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Nicole Perlroth: Cybersecurity and the Weapons of Cyberwar

第266期2022-02-20English

嘉宾:Nicole Perlroth

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§01Transcript · 00:00–09:50

00:00If one site is hacked, you can just unleash all hell.

00:03We have stumbled into this new era

00:06of mutually assured digital destruction.

00:08How far are people willing to go?

00:11You can capture their location,

00:13you can capture their contacts

00:16that record their telephone calls, record their camera

00:19without them knowing about it.

00:20Basically, you can put an invisible ankle bracelet

00:24on someone without them knowing.

00:26You could sell that to a zero day broker for $2 million.

00:34The following is a conversation with Nicole Perlroth,

00:37cybersecurity journalist and author

00:40of This Is How They Tell Me The World Ends,

00:42The Cyber Weapons Arm Race.

00:44This is the Lex Friedman podcast.

00:46To support it, please check out our sponsors

00:49in the description.

00:50And now, dear friends, here's Nicole Perlroth.

00:54You've interviewed hundreds of cybersecurity hackers,

00:58activists, dissidents, computer scientists,

01:01government officials, forensic investigators,

01:03and mercenaries.

01:05So let's talk about cybersecurity and cyber war.

01:09Start with the basics.

01:10What is a zero day vulnerability?

01:13And then a zero day exploit or attack?

01:18So at the most basic level, let's say I'm a hacker

01:22and I find a bug in your iPhone iOS software

01:28that no one else knows about, especially Apple.

01:31That's called a zero day because the minute it's discovered,

01:34engineers have had zero days to fix it.

01:37If I can study that zero day,

01:40I could potentially write a program to exploit it.

01:44And that program would be called a zero day exploit.

01:48And for iOS, the dream is that you craft a zero day exploit

01:54that can remotely exploit someone else's iPhone

01:57without them ever knowing about it.

01:59And you can capture their location,

02:01you can capture their contacts

02:04that record their telephone calls,

02:06record their camera without them knowing about it.

02:09Basically, you can put an invisible ankle bracelet

02:13on someone without them knowing.

02:15And you can see why that capability,

02:17that zero day exploit would have immense value

02:20for a spy agency or a government

02:23that wants to monitor its critics or dissidents.

02:27And so there's a very lucrative market now

02:30for zero day exploits.

02:32So you said a few things there.

02:33One is iOS, why iOS, which operating system,

02:37which one is the sexier thing to try to get to

02:40or the most impactful thing?

02:42And the other thing you mentioned is remote

02:45versus like having to actually come

02:47in physical contact with it.

02:49Is that the distinction?

02:50So iPhone exploits have just been

02:54a government's number one priority.

02:58Recently, actually the price

03:00of an Android remote zero day exploit,

03:03something that can get you into Android phones

03:06is actually higher.

03:08The value of that is now higher on this underground market

03:10for zero day exploits than an iPhone iOS exploit.

03:15So things are changing.

03:16So there's probably more Android devices,

03:20so that's why it's better.

03:21But then the iPhone side,

03:24so I'm an Android person,

03:26because I'm a man of the people.

03:28But it seems like all the elites use iPhone,

03:31all the people at nice dinner parties.

03:33So is that the reason that the more powerful people

03:37use iPhones, is that why?

03:38I don't think so.

03:39I actually, so it was about two years ago

03:42that the prices flipped.

03:43It used to be that if you could craft

03:46a remote zero click exploit for iOS,

03:53then that was about as good as it gets.

03:55You could sell that to a zero day broker for $2 million.

04:01The caveat is you can never tell anyone about it,

04:04because the minute you tell someone about it,

04:07Apple learns about it,

04:08they patch it in that $2.5 million investment

04:12that that zero day broker just made goes to dust.

04:16So a couple of years ago,

04:18and don't quote me on the prices,

04:20but an Android zero click remote exploit

04:25for the first time topped the iOS.

04:29And actually a lot of people's read on that

04:32was that it might be a sign

04:35that Apple security was falling,

04:40and that it might actually be easier

04:43to find an iOS zero day exploit

04:46than find an Android zero day exploit.

04:48The other thing is market share.

04:51There are just more people around the world that use Android.

04:54And a lot of governments that are paying top dollar

04:58for zero day exploits these days

05:01are deep pocketed governments in the Gulf

05:05that wanna use these exploits

05:06to monitor their own citizens, monitor their critics.

05:10And so it's not necessarily

05:12that they're trying to find elites,

05:14it's that they wanna find out who these people are

05:17that are criticizing them

05:18or perhaps planning the next Arab Spring.

05:21So in your experience,

05:23are most of these attacks targeted

05:24to cover a large population,

05:26or is there attacks that are targeted

05:29towards specific individuals?

05:31So I think it's both.

05:32Some of the zero day exploits that have fetched top dollar

05:36that I've heard of in my reporting in the United States

05:39were highly targeted.

05:41There was a potential terrorist attack.

05:43They wanted to get into this person's phone.

05:45It had to be done in the next 24 hours.

05:48They approached hackers and say, we'll pay you

05:50X millions of dollars if you can do this.

05:53But then you look at,

05:55when we've discovered iOS zero day exploits in the wild,

06:00some of them have been targeting large populations

06:03like Uyghurs.

06:05So a couple of years ago,

06:07there was a watering hole attack.

06:10Okay, what's a watering hole attack?

06:12There's a website,

06:13it was actually had information aimed at Uyghurs

06:17and you could access it all over the world.

06:20And if you visited this website,

06:24it would drop an iOS zero day exploit onto your phone.

06:29And so anyone that visited this website

06:32that was about Uyghurs anywhere,

06:34I mean, Uyghurs, Uyghurs living abroad,

06:37basically the Uyghur diaspora would have gotten infected

06:42with this zero day exploit.

06:43So in that case, they were targeting huge swaths

06:49of this one population or people interested

06:51in this one population, basically in real time.

06:54So who are these attackers?

06:59From the individual level to the group level,

07:02psychologically speaking, what's their motivation?

07:05Is it purely money?

07:07Is it the challenge?

07:09Are they malevolent?

07:10Is it power?

07:12These are big philosophical human questions, I guess.

07:15So these are the questions I set out to answer for my book.

07:20I wanted to know, are these people that are just after money?

07:26If they're just after money, how do they sleep at night?

07:29Not knowing whether that zero day exploit

07:31they just sold to a broker is being used

07:34to basically make someone's life a living hell.

07:38And what I found was there's kind of this long sorted history

07:41to this question.

07:43It started out in the 80s and 90s

07:46when hackers were just finding holes and bugs and software

07:51for curiosity's sake, really as a hobby.

07:54And some of them would go to the tech companies

07:56like Microsoft or Sun Microsystems at the time or Oracle.

08:01And they'd say, hey, I just found this zero day

08:04in your software and I can use it to break into NASA.

08:08And the general response at the time wasn't,

08:11thank you so much for pointing out this flaw

08:13and our software, we'll get it fixed as soon as possible.

08:17It was, don't ever poke around our software ever again

08:21or we'll stick our general counsel on you.

08:24And that was really sort of the common thread for years.

08:30And so hackers who set out to do the right thing

08:34were basically told to shut up

08:37and stop doing what you're doing.

08:40And what happened next was they basically started trading

08:44this information online.

08:46Now, when you go back and interview people

08:48from those early days, they all tell a very similar story,

08:53which is they're curious, they're tinkerers.

08:57They remind me of like the kid down the block

08:59that was constantly poking around the hood of his dad's car.

09:03They just couldn't help themselves.

09:06They wanted to figure out how a system is designed

09:09and how they could potentially exploit it

09:11for some other purpose.

09:13It doesn't have to be good or bad.

09:15But they were basically kind of beat down for so long

09:20by these big tech companies

09:22that they started just silently trading them

09:26with other hackers.

09:28And that's how you got these really heated debates

09:32in the 90s about disclosure.

09:35Should you just dump these things online

09:38because any script kitty can pick them up

09:40and use it for all kinds of mischief.

09:43But don't you wanna just stick a middle finger

09:46to all these companies

09:47that are basically threatening you all the time.

§02Transcript · 09:50–19:24

09:50So there was this really interesting dynamic at play.

09:53And what I learned in the course of doing my book

09:57was that government agencies and their contractors

10:01sort of tapped into that frustration and that resentment.

10:06And they started quietly reaching out to hackers

10:09on these forums.

10:11And they said, hey, you know that zero day

10:13you just dropped online,

10:14could you come up with something custom for me?

10:17And I'll pay you six figures for it

10:20so long as you shut up and never tell anyone

10:22that I paid you for this.

10:24And that's what happened.

10:27So throughout the 90s,

10:28there was a bunch of boutique contractors

10:31that started reaching out to hackers on these forums

10:34and saying, hey, I'll pay you six figures

10:37for that bug you were trying to get Microsoft

10:39to fix for free.

10:41And sort of so began or so catalyzed this market

10:45where governments and their intermediaries

10:48started reaching out to these hackers

10:50and buying their bugs for free.

10:53And in those early days,

10:54I think a lot of it was just for quiet counterintelligence,

10:57traditional espionage.

11:00But as we started baking the software,

11:04Windows software, Schneider Electric,

11:07Siemens industrial software into our nuclear plants

11:11and our factories and our power grid

11:14and our petrochemical facilities and our pipelines,

11:18those same zero days came to be just as valuable

11:22for sabotage and war planning.

11:25Does the fact that the market sprung up

11:27and you can now make a lot of money

11:28change the nature of the attackers that came to the table

11:31or grow the number of attackers?

11:34I mean, what is, I guess,

11:35you told the psychology of the hackers in the 90s,

11:40what is the culture today and where is it heading?

11:43So I think there are people who will tell you

11:47they would never sell a zero day

11:49to a zero day broker or a government.

11:52One, because they don't know how it's gonna get used

11:54when they throw it over the fence.

11:56Most of these get rolled into classified programs

11:58and you don't know how they get used.

12:01If you sell it to a zero day broker,

12:02you don't even know which nation state might use it

12:06or potentially which criminal group might use it

12:09if you sell it on the dark web.

12:11The other thing that they say is that

12:15they wanna be able to sleep at night.

12:17And they lose a lot of sleep

12:19if they found out their zero day was being used

12:22to make a dissident's life living hell.

12:25But there are a lot of people, good people,

12:28who also say, no, this is not my problem.

12:32This is the technology company's problem.

12:35If they weren't writing new bugs

12:37into their software every day,

12:39then there wouldn't be a market.

12:41Then there wouldn't be a problem.

12:42But they continue to write bugs

12:44into their software all the time

12:46and they continue to profit off that software.

12:48So why shouldn't I profit off my labor too?

12:53And one of the things that has happened,

12:55which is I think a positive development

12:57over the last 10 years, are bug bounty programs.

13:02Companies like Google and Facebook

13:05and then Microsoft and finally Apple,

13:07which resisted it for a really long time,

13:10have said, okay, we are gonna shift our perspective

13:14about hackers.

13:15We're no longer going to treat them as the enemy here.

13:18We're going to start paying them

13:20for what it's essentially free quality assurance.

13:23And we're gonna pay them good money in some cases,

13:26six figures in some cases.

13:28We're never gonna be able to bid against a zero day broker

13:32who sells to government agencies.

13:34But we can reward them and hopefully get to that bug earlier

13:38where we can neutralize it

13:40so that they don't have to spend another year

13:43developing the zero day exploit.

13:44And in that way, we can keep our software more secure.

13:48But every week I get messages from some hacker that says,

13:53you know, I tried to see this zero day exploit

13:55that was just found in the wild,

13:58being used by this nation state.

14:00I tried to tell Microsoft about this two years ago

14:04and they were gonna pay me peanuts so it never got fixed.

