The Jordan Harbinger Show - 240: Richard Clarke | Defending Ourselves in the Age of Cyber Threats

Episode Date: August 20, 2019

Richard Clarke (@richardclarke) served for 30 years in national security policy roles in the US government and worked directly for three presidents. He is the host of the Future State Podcast... and co-author of The Fifth Domain: Defending Our Country, Our Companies, and Ourselves in the Age of Cyber Threats. What We Discuss with Richard Clarke: How we're in constant low-grade cyber conflict with Russia, China, Iran, and other adversarial nation states -- and the forms this can take. Cyber crime was a $600 billion industry (one percent of global GDP) in 2018, much of it perpetrated by rogue nations like North Korea. How cyberattacks can be (and have been) used to wreak physical damage on infrastructure, and why we should take them as seriously as traditional weaponry. Is it the government's job to protect private companies against cyberattacks from foreign powers, or is it up to private companies to be responsible for their own safety? Why there's a crisis-level shortage of cybersecurity expertise coming out of our country's most serious tech schools, and where it's being found instead. And much more... Full show notes and resources can be found here: https://jordanharbinger.com/240 Sign up for Six-Minute Networking -- our free networking and relationship development mini course -- at jordanharbinger.com/course! Smart Passive Income with Pat Flynn is the podcast where it's all about working hard now so you can sit back and reap the benefits later. Give it a listen here! Like this show? Please leave us a review here -- even one sentence helps! Consider including your Twitter handle so we can thank you personally!See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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Starting point is 00:00:00 This episode is sponsored in part by Conspiruality Podcast. You know how I'm always talking about critical thinking and spotting manipulation? Well, there's a podcast that's all about dismantling new age cults, wellness grifters, and conspiracy med yogis, basically the wild overlap of spirituality and misinformation. It's called the Conspiruality Podcast. The hosts, a journalist, cult researcher, and a philosophical skeptic, dive deep into how this stuff spreads, from Project 2025 and the Heritage Foundation's dystopian vision of the future to how former leftists get pulled into far-right conspiracies.
Starting point is 00:00:31 An interesting episode to check out is called Speaking Truth to Goop, where Jen Gunter breaks down the pseudoscience behind the wellness industry in a way that is super entertaining and eye-opening. It's sharp, funny, and makes you a lot harder to fool, which, if you listen to this show, you know I'm all about that. From exploring cults to analyzing our cultural and political landscape, the Conspiratuality Podcast will help you stay informed against misinformation and resist fear tactics.
Starting point is 00:00:54 Find Conspirality on Apple Podcasts, Spotify, and wherever you get your podcasts. Welcome to the show. I'm Jordan Harbinger. As always, I'm here with my producer, Jason DeFilippo. On the Jordan Harbinger show, we decode the stories, secrets, and skills of the world's most brilliant and interesting people.
Starting point is 00:01:13 We turn their wisdom into practical advice that you can use to impact your own life and those around you. A lot of people think cyber war is just stolen information or inconveniences like the internet slowing down for a few hours. But these systems can impact our economy and our lives much more deeply and result in absolutely catastrophic failure of our infrastructure,
Starting point is 00:01:35 or worse. Today on the show, Richard Clark, former National Coordinator for Security, Infrastructure Protection and Counterterrorism for the United States under both Bush and Clinton, by the way, explains how we're in constant low-grade cyber conflict with Russia, China, and Iran, and how vulnerable our systems, infrastructure, and country are to these attacks. We'll also discuss why protecting ourselves isn't as simple as installing better software, or enhancing our own capabilities. It's not just our data.
Starting point is 00:02:03 It's not just our elections. In a terrifying twist, we'll also uncover why cyber war is very likely to lead to conventional war and loss of life, potentially even large-scale conflict. If you want to know how we get this guest roster, well, it's not just about my business relationships. I've got killer personal relationships that I manage with hundreds, thousands of people. I use systems and tiny habits, and I want to show you how to do this. This has been very impactful for my life.
Starting point is 00:02:29 for my business for the show, check out our course six minute networking. It's free. Not enter your credit card free, just free, free. Go to Jordan Harbinger.com slash course. And by the way, most of the guests that you hear on the show, they also subscribe to the course and the newsletter. So you're going to be in great company. Lots of smart people in there. I'd love to have you join us. All right, here's Richard Clark. What surprised me about the book when I first picked it up was that we're in low-grade cyber conflict with Russia, China, and Iran. And I guess that wasn't a shock, because you hear about cyber attacks, I didn't really realize that this was kind of an ongoing thing.
Starting point is 00:03:05 And my friend showed me this, I'm sure you've seen this, this live kind of map of the little lines that look like little missiles lobbying over and these are supposed to be cyber attack maps. I'm pretty sure it's not quite how it works. I think that's a PR map. Yeah. No, but I think we are in a low-grade cyber war with Iran and Russia.
Starting point is 00:03:26 I mean, shots are being fired. just let's go over Russia and Iran. Sure. And what we know publicly, and we can assume there's a lot we don't know. Sure. So just before the congressional election in the U.S., U.S. Cyber Command, did some sort of cyber attack against the Internet Research Agency in St. Petersburg. I've heard that we sent messages to intelligence officers working there by name saying, we know who you are. You know, don't mess up our election.
Starting point is 00:04:00 We'll come after you. I've heard that we screwed up their network as well. I don't know the truth. We did something. But the U.S. Army or the U.S. military, U.S. Cyber Command, attacked something in St. Petersburg. Then you go forward in, I think, March of this year, the head of U.S. intelligence, Dan Coates, the director of national intelligence. in his annual threat briefing to the Congress, says the Russians are in the controls of our power grid.
Starting point is 00:04:34 Yeah, we'll get to that. That's mildly terrifying. And then a few months later, the White House has an official leak that, oh, we're in the control of their power grid. Yeah, yeah. So we hit their intelligence front organization in St. Petersburg. We've apparently gotten into their power grid. With the Iranians, we know the U.S. admits, more or less, that we did an attack on their nuclear facility at Natanz and blew up their centrifuges using software. Now, after they shot down our drone, Trump tweeted that he launched a cyber attack and way of retaliation against their missiles and intelligence along the Straits of Hormuz.
Starting point is 00:05:22 I don't know exactly what he hit, but he hit something. Yeah, they made a statement today. I read this on the way here that, of course, Iran, as most countries would do, say, oh, it didn't do anything. Right. Which is the only answer you can really give to a cyber attack. And it's very hard to have a satellite fly overhead and look at the damage and say, oh, no, look, it was serious. Right. But, you know, for years we had Cyber Command.
Starting point is 00:05:44 I think it's 11 years old as an organization. And it didn't seem to be on the offensive very much. we knew that the Secretary of Defense, Ash Carter, and the Obama administration, ordered Cyber Command to go after the terrorist group ISIS. And we know now from his book that just came out inside the five-sided box, he was terribly disappointed at the results. Sure. That Cyber Command didn't do very much to ISIS. Well, you can understand that. They're not a nation state.
Starting point is 00:06:18 They don't have a lot of interest. But Cyber Command has apparently attacked Russia. It's apparently attacked Iran. And we know what the Russians have been doing to our election and to other nations, democratic processes. We know that Iran has attacked in the U.S. They've gone after Sheldon Adelson's casinos in Las Vegas, oddly. They've gone after the major banks in New York with a denial of service attack.
Starting point is 00:06:46 They went after the Saudi oil company, Aramco. and wiped all the software off their network. So, you know, when we wrote the book Cyber War 10 years ago and said all this stuff was going to happen, people said, oh, that's fanciful. You've been reading too many clancy novels. But it wasn't even back then. No.
