it sucks in about two hundred thousand of these codes to date and it spits them out clean things up so you see that this is something that's hitting all the time and you have to be very vigilant and fortunately countries and companies are being very vigilant and seems at least for
now they're taking care of business cards now thank you so much arctic arslan account for hi max thank you. the rise of ransomware it's one of the most common attacks on our electronic devices and systems it gets in hold your information hostage or even your systems hostage until you pay around to them in a particular currency take a look at the spike over a two year period in the second quarter of two thousand and fifteen ransomware hit jobs as they're called rested as low as four hundred thousand by q four it was more than double that and then right into two thousand and sixteen the start of the year it jumped to one point two million and on up to around one point three through the next two quarters according to mcafee labs this drop was due to i rigged auction in generic ransomware detection in two thousand and seventeen is set to be a blockbuster here joining me to discuss how experts are getting ahead of this and what we can learn after so many of us have been burned sam curry chief security
officer for cyber recent thank you so much for coming and my pleasure look let's start with bad rabbit ukraine russia what can you tell us about this well as alex said it broke up quite recently it has been very blunt for lack of better term it's been growing extremely quickly however one of our researchers to limited needs who also was instrumental in finding and stopping not. what's called a vaccine has found a vaccine for this one to in effect an ability to stop it from installing i liken it to if you had to stop an intersection you could drive a truck into it let the air out of the tires ok so what does it does it so it prevents it from spreading but it's not going to a little preventive so if you if you take some very simple steps of creating a couple files and changing the permissions so that nothing else can touch them it will actually stop it and cause the ransomware to break so you can take these steps if you if someone's watching today they're ninety admin they can go to our blog see
the instructions follow a few steps and make sure their systems are safe can it suck the disease out with this now donation or is it just stopping the next it's really how it's acting in real time and so. contain it and it will stop it we recommend taking a number of steps if you want to stop these in the future the best ways are in fact to find behaviorally ways of immunizing it we of course inside reason have a product that does that there are others on the market as well to be fair but the trick is it's not just about the anti-virus approach of stopping things you've seen before it's actually stopping things that behave like ransomware things that encrypt in invoke and stop them as they're operating very confusing stuff for the layman a i'm trying to keep up but it's so important what is destruction where how is it different from ransomware so destruction where actually comes in earlier you called them hit jobs for ransom well this is just hits so you take someone out its goal is to take help shoot to kill turn your computer into a very fancy expensive paperweight brick it we call it so destruction where his job
is to destroy computing infrastructure this program somewhere says i'll release it back to you if you pay a fee so they're not petty was an instance of destruction we're posing as ransomware to make it more confusing for people ok let's start with one of the most or at least one of the most damaging ransomware attacks that we've seen in the public early two thousand and seventeen want to cry alex mentioned this crippled computers one hundred fifty countries maybe more than that costing up to around four billion according to some estimates it's almost a dangerous one to get right how do they pull this off with the attackers yeah in this case with want to cry it was it was a question of having the right techniques the right tricks if you will to get themselves installed and they caught the world with something that never been seen before not enough people are going to share it completely unprepared it is wild wildfire spreading through through through dry grasses right there is a way to dampen that there's a way to make sure that damage is less bad when it happens and also to get some
technologies that can actually prevent it and those so far are still in early adoption phase right now thing it's like a virus constantly mutating the. how do you say it in that head about how repurpose had actually just going to be catching up you know it doesn't have to be doom and gloom there are ways of getting ahead of those changes some viruses are self replicating in the case of most of them the truly creative ones human beings are finding ways to iterate on the theme but the message for those who are doing critical infrastructure governments large corporations is do the basics well alex said it well earlier the gap can be closed good hygiene and frankly ways of getting ahead of the bad guys as they innovate and as they build new techniques are very important so behavioral techniques are better than to call them signatures well let's talk about filling the gaps we just saw a quick fax and a simple patch i think the warning was back in march a simple patch were to fix this it's not as if they have one id guys sit in a back room no not at all should these corporations be punished because this was
totally preventable publishing is a is a tough word they are being we want to head on you know all i know but you don't know they're not patching because they don't know they missing or that you had to be a patch right well it's not like that old g.i. joe adage knowing is half the battle right because they know the problem is that as you roll out patches what happens is you incur slow downs your service drops right and so there's a certain rate at which companies can roll out patches they've got to get better at it they have to update more often more quickly and make that part of the d.n.a. or there just be flatfooted they're going to get breach left and right well let's talk about the people in the back foot we talk about it was not long ago i think it's two thousand and sixteen we had the breach at the hospital in los angeles and they paid off the ransom where it wasn't that much it was like seventeen thousand dollars they paid off because they had to get their systems back as i wasn't happy about that but they said you know guys we've got to get our systems our systems back and these companies are slow down what's the cost well whenever you see someone paying one of these it's because they've made
a very difficult decision that lives on the line or literally they're going to lose ten one hundred times more we recommend that people not to do that if they have any other option but we can't tell them what's. do it's almost a fundamental right that they can make their own risk decisions but for me once shame on me for me me once shame on you fool me twice shame on me don't get caught flat footed again and that old adage of don't let a good crisis go to waste make sure when it's happening to others that you want the next victim which means get ahead of it only make sure one of these things is going to take everything out and be able to recover we've been doing backup and recovery for a long time there's no need to save that machine if you did your back up and can recover that that's elementary and i just ask keep. backups in paper and pencil if you can't hack and notepad yeah but you also if you don't realize you don't connect it with doctors around the world. but talking about a patient record or something like you or your equifax information isn't there a point where things have to be in a physical form rather than digital are we going to come to that point we may if we
don't find some new solutions as a society. i think we all want to enjoy the benefit of a connected world we want our ai our internet of things we want our data available everywhere we want to be transparent but it's going to demand some new solutions and security needs a bigger seat at the table because right now it's seen as a doctor know in companies and government organizations instead of an enabler. firewall let's talk about before we go we'll stop at the market for this information equifax everything you can't change your mother's maiden name you got your social security number. black markets for that is that we could be dark nets so there are layers here that there will always attracted markets in these yeah exactly however what we're really seeing with these types of incidents is a lowering of the cost to get information about people you know more information is available more easily to more people on all of us rather than any one of our identities being at risk and that's not good it's almost a public safety has but that point we've got to get away from using things like
social security numbers in the u.s. and equivalents elsewhere as placeholders for identity and start to get a bit more sophisticated god forbid what we're going to see with be a question. breach in the years to come very disturbing but thank you so much for filling us in on this information for him curry chief security officer for cyber reasons. on a lighter note now most of us have played the game of where's waldo hunting for the familiar man glasses and a red and white striped shirt well if you ever find yourself at the waldo canyon in colorado you'll have no issue finding several since two thousand and twelve thousands of people have made the journey to the aptly named waldo canyon for the where's waldo five kilometer run everyone shows up in the iconic red white striped shirt toboggan hat and black rimmed glasses while the canyon was devastated in two thousand and twelve by
a wildfire all the raised funds go to it's protection waldo's have raised more than two hundred thousand dollars over the last six years just running through that canyon. thanks for watching everybody next time. when i'll grow. you may know my son i'm going to run. you got to do but you are right. and chatroom.
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