14:08There are all sorts of those stories that can continue on.

14:12And I think just generally,

14:16hackers are not very good at diplomacy.

14:19They tend to be pretty snipey, technical crowd.

14:24And very philosophical in my experience.

14:28But diplomacy is not their strong suit.

14:31Oh, there almost has to be a broker

14:33between companies and hackers.

14:35We can translate effectively,

14:37just like you have a zero day broker

14:39between governments and hackers.

14:41You have to speak their language.

14:43Yeah, and there have been some of those companies

14:45who've risen up to meet that demand.

14:47And HackerOne is one of them.

14:50Bugcrowd is another.

14:52Cynak has an interesting model, so that's a company

14:55that you pay for a private bug bounty program essentially.

14:59So you pay this company, they tap hackers all over the world

15:04to come hack your software, hack your system.

15:07And then they'll quietly tell you what they found.

15:10And I think that's a really positive development.

15:13And actually, the Department of Defense

15:16hired all three of those companies I just mentioned

15:20to help secure their systems.

15:22Now I think they're still a little timid

15:24in terms of letting those hackers

15:25into the really sensitive, high side classified stuff.

15:30But you know, baby steps.

15:33Just to understand what you were saying,

15:34you think it's impossible for companies

15:37to financially compete with the zero day brokers,

15:40with governments.

15:42So like the defense can't outpay the hackers?

15:47It's interesting, they shouldn't outpay them.

15:51Because what would happen

15:53if they started offering $2.5 million at Apple

15:59for any zero day exploit

16:02that governments would pay that much for,

16:04is their own engineers would say,

16:06why the hell am I working for less than that

16:10and doing my nine to five every day?

16:12So you would create a perverse incentive.

16:14And I didn't think about that until I started this research

16:18and I realized, okay, yeah, that makes sense.

16:20You don't want to incentivize offense so much

16:25that it's to your own detriment.

16:27And so I think what they have though,

16:29what the companies have on government agencies,

16:32is if they pay you, you get to talk about it.

16:36You know, you get the street cred.

16:38You get to brag about the fact you just found

16:41that $2.5 million, you know, iOS zero day

16:45that no one else did.

16:47And if you sell it to a broker,

16:48you never get to talk about it.

16:50And I think that really does eat at people.

16:53Can I ask you a big philosophical question

16:55about human nature here?

16:57So if you have, I mean, what you've seen,

17:00if a human being has a zero day,

17:03they found a zero day vulnerability that can hack into,

17:09I don't know, what's the worst thing you can hack into?

17:11Something that could launch nuclear weapons.

17:14Which percentage of the people in the world

17:16that have the skill would not share that with anyone,

17:20with any bad party?

17:23I guess how many people are completely devoid

17:27of ethical concerns in your sense?

17:31So my belief is all the ultra competent people

17:36or very, very high percentage of ultra competent people

17:39are also ethical people.

17:41That's been my experience.

17:42But then again, my experience is narrow.

17:45What's your experience been like?

17:48So this was another question I wanted to answer.

17:53Who are these people who would sell a zero day exploit

17:57that would neutralize a Schneider Electric safety lock

18:01at a petrochemical plant?

18:03Basically the last thing you would need to neutralize

18:05before you trigger some kind of explosion.

18:07Who would sell that?

18:11And I got my answer,

18:14well, the answer was different.

18:16A lot of people said, I would never even look there

18:19because I don't even wanna know.

18:21I don't even wanna have that capability.

18:22I don't even wanna have to make that decision

18:26about whether I'm gonna profit off of that knowledge.

18:29I went down to Argentina

18:31and this whole kind of moral calculus I had in my head

18:36was completely flipped around.

18:39So just to back up for a moment.

18:41So Argentina actually is a real hacker's paradise.

18:47People grew up in Argentina and I went down there,

18:50I guess I was there around 2015, 2016,

18:54but you still couldn't get an iPhone.

18:57They didn't have Amazon Prime.

18:58You couldn't get access to any of the apps

19:00we all take for granted.

19:02To get those things in Argentina as a kid,

19:05you have to find a way to hack them.

19:07And the whole culture is really like a hacker culture.

19:12They say it's really like a MacGyver culture.

19:15You have to figure out how to break into something

19:17with wire and tape.

19:19And that means that there are a lot of really good hackers

§03Transcript · 19:24–29:09

19:24in Argentina who specialize in developing zero to exploits.

19:30And I went down to this Argentina conference

19:33called Echo Party.

19:35And I asked the organizer, okay, can you introduce me

19:39to someone who's selling zero to exploits to governments?

19:43And he was like, just throw a stone.

19:46Throw a stone anywhere and you're gonna hit someone.

19:48And all over this conference, you saw these guys

19:52who were clearly from these Gulf States

19:54who only spoke Arabic.

19:55What are they doing at a young hacking conference

19:59in Buenos Aires?

20:01And so I went out to lunch with kind of this godfather

20:05of the hacking scene there.

20:07And I asked this really dumb question

20:10and I'm still embarrassed about how I phrased it.

20:13But I said, so will these guys only sell

20:16these zero to exploits to good Western governments?

20:20And he said, Nicole, last time I checked,

20:22the United States wasn't a good Western government.

20:25The last country that bombed another country

20:28into oblivion wasn't China or Iran,

20:31it was the United States.

20:33So if we're gonna go by your whole moral calculus,

20:36just know that we have a very different calculus down here

20:39and we'd actually rather sell to Iran or Russia

20:44or China maybe than the United States.

20:46And that just blew me away.

20:48Like, wow, he's like, we'll just sell

20:51to whoever brings us the biggest bag of cash.

20:53Have you checked into our inflation situation recently?

20:57So I had some of those like reality checks along the way.

21:02We tend to think of things as is this moral,

21:05is this ethical, especially as journalists.

21:08And we kind of sit on our high horse sometimes

21:11and write about a lot of things

21:13that seem to push the moral bounds.

21:16But in this market, which is essentially

21:18an underground market that the one rule is like fight club.

21:22No one talks about fight club.

21:24First rule of the zero day market,

21:25nobody talks about the zero day market on both sides

21:29because the hacker doesn't wanna lose

21:30their $2.5 million bounty.

21:33And governments roll these into classified programs

21:36and they don't want anyone to know what they have.

21:39So no one talks about this thing.

21:41And when you're operating in the dark like that,

21:43it's really easy to put aside your morals sometimes.

21:48Can I, as a small tangent, ask you, by way of advice,

21:52you must have done some incredible interviews.

21:55And you've also spoken about how serious

21:58you take protecting your sources.

22:01If you were to give me advice for interviewing

22:04when you're recording on mic with a video camera,

22:10how is it possible to get into this world?

22:13Like is it basically impossible?

22:16So you've spoken with a few people,

22:19what is it like the godfather of cyber war, cyber security?

22:23So people that are already out.

22:25And they still have to be pretty brave to speak publicly.

22:29But is it virtually impossible to really talk to anybody

22:32who is a current hacker?

22:34Are you always like 10, 20 years behind?

22:37It's a good question.

22:38And this is why I'm a print journalist.

22:41But when I've seen people do it,

22:45it's always the guy who's behind the shadows,

22:49whose voice has been altered.

22:51When they've gotten someone on camera,

22:53that's usually how they do it.

22:56Very, very few people talk in this space.

22:58And there's actually a pretty well known case study

23:02in why you don't talk publicly in this space

23:04and you don't get photographed.

23:05And that's the gruck.

23:07So the gruck is or was this zero day broker,

23:12South African guy, lives in Thailand.

23:15And right when I was starting on this subject

23:18at the New York Times, he'd given an interview to Forbes.

23:22And he talked about being a zero day broker.

23:25And he even posed next to this giant duffel bag

23:29filled with cash, ostensibly.

23:31And later he would say he was speaking off the record.

23:35He didn't understand the rules of the game.

23:38But what I heard from people who did business with him

23:41was that the minute that that story came out,

23:43he became PNG'd.

23:45No one did business with him.

23:47His business plummeted by at least half.

23:50No one wants to do business with anyone

23:52who's going to get on camera and talk

23:54about how they're selling zero days to governments.

23:58It puts you at danger.

23:59And I did hear that he got some visits

24:01from some security folks.

24:04And that's another thing for these people to consider.

24:06If they have those zero day exploits at their disposal,

24:12they become a huge target for nation states

24:16all over the world.

24:18Talk about having perfect opsec.

24:20You better have some perfect opsec

24:23if people know that you have access to those zero day

24:26exploits.

24:27Which sucks because, I mean, transparency here

24:33would be really powerful for educating the world

24:36and also inspiring other engineers to do good.

24:40It just feels like when you operate in the shadows,

24:43it doesn't help us move in the positive direction in terms

24:46of getting more people on the defense side

24:48versus on the attack side.

24:50But of course, what can you do?

24:52I mean, the best you can possibly do

24:53is have great journalists, just like you did,

24:57interview and write books about it,

24:58and integrate the information you get

25:01while hiding the sources.

25:02Yeah, and I think what HackerOne has told me was, OK,

25:07let's just put away the people that

25:09are finding and developing zero day exploits all day long.

25:13Let's put that aside.

25:15What about however many millions of programmers

25:19all over the world who've never even heard of a zero day

25:22exploit?

25:23Why not tap into them and say, hey, we'll

25:26start paying you if you can find a bug in United Airlines

25:31software or in Schneider Electric or in Ford or Tesla?

25:36And I think that is a really smart approach.

25:39Let's go find this untapped army of programmers

25:43to neutralize these bugs before the people who will continue

25:47to sell these to governments can find them and exploit them.

25:50OK, I have to ask you about this.

25:53From a personal side, it's funny enough,

25:55after we agreed to talk, I've gotten,

25:59for the first time in my life, was a victim of a cyber attack.

26:06So this is ransomware.

26:07It's called Deadbolt.

26:08People can look it up.

26:10I have a QNAP device for basically kind

26:14of coldish storage.

26:15So it's about 60 terabytes with 50 terabytes of data on it

26:20in RAID 5.

26:21And apparently, about 4,000 to 5,000 QNAP devices

26:27were hacked and taken over with this ransomware.

26:30And what ransomware does there is it goes file by file,

26:35almost all the files on the QNAP storage device,

26:39and encrypts them.

26:40And then there's this very eloquently and politely

26:43written page that pops up, describes what happened.

26:48All your files have been encrypted.

26:50This includes but is not limited to photos, documents,

26:52and spreadsheets.

26:53Why me?

26:56This is a lot of people commented

26:57about how friendly and eloquent this is.

27:00And I have to commend them.

27:01It is, and it's pretty user friendly.

27:05Why me?

27:06This is not a personal attack.

27:08You have been targeted because of the inadequate security

27:10provided by your vendor, QNAP.

27:15What now?

27:16You can make a payment of exactly 0.03 Bitcoin,

27:19which is about $1,000, to the following address.

27:23Once the payment has been made, we'll

27:25follow up with transaction to the same address,

27:27blah, blah, blah.

27:28They give you instructions of what happens next,

27:31and they'll give you a decryption key

27:32that you can then use.

27:34And then there's another message for QNAP that says,

27:38all your affected customers have been targeted using

27:41a zero day vulnerability in your product.

27:43We offer you two options to mitigate this and future damage.

27:48One, make a Bitcoin payment of 5 Bitcoin

27:51to the following address, and that

27:54will reveal to QNAP the, I'm summarizing things here,

27:58what the actual vulnerability is.

28:00Or you can make a Bitcoin payment of 50 Bitcoin

28:03to get a master decryption key for all your customers.

28:0650 Bitcoin is about $1.8 million.

28:10OK.