Starting point is 00:07:05 Because I remember when I was probably, man, 13 or 14, and I was messing around on the Internet with hackers and stuff like that, MCI used to be a telecom company that you probably have heard of. Yeah. And they had a bunch of phone lines, in Iraq. And me and a large group of guys, I should say a large group of guys and I, we shut down a lot of their international telecoms capabilities by, and I, again, I'm 13, I'm not a genius with computers. It was actually just not that hard. Yeah. It was like dial into their modems,
Starting point is 00:07:39 flip a couple things around, you needed to know the country code for Iraq, and then other, some other things that were social engineering in nature, which is where my skills were lying at the time was more like, oh, hey, we're going to need to do something with this fiber pipe, and they're like, okay, no problem, you're going to run a test? Yeah, okay, it's going to last five hours. Okay, well, we'll, you know, throttle traffic for five hours. And then you just jam it all up to the point where they're going, what the hell happened there? And it takes some three weeks to undo the damage or three days. And that's exactly what we did. And that was basically how you could shut down a whole country's phone system.
Starting point is 00:08:11 So, see, this is exactly the change that's happened. Ten years ago, 15 years ago, it was 13-year-old boys. Yeah. And I remember we had an attack on a whole series of U.S. Air Force bases when I was in the White House. And the Air Force got all upset. This is in the early days of this kind of thing happening. And we're trying to figure out who did it.
Starting point is 00:08:36 Was it Russia? Was it Iraq? It was a big debate about that. And I said, well, you know, let's not try to guess. You know, let's wait for the forensics to come back. And the forensics came back and there were two 13-year-old boys. They were in Israel. Sure.
Starting point is 00:08:53 But so what's new 10 years on from our first book, Cyber War, is that the things that we worry about now are not 13-year-old boys. Right. They're nation states and their armies. So if you look at the major attacks that are occurring now, it's Russia. is GRU, which is military intelligence. It's a numbered unit of the People's Liberation Army of China, unit 5218-9. They're into numbers, not names. But of course, U.S. cyber companies can't stand that. They can't stand the enemy is 59812 or whatever the number is. And so they make up funny names for them. Like Russia had, what was it like the bears? They're bears. So the
Starting point is 00:09:45 company CrowdStrike, great company, just went public, now worth $13 billion, they broke down the various Russian threat actors. And instead of calling them Advanced Persistent Threat Group 1, 2, 3, which is what another U.S. company called Fire Eye had done, they started giving them names. So there's Fancy Bear, yeah. and various other bears. And then they started calling the Iranian threat actors, the various forms of kitten, this kitten, that kitten.
Starting point is 00:10:22 But they're all military organizations. Now, you can give them sweet little, you know, kitty names. We're talking about the Russian military, the Iranian Revolutionary Guards, the North Korean military, the Chinese People's Liberation Army. That's who's attacking. not only us, but other nations around the world. And a lot of what happens overseas is the U.S. military, cyber command, N.S. and CIA.
Starting point is 00:10:58 It's changed. It's now the big boys. It's now big military organizations that are doing most of the serious damage. They're well funded now, I assume, because two 13-year-old boys in Israel, not super well-funded. Usually their allowance only goes so far. They're using their parents' computers. I mean, even me at that age, working with these other guys,
Starting point is 00:11:20 we're using Internet Relay Chat to talk. Most of those guys, I think, I mean, we didn't really know each other, were in college. Some were probably beyond college system administrator at Hewlett-Packard, something like that, but nobody was working for, there was no Cyber Command,
Starting point is 00:11:36 nobody was in the Army. Definitely none of them were in law enforcement. I mean, we were just a bunch of nerds on computers that thought, like, wouldn't it be helpful if we shut this down? Probably. Well, it sounds fun, and we're probably going to get away with it, so let's do it. That was the consensus. And we see crime going up in this area, too, not just the attacks from China and Russia, but cybercrime. I was telling you before the show that on the way here, cybercrime is something like a $600 billion industry.
Starting point is 00:12:05 And that might count solving cybercrime, but it looks like we're taking a dent. the tune of 1% of global GDP as of 2018. So that's interesting. Part of the cybercrime is nation-state related. And in two different ways. The North Korean Army, when it goes out and does cyber activity, is stealing money for the state. That's how they support the North Korean government. How the North Korean government pays the bills is they steal.
Starting point is 00:12:37 This has always been true. They were using the diplomatic pouch for years to carry counterfeit money. They made a almost perfect U.S. $100 bill. It's called the Super Dollar, right? A super note. They also used the diplomatic pouch for years to carry narcotics. So now they're making money in a criminal way through cyber tech. So that's one way the states are involved in crime.
Starting point is 00:13:05 The other way is there's pretty good reason to believe. that in Russia and in China, people go home after an eight-hour shift working five days a week in the military cyber unit and do a little work at night on their own or with cartels, criminal cartels, do a little work on the weekends. It also looks like China and Russia seem to be following the U.S. model that the military is supported by contractors. So now there are Russian contractors and Chinese contractors
Starting point is 00:13:44 and they're, you know, private companies owned by individuals, not owned by the state, and they get contracts from the government to go hack something. So there's like a Chinese version of what might look like
Starting point is 00:13:59 crowd strike here? Or Booz Allen. Booz Allen, yeah. Booz Allen's the one I always think of because whenever someone is arrested for stealing NSA's material, it seems to me. It's often a Booz Allen employee. Or if they escape to Moscow.
Starting point is 00:14:17 Or if they escape to Moscow, they're a Boozell employee rather than an NSA employee. NSA is always quick to say. It's not us. Right, right. It's our contractor. Right. Edward Snowden worked for Booz Allen for people who don't know. And a few other guys who've been charged.
Starting point is 00:14:32 I didn't mean to pick on Booz Allen. But anyway, the point is there's now a Russian equivalent of that. There's a Chinese equivalent of that. And it's pretty clear that they're using attack tools in their day job to do intelligence collection. And then they go home and work with some other friends and make a little money on the side. It seems like countries are, according to your work, they're more likely to go cyber, they're more likely to go unconventional first in conflict. Why is that? Why do people start off with the hacking in the cyber attacks? I think we have a good example of that just
Starting point is 00:15:15 recently with Trump. So Trump wants to retaliate because our unmanned vehicle got shot down. I always thought the point of having an unmanned vehicle was that it could be shot down. Right. But frankly, I'm serious about that. When we started using drones, I was a big advocate. and one of the reasons was there's never going to be a U.S. pilot taken hostage. No U.S. pilots ever going to be
Starting point is 00:15:44 tortured and killed again. No John McCain has ever going to spend six years in a cell because his plane was shot down. We're going to use drones. And if they, you know, if they shoot a drone down, the pilot's going to go home to her
Starting point is 00:16:00 husband. Right. You know? Right. That night. Say, I lost a really expensive piece of equipment, I might get in trouble. Yeah, let's have dinner. So I thought that was compelling. But anyway, a drone got shot down, Trump got mad.
Starting point is 00:16:15 And apparently John Bolton, the National Security Advisor, gave him plans to launch missiles and bombers and go after Iran. And then that great national security expert, Tucker Carlson, apparently said, gee, that's not a good idea. And the president wondered why and was informed, oh, 150 Iranian military people will probably die if we do this. And he thought, well, gee, they didn't kill any of our guys. Maybe we should do something neater and cleaner with no body bags involved. Let's do a cyber attack. People, and I think that's typical, people think cyber attacks are. not dirty. They're not lethal. There are no body bags. It's somehow exercising state power
Starting point is 00:17:11 for some purpose or other, but in some sort of sanitized way. And I think that's dangerous thinking. Yeah. You mentioned that, and I've seen this at DefCon and other hacker conferences, people game this stuff out. And there are a lot of real world issues that can happen here. Let me scroll down on my notes here because I know that especially when you're attacking power systems or people think it's just going to be, oh, well, a bunch of people lost their ICloud accounts. What a bummer. Or, oh, man, I hope you had that word document backed up because your server's down. But when you're looking at SCADA systems, which are these, what does that stand for, some sort of command system for power? Supervisory control and data acquisition.