28:11So first of all, on a personal level, this one hurt for me.

28:18There's, I mean, I learned a lot because I wasn't,

28:22for the most part, backing up much of that data

28:26because I thought I can afford to lose that data.

28:30It's not horrible.

28:32I mean, I think you've spoken about the crown jewels,

28:35like making sure there's things you really protect.

28:38And I have, you know, I'm very conscious,

28:42security wise, on the crown jewels.

28:45But there's a bunch of stuff, like, you know,

28:48personal videos that are not, like,

28:49I don't have anything creepy, but just, like,

28:51fun things I did that because they're very large or 4K

28:55or something like that, I kept them on there,

28:57thinking RAID 5 will protect it.

28:59You know, just I lost a bunch of stuff, including raw footage

29:05from interviews and all that kind of stuff.

29:08So it's painful.

§04Transcript · 29:09–39:04

29:09And I'm sure there's a lot of painful stuff

29:11like that for the 4,000 to 5,000 people that use QNAP.

29:15And there's a lot of interesting ethical questions here.

29:18Do you pay them?

29:20Does QNAP pay them?

29:23Do the individuals pay them, especially when

29:26you don't know if it's going to work or not?

29:29Do you wait?

29:30So QNAP said that, please don't pay them.

29:35We're working very hard day and night to solve this.

29:41It's so philosophically interesting to me

29:44because I also project onto them thinking,

29:46what is their motivation?

29:48Because the way they phrased it, on purpose, perhaps,

29:51but I'm not sure if that actually reflects their real motivation,

29:54is maybe they're trying to help themselves sleep at night,

29:59basically saying, this is not about you.

30:01This is about the company with the vulnerabilities.

30:04Just like you mentioned, this is the justification they have.

30:07But they're hurting real people.

30:09They hurt me.

30:10But I'm sure there's a few others that are really hurt.

30:14And the zero day factor is a big one.

30:18Their QNAP right now is trying to figure out

30:22what the hell is wrong with their system that would let this in.

30:25And even if they pay, if they still don't know where the zero

30:30day is, what's to say that they won't just hit them again

30:32and hit you again?

30:34So that really complicates things.

30:36And that is a huge advancement for ransomware.

30:40It's really only been, I think, in the last 18 months

30:44that we've ever really seen ransomware exploit zero days

30:48to pull these off.

30:49Usually, 80% of them, I think the data shows 80% of them

30:54come down to a lack of two factor authentication.

30:58So when someone gets hit by a ransomware attack,

31:01they don't have two factor authentication on.

31:04Their employees were using stupid passwords.

31:07You can mitigate that in the future.

31:09This one, they don't know.

31:10They probably don't know.

31:11Yeah.

31:12And I guess it's zero click because I

31:14didn't have to do anything.

31:16The only thing, well, here's the thing.

31:21I did basics of I put it behind a firewall.

31:26I followed instructions.

31:27But I didn't really pay attention.

31:30So maybe there's a misconfiguration of some sort

31:34that's easy to make.

31:36It's difficult. We have a personal NAS.

31:40So I'm not willing to say that I did

31:43everything I possibly could.

31:47But I did a lot of reasonable stuff.

31:49And they still hit it with zero clicks.

31:51I didn't have to do anything.

31:52Yeah, well, it's like a zero day.

31:54And it's a supply chain attack.

31:56You're getting hit from your supplier.

31:59You're getting hit because of your vendor.

32:01And it's also a new thing for ransomware groups

32:04to go to the individuals to pressure them to pay.

32:07There was this really interesting case.

32:09I think it was in Norway where there was a mental health

32:13clinic that got hit.

32:16And the cybercriminals were going to the patients

32:18themselves to say, pay this, or we're

32:22going to release your psychiatric records.

32:25I mean, talk about hell.

32:28In terms of whether to pay, that is on the cheaper

32:31end of the spectrum.

32:33From the individual or from the company?

32:35Both.

32:36We've seen, for instance, there was an Apple supplier in Taiwan.

32:42They got hit.

32:43And the ransom demand was $50 million.

32:47I'm surprised it's only $1.8 million.

32:49I'm sure it's going to go up.

32:52And it's hard.

32:53There's obviously governments, and maybe in this case,

32:57the company are going to tell you,

32:58we recommend you don't pay or please don't pay.

33:02But the reality on the ground is that some businesses

33:06can't operate.

33:07Some countries can't function.

33:09I mean, the underreported storyline of Colonial Pipeline

33:15was after the company got hit and took

33:19the preemptive step of shutting down the pipeline

33:22because their billing systems were frozen,

33:24they couldn't charge customers downstream.

33:27My colleague David Zanger and I got our hands

33:30on a classified assessment that said that as a country,

33:35we could have only afforded two to three more days

33:38of Colonial Pipeline being down.

33:40And it was really interesting.

33:42I thought it was the gas and the jet fuel, but it wasn't.

33:45We were sort of prepared for that.

33:47It was the diesel.

33:48Without the diesel, the refineries couldn't function,

33:52and it would have totally screwed up the economy.

33:54And so there was almost this national security

33:59economic impetus for them to pay this ransom.

34:04And the other one I always think about is Baltimore.

34:07When the city of Baltimore got hit,

34:09I think the initial ransom demand

34:11was something around $76,000.

34:13It may have even started smaller than that.

34:16And Baltimore stood its ground and didn't pay.

34:20But ultimately, the cost to remediate was $18 million.

34:25That's a lot for the city of Baltimore.

34:26That's money that could have gone to public school education

34:29and roads and public health.

34:32And instead, it just went to rebuilding these systems

34:35from scratch.

34:36And so a lot of residents in Baltimore

34:38were like, why the hell didn't you pay the $76,000?

34:43So it's not obvious.

34:46It's easy to say, don't pay.

34:48Because why?

34:48You're funding their R&D for the next go round.

34:52But it's too often, it's too complicated.

34:56So on the individual level, just like the way

35:00I feel personally from this attack,

35:03have you talked to people that were kind of victims

35:05in the same way I was, but maybe more dramatic ways or so on,

35:09in the same way that violence hurts people?

35:13How much does this hurt people in your sense

35:15and the way you researched it?

35:16The worst ransomware attack I've covered on a personal level

35:23was an attack on a hospital in Vermont.

35:28And you think of this as like, OK,

35:30it's hitting their IT networks.

35:31They should still be able to treat patients.

35:34But it turns out that cancer patients

35:37couldn't get their chemo anymore.

35:39Because the protocol of who gets what is very complicated.

35:43And without it, nurses and doctors couldn't access it.

35:47So they were turning chemo patients away,

35:50cancer patients away.

35:52One nurse told us, I don't know why people

35:55aren't screaming about this, that the only thing I've

35:58seen that even compares to what we're

36:00seeing at this hospital right now

36:02was when I worked in the burn unit

36:04after the Boston Marathon bombing.

36:06They really put it in these super dramatic terms.

36:10And last year there was a report in the Wall Street Journal

36:15where they attributed an infant death to a ransomware attack

36:20because a mom came in and whatever device

36:25they were using to monitor the fetus

36:28wasn't working because of the ransomware attack.

36:30And so they attributed this infant death

36:33to the ransomware attack.

36:34Now on a bigger scale but less personal,

36:39when there was the NotPetya attack.

36:41So this was an attack by Russia on Ukraine

36:46that came at them through a supplier, a tax software

36:51company in that case, that didn't just

36:53hit any government agency or business in Ukraine

36:57that used this tax software.

36:59It actually hit any business all over the world that

37:02had even a single employee working remotely in Ukraine.

37:07So it hit Maersk, the shipping company, hit Pfizer,

37:10hit FedEx, but the one I will never forget is Merck.

37:14It paralyzed Merck's factories.

37:17I mean, it really created an existential crisis

37:20for the company.

37:21Merck had to tap into the CDC's emergency supplies

37:25of the Gardasil vaccine that year

37:27because their whole vaccine production line had been

37:30paralyzed in that attack.

37:32Imagine if that was going to happen right now

37:36to Pfizer or Moderna or Johnson and Johnson.

37:39Imagine.

37:41I mean, that would really create a global cyber terrorist

37:46attack, essentially.

37:47And that's almost unintentional.

37:49I thought for a long time, I always

37:51labeled it as collateral damage.

37:54But actually, just today, there was a really impressive threat

37:59researcher at Cisco, which has this threat intelligence

38:04division called Talos, who said, stop calling it

38:07collateral damage.

38:08They could see who was going to get hit before they

38:12deployed that malware.

38:15It wasn't collateral damage.

38:17It was intentional.

38:19They meant to hit any business that did business with Ukraine.

38:23It was to send a message to them, too.

38:26So I don't know if that's accurate.

38:28I always thought of it as sort of the sloppy collateral

38:31damage, but it definitely made me think.

38:34So how much of this between states

38:37is going to be a part of war, these kinds of attacks

38:42on Ukraine between Russia and US, Russia and China,

38:48China and US?

38:51Let's look at China and US.

38:53Do you think China and US are going

38:56to escalate something that would be called a war purely

39:01in the space of cyber?

§05Transcript · 39:04–49:05

39:04I believe any geopolitical conflict from now on

39:12is guaranteed to have some cyber element to it.

39:17The Department of Justice recently

39:19declassified a report that said China has been hacking

39:21into our pipelines, and it's not for intellectual property

39:24theft.

39:25It's to get a foothold so that if things escalate in Taiwan,

39:29for example, they are where they need

39:31to be to shut our pipelines down.

39:33And we just got a little glimpse of what

39:35that looked like with Colonial Pipeline and the panic buying

39:39and the jet fuel shortages and that assessment I just

39:42mentioned about the diesel.

39:44So they're there.

39:47They've gotten there.

39:49Anytime I read a report about new aggression from fighter

39:54jets, Chinese fighter jets in Taiwan,

39:57or what's happening right now with Russia's buildup

40:00on the Ukraine border, or India, Pakistan,

40:04I'm always looking at it through a cyber lens.

40:07And it really bothers me that other people aren't,

40:11because there is no way that these governments

40:15and these nation states are not going

40:17to use their access to gain some advantage in those conflicts.

40:23And I'm now in a position where I'm

40:27an advisor to the Cybersecurity Infrastructure Security

40:32Agency at DHS.

40:33So I'm not saying anything classified here.

40:37But I just think that it's really important

40:41to understand just generally what the collateral damage

40:45could be for American businesses and critical infrastructure

40:49in any of these escalated conflicts around the world.

40:54Because just generally, our adversaries

40:57have learned that they might never

41:01be able to match us in terms of our traditional military

41:04spending on traditional weapons and fighter jets.

41:08But we have a very soft underbelly

41:10when it comes to cyber.

41:1280% or more of America's critical infrastructure,

41:17so pipelines, power grid, nuclear plants, water systems,

41:23is owned and operated by the private sector.

41:26And for the most part, there is nothing out there legislating

41:31that those companies share the fact they've been breached.

41:35They don't even have to tell the government they've been hit.

41:38There's nothing mandating that they even

41:40meet a bare minimum standard of cybersecurity.

41:44And that's it.

41:46So even when there are these attacks, most of the time,

41:49we don't even know about it.

41:51So that is, if you were going to design a system

41:54to be as blind and vulnerable as possible,

41:57that's pretty good.

42:00That's what it looks like is what we have here

42:02in the United States.

42:04And everyone here is just operating like,

42:08let's just keep hooking up everything for convenience.

42:12Software eats the world.

42:14Let's just keep going for cost, for convenience sake,

42:18just because we can.

42:20And when you study these issues and you study these attacks

42:24and you study the advancement and the uptick in frequency

42:29and the lower barrier to entry that we see every single year,

42:34you realize just how dumb software eats world is.

42:39And no one has ever stopped to pause and think,

42:43should we be hooking up these systems to the internet?

42:47They've just been saying, can we?

42:49Let's do it.

42:51And that's a real problem.

42:52And just in the last year, we've seen a record number

42:55of zero day attacks.

42:56I think there were 80 last year, which

42:59is probably more than double what it was in 2019.

43:03A lot of those were nation states.

43:06We live in a world with a lot of geopolitical hot points

43:10right now.

43:11And where those geopolitical hot points are

43:15are places where countries have been investing heavily

43:19in offensive cyber tools.

43:21If you're a nation state, the goal

43:25would be to maximize the footprint of zero day,

43:29like super secret zero day that nobody is aware of.

43:33And whenever war is initiated, the huge negative effects

43:37of shutting down infrastructure or any kind of zero day

43:39is the chaos it creates.

43:41So if you just, there's a certain threshold

43:43when you create the chaos.

43:45The market's plummeted.

43:46Just everything goes to hell.

43:51I mean, it's not just zero days.

43:52We make it so easy for threat actors.

43:56I mean, we're not using two factor authentication.

44:00We're not patching.

44:02There was the shell shock vulnerability

44:04that was discovered a couple of years ago.

44:08It's still being exploited because so many people

44:11haven't fixed it.

44:13So the zero days are really the sexy stuff.

44:17And what really drew me to the zero day market

44:19was the moral calculus we talked about, particularly

44:24from the US government's point of view.

44:26How do they justify leaving these systems so vulnerable

44:31when we use them here and we're baking

44:34more of our critical infrastructure

44:36with this vulnerable software?

44:38It's not like we're using one set of technology

44:41and Russia is using another and China is using this.

44:43We're all using the same technology.

44:45So when you find a zero day in Windows,

44:49you're not just leaving it open so you can spy on Russia

44:52or implant yourself in the Russian grid.

44:54You're leaving Americans vulnerable too.

44:58But zero days are like, that is the secret sauce.

45:02That's the superpower.

45:04And I always say every country now,

45:07with the exception of Antarctica,

45:09someone added the Vatican to my list,

45:11is trying to find offensive hacking tools and zero days

45:16to make them work.

45:17And those that don't have the skills

45:20now have this market that they can tap into,

45:23where $2.5 million, that's chump change

45:26for a lot of these nation states.

45:27It's a hell of a lot less than trying

45:29to build the next fighter jet.

45:32But yeah, the goal is chaos.

45:34I mean, why did Russia turn off the lights twice in Ukraine?

45:39I think part of it is chaos.

45:42I think part of it is to sow the seeds of doubt

45:46in their current government.

45:47Your government can't even keep your lights on.

45:50Why are you sticking with them?

45:52Come over here and we'll keep your lights on at least.

45:56There's like a little bit of that.

45:58Nuclear weapons seems to have helped prevent nuclear war.

46:04Is it possible that we have so many vulnerabilities

46:08and so many attack vectors on each other

46:11that you will kind of achieve the same kind of equilibrium

46:15like mutually shared destruction?

46:17Yeah.

46:18That's one hopeful solution to this.

46:20Do you have any hope for this particular solution?

46:23You know, nuclear analogies always tend to fall apart

46:26when it comes to cyber,

46:27mainly because you don't need fissile material.

46:30You know, you just need a laptop and the skills

46:33and you're in the game.

46:34So it's a really low barrier to entry.

46:38The other thing is attribution is harder.

46:40And we've seen countries muck around with attribution.

46:44We've seen, you know, nation states piggyback

46:47on other countries spy operations and just sit there

46:50and siphon out whatever they're getting.

46:53We learned some of that from the Snowden documents.

46:56We've seen Russia hack into Iran's command

46:58and control attack servers.

47:01We've seen them hit a Saudi petrochemical plant

47:05where they did neutralize the safety locks at the plant

47:08and everyone assumed that it was Iran,

47:10given Iran had been targeting Saudi oil companies forever.

47:13But nope, it turned out that it was

47:15a graduate research institute outside Moscow.

47:17So you see countries kind of playing around

47:20with attribution.

47:21Why?

47:22I think because they think, okay, if I do this,

47:25like how am I gonna cover up that it came from me

47:27because I don't wanna risk the response.

47:30So people are sort of dancing around this.

47:33It's just in a very different way.

47:34And, you know, at the times I'd covered the Chinese hacks

47:39of infrastructure companies like pipelines.

47:42I'd covered the Russian probes of nuclear plants.

47:46I'd covered the Russian attacks on the Ukraine grid.

47:50And then in 2018, my colleague David Sanger and I

47:53covered the fact that US Cyber Command

47:57had been hacking into the Russian grid

47:59and making a pretty loud show of it.

48:02And when we went to the National Security Council,

48:05because that's what journalists do

48:06before they publish a story,

48:08they give the other side a chance to respond,

48:11I assumed we would be in for that really awkward,

48:14painful conversation where they would say,

48:17you will have blood on your hands if you publish this story.

48:20And instead they gave us the opposite answer.

48:22They said, we have no problem

48:25with you publishing this story.

48:27Why?

48:28Well, they didn't say it out loud,

48:29but it was pretty obvious they wanted Russia to know

48:33that we're hacking into their power grid too,

48:35and they better think twice before they do to us

48:38what they had done to Ukraine.

48:40So yeah, you know, we have stumbled into this new era

48:44of mutually assured digital destruction.

48:47I think another sort of quasi norm we've stumbled into

48:54is proportional responses.

48:57There's this idea that if you get hit,

49:00you're allowed to respond proportionally

49:03at a time and place of your choosing.

§06Transcript · 49:05–58:46

49:05That is how the language always goes.

49:08That's what Obama said after North Korea hit Sony.

49:12We will respond at a time and place of our choosing.

49:15But no one really knows like what that response looks like.

49:21And so what you see a lot of the time

49:22are just these like, just short of war attacks.

49:27You know, Russia turned off the power in Ukraine,

49:29but it wasn't like it stayed off for a week.

49:31You know, it stayed off for a number of hours.

49:34You know, NotPetya hit those companies pretty hard,

49:39but no one died, you know?

49:41And the question is, what's gonna happen when someone dies?

49:44And can a nation state masquerade as a cyber criminal group,

49:49as a ransomware group?

49:51And that's what really complicates

49:53coming to some sort of digital Geneva convention.

49:57Like there's been a push from Brad Smith at Microsoft.

50:01We need a digital Geneva convention.

50:03And on its face, it sounds like a no brainer.

50:06Yeah, why wouldn't we all agree to stop hacking

50:08into each other's civilian hospital systems,

50:11elections, power grid, pipelines?

50:15But when you talk to people in the West,

50:19officials in the West, they'll say, we would never,

50:22we'd love to agree to it, but we'd never do it

50:25when you're dealing with Xi or Putin or Kim Jong Un.

50:30Because a lot of times, they outsource these operations

50:35to cyber criminals.

50:37In China, we see a lot of these attacks

50:39come from this loose satellite network of private citizens

50:43that work at the behest of the Ministry of State Security.

50:46So how do you come to some sort of state to state agreement

50:51when you're dealing with transnational actors

50:55and cyber criminals, where it's really hard to pin down

50:59whether that person was acting alone

51:01or whether they were acting at the behest of the MSS

51:05or the FSB.

51:06And a couple of years ago, I remember,

51:09can't remember if it was before or after NotPetya,

51:11but Putin said, hackers are like artists

51:14who wake up in the morning in a good mood and start painting.

51:18In other words, I have no say over what they do or don't do.

51:21So how do you come to some kind of norm

51:24when that's how he's talking about these issues

51:26and he's just decimated Merck and Pfizer

51:30and another however many thousand companies?

51:34That is the fundamental difference between nuclear weapons

51:37and cyber attacks is the attribution

51:40or one of the fundamental differences.

51:42If you can fix one thing in the world

51:45in terms of cybersecurity

51:47that would make the world a better place,

51:48what would you fix?

51:51So you're not allowed to fix like authoritarian regimes

51:54and you can't.

51:55You have to keep that,

51:57you have to keep human nature as it is.

52:00In terms of on the security side, technologically speaking,

52:05you mentioned there's no regulation

52:06on companies in United States.

52:10What if you could just fix with the snap of a finger,

52:14what would you fix?

52:15Two factor authentication, multifactor authentication.

52:19It's ridiculous how many of these attacks come in

52:24because someone didn't turn on multifactor authentication.

52:27I mean, Colonial Pipeline, okay?

52:30They took down the biggest conduit

52:34for gas, jet fuel and diesel

52:35to the East Coast of the United States of America, how?

52:39Because they forgot to deactivate an old employee account

52:42whose password had been traded on the dark web

52:44and they'd never turned on two factor authentication.

52:48This water treatment facility outside Florida

52:50was hacked last year.

52:51How did it happen?

52:53They were using Windows XP from like a decade ago

52:56that can't even get patches if you want it to

52:59and they didn't have two factor authentication.

53:01Time and time again,

53:02if they just switched on two factor authentication,

53:06some of these attacks wouldn't have been possible.

53:08Now, if I could snap my fingers,

53:10that's the thing I would do right now.

53:11But of course, this is a cat and mouse game

53:15and then the attackers onto the next thing.

53:17But I think right now that is like bar none.

53:21That is just, that is the easiest, simplest way

53:24to deflect the most attacks.

53:25And the name of the game right now isn't perfect security.

53:29Perfect security is impossible.

53:32They will always find a way in.

53:34The name of the game right now

53:35is make yourself a little bit harder to attack

53:39than your competitor than anyone else out there

53:41so that they just give up and move along.

53:44And maybe if you are a target

53:46for an advanced nation state or the SVR,

53:51you're gonna get hacked no matter what.

53:53But you can make cyber criminal groups deadbolt, is it?

53:57You can make their jobs a lot harder

54:00simply by doing the bare basics.

54:03And the other thing is stop reusing your passwords.

54:05But if I only get one, then two factor authentication.

54:08So what is two factor authentication?

54:10Factor one is what, logging in with a password.

54:13And factor two is like have another device

54:15or another channel through which you can confirm,

54:18yeah, that's me.

54:19Yes, usually this happens through some kind of text.

54:23You get your one time code from Bank of America

54:26or from Google.

54:28The better way to do it is spend $20

54:31buying yourself a Fido key on Amazon.

54:34That's a hardware device.

54:36And if you don't have that hardware device with you,

54:39then you're not gonna get in.

54:41And the whole goal is, I mean, basically,

54:43my first half of my decade at The Times

54:46was spent covering like the copy.

54:49It was like Home Depot got breached,

54:51News at 11, Target, Neumann Marcus,

54:54like who wasn't hacked over the course of those five years?

54:58And a lot of those companies that got hacked,

55:01what did hackers take?

55:02They took the credentials, they took the passwords.

55:05They can make a pretty penny selling them on the dark web

55:08and people reuse their passwords.

55:11So you get one from God knows who, I don't know,

55:15LastPass, worst case example, actually LastPass.

55:19But you get one and then you go test it

55:21on their email account.

55:23And you go test it on their brokerage account

55:25and you test it on their cold storage account.

55:28That's how it works.

55:29But if you have multi factor authentication,

55:32then they can't get in

55:34because they might have your password,

55:36but they don't have your phone,

55:38they don't have your Fido key.

55:41So you keep them out.

55:42And I get a lot of alerts that tell me

55:46someone is trying to get into your Instagram account

55:49or your Twitter account or your email account.

55:52And I don't worry because I use multi factor authentication.

55:55They can try all day.

55:58Okay, I worry a little bit, but it's the simplest thing to do

56:03and we don't even do it.

56:05Well, there's an interface aspect to it

56:06because it's pretty annoying if it's implemented poorly.