Starting point is 00:17:54 Okay. Yeah, you pass that quiz, I guess. I couldn't remember. But these are systems that are used to control power grids, I think water treatment plants, stuff like that. So, when you think of IT as computer networks, the SCADA systems are called OT, operational technology, operations technology. It's a different software environment. Yeah. And what I didn't realize until I got into this a little deeper was there are two different worlds who don't like each other.
Starting point is 00:18:23 Of course. Two different people, two different sets of conferences, you know? That's how you really know. It's like, did you go to the OT conference in Miami? No, I was at the IT conference in Boston. There's two different worlds. And that's a problem, it turns out, that the OT world of the SCADA control system
Starting point is 00:18:44 for the power grid, for manufacturing, for pipelines, all those sort of operational software, it doesn't interact well with regular old IT. Yeah. And nonetheless, people are running around connecting networks all the time because they want data from one to get to the other. And that creates a huge vulnerability. Yeah, but I get it, though, right? Like, if I work at this wastewater treatment plant and I go, you know, if I just plug this Windows machine into this, I can log in from home.
Starting point is 00:19:19 And I don't have to show up on Sunday. You got it. Yeah. That's exactly right. I have an old war story about that. I went to Houston when I was just learning this stuff, I'd go around the country and say, hey, I'm from the White House. Can you brief me? And they'd always say yes.
Starting point is 00:19:36 And so I went down to Houston. I went to a pipeline company who will be nameless. And they said, oh, man, we're glad to brief you because we got security. We got it knocked down. And we drove to a golf course. I'm like, okay, why are we at a golf course? and we went to a bunker, not a golf bunker, but a bunker bunker bunker. And there was staircase down.
Starting point is 00:20:01 And underneath the golf course, they had built a command center to run their national pipeline network. And they had done this during the Cold War because they thought there might be a nuclear war. Sure. And so the command center was designed to survive a nuclear war. And they could run all the pipeline pumps all over the country from there. and then I said, well, whatever, I mean, what if there's like a weather event and you can't get here? Oh, that happened.
Starting point is 00:20:30 You know, we had that hurricane two years ago. Not a problem. We worked from home. How'd you work from home? Well, we take our laptops and we just get a VPN line. We plug right into the controls. Yeah. In fact, we do that all the time now.
Starting point is 00:20:46 Yeah. Nobody comes down here anymore. Yeah. Yeah. Yeah, we just log in from home. Right. Exactly. And we use the same password that we use on AOL and Gmail for all of our accounts. And everybody, we have six employees over the last six months that don't work here anymore. Their accounts are all still active. Right. And we write the passwords on Post-it notes in the room just in case somebody knew goes. What could possibly go wrong? Right. Yeah. I can imagine.
Starting point is 00:21:12 You're listening to the Jordan Harbinger show with our guest, Richard Clark. We'll be right back. Thanks for listening and supporting the show. And to learn more and get links to all the great discounts you just heard from our. amazing sponsors, visit jordanharbinger.com slash deals. Don't forget, we have a worksheet for today's episode so you can make sure you solidify your understanding of the key takeaways from Richard Clark. That link is in the show notes at jordanharbinger.com slash podcast. If you like some tips on how to subscribe to the show, just go to jordanharbinger.com slash subscribe. Subscribing to the show is absolutely free. It just means you get all the latest episodes downloaded automatically to your podcast player so you don't miss a single thing. Now, back to our show with Richard Clark.
Starting point is 00:21:53 It's crazy to me because when I see these Russia and Ukraine conflict and you see the power grid being taken down in Ukraine or you see ransomware attacks and looking at things like SCADA systems or SCADA systems, you've got this whole system that can't really be fixed without a total redesign from the ground up. I think that was one of your points. But what really freaked me out was the sensors and things like Stuxnet. And I want to hear about that in a second. but I was going over the scenarios in my head here, and I thought, all right, power going down, that's a problem, especially if it's really hot or really cold. People need heat and things like that.
Starting point is 00:22:29 Gas plants, water filtration systems. I mean, once you start thinking, what happens if I tweak this in a malicious way, imagine sensors telling us that water's clean when it's dirty and hasn't been treated at all, or they just dump a ton of a chemical in instead of a little bit, and then they dump that out into the water system. I mean, people drink this.
Starting point is 00:22:50 Well, and there are systematic dependencies that most of us don't know about. So in 2003, a tree fell over in Ohio. Trees fall over all the time. That does happen, yeah. Particularly in my yard for some reason. But a tree fell in Ohio that knocked down an electrical line. And it was a hot day, and the power grid was at peak production. and a series of trips, cascading failures occurred.
Starting point is 00:23:25 And pretty soon a quarter of the country had no electricity, including New York, Boston, Philadelphia. Oh, is it a cascade? Cleveland, yeah. Brownout or whatever it's called? Blackout. Blackout. And up into Canada.
Starting point is 00:23:38 It happened like that. And, you know, all right, they blamed it on a tree. Maybe it was a tree. But things happened that people didn't know. So I think it was Cleveland or it may have been Detroit. Some Midwestern city discovered that without electricity, it didn't have water. Oh, wow. That's not true in most cities, but it was true in this one city.
Starting point is 00:24:05 And a number of cities discovered without electricity, they don't treat sewage. Oh. It gets discharged into lakes and rivers. So exactly what you're talking about. There are not only cascading failures within an electrical system, but then because of these dependencies, cascading failures of other kinds of systems. And until recently, people weren't planning for that kind of thing. Now they are.
Starting point is 00:24:38 You know, people now take seriously because, as you said, the Russians have attacked another country and turned off the power grid. Ukraine, twice. Twice, yeah. People now have, I think they're out of the denial they were in for the first part of the century. And they're actually planning FEMA, the emergency management agency, held a test in the exercise recently where the scenario was, power's going to be out for three months.
Starting point is 00:25:10 Because the cyber attack and the exercise destroyed. Transformers, destroyed generators, didn't it just shut them off? Yeah, let's talk about that a little, because one of the most famous cyber attacks of all time, I think, is Stuxnet. And you mentioned this before when we destroyed or when whoever was, I don't know, Israel, U.S., some combination, destroyed these centrifuges in Iran. And I watched a documentary about this, which is on Netflix, by the way. I don't know if you've seen it's really interesting. Zero Day. It might be that.
Starting point is 00:25:45 Yeah, they kind of outline. how all of this went down. And what I didn't realize was for almost every computer in the world has the Stuxnet virus on it. That's how they got it there. I thought, wow, how did they target this computer system? And the answer is give it to everyone. It's like herpes.
Starting point is 00:26:02 It's going to find you. You know, it's going to get in there somehow. And so they got it onto their, and the viruses, it might be on your computer right now, your phone, but it only attacks Siemens-made centrifuges that have this certain combination of parts that just happen to be and of course this was very deliberate,
Starting point is 00:26:23 the exact configuration that they were using at the one place. It has to be, apparently, it has to be the Siemens SCADA system tied to a program logic controller from Finland or Iran.
Starting point is 00:26:40 And pretty much the only place in the world where those precise things occur was the Natanz Nuclear Enrichment Facility. So, yeah, as a piece of software, it's over 50,000 lines of code, it's a really, really complex piece of software. It used four different zero days, the type types that had never been used before in the wild. If one didn't work and used the other, it was going to get in to the network. and wasn't going to the network, it spread, then it checked, you know,
Starting point is 00:27:15 I'm essentially asking, am I in the Tants? And if I'm not, it shuts down. So, yeah, it is on a lot of people's computers around the world, in part because after the attack, it somehow got out from the Tantz, even though Natanz wasn't connected to the Internet. Right.
Starting point is 00:27:33 There's only so much you can discuss publicly about how that might have happened. Yeah, I mean, my theory, based on no real information, is if you target enough people and they'll put something in an air gap to machine at some point and find it or it gets transmitted in some way that
Starting point is 00:27:49 isn't really that well known. But the thing that struck people after the fact was most people hadn't accepted that this could happen or hadn't thought that this could happen. Software destroys hardware.
Starting point is 00:28:06 Software can make a machine kill itself. Right. So I always talked before Stuxnet for a decade before Stuxnet. I talked about a cyber attack is a virtual arm reaching out of cyberspace into physical space and blowing something up as sure as it was a missile or a bomb blowing it up. And my metaphor just never, no one ever got it or they thought I was crazy or had read too much science fiction. after Stuxnet, and people went, oh, I see, you can really cause things to blow up. Yeah, people don't really get it, and I understand why.
Starting point is 00:28:48 But when you, the way you wrote about it in the book made perfect sense, which is it's largely about the sensors, right? So if you're running something at a red line speed and you tell that sensor to say, hey, we're only at half the speed, and people keep turning it up where the hardware control keeps turning it up way past what it safely can operate at. because it's causing itself to lie, it's causing your speedometer to lie to you, you don't know that you're going 140 miles at half.
Starting point is 00:29:14 Exactly. If you can get in between the device itself and the signal, the sensor control panel. So, yeah, think about it as a car. And the car is reading 60 and it's doing 100. Well, all that results in is you're getting a ticket. Sure. From the state police.
Starting point is 00:29:36 But if that's a gas pipeline, then the gas pipeline blows up. Right. And, you know, we talk in the book about a town in Massachusetts called Lawrence, Massachusetts. And one night in Lawrence and in three other towns surrounding it, suddenly houses were blowing up. And the three little fire departments in these three little towns were getting flooded with calls. The house next door just blew up. The house next door just blew up.
Starting point is 00:30:06 And suddenly they had more fires than they had fire trucks. And it looked like the German Air Force, the Luftwaffe, had flown over and dropped incendiary bombs or something. It looked like London in 1941. What was going on? What was going on was that the gas pipelines going into these houses, the houses were all heated with gas, the pipelines had a massive overpressure, 10 times the amount of gas that should have been going into the houses was being pumped into the houses. And what happens in that case is the pump breaks. Sure.
Starting point is 00:30:44 The basement fills up with gas and any little source of friction will cause it to explode. Like a pilot light from a furnace. Exactly. And so bang, bang, bang, bang, houses somewhat randomly it looked like. It wasn't random. It was the houses that had gas were blowing up. Now, the reason for that was a maintenance company working for the gas company was doing some work on the power line, the gas line, and had the wrong setting. Oh, wow.
Starting point is 00:31:16 It was off by a factor of 10. There's no reason to believe that was a cyber tech, but we talk about that in the book to demonstrate what can happen if you can get control. And you can online, digitally. you can get control of something that regulates how much pressure goes into a line. Things explode. It is wild to see how vulnerable these things are. And of course, the problem is companies go, well, I'm not going to protect against Russia. That's the government's job.
Starting point is 00:31:49 And the government says, why are we going to go in and custom design a solution for your particular cell phone company's IT software that we have to update every time you have a system? upgrade. So we make any sense. We talk about this argument a lot in the book, and we begin by saying what General Keith Alexander, the former head of Cyber Command, likes to say publicly.
Starting point is 00:32:12 And it's a very appealing argument. He says, if a Russian bomber flies overhead and drops a bomb on your plant, you expect the United States Air Force, because you pay taxes and we got a big Air Force. You expect the United States Air Force to go out and shoot
Starting point is 00:32:28 down that bomber and deal with the Russian threat. But if the same damage to your plant is done by a Russian cyber unit, Russian military, they're both Russian military. One's a bomber or one's a cyber unit. They both have the same effect. Your plant doesn't work anymore. It's destroyed. What's the difference? Why should the government save you when it's a bomber and the government doesn't do anything to save you when it's a cyber attack? Right. I'm a taxpayer. I expect the Pentagon to to save me from the Russian military. That's a very appealing argument.
Starting point is 00:33:04 Right. And it's wrong. It's just wrong. Because if you try to think about, all right, let's agree with that. Let's be able to stop these attacks. You can't do it. You know, what are we going to do?
Starting point is 00:33:21 Ask Cyber Command to figure out how bank networks run, how gas pipeline networks run, how electric power, they don't know. Cyber Command is having a hard time defending itself and the U.S. military. And they're not doing a very good job defending themselves or the U.S. military. Why do we think they would be able to defend a bank network?
Starting point is 00:33:46 And then who do you defend, who's more important, Chase Bank or the water company in New York? Or, you know, J.P. Morgan, because it's a big, wealthy bank, or the, you know, neighborhood bank down the state, Street. Yeah. J.P. Morgan did tell us what they spent for the book.
Starting point is 00:34:06 And it was $700 million every year defending their network. Bank of America did not tell us. We have subsequently learned from an inside source that it's more like a billion three at Bank of America. Every year, they're spending a billion three. They're employing thousands of people. Why do we think that the U.S. military could do that any better? Yeah.
Starting point is 00:34:34 It can't. They don't have the legal authority. They don't have the expertise. They don't have the number of people necessary. Basically, you know, the government can do something. And we enumerate in the book what the government should do. But it can't defend your network for you. No.
Starting point is 00:34:50 As appealing as that analogy with the bomber is, it's not a true analogy. Also, though, companies, if I'm, graduating from the University of Michigan or MIT, and I'm a computer genius, the odds of me going, I'm going to take a government paycheck versus going to work for crowd strike. It's pretty low.
Starting point is 00:35:10 Well, it's even worse than that. So you're right. But if I'm a computer genius, which I'm not, by the way, and graduating from MIT, chances are, I'm getting an undergraduate degree, let's say. Chances are I've never taken
Starting point is 00:35:26 a single semester course in cybersecurity. Because at MIT, and I went to MIT, it's still true. It was true when I went there. It's true now. You can get a computer science degree
Starting point is 00:35:40 without any, any course in cybersecurity. Oh, I believe that. I remember a lot of my friends who, I studied econ and commerce, and a lot of my friends who were in computer engineering
Starting point is 00:35:53 at Michigan, they would walk into my dorm room and they'd go, whoa, what kind of computer is that? And I go, oh, I just, I made it, I built it, which is actually not hard. It's like putting together Legos made out of circuit boards.
Starting point is 00:36:04 And they would go, wow, I'm a senior in computer engineering. And there's no way I could build my own computer. And I guarantee you could figure this out in one Saturday afternoon. And one of my friends actually switched to French as a major because he just went, okay, if you can do this and I can't, I'm done, I'm done. But it reminded me like, wait a minute, these guys, they don't even know how I'm opening up their CD-ROM tray remotely on the local network, which is like, using a simple Trojan, back then was called Netbus.
Starting point is 00:36:32 I mean, these are really, really basic, like click on this dancing bear email attachment and I control your whole machine. And they had no clue how this stuff works. So let's come back to the Computer Genius Kid. Computer Genius kids are taught by their computer science department to look down their nose at cybersecurity,
Starting point is 00:36:51 like it's carpentry or taking out the garbage or something. Whereas if you're a computer genius, You have to be working on advanced neural network machine learning or quantum computing or something, you know, state of the art. There's a real kind of, so Stanford isn't a place where we get computer security people. MIT is not. There's a real kind of society thing here, kind of tiering. So where do I look for the best cybersecurity people? Idaho State, Tulsa University, places that, all right, Carnegie Mellon.