56:11So actually bad implementation

56:13of two factor authentication, not just bad,

56:16but just something that adds friction

56:19is a security vulnerability, I guess,

56:21because it's really annoying.

56:23Like I think MIT for a while had two factor authentication.

56:27It was really annoying.

56:28I just, like the number of times it pings you,

56:33like it asks to reauthenticate across multiple subdomains.

56:39Like it just feels like a pain.

56:42I don't know what the right balance there.

56:44Yeah, it feels like friction in our frictionless society.

56:48It feels like friction, it's annoying.

56:51That's security's biggest problem, it's annoying.

56:54We need the Steve Jobs of security to come along

56:57and we need to make it painless.

56:59And actually on that point,

57:02Apple has probably done more for security than anyone else

57:07simply by introducing biometric authentication,

57:10first with the fingerprint and then with face ID.

57:13And it's not perfect, but if you think just eight years ago,

57:17everyone was running around with either no passcode

57:20and optional passcode or four digit passcode on their phone

57:23that anyone, think of what you can get

57:26when you get someone's iPhone, if you steal someone's iPhone

57:29and props to them for introducing the fingerprint

57:32and face ID.

57:33And again, it wasn't perfect, but it was a huge step forward.

57:36Now it's time to make another huge step forward.

57:41I wanna see the password die.

57:42I mean, it's gotten us as far as it was ever gonna get us.

57:46And I hope whatever we come up with next

57:49is not gonna be annoying, is gonna be seamless.

57:52When I was at Google, that's what we worked on is,

57:55and there's a lot of ways to call it

57:57active authentication, passive authentication.

57:59So basically you use biometric data,

58:02not just like a fingerprint, but everything from your body

58:05to identify who you are, like movement patterns.

58:09So it basically create a lot of layers of protection

58:12where it's very difficult to fake,

58:15including like face unlock, checking that it's your actual

58:20face, like the liveness tests.

58:23So like from video, so unlocking it with video,

58:26voice, the way you move the phone,

58:31the way you take it out of the pocket, that kind of thing.

58:33All of those factors.

58:34It's a really hard problem though.

58:37And ultimately, it's very difficult to beat the password

58:42in terms of security.

58:43Well, there's a company that I actually will call out

§07Transcript · 58:46–1:08:42

58:46and that's Abnormal Security.

58:48So they work on email attacks.

58:51And it was started by a couple of guys who were doing,

58:56I think, ad tech at Twitter.

58:59So ad technology now, like it's a joke

59:02how much they know about us.

59:03You always hear the conspiracy theories that

59:06you saw someone's shoes and next thing you know,

59:08it's on your phone.

59:10It's amazing what they know about you.

59:13And they're basically taking that

59:16and they're applying it to attacks.

59:19So they're saying, okay, if you're,

59:22this is what your email patterns are.

59:24It might be different for you and me

59:26because we're emailing strangers all the time.

59:29But for most people,

59:30their email patterns are pretty predictable.

59:33And if something strays from that pattern, that's abnormal

59:38and they'll block it, they'll investigate it.

59:41And that's great.

59:43Let's start using that kind of targeted ad technology

59:48to protect people.

59:50And yeah, I mean, it's not gonna get us away

59:52from the password and using multifactor authentication,

59:56but the technology is out there

59:59and we just have to figure out how to use it

60:02in a really seamless way because it doesn't matter

60:05if you have the perfect security solution

60:07if no one uses it.

60:08I mean, when I started at the times

60:10when I was trying to be really good

60:12about protecting sources,

60:14I was trying to use PGP encryption

60:17and it's like, it didn't work.

60:19The number of mistakes I would probably make

60:22just trying to email someone with PGP just wasn't worth it.

60:27And then Signal came along and Signal made it wicker.

60:32They made it a lot easier

60:34to send someone an encrypted text message.

60:37So we have to start investing in creative minds,

60:43in good security design.

60:45I really think that's the hack that's gonna get us

60:48out of where we are today.

60:50What about social engineering?

60:52Do you worry about this sort of hacking people?

60:57Yes, I mean, this is the worst nightmare

61:00of every chief information security officer out there.

61:04Social engineering, we work from home now.

61:10I saw this woman posted online about how her husband,

61:15it went viral today,

61:16but it was her husband had this problem at work.

61:20They hired a guy named John

61:22and now the guy that shows up for work every day

61:26doesn't act like John.

61:29I mean, think about that.

61:31Like think about the potential for social engineering

61:34in that context.

61:35You apply for a job and you put on a pretty face,

61:38you hire an actor or something,

61:40and then you just get inside the organization

61:42and get access to all that organization's data.

61:45A couple of years ago,

61:47Saudi Arabia planted spies inside Twitter.

61:51Why?

61:52Probably because they were trying to figure out

61:54who these people were

61:55who were criticizing the regime on Twitter.

61:58They couldn't do it with a hack from the outside,

62:00so why not plant people on the inside?

62:02And that's like the worst nightmare.

62:04And it also, unfortunately, creates all kinds of xenophobia

62:09at a lot of these organizations.

62:11I mean, if you're gonna have to take that into consideration,

62:14then organizations are gonna start looking

62:16really skeptically and suspiciously

62:19at someone who applies for that job from China.

62:23And we've seen that go really badly

62:25at places like the Department of Commerce,

62:28where they basically accuse people of being spies

62:31that aren't spies.

62:32So it is the hardest problem to solve,

62:35and it's never been harder to solve

62:37than right at this very moment

62:39when there's so much pressure for companies

62:41to let people work remotely.

62:43That's actually why I'm single.

62:45I'm suspicious that China and Russia,

62:48every time I meet somebody,

62:49are trying to plant and get insider information,

62:52so I'm very, very suspicious.

62:54I keep putting the touring test in front, no.

62:57No, I have a friend who worked inside NSA

63:02and was one of their top hackers,

63:04and he's like, every time I go to Russia,

63:08I get hit on by these 10s.

63:10And I come home, my friends are like,

63:12I'm sorry, you're not a 10.

63:13Like, it's a common story.

63:17I mean, it's difficult to trust humans

63:20in this day and age online.

63:23So we're working remotely, that's one thing,

63:27but just interacting with people on the internet,

63:31sounds ridiculous, but because of this podcast in part,

63:35I've gotten to meet some incredible people,

63:37but it makes you nervous to trust folks,

63:43and I don't know how to solve that problem.

63:48So I'm talking with Mark Zuckerberg,

63:51who dreams about creating the metaverse.

63:55What do you do about that world

63:56where more and more our lives is in the digital sphere?

64:01Like, one way to phrase it is,

64:05most of our meaningful experiences at some point

64:10will be online, like falling in love, getting a job,

64:15or experiencing a moment of happiness with a friend,

64:19with a new friend made online, all of those things.

64:23Like, more and more, the fun we do,

64:25the things that make us love life will happen online,

64:28and if those things have an avatar that's digital,

64:32that's like a way to hack into people's minds,

64:35whether it's with AI or kind of troll farms

64:39or something like that.

64:40I don't know if there's a way to protect against that.

64:43That might fundamentally rely on our faith

64:49in how good human nature is.

64:51So if most people are good, we're going to be okay,

64:54but if people will tend towards manipulation

64:59and malevolent behavior in search of power,

65:03then we're screwed.

65:05So I don't know if you can comment

65:07on how to keep the metaverse secure.

65:10Yeah, I mean, all I thought about

65:13when you were talking just now was my three year old son.

65:16Yeah.

65:19He asked me the other day, what's the internet, mom?

65:22And I just almost wanted to cry.

65:25You know, I don't want that for him.

65:29I don't want all of his most meaningful experiences

65:32to be online.

65:33You know, by the time that happens,

65:36how do you know that person's human,

65:39that avatar's human?

65:41You know, I believe in free speech.

65:42I don't believe in free speech for robots and bots.

65:46And like, look what just happened over the last six years.

65:51You know, we had bots pretending

65:53to be Black Lives Matter activists

65:56just to sow some division,

65:59or, you know, Texas secessionists,

66:01or, you know, organizing anti Hillary protests,

66:06or just to sow more division,

66:08to tie us up in our own politics

66:12so that we're so paralyzed we can't get anything done.

66:15We can't make any progress

66:17and we definitely can't handle our adversaries

66:19and their longterm thinking.

66:22It really scares me.

66:25And here's where I just come back to.

66:28Just because we can create the metaverse,

66:32you know, just because it sounds like the next logical step

66:36in our digital revolution,

66:39do I really want my child's most significant moments

66:43to be online?

66:45They weren't for me, you know?

66:47So maybe I'm just stuck in that old school thinking,

66:51or maybe I've seen too much.

66:54And I'm really sick of being

66:58the guinea pig parent generation for these things.

67:01I mean, it's hard enough with screen time.

67:04Like thinking about how to manage the metaverse as a parent

67:10to a young boy, like I can't even let my head go there.

67:13That's so terrifying for me.

67:16But we've never stopped any new technology

67:21just because it introduces risks.

67:23We've always said, okay, the promise of this technology

67:27means we should keep going, keep pressing ahead.

67:31We just need to figure out new ways to manage that risk.

67:35And you know, that's the blockchain right now.

67:39Like when I was covering all of these ransomware attacks,

67:44I thought, okay, this is gonna be it for cryptocurrency.

67:48You know, governments are gonna put the kibosh down.

67:51They're gonna put the hammer down and say enough is enough.

67:54Like we have to put this genie back in the bottle

67:56because it's enabled ransomware.

67:58I mean, five years ago, they would hijack your PC

68:02and they'd say, go to the local pharmacy,

68:05get a eGift card and tell us what the pin is.

68:08And then we'll get your $200.

68:10Now it's pay us, you know, five Bitcoin.

68:13And so there's no doubt cryptocurrencies

68:16enabled ransomware attacks,

68:17but after the Colonial Pipeline ransom was seized,

68:22because if you remember, the FBI was actually able to go in

68:25and claw some of it back from DarkSide,

68:28which was the ransomware group that hid it.

68:31And I spoke to these guys at TRM Labs.

68:34So they're one of these blockchain intelligence companies.

68:37And a lot of people that work there

68:38used to work at the treasury.

68:40And what they said to me was,

§08Transcript · 1:08:42–1:18:33

68:42yeah, cryptocurrency has enabled ransomware,

68:46but to track down that ransom payment would have taken,

68:52you know, if we were dealing with fiat currency,

68:54would have taken us years to get to that one bank account

68:58or belonging to that one front company in the Seychelles.

69:01And now thanks to the blockchain,

69:04we can track the movement of those funds in real time.

69:08And you know what?

69:09You know, these payments are not as anonymous

69:11as people think.

69:13Like we still can use our old hacking ways and zero days

69:16and, you know, old school intelligence methods

69:19to find out who owns that private wallet

69:21and how to get to it.

69:23So it's a curse in some ways and that it's an enabler,

69:27but it's also a blessing.

69:29And they said that same thing to me

69:31that I just said to you.

69:32They said, we've never shut down a promising new technology

69:37because it introduced risk.

69:39We just figured out how to manage that risk.

69:42And I think that's where the conversation

69:44unfortunately has to go,

69:45is how do we in the metaverse use technology to fix things?

69:53So maybe we'll finally be able to, not finally,

69:56but figure out a way to solve the identity problem

70:00on the internet, meaning like a blue check mark

70:03for actual human and connect it to identity

70:06or like a fingerprint so you can prove your you.

70:11And yet do it in a way that doesn't involve the company

70:15having all your data.

70:17So giving you, allowing you to maintain control

70:20over your data, or if you don't,

70:23then there's a complete transparency

70:25of how that data is being used, all those kinds of things.

70:28And maybe as you educate more and more people,

70:32they would demand in a capitalist society

70:36that the companies that they give their data to

70:38will respect that data.

70:40Yeah, I mean, there is this company,

70:43and I hope they succeed, their name's PII Ono, Piano.

70:48And they wanna create a vault for your personal information

70:52inside every organization.

70:54And ultimately, if I'm gonna call Delta Airlines

70:57to book a flight,

70:59they don't need to know my social security number.

71:02They don't need to know my birth date.

71:05They're just gonna send me a one time token to my phone.

71:08My phone's gonna say, or my Fido key is gonna say,

71:11yep, it's her.

71:13And then we're gonna talk about my identity like a token,

71:16some random token.

71:17They don't need to know exactly who I am.

71:20They just need to know the system trust that I am,

71:23who I say I am, but they don't get access to my PII data.

71:27They don't get access to my social security number,

71:30my location, or the fact I'm a Times journalist.

71:34I think that's the way the world's gonna go.

71:37We have, enough is enough on sort of

71:40losing our personal information everywhere,

71:44letting data marketing companies track our every move.

71:48They don't need to know who I am.

71:51Okay, I get it.

71:52We're stuck in this world where the internet runs on ads.

71:57So ads are not gonna go away,

71:59but they don't need to know I'm Nicole Perlora.

72:03They can know that I am token number, you know,

72:06X567.

72:08And they can let you know what they know

72:11and give you control about removing the things they know.

72:14Yeah, right to be forgotten.

72:15To me, you should be able to walk away

72:17with a single press of a button.

72:20And I also believe that most people,

72:22given the choice to walk away, won't walk away.

72:25They'll just feel better about having the option

72:28to walk away when they understand the trade offs.

72:30If you walk away, you're not gonna get

72:32some of the personalized experiences

72:34that you would otherwise get,

72:35like a personalized feed and all those kinds of things.

72:38But the freedom to walk away is,

72:43I think, really powerful.

72:44And obviously, what you're saying,

72:45it's definitely, there's all of these HTML forms

72:48where you have to enter your phone number and email

72:51and private information from Delta, every single airline.

72:55New York Times.

72:58I have so many opinions on this.

73:00Just the friction and the sign up

73:03and all of those kinds of things.

73:04I should be able to, this has to do with everything.

73:07This has to do with payment, too.

73:09Payment should be trivial.

73:11It should be one click,

73:13and one click to unsubscribe and subscribe,

73:16and one click to provide all of your information

73:19that's necessary for the subscription service,

73:21for the transaction service, whatever that is,

73:24getting a ticket, as opposed to,

73:25I have all of these fake phone numbers and emails

73:28that I use in Alta Sign Up,

73:29because you never know if one site is hacked,

73:34then it's just going to propagate to everything else.

73:37Yeah.

73:38And there's low hanging fruit,

73:41and I hope Congress does something.

73:44And frankly, I think it's negligent they haven't

73:46on the fact that elderly people are getting spammed to death

73:51on their phones these days with fake car warranty scams.

73:56And I mean, my dad was in the hospital last year,

73:59and I was in the hospital room, and his phone kept buzzing,

74:02and I look at it, and it's just spam attack after spam attack,

74:08people nonstop calling about his freaking car warranty,

74:13why they're trying to get his social security number,

74:15they're trying to get his PII,

74:17they're trying to get this information.

74:19We need to figure out how to put those people

74:24in jail for life, and we need to figure out

74:28why in the hell we are being required

74:32or asked to hand over our social security number

74:36and our home address and our passport,

74:39all of that information to every retailer who asks.

74:43I mean, that's insanity.

74:46And there's no question they're not protecting it

74:49because it keeps showing up in spam or identity theft

74:55or credit card theft or worse.

74:57Well, spam is getting better, and maybe I need to,

75:00as a side note, make a public announcement.

75:02Please clip this out, which is if you get an email

75:07or a message from Lex Friedman saying how much

75:12I, Lex, appreciate you and love you and so on,

75:16and please connect with me on my WhatsApp number

75:19and I will give you Bitcoin or something like that,

75:23please do not click.

75:25And I'm aware that there's a lot of this going on,

75:29a very large amount.

75:30I can't do anything about it.

75:32This is on every single platform.

75:33It's happening more and more and more,

75:36which I've been recently informed that they're not emailing.

75:40So it's cross platform.

75:42They're taking people's, they're somehow,

75:46this is fascinating to me because they are taking people

75:50who comment on various social platforms

75:53and they somehow reverse engineer.

75:56They figure out what their email is

75:57and they send an email to that person saying,

76:00from Lex Friedman, and it's like a heartfelt email

76:04with links.

76:05It's fascinating because it's cross platform now.

76:07It's not just a spam bot that's messaging

76:11and a comment that's in a reply.

76:13They are saying, okay, this person cares

76:16about this other person on social media.

76:18So I'm going to find another channel,

76:20which in their mind probably increases

76:22and it does the likelihood that they'll get the people

76:26to click and they do.

76:28I don't know what to do about that.

76:30It makes me really, really sad,

76:32especially with podcasting.

76:33There's an intimacy that people feel connected

76:36and they get really excited.

76:37Okay, cool, I wanna talk to Lex.

76:40And they click.

76:45And I get angry at the people that do this.

76:50I mean, it's like the John that gets hired,

76:55the fake employee.

76:57I mean, I don't know what to do about that.

76:58I mean, I suppose the solution is education.

77:02It's telling people to be skeptical

77:04on the stuff they click.

77:07That balance with the technology solution

77:09of creating maybe like two factor authentication

77:14and maybe helping identify things

77:17that are likely to be spam, I don't know.

77:20But then the machine learning there is tricky

77:21because you don't wanna add a lot of extra friction

77:25that just annoys people because they'll turn it off.

77:28Because you have the accept cookies thing, right?

77:30That everybody has to click on now,

77:32so now they completely ignore the accept cookies.

77:34This is very difficult to find that frictionless security.

77:42You mentioned Snowden.

77:43You've talked about looking through the NSA documents

77:48he leaked and doing the hard work of that.

77:51What do you make of Edward Snowden?

77:54What have you learned from those documents?

77:56What do you think of him?

78:00In the long arc of history,

78:02is Edward Snowden a hero or a villain?

78:05I think he's neither.

78:07I have really complicated feelings about Edward Snowden.

78:12On the one hand, I'm a journalist at heart

78:15and more transparency is good.

78:19And I'm grateful for the conversations

78:22that we had in the post Snowden era

78:26about the limits to surveillance

78:29and how critical privacy is.

§09Transcript · 1:18:33–1:29:28

78:33And when you have no transparency

78:35and you don't really know in that case

78:38what our secret courts were doing,

78:41how can you truly believe that our country

78:45is taking our civil liberties seriously?

78:48So on the one hand, I'm grateful

78:51that he cracked open these debates.

78:54On the other hand, when I walked into the storage closet

79:02of classified NSA secrets,

79:05I had just spent two years

79:09covering Chinese cyber espionage almost every day.

79:14And the sort of advancement of Russian attacks

79:19that were just getting worse and worse and more destructive.

79:23And there were no limits to Chinese cyber espionage

79:27and Chinese surveillance of its own citizens.

79:30And there seemed to be no limit

79:32to what Russia was willing to do in terms of cyber attacks

79:37and also in some cases assassinating journalists.

79:41So when I walked into that room,

79:43there was a part of me quite honestly

79:46that was relieved to know that the NSA

79:50was as good as I hoped they were.

79:53And we weren't using that knowledge to,

79:58as far as I know, assassinate journalists.

80:03We weren't using our access

80:06to take out pharmaceutical companies.

80:11For the most part, we were using it for traditional espionage.

80:15Now, that set of documents also set me

80:18on the journey of my book because to me,

80:22the American people's reaction to the Snowden documents

80:26was a little bit misplaced.

80:28They were upset

80:29about the phone call metadata collection program.

80:33Angela Merkel, I think rightfully was upset

80:36that we were hacking her cell phone.

80:39But in sort of the spy eat spy world,

80:42hacking world leaders cell phones

80:44is pretty much what most spy agencies do.

80:47And there wasn't a lot that I saw in those documents

80:51that was beyond what I thought a spy agency does.

80:56And I think if there was another 9 11 tomorrow,

81:01God forbid, we would all say, how did the NSA miss this?

81:05Why weren't they spying on those terrorists?

81:07Why weren't they spying on those world leaders?

81:10And there's some of that too.

81:13But I think that there was great damage done

81:17to the US's reputation.

81:22I think we really lost our halo

81:26in terms of a protector of civil liberties.

81:30And I think a lot of what was reported

81:33was unfortunately reported in a vacuum.

81:36That was my biggest gripe that we were always reporting,

81:41the NSA has this program and here's what it does.

81:45And the NSA is in Angela Merkel's cell phone

81:48and the NSA can do this.

81:50And no one was saying, and by the way,

81:57China has been hacking into our pipelines

82:00and they've been making off

82:01with all of our intellectual property.

82:04And Russia has been hacking into our energy infrastructure

82:07and they've been using the same methods to spy on track.

82:11And in many cases, kill their own journalists.

82:13And the Saudis have been doing this

82:15to their own critics and dissidents.

82:17And so you can't talk about any of these countries

82:21in isolation.

82:22It is really like spy out there.

82:25And so I just have complicated feelings.

82:29And the other thing is, and I'm sorry,

82:30this is a little bit of a tangent,

82:32but the amount of documents that we had,

82:37like thousands of documents,

82:39most of which were just crap,

82:41but had people's names on them.

82:46Part of me wishes that those documents

82:48had been released in a much more targeted, limited way.

82:53It's just a lot of it just felt like a PowerPoint

82:56that was taken out of context.

83:00And you just sort of wish

83:03that there had been a little bit more thought

83:05into what was released.

83:07Because I think a lot of the impact from someone

83:10was just the volume of the reporting.

83:13But I think based on what I saw personally,

83:18there was a lot of stuff that I just,

83:20I don't know why that particular thing got released.

83:24As a whistleblower, what's a better way to do it?

83:26Because I mean, there's fear,

83:28it takes a lot of effort to do a more targeted release.

83:33If there's proper channels,

83:35you're afraid that those channels will be manipulated

83:38by who do you trust.

83:41What's a better way to do this, do you think?

83:43As a journalist, this is almost like a journalistic question.

83:46Reveal some fundamental flaw in the system

83:49without destroying the system.

83:50I bring up, again, Mark Zuckerberg and Metta,

83:54there was a whistleblower

83:57that came out about Instagram internal studies.

84:02And I also torn about how to feel about that whistleblower.

84:06Because from a company perspective, that's an open culture.

84:11How can you operate successfully

84:13if you have an open culture

84:14where any one whistleblower can come out,

84:17out of context, take a study,

84:19whether it represents a larger context or not,

84:22and the press eats it up.

84:25And then that creates a narrative

84:27that is just like with the NSA,

84:30you said it's out of context, very targeted,

84:33to where, well, Facebook is evil, clearly,

84:36because of this one leak.

84:38It's really hard to know what to do there,

84:40because we're now in a society

84:42that's deeply distrust institutions.

84:44And so narratives by whistleblowers make that whistleblower

84:49and their forthcoming book very popular.

84:52And so there's a huge incentive

84:54to take stuff out of context and to tell stories

84:56that don't represent the full context, the full truth.

85:01It's hard to know what to do with that,

85:03because then that forces Facebook and Meta and governments

85:06to be much more conservative, much more secretive.

85:10It's like a race to the bottom, I don't know.

85:14I don't know if you can comment on any of that,

85:16how to be a whistleblower ethically and properly.

85:20I don't know, I mean, these are hard questions.