Starting point is 00:37:37 Yeah, that makes sense. But a lot of them are from places that you would not think of. They're not household names. You know, Tulsa University is not a household name. They produce some of the best cybersecurity people in the country. Yeah, if I didn't know, you could have just made that up right now, the name of that university, and I would have no idea. Right. Yeah.
Starting point is 00:37:58 Yeah. Quantum computing is an interesting phenomenon. You just kind of mentioned this. And I want to get to that in a second, but the idea that this domain moves so fast is a little scary and surprising. I mean, when I look at things like war planes, we, every decade or two, there's an advancement where you go, wow, that's our new plane. That's amazing.
Starting point is 00:38:21 But when you look at cyber attacks, you come up with things like zero days, that we call them zero days, as you mentioned, the exploits that are not public yet. And these are weapons that as soon as you find out what it is, you can block it. You can patch it. You can fix it. So it's kind of like, what was the analogy you gave in the book? It's like being able to go in and change the atmosphere so that bombs no longer fall downward when they're dropped out of a plane. Right. And you can just fix that in a couple of days or if you've got a real crack team on it and it's a really obvious zero-day exploit.
Starting point is 00:38:49 You can patch it in a few hours. You can. So there's a use-it-once kind of phenomenon against a hard target. because a hard target is going to have all sorts of sensors, and eventually they'll figure out what happened, and they'll, as you say, patch it, blocking. But they'll be somebody five years later who still hasn't patched it.
Starting point is 00:39:14 And, you know, this is what happened with the famous not Petia attack of the Russian attack on Ukraine. They were going after a vulnerability in Microsoft that had been reported publicly, by Microsoft and Microsoft has said this is how you fix it months before,
Starting point is 00:39:36 months before. And you would think everybody would say, oh, that's a critical patch. Let's run out and stop the zero day. Let's apply that patch. Hundreds of companies didn't. Well, we've all been to a place like an office and you go,
Starting point is 00:39:53 man, this is the computer you work on? This is at Windows 98? And they're laughing and they're like, well, actually, this is Windows XP professional edition, but this is a computer that controls our lighting system. We don't really care. We don't worry about this. And hospitals were until recently, and still are in many places,
Starting point is 00:40:10 the worst defender beat. And there was a reason. You joke about Windows 98. There were lots of medical devices in this country. Probably some still are. As late as last year, when we were looking into this for the book, lots of medical devices running Windows, P.E. and Windows 98. Why? Because the government forced them to. The Food and Drug Administration,
Starting point is 00:40:35 in its old incarnation, it's changed in the last year. But FDA used to say, we certified that software for that machine. You cannot change anything. And people would say, but Microsoft is no longer servicing that operating system. There are known vulnerabilities. in that operating system. There are millions of exploits. Nope, can't change anything. Right, because you'd have to submit the medical device for recertification,
Starting point is 00:41:07 which would take a lot of money in a long time. Now the FDA has come around, but for years they didn't. And so you had hard lung machines and IV drip machines and all sorts of life-sustaining machines in hospitals that were filled, riddled with vulnerabilities.
Starting point is 00:41:27 You're listening to the Jordan Harbinger show with our guest, Richard Clark. We'll be right back after this. Thank you for listening and supporting the show. Your support of our advertisers keeps us on the air. To learn more and get links to all the great discounts you just heard so you can check out those amazing sponsors, visit jordanharbinger.com slash deals. And don't forget the worksheet for today's episode. That link is in the show notes at jordanharbinger.com slash podcast.
Starting point is 00:41:51 And if you're listening to us on the Overcast player, please click those little stars next to the episode. They really help us out. Now for the conclusion of our episode with Richard Clark. Quantum computing seems like that this is something we, that's a whole show, but it's a whole phenomenon that we don't know when it's coming. A lot of people don't even know exactly what it is. And I would love, are you able to explain it in sort of a simplified way? I tried.
Starting point is 00:42:19 I tried really hard in the book. Yeah. I did a chapter on it. And I'll tell you, when I first heard about it, I was. quantum computing, quite a long time ago. I mean, people have been trying to get this for a long time. And I called out to NSA and said, send me some experts on quantum computing, because I don't know anything about this.
Starting point is 00:42:41 And again, when you were in the White House and asked people, send me experts. They always did. It was great. Well, the only perk of being in the White House. Can't be the only perk, but okay. There weren't many. They've got good ice cream, I've heard. They do.
Starting point is 00:42:55 They do have good ice cream. So they sent these guys down and they began by talking about a German physicist from the early 20th century named Schrodinger and his analogy of his cat. Schrodinger's cat, yeah. And for those of you who haven't heard this, this is the explanation that everybody uses for quantum computing. The cat is alive. It's in a box. It is alive. it is also dead at the same time
Starting point is 00:43:26 and it is also alive and dead and he is the worst possible way of explaining quantum computing. Right, because people don't understand Schrodinger's cat in the first place. Now you're adding a variable. And cats and boxes and it's alive and it's dead at the same,
Starting point is 00:43:43 but then it's alive and dead. It's just a Schrodinger guy, you know, stop it. He was not good at teachers. He may have been a great physicist. This is a really bad analogy, and that we perpetuated it for a century. I can't stand it. So let's put all that aside. Sure.
Starting point is 00:44:04 What quantum computing is about is using the phenomenon that occur at the subatomic level. We can't physically see at the subatomic level. All of the rules of physics that we observe and that we learned about in, high school physics. None of those rules seem to apply at the subatomic level. It's a different world down there. And we don't fully understand why things happen the way they do down there. But we're beginning to understand what they, if not why, is certainly what they do.
Starting point is 00:44:44 And some people in computer science learning about this said, oh, wow, we could use the phenomenon, the strangeness of what goes on at the subatomic level to run a different kind of computer. And there would be a real advantage to that in terms of if we could make it work
Starting point is 00:45:06 dealing with really hard number crunching exercises. So there are some problems that you can run a computer, the best computer or supercomputer we have. You can run it for months and it
Starting point is 00:45:22 may solve the equation, but it may not. And encryption is one of these problems. You can get an enemy's code and put it into a supercomputer and literally walk away for months and have that supercomputer trying to break the encryption, and it usually doesn't. That's the secret story. It usually doesn't. The secret is it doesn't work. It's secret is it doesn't work. So what's the magic that occurs at the subatomic level. So the subatomic particle, we call a qubit, not a bit, but a qubit, and it does simultaneously have ones and zeros. Right, so binary is like one or zero. Binary, which is conventional computing is one or zero. At the subatomic level, it's both at the same time and states in between.
Starting point is 00:46:21 Right. Okay. Now, if you can manipulate those qubits and use them in a computer instead of regular bits, you have an exponential power of calculation. So you can have 8, 16, 56 qubits are able to do increasingly exponentially higher amounts of calculations because they have this ability, not just to be a one or a zero, but to be a lot of different values. Right.
Starting point is 00:46:57 So something that might take a supercomputer, a month of time could take a few seconds. A few seconds. And the question is, you know, when are we going to have supercomputing? When are we going to have quantum computing? We kind of already do. And everybody is saying, well, here's the definition of when we have it. Well, under some of the definitions that were around 10 years ago, we already have it. There are quantum computers operating.
Starting point is 00:47:27 I went to write the book. I went over here to Rijetti computing across the bay in Berkeley. And they've got one. Cool. It works. Is it huge? No. No?
Starting point is 00:47:38 It looks like somebody's bizarre combination of an espresso machine and a pot roaster. Is it radioactive? Like, what's going on? Whether there's like steam coming out of it. The reason, literally, the reason for all of those pipes and wires is that you can really best manipulate these subatomic particles at absolute zero.
Starting point is 00:48:03 Okay. They're more stable at absolute zero. Right. Now, even at more stable, they only exist for a second or two. In fact, if you can get them to exist for a second, that's pretty good. So these are like elements that were created.
Starting point is 00:48:18 in some sort of high pressure super cold chamber or something. They're super cold chambers, yeah, absolute zero. So this is not a quantum computer, is not going to be a laptop. Not yet. Not yet, not in the long time. But you might be able to VPN into a quantum computer from your laptop. So they use this term, and it's another terrible term, quantum supremacy. and it sounds like, oh, is China going to get quantum supremacy before us?
Starting point is 00:48:51 That's kind of where I was going. And then will they be quantum supreme? What quantum supremacy means is something very different from what it sounds like. What it means is the first time a quantum computer can successfully do a calculation that has never been successfully done before. So there are algorithms, there are equations. We've never been able to solve, but we think in theory they should be ones that can be solved. With a supercomputer, it takes infinite time.
Starting point is 00:49:29 With a quantum computer, we think they can be solved. And when one of these is solved for the first time, an equation that's never been solved before, a problem that's never been solved before by a computer, when a quantum computer does that. That is quantum supremacy. It's supremacy not over China than supremacy over a regular computer. A regular computer, right. And there's a debate about when that'll happen. And I think you can get odds. I think it's going to happen a lot faster than the general public believes. Sure. Yeah. And there's a whole community out there writing machine learning algorithms on the assumption that we're going to get a quantum computer to work.
Starting point is 00:50:18 So there's people writing code for something like, this is going, this program would take infinite time to run, so that's not super useful right now. But eventually I'll be able to plug this into some Rosetti computer, and it will run, and what it will do is simulate the weather pattern on the entire planet over the earth for the next. Or, you know, something that now is done in a biotech lab, a wet lab, that costs millions of dollars to build the PL4 wet lab
Starting point is 00:50:48 and repeatedly do these experiments until you get a combination that works. Just simulate it on the quantum computer and in a matter of minutes get a result that would otherwise take years in a wet lab. Like I said, this is probably a whole show because I'm imagining drug trials and things being simulated on this. That's exactly right.
Starting point is 00:51:09 Is it? Now, where does this affect security? Well, a lot of people believe that these quantum computers will be able to break the encryption that we use today. Sure. Yeah, they probably will. Yeah. Is that the end of the world? No, because we've seen this coming.
Starting point is 00:51:27 And the encryption whizzes of the world have started writing quantum resistant computing algorithms. Some people are already using quantum resistant algorithms. The government, through the National Institute of Standards, has a public, unclassified open program where they're asking people from all over the world to participate in creating standards for quantum resistant algorithms for encryption. Now, they want, NIST wants to, the standards people, wants to have this done by 2024. I think 2024 may be too late. Yeah, yeah.
Starting point is 00:52:08 You probably walk that deadline back a little because I think the work that's going on at IBM and Google and Rijetti and elsewhere is a lot further along the people tend to think it is. We hear of these treaties between, let's say China and the United States that are like, all right, let's agree not to hack each other left and right. But you said there's two types of companies. Those have been hacked and know it and those that have been hacked and don't know it. I mean, even my small company back, I don't know, three, four years ago, we got hacked and people put malware on our whole website. And so whenever anyone logged in, it asked them to download something and install it under their machine. And a lot of people did because it was our learning software and thought, oh, it's an update for my learning software. And so a ton of people got infected.
Starting point is 00:52:52 It was really embarrassing for us. But what's the point of these treaties if everyone's just going to violate it? I mean, I guess I don't understand. Is it like we're sort of following this? I mean, what do people, why bother? Before I answer your question on treaties, I've got to give credit where credit is due. So, Dmitri El Provich from Crowdstrike was the guy who invented that line. There are two kinds of companies.
Starting point is 00:53:14 Those have been hacked and know it and those have been hacked and don't know it. And what we say in the book, and we asked Dimitri this, whether he agreed and he said he does now agree, there are three kinds of companies. And the third kind of company is the company that cannot be hacked or that is resilient. from hacking. That third kind of company didn't exist 10 years ago. It exists now. We can all list companies that have been hacked. Echo effects, Marriott, Sony, Target,
Starting point is 00:53:47 that we could go on all day. One of the ones that didn't get hacked. Can you list them? There's a list. You can come up with it. You can derive it. Now, some of them actually were hacked and didn't tell anybody, even though you're supposed to under the law
Starting point is 00:54:05 or if you're a publicly traded company. Some of them skirt that law. That's a different subject. Talk about that all day. But there are companies, and we've talked to them, that in the last five years, haven't been hacked.
Starting point is 00:54:22 Or the hack got in and was quickly isolated and did little damage to the network, and the network was quickly restored. So we called those companies resilient companies. And they don't
Starting point is 00:54:37 want us saying who they are. Right, because they don't want to dare, I mean, right. Yeah.
Starting point is 00:54:41 I know for a fact that these companies are safe. Maybe tomorrow they'll be hacked. Sure. But they've had like a five or more
Starting point is 00:54:50 year record. And they're targets. They are attempts all the time. Sure. I'm imagining like Palantir probably in the front. And the interesting thing about this is
Starting point is 00:55:00 it's because of the technology that's come out in the last few years, like endpoint detection and response, EDR, like some cloud computing applications. But it's not any one technology. It's stringing together dozens, dozens of applications and technologies
Starting point is 00:55:20 to make this work. That's the big surprise for us writing the book, that this is the dog that doesn't bark. This is the news story. Nothing happened today. You don't hear it. But it's more important in some respects than all the little stories about who got hacked because it means that there's been a big shift in the offense-defense-defense relationship.
Starting point is 00:55:44 And that for this moment in time, at least, if you know what you're doing and you have a nice checkbook, you can defend yourself. There's a lot of companies now have these sort of hacking back policies. I don't know if this is still a thing, but there's a lot of companies that go, oh, well, we're going to find the source of this and go back after them. What do you think of that? Because that sounds like that sounds like somebody's little brother
Starting point is 00:56:09 gets picked on and they punch the guy in the nose and then what happens when they go back and they hack Iran, then what? Then they have to tap on the shoulder of their big brother of the U.S. Army and say, hey, we pissed off Iran because they came and shut down our ATM thing and then we went and screwed with them.
Starting point is 00:56:25 It's a really bad idea. Yeah, it seems like a bad idea. And I'll tell you, there's a couple of reasons why I think it's a bad idea. One is, what the hell difference does it make who hacked you? If you're a company, you're a corporation, you really care whether it was the Iranian Revolutionary Guards or the North Korean Army. I mean, you got hacked. Fix it.
Starting point is 00:56:45 And make sure it can't happen again. Figure out how it happened. That's what you should be doing. Figure out how it happened. Make sure it can't happen again. You cannot legally attack the guy who hacked you. It's a class A felony. So it may feel good to say, oh, the Iranians hacked me and I went back and I fried the Iranian computer.
Starting point is 00:57:11 You can be arrested for that. Right. It's not self-defense, right? You're not stopping someone from punching in the face. You're burning down their house because they burnt your house down. And that's illegal under the Computer Fraud and Abuse Act. So that's one reason. But that's an appeal to law.
Starting point is 00:57:30 how about an appeal to reason? Why shouldn't you do it? Well, one of the jobs we had in the government of Rob and I was to talk to all the agencies who might be hacking and to do something called de-confliction. So, FBI might be hacking, CIA might be hacking, NSA might be hacking, and S-A-might-comand might be hacking, Maybe the British are, maybe the Australians are.