85:23And even for myself, in some ways,

85:27I think of my book as sort of blowing the whistle

85:31on the underground zero day market.

85:33But it's not like I was in the market myself.

85:38It's not like I had access to classified data

85:41when I was reporting out that book.

85:44As I say in the book, listen,

85:46I'm just trying to scrape the surface here,

85:49so we can have these conversations before it's too late.

85:53And I'm sure there's plenty in there

85:57that someone who's US intelligence agencies

86:01preeminent zero day broker probably

86:04has some voodoo doll of me out there.

86:05And you're never gonna get it 100%.

86:11But I really applaud whistleblowers

86:14like the whistleblower who blew the whistle

86:19on the Trump call with Zelensky.

86:22I mean, people needed to know about that,

86:25that we were basically, in some ways,

86:27blackmailing an ally to try to influence an election.

86:33I mean, they went through the proper channels.

86:37They weren't trying to profit off of it, right?

86:39There was no book that came out afterwards

86:42from that whistleblower.

86:44That whistleblower's not like,

86:46they went through the channels.

86:47They're not living in Moscow, let's put it that way.

86:51Can I ask you a question, you mentioned NSA,

86:53one of the things that showed

86:56is they're pretty good at what they do.

87:00Again, this is a touchy subject, I suppose,

87:03but there's a lot of conspiracy theories

87:06about intelligence agencies.

87:08From your understanding of intelligence agencies,

87:11the CIA, NSA, and the equivalent of in other countries,

87:16are they, one question, this could be a dangerous question,

87:20are they competent, are they good at what they do?

87:24And two, are they malevolent in any way?

87:30Sort of, I recently had a conversation

87:32about tobacco companies.

87:35They kind of see their customers as dupes,

87:39like they can just play games with people.

87:43Conspiracy theories tell that similar story

87:46about intelligence agencies,

87:48that they're interested in manipulating the populace

87:51for whatever ends the powerful,

87:54in dark rooms, cigarette smoke, cigar smoke filled rooms.

88:03What's your sense?

88:04Do these conspiracy theories have any truth to them?

88:11Or are intelligence agencies, for the most part,

88:14good for society?

88:15Okay, well, that's an easy one.

88:18Is it?

88:19No, I think it depends which intelligence agency.

88:23Think about the Mossad.

88:25They're killing every Iranian nuclear scientist they can

88:32over the years, but have they delayed the time horizon

88:38before Iran gets the bomb?

88:40Yeah.

88:41Have they probably staved off terror attacks

88:45on their own citizens?

88:46Yeah.

88:48You know, none of these, intelligence is intelligence.

88:53You know, you can't just say like they're malevolent

88:56or they're heroes.

88:58You know, everyone I have met in this space

89:03is not like the pound your chest patriot

89:07that you see on the beach on the 4th of July.

89:11A lot of them have complicated feelings

89:15about their former employers.

89:17Well, at least at the NSA reminded me

89:20to do what we were accused of doing after Snowden,

89:25to spy on Americans.

§10Transcript · 1:29:28–1:39:22

89:28You have no idea the amount of red tape and paperwork

89:33and bureaucracy it would have taken to do

89:38what everyone thinks that we were supposedly doing.

89:42But then, you know, we find out in the course

89:45of the Snowden reporting about a program called Lovin',

89:49where a couple of the NSA analysts were using their access

89:53to spy on their ex girlfriends.

89:55So, you know, there's an exception to every case.

89:59Generally, I will probably get, you know,

90:05accused of my Western bias here again,

90:07but I think you can almost barely compare

90:15some of these Western intelligence agencies

90:17to China, for instance.

90:19And the surveillance that they're deploying on the Uyghurs

90:26to the level they're deploying it.

90:28And the surveillance they're starting to export abroad

90:32with some of the programs,

90:33like the watering hole attack I mentioned earlier,

90:35where it's not just hitting the Uyghurs inside China,

90:38it's hitting anyone interested

90:40in the Uyghur plight outside China.

90:42I mean, it could be an American high school student

90:44writing a paper on the Uyghurs.

90:46They wanna spy on that person too.

90:49You know, there's no rules in China

90:51really limiting the extent of that surveillance.

90:55And we all better pay attention to what's happening

90:59with the Uyghurs because just as Ukraine has been to Russia

91:04in terms of a test kitchen for its cyber attacks,

91:08the Uyghurs are China's test kitchen for surveillance.

91:12And there's no doubt in my mind

91:15that they're testing them on the Uyghurs.

91:17Uyghurs are their Petri dish,

91:19and eventually they will export

91:21that level of surveillance overseas.

91:23I mean, in 2015,

91:27Obama and Xi Jinping reached a deal

91:31where basically the White House said,

91:34you better cut it out on intellectual property theft.

91:38And so they made this agreement

91:40that they would not hack each other for commercial benefit.

91:43And for a period of about 18 months,

91:45we saw this huge drop off in Chinese cyber attacks

91:49on American companies.

91:50But some of them continued.

91:53Where did they continue?

91:54They continued on aviation companies,

91:58on hospitality companies like Marriott.

92:02Why?

92:02Because that was still considered fair game to China.

92:05It wasn't IP theft they were after.

92:07They wanted to know who was staying in this city

92:11at this time when Chinese citizens were staying there

92:15so they could cross match for counterintelligence

92:17who might be a likely Chinese spy.

92:20I'm sure we're doing some of that too.

92:22Counterintelligence is counterintelligence.

92:24It's considered fair game.

92:27But where I think it gets evil

92:30is when you use it for censorship,

92:34to suppress any dissent,

92:37to do what I've seen the UAE do to its citizens

92:41where people who've gone on Twitter

92:44just to advocate for better voting rights,

92:47more enfranchisement,

92:49suddenly find their passports confiscated.

92:53You know, I talked to one critic, Ahmed Mansour,

92:57and he told me,

92:58you know, you might find yourself a terrorist,

93:01labeled a terrorist one day,

93:02you don't even know how to operate a gun.

93:04I mean, he had been beaten up

93:06every time he tried to go somewhere.

93:07His passport had been confiscated.

93:09By that point, it turned out

93:10they'd already hacked into his phone

93:12so they were listening to us talking.

93:14They'd hacked into his baby monitor

93:16so they're spying on his child.

93:18And they stole his car.

93:22And then they created a new law

93:24that you couldn't criticize the ruling family

93:27or the ruling party on Twitter.

93:29And he's been in solitary confinement every day since

93:32on hunger strike.

93:34So that's evil, you know, that's evil.

93:37And we still, we don't do that here.

93:40You know, we have rules here.

93:42We don't cross that line.

93:44So yeah, in some cases, like I won't go to Dubai.

93:48You know, I won't go to Abu Dhabi.

93:49If I ever want to go to the Maldives,

93:51like too bad, like most of the flights go through Dubai.

93:54So there's some lines we're not willing to cross.

93:57But then again, just like you said,

93:58there's individuals within NSA, within CIA,

94:02and they may have power.

94:05And to me, there's levels of evil.

94:07To me personally, this is the stuff of conspiracy theories,

94:11is the things you've mentioned as evil

94:13are more direct attacks.

94:16But there's also psychological warfare.

94:19So blackmail.

94:20So what does spying allow you to do?

94:25Allow you to collect information

94:27if you have something that's embarrassing.

94:30Or if you have like Jeffrey Epstein conspiracy theories,

94:33active, what is it, manufacture of embarrassing things.

94:38And then use blackmail to manipulate the population

94:41or all the powerful people involved.

94:42It troubles me deeply that MIT allowed somebody

94:45like Jeffrey Epstein in their midst,

94:48especially some of the scientists I admire

94:51that they would hang out with that person at all.

94:54And so I'll talk about it sometimes.

94:59And then a lot of people tell me,

95:00well, obviously Jeffrey Epstein is a front for intelligence.

95:04And I just, I struggle to see that level of competence

95:09and malevolence.

95:10But, you know, who the hell am I?

95:17And I guess I was trying to get to that point.

95:21You said that there's bureaucracy and so on,

95:23which makes some of these things very difficult.

95:25I wonder how much malevolence,

95:27how much competence there is in these institutions.

95:31Like how far, this takes us back to the hacking question.

95:34How far are people willing to go if they have the power?

95:39This has to do with social engineering.

95:41This has to do with hacking.

95:42This has to do with manipulating people,

95:45attacking people, doing evil onto people,

95:47psychological warfare and stuff like that.

95:50I don't know.

95:51I believe that most people are good.

95:54And I don't think that's possible in a free society.

95:59There's something that happens

96:00when you have a centralized government

96:02where power corrupts over time

96:05and you start surveillance programs

96:08kind of, it's like a slippery slope

96:12that over time starts to both use fear

96:16and direct manipulation to control the populace.

96:20But in a free society, I just,

96:23it's difficult for me to imagine

96:25that you can have like somebody like a Jeffrey Epstein

96:27in the front for intelligence.

96:29I don't know what I'm asking you, but I'm just,

96:34I have a hope that for the most part,

96:36intelligence agencies are trying to do good

96:39and are actually doing good for the world

96:43when you view it in the full context

96:45of the complexities of the world.

96:51But then again, if they're not, would we know?

96:55That's why Edward Snowden might be a good thing.

96:58Let me ask you on a personal question.

97:00You have investigated some of the most powerful

97:02organizations and people in the world

97:04of cyber warfare, cyber security.

97:07Are you ever afraid for your own life,

97:09your own wellbeing, digital or physical?

97:13I mean, I've had my moments.

97:15You know, I've had our security team at the times

97:20called me at one point and said,

97:21someone's on the dark web offering good money

97:25to anyone who can hack your phone or your laptop.

97:30I describe in my book how when I was at that

97:33hacking conference in Argentina and I came back

97:35and I brought a burner laptop with me,

97:38but I'd kept it in the safe anyway

97:40and it didn't have anything on it,

97:42but someone had broken in and it was moved.

97:46You know, I've had all sorts of sort of scary moments.

97:52And then I've had moments where I think I went

97:55just way too far into the paranoid side.

97:58I mean, I remember writing about the Times hack by China

98:04and I just covered a number of Chinese cyber attacks

98:07where they'd gotten into the thermostat

98:10at someone's corporate apartment

98:11and they'd gotten into all sorts of stuff.

98:15And I was living by myself.

98:17I was single in San Francisco and my cable box

98:23on my television started making some weird noises

98:25in the middle of the night.

98:26And I got up and I ripped it out of the wall

98:29and I think I said something like embarrassing,

98:32like, fuck you China, you know.

98:33And then I went back to bed and I woke up

98:39and it's like beautiful morning light.

98:41I mean, I'll never forget it.

98:42Like this is like glimmering morning light

98:44is shining on my cable box, which has now been ripped out

98:48and is sitting on my floor and like the morning light.

98:50And I was just like, no, no, no,

98:53like I'm not going down that road.

98:56Like you basically, I came to a fork in the road

99:03where I could either go full tinfoil hat,

99:06go live off the grid, never have a car with navigation,

99:10never use Google maps, never own an iPhone,

99:12never order diapers off Amazon, you know, create an alias

99:17or I could just do the best I can

§11Transcript · 1:39:22–1:49:15

99:22and live in this new digital world we're living in.

99:26And what does that look like for me?

99:28I mean, what are my crown jewels?

99:30This is what I tell people, what are your crown jewels?

99:32Cause just focus on that.

99:34You can't protect everything,

99:35but you can protect your crown jewels.

99:37For me, for the longest time,

99:39my crown jewels were my sources.

99:42I was nothing without my sources.

99:44So I had some sources, I would meet the same dim sum place

99:49or maybe it was a different restaurant on the same date,

99:53you know, every quarter and we would never drive there.