Starting point is 00:58:02 If everybody goes after the same target, there's going to be a lot too much noise. And somebody is going to be picked up by a detection system and the attack, the hacking won't work. So you want to be very, very careful to only have people who know what they're doing with the most sophisticated capabilities around doing the hack. doing the hacking and you don't want a lot of other people in the network making noise or you do sometimes you know want to make noise
Starting point is 00:58:37 intentionally over here to distract people while you attack over here but having the random American company decide to be a vigilante and get into this mess and not be deconflicted all that's going to do is put in jeopardy jeopardy, U.S. intelligence and military and law enforcement activities that are probably
Starting point is 00:59:02 occurring on that target network. In other words, let the pros go after the bad guys. You know, if somebody's done something, don't get your gun and go after them. Call the SWAT team. Yeah. Yeah, that makes sense. That makes sense. Is there any sort of, is there, I hate using hyperbole like this, but forgive me, is are we expecting any sort of like cyber 9-11 type scenario? I mean, what would that look like? Is there a scenario in which damages are so bad that insurance companies can't cover it? Insurance companies are worried about that, and that is why insurance companies are writing relatively small coverage policies.
Starting point is 00:59:46 And I've talked to state insurance regulators because insurance, for some reason, is not regulated at the federal level. health care is, but property, casualty, insurance, continuity, business continuity insurance, all that kind of stuff is regulated at the state level. And I've talked to the state regulators about this. And their concern, their chief concern, is that the companies are going to write cyber policies that are too big. And then there's some big, huge attack that comes in and wipes everybody out, and that'll
Starting point is 01:00:21 wipe out the insurance companies. So given that concern, that regulatory concern, the insurance companies are writing small policies. What would a big 9-11 attack look like? I guess it's a matter of definition. I say in the book that in some ways the Russian attack on our democracy in 2016 was kind of like a 9-11. It was a big attack that caught us flat-footed. It succeeded. And we didn't even know it was coming.
Starting point is 01:00:55 And we did nothing to stop it. And it had a pretty profound effect. It was attacking the very substance of the center of who we are as a country, our electoral process, our democracy. A lot of the attacks right now are kind of relegated to the ones we hear about are relegated to ransomware. Right? We see police departments, hospitals, and businesses getting their computers locked up or encrypted and they have to pay Bitcoin to somebody to unlock it, ransomware and things like that coming from North Korea, some of which was, I guess, meant for Ukraine.
Starting point is 01:01:32 But it does seem dangerous if we're not prepared for this. And you made this point in your book, and I had never thought about this, if we can't really fend for ourselves in the cyber domain, this is problematic not just because we're a little bit defenseless, but because then our next option is not, oh, we'll call the pros and they'll really handle this. It's, well, I guess we can go blow up something because that's what we're really good at. So you don't have this kind of incremental escalation. You have, well, shoot, we can't respond in kind, so now we've got to sink a boat or destroy an airport. No, I think that's right.
Starting point is 01:02:05 I think people, coming back to our earlier point about how people think cyber is safe and not lethal and therefore it's okay to use. You get to some level of damage with a cyber attack and somebody's going to say, I'm not just going to respond in kind, I'm going to go bomb them. And in fact, that somebody is the Pentagon. The Pentagon's public policy is if there's a level of damage,
Starting point is 01:02:35 they won't define it, but we'll know it when we see it. Right. If there's some level of damage to the U.S. by a cyber attack, We feel that we have the right to respond not just with another cyber attack against you, but by bombing and sending missiles against you. That's our policy. So a war in cyberspace ain't going to stay in cyberspace. And everybody who thinks, well, we can fight a neat, clean, antiseptic war.
Starting point is 01:03:02 No, you can't. No, it doesn't make sense, especially because if we can't get them to stop attacking, what you do is you take out the office building where they all work, right? So Israel just did this. Oh, really? Yeah. So there was an office building in Gaza where all the Hamas cyber unit was. And they were doing whenever they could to make Israel's life miserable.
Starting point is 01:03:25 Israel's pretty good about their cyber defense. But nonetheless, and the Israelis thought about it for a while. Like, these people are a pain in the ass. We have to spend a lot of time defending against this Hamas cyber unit. Get an F-16. and they blew it up. They called in an S-16. They dropped a bomb on the cyber unit in Gaza.
Starting point is 01:03:50 I think that's a metaphor. Sure. For a much larger kind of operation that could occur. This all is a little surprising if you're not used to it. Because, of course, you do think, oh, well, if somebody hacks us and we're going to hack back. And good, I'm glad we're in low-level cyber conflict with Russia and Iran and China instead of in conventional conflict.
Starting point is 01:04:11 but it's kind of just a matter of time at that rate. Why is it, this might be a silly question, but why are countries like Russia, Iran, so heavily involved in cyber war against the USA? Is it because they can't match us conventionally? I mean, what's going on? Yeah, in the case of Russia and Iran, I think it is. They can't match us conventionally.
Starting point is 01:04:32 And there's a low barrier to entry. It's not zero, but there is a low barrier to entry. Even North Korea, heaven's sake. North Korea can barely, you know. I mean, they can't even keep the lights on literally in the capital city. Yeah, they can't do anything. They can't feed their people, but they have a cyber unit. Yeah, that country is a whole mystery.
Starting point is 01:04:52 I wonder how people attribute attacks to them, because don't they have to use proxies in China? They do. They use facilities in China. At one point, I knew a particular floor, a particular hotel in a particular city. And if I knew that the North Koreans were attacking from, the third floor of a hotel in Dali and China. The Chinese must have known that, too. Oh, I'm sure.
Starting point is 01:05:16 I mean, you can't even have, if you're going to run that kind of attack. I mean, it doesn't necessarily have to be a lot of traffic, but you can, if you know what you're looking for, you can find people signaling bot networks or running a distributed denial of service attack. And speaking of that, 5G, the Internet of Things, this is going to change the way cyber attacks are, it's going to change the whole world, of course. But can you tell us what 5G is and why the Internet? this is going to magnify this problem even further?
Starting point is 01:05:43 So 5G is the fifth generation of cellular phone service. And recently, we went from 3G to 4G. Right. You probably didn't know this. No, it just seems like faster Internet on your phone. Well, maybe it seemed like faster to you. I didn't notice. The only thing I noticed was somewhere on my phone that said 4G instead of saying 3G.
Starting point is 01:06:01 I couldn't tell the difference in terms of speed. 5G, you'll know this. This is going to be like 100 times faster. We have fake 5G now. I don't know if you know. It is fair. Your phone says 5GE and it's like that might as well be 5G asterisk and that it says not 5G. Right.
Starting point is 01:06:17 But when it happens, which will be next year probably in most places, the international standard for 5G is the ability to do 100 times faster bandwidth over the year with a million devices per square kilometer connecting simultaneously. That's, it's a hard number to wrap your head around. Right? Yeah. So the notion is that everything could be talking on the Internet at the same time and doing it at high bandwidth and high speed with 5G. 5G is not going to be everywhere. It doesn't work well through walls. You're going to be a lot of repeaters, a lot of transmitters.
Starting point is 01:06:59 You're not going to have rural 5G. But in cities, you're going to have it. And it will allow things like autonomous cars. because autonomous cars really, the cars each have to talk to each other. And so one car may have to be talking to six other cars at the same time so that they can keep pace, keep separation.
Starting point is 01:07:20 One guy knows that the other guy is going to break and the other one's going to go, that sort of like. So you need high speed and you need high capacity. 5G will provide that. Great. It will also allow all sorts of devices in the house in the office space to go straight to the internet without going through a router or a
Starting point is 01:07:40 firewall. Oh, okay. See, I didn't know that. I thought, I've got NEST, I've got a ring doorbell, what's the big deal? Is it just going to be a bunch of those types of things? I didn't realize it doesn't then have to go through a router. It doesn't have to. Now, you'd be wise to put it through a route. Yeah, that seems wise. You'd be wise to put it through a firewall, but it won't have to. And so I think it'll be much easier for people. There'll be more devices to hack. The more devices you have to hack, the more likely you are to succeed in hacking one of them.
Starting point is 01:08:11 And let me guess the cheapest ones will be the ones that have no security built in. They're not protected and they go straight to the Internet. Right. And there will be millions of them. Yeah. So the attack surface will develop. And people say, oh, well, who cares? Well, we already saw a case where a Chinese surveillance camera, nanny cams,
Starting point is 01:08:31 a little cheapy Chinese cameras that you can put up anywhere, where hundreds of thousands of them got hacked because they were so easy to hack. And then they were used as jumping off points for a denial of service attack. So all the little Chinese cameras lit up and simultaneously went after one site, bang, and took that site down. So the more devices there are out there connected to the Internet and unsecure, the more there will be denial of service attack. that take down things that we care about. And these will be, in large part, unfortunately, it seems like China, Huawei,
Starting point is 01:09:12 they've got a lot of contracts for 5G internationally, and we already get worried about little chips and little firmware in there that's spying on sniffing the traffic, sending data and metadata back to China or wherever for use or misuse. So that's a little scary. And it's funny to hear all of this
Starting point is 01:09:33 and think how far, I mean, you've studied this for a long time. Do you ever think, wow, how far cyber has really come? Because I think the biggest worry that I had a few years ago, aside from denial of service attacks against my web servers and things like that was, oh, I need to put some tape over my webcam on my computer because I went to DefCon and I saw my hacker friends
Starting point is 01:09:54 turned the camera on in about three minutes, you know, without me installing anything. And I thought, okay, if that's easy, you know, I got to put, I still put stickers and tape over the cameras on mine. And when I went to North Korea, they took our phones at the airport and you get it back later.
Starting point is 01:10:10 You go to China and a business delegation. They take your phone, and scarily they bring it back to you 20 minutes later, which you know. I mean, at North Korea, I thought they just didn't want me to use the phone. In China, they give it back to you, so it's not that.
Starting point is 01:10:22 Clearly, they just wanted to dump the contents of my phone onto a server somewhere. When they do. And so it's just amazing how far all of this has come, and it seems almost hopelessly complicated and yet 95% of cyber attacks are very preventable by just installing the damn Windows update.
Starting point is 01:10:40 A lot of cyber attacks are preventable. And that's why we do now have companies that are succeeding in preventing them. Was there anything else that you want to leave us with that I haven't asked? Well, the one thing I'm concerned with is the 2020 election. And we know the Russians penetrated 39 states
Starting point is 01:11:03 voter databases. We don't know what they did because they weren't automated. They weren't instrumented. So they're going to do that again. They're going to have fake personas and social media, micro-targeting voters very skillfully, telling people who are concerned about the environment to vote for the Green Party,
Starting point is 01:11:27 drawing votes away from the Democrats, telling African-Americans that the, the white candidate, Hillary Clinton, doesn't really like blacks, doing that in a convincing way with convincing text that draws just enough of the blacks away so they didn't vote in rather specific places like Philadelphia. They're going to do all this again. They're going to determine the outcome of the next election
Starting point is 01:11:55 unless we do something about it. We need to improve the security of the election infrastructure. We need to help the states and the counties with cybersecurity. The money to do that has passed the House and is being held up in the Senate by the Republicans. Now, the cynic will say the Republicans don't want that money spent because they like the Russians getting involved in our elections because the last time they did that, they were pro-Republican. Well, I got news for you. You can't be sure
Starting point is 01:12:33 that next time it'll be pro-Republican again. They may be pro-democrat. Or the Republicans may get Russian support. Maybe the Chinese will get involved this time and on the side of the Democrats. I don't want foreigners picking our president or our senators or our congressmen. I don't think any American does.
Starting point is 01:12:55 And so what we really need to do is bang the drum here to pass the bill in the Senate over Mitch McConnell objections to get aid to the states and county so that they can defend their networks and have some cybersecurity for the election system. Yeah, that type of thing should keep everyone up at night because no matter who you favor the idea that this could happen so easily. And a lot of people say it never happened. This is not something that ever happened. Even if that's the case, and I think it's all pretty convincing that there's something happened regardless, even if that's the case, it's so easy when you see someone. If you are not interested, or if you're not able to wrap your head around this, but you are interested in this, I should say. Go to DefCon and Vegas and just go look at the guys doing demonstrations on voting machines.
Starting point is 01:13:48 Well, they had a 13-year-old girl, Huckabst one, a voting machine in three minutes. Yeah. It's incredible. I was working there at the social engineering village a long, long time ago, and Keith Alexander, the former head, I think at the time of the NSA, he stopped by with him, secret service agents. It was really cool. And you will see. You'll see a guy that a couple talks, the voting machine one that was really interesting.
Starting point is 01:14:10 There was a guy who showed us the SCADA system. It was a simulation because, of course, you can't really hack into Detroit power and energy or whatever and not getting into trouble. he also did a demonstration where he showed air traffic control and the way that you say that you're a plane flying is you just tell air traffic control that you're a plane flying and he said so I just put fake planes in flight patterns and other planes have to move out of the way and he goes what would happen if I put 70 or 80 fake planes right over Washington, D.C. and put them in restricted airspace. They don't have to be there. They just have to say that they're there. People will go absolutely crazy. And this is really easy. And these are like unencrypted, publicly open systems that a 20-year-old with an antenna and a computer can start messing with. I learned a long time ago, you have to go to hacker conferences like Blackat and DefCon. And you have to believe what you see because there are a lot of big companies out there and big government agencies that will tell you, oh, that could never be done.
Starting point is 01:15:16 Sure. You go there, you see it being done, and then a year later, unfortunately, it gets done in the real world. Dick, thank you so much. This has been a great. Great, great conversation. Great big thank you to Richard Clark. The book is called The Fifth Domain, Defending Our Country, Our Companies, and ourselves in the Age of Cyber Threats. There's a video of this interview on our YouTube channel as well at Jordan Harbinger.com slash YouTube.
Starting point is 01:15:44 I'm teaching you how to connect with great people like Richard Clark and manage relationships. I manage hundreds, if not thousands of relationships. Of course, via email, text. I'm teaching you how to do this in a course in a very scalable way. Our course is called six-minute networking and it's free. Not enter your credit card free, just free, free. I think I said that earlier on the show. That's at Jordan Harbinger.com slash course.
Starting point is 01:16:05 You've got to start now. Procrastination leads to stagnation when it comes to personal and business relationships. In other words, you cannot make up for lost time when it comes to relationships and networking. You have to dig the well before you get thirsty. need relationships. Now you're coming out of left field. Hey, old buddy, old pal, I need something. Not going to work. The drills take a few minutes a day. That's why we call it six-minute networking. It's probably even less than that. I wish I knew this stuff 20 years ago. This has just been crucial and a deciding factor in my success of the show here and in my personal life as well.
Starting point is 01:16:36 Again, all for free at jordanharbinger.com slash course. By the way, most of the guests on the show, they subscribe to the course and the newsletter. So come join us. Join a bunch of smart people in improving themselves, yourself included. I would love to have you in there, and I take questions, of course. Speaking of building relationships, you can always reach out and or follow me on social. I'm at Jordan Harbinger on both Twitter and Instagram. This show is produced in association with Podcast One, and this episode was co-produced by Jason DeFilippo and Jen Harbinger. Show notes and worksheets by Robert Fogarty.
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