99:59We would never Uber there.

100:00We wouldn't bring any devices.

100:02I could bring a pencil and a notepad.

100:05And if someone wasn't in town,

100:07like there were a couple of times where I'd show up

100:09and the source never came,

100:11but we never communicated digitally.

100:14And those were the links I was willing to go

100:16to protect that source, but you can't do it for everyone.

100:19So for everyone else, you know, it was signal,

100:22using two factor authentication,

100:24you know, keeping my devices up to date,

100:26not clicking on phishing emails, using a password manager,

100:30all the things that we know we're supposed to do.

100:34And that's what I tell everyone, like don't go crazy

100:37because then that's like the ultimate hack.

100:39Then they've hacked your mind, whoever they is for you.

100:43But just do the best you can.

100:45Now, my whole risk model changed when I had a kid.

100:50You know, now it's, oh God, you know,

100:54if anyone threatened my family, God help them.

100:59But it changes you.

101:07And, you know, unfortunately there are some things,

101:12like I was really scared to go deep on,

101:15like Russian cyber crime, you know, like Putin himself,

101:19you know, and it's interesting.

101:21Like I have a mentor who's an incredible person

101:24who was the Times Moscow Bureau Chief during the Cold War.

101:29And after I wrote a series of stories

101:32about Chinese cyber espionage, he took me out to lunch.

101:35And he told me that when he was living in Moscow,

101:37he would drop his kids off at preschool

101:40when they were my son's age now.

101:42And the KGB would follow him

101:44and they would make a really like loud show of it.

101:48You know, they'd tail him, they'd, you know, honk,

101:51they'd just be, make a ruckus.

101:55And he said, you know what, they never actually did anything

101:57but they wanted me to know that they were following me

102:00and I operated accordingly.

102:03And he says, that's how you should operate

102:05in the digital world.

102:08Know that there are probably people following you.

102:11Sometimes they'll make a little bit of noise.

102:14But one thing you need to know is that

102:17while you're at the New York Times,

102:18you have a little bit of an invisible shield on you.

102:21You know, if something were to happen to you,

102:23that would be a really big deal.

102:25That would be an international incident.

102:27So I kind of carried that invisible shield with me

102:29for years.

102:31And then Jamal Khashoggi happened.

102:34And that destroyed my vision of my invisible shield.

102:38You know, sure, you know, he was a Saudi

102:41but he was a Washington Post columnist.

102:44You know, for the most part,

102:46he was living in the United States.

102:47He was a journalist.

102:49And for them to do what they did to him,

102:52pretty much in the open and get away with it,

102:57and for the United States to let them get away with it

103:01because we wanted to preserve diplomatic relations

103:04with the Saudis,

103:06that really threw my worldview upside down.

103:10And, you know, I think that sent a message

103:13to a lot of countries

103:15that it was sort of open season on journalists.

103:19And to me, that was one of the most destructive things

103:22that happened under the previous administration.

103:27And, you know, I don't really know

103:30what to think of my invisible shield anymore.

103:32Like you said, that really worries me

103:33on the journalism side that people would be afraid

103:36to dig deep on fascinating topics.

103:41And, you know, I have my own,

103:47part of the reason, like I would love to have kids,

103:50I would love to have a family.

103:52Part of the reason I'm a little bit afraid,

103:56there's many ways to phrase this,

103:57but the loss of freedom in the way of doing

104:02all the crazy shit that I naturally do,

104:04which I would say the ethic of journalism

104:07is kind of not, is doing crazy shit

104:09without really thinking about it.

104:11This is letting your curiosity

104:14really allow you to be free and explore.

104:18It's, I mean, whether it's stupidity or fearlessness,

104:22whatever it is, that's what great journalism is.

104:25And all the concerns about security risks

104:30have made me like become a better person.

104:32The way I approach it is just make sure

104:35you don't have anything to hide.

104:37I know this is not a thing.

104:38This is not a, this is not an approach to security.

104:41I'm just, this is like a motivational speech or something.

104:44It's just like, if you can lose,

104:47you can be hacked at any moment.

104:49Just don't be a douchebag secretly.

104:52Just be like a good person.

104:54Because then, I see this actually

104:56with social media in general.

105:00Just present yourself in the most authentic way possible,

105:03meaning be the same person online as you are privately.

105:06Have nothing to hide.

105:08That's one, not the only, but one of the ways

105:11to achieve security.

105:14Maybe I'm totally wrong on this,

105:15but don't be secretly weird.

105:19If you're weird, be publicly weird

105:21so it's impossible to blackmail you.

105:24That's my approach to security.

105:25Yeah, well, they call it

105:26the New York Times front page phenomenon.

105:29Don't put anything in email or I guess social media

105:32these days that you wouldn't want to read

105:35on the front page of the New York Times.

105:37And that works, but sometimes I even get carried,

105:41I mean, I have not as many followers as you,

105:45but a lot of followers,

105:47and sometimes even I get carried away.

105:49Just be emotional and stuff and say something.

105:51Yeah, I mean, just the cortisol response on Twitter.

105:57Twitter is basically designed to elicit those responses.

106:01I mean, every day I turn on my computer,

106:04I look at my phone, I look at what's trending on Twitter,

106:07and it's like, what are the topics

106:10that are gonna make people the most angry today?

106:13You know?

106:14And you know, it's easy to get carried away,

106:19but it's also just, that sucks too,

106:22that you have to be constantly censoring yourself.

106:25And maybe it's for the better.

106:26Maybe you can't be a secret asshole,

106:29and we can put that in the good bucket.

106:31But at the same time, you know,

106:33there is a danger to that other voice,

106:39to creativity, you know, to being weird.

106:43There's a danger to that little whispered voice

106:45that's like, well, how would people read that?

106:48You know, how could that be manipulated?

106:51How could that be used against you?

106:53And that stifles creativity and innovation and free thought.

107:00And you know, that is on a very micro level.

107:06And that's something I think about a lot.

107:08And that's actually something that Tim Cook

107:11has talked about a lot,

107:13and why he has said he goes full force on privacy

107:17is it's just that little voice

107:20that is at some level censoring you.

107:24And what is sort of the long term impact

107:28of that little voice over time?

107:31I think there's a ways, I think that self censorship

107:35is an attack factor that there's solutions to.

107:37The way I'm really inspired by Elon Musk,

107:40the solution to that is just be privately

107:43and publicly the same person and be ridiculous.

107:46Embrace the full weirdness and show it more and more.

107:49So, you know, that's memes that has like ridiculous humor.

107:54And I think, and if there is something

107:57you really wanna hide, deeply consider

108:00if that you wanna be that.

108:03Like, why are you hiding it?

108:05What exactly are you afraid of?

108:07Because I think my hopeful vision for the internet

108:10is the internet loves authenticity.

108:13They wanna see you weird, so be that and like live that fully

108:18because I think that gray area

108:20where you're kind of censoring yourself,

108:22that's where the destruction is.

108:25You have to go all the way, step over, be weird.

108:28And then it feels, it can be painful

108:31because people can attack you and so on, but just ride it.

108:33I mean, that's just like a skill

108:35on the social psychological level

108:38that ends up being an approach to security,

108:42which is like remove the attack vector

108:45of having private information

108:46by being your full weird self publicly.

108:51What advice would you give to young folks today,

108:55you know, operating in this complicated space

109:00about how to have a successful life,

109:02a life they can be proud of,

109:03a career they can be proud of?

109:07Maybe somebody in high school and college

109:09thinking about what they're going to do.

109:11Be a hacker, you know, if you have any interest,

§12Transcript · 1:49:15–1:59:09

109:15become a hacker and apply yourself to defense, you know.

109:19Every time, like we do have

109:21these amazing scholarship programs, for instance,

109:24where, you know, they find you early,

109:26they'll pay your college as long as you commit

109:30to some kind of federal commitment

109:32to sort of help federal agencies with cybersecurity.

109:35And where does everyone wanna go every year

109:37from the scholarship program?

109:39They wanna go work at the NSA or Cyber Command, you know.

109:42They wanna go work on offense.

109:44They wanna go do the sexy stuff.

109:46It's really hard to get people to work on defense.

109:49It's just, it's always been more fun

109:51to be a pirate than be in the Coast Guard, you know.

109:54And so we have a huge deficit

109:59when it comes to filling those roles.

110:01There's 3.5 million unfilled cybersecurity positions

110:06around the world.

110:08I mean, talk about job security,

110:09like be a hacker and work on cybersecurity.

110:12You will always have a job.

110:15And we're actually at a huge deficit

110:18and disadvantage as a free market economy

110:22because we can't match cybersecurity salaries

110:26at Palantir or Facebook or Google or Microsoft.

110:30And so it's really hard for the United States

110:32to fill those roles.

110:33And, you know, other countries have had this work around

110:38where they basically have forced conscription on some level.

110:41You know, China tells people,

110:43like you do whatever you're gonna do during the day,

110:46work at Alibaba.

110:48You know, if you need to do some ransomware, okay.

110:51But the minute we tap you on the shoulder

110:53and ask you to come do this sensitive operation for us,

110:57the answer is yes.

110:59You know, same with Russia.

111:00You know, a couple of years ago when Yahoo was hacked

111:03and they laid it all out in an indictment,

111:05it came down to two cyber criminals

111:07and two guys from the FSB.

111:09Cyber criminals were allowed to have their fun,

111:12but the minute they came across the username and password

111:14for someone's personal Yahoo account

111:16that worked at the White House or the State Department

111:19or military, they were expected to pass that over to the FSB.

111:23So we don't do that here.

111:24And it's even worse on defense.

111:27We really can't fill these positions.

111:29So, you know, if you are a hacker,

111:33if you're interested in code,

111:34if you're a tinker, you know, learn how to hack.

111:39There are all sorts of amazing hacking competitions

111:42you can do through the SANS org, for example, S A N S.

111:48And then use those skills for good.

111:50You know, neuter the bugs in that code

111:53that get used by autocratic regimes

111:56to make people's life, you know, a living prison.

112:00You know, plug those holes.

112:01You know, defend industrial systems,

112:03defend our water treatment facilities

112:06from hacks where people are trying to come in

112:07and poison the water.

112:09You know, that I think is just an amazing,

112:14it's an amazing job on so many levels.

112:16It's intellectually stimulating.

112:19You can tell yourself you're serving your country.

112:22You can tell yourself you're saving lives

112:24and keeping people safe.

112:26And you'll always have amazing job security.

112:28And if you need to go get that job that pays you,

112:31you know, 2 million bucks a year, you can do that too.

112:33And you can have a public profile,

112:34more so of a public profile, you can be a public rockstar.

112:38I mean, it's the same thing as sort of the military.

112:42There's a lot of,

112:46there's a lot of well known sort of people

112:49commenting on the fact that veterans

112:51are not treated as well as they should be.

112:54But it's still the fact that soldiers

112:56are deeply respected for defending the country,

113:00the freedoms, the ideals that we stand for.

113:02And in the same way, I mean, in some ways,

113:05the cybersecurity defense are the soldiers of the future.

113:09Yeah, and you know what's interesting,

113:10I mean, in cybersecurity, the difference is,

113:14oftentimes you see the more interesting threats

113:17in the private sector, because that's where the attacks come.

113:20You know, when cyber criminals

113:22and nation state adversaries come for the United States,

113:25they don't go directly for Cyber Command or the NSA.

113:29You know, they go for banks, they go for Google,

113:32they go for Microsoft, they go for critical infrastructure.

113:36And so those companies, those private sector companies

113:39get to see some of the most advanced,

113:41sophisticated attacks out there.

113:45And you know, if you're working at FireEye

113:48and you're calling out the SolarWinds attack, for instance,

113:51I mean, you just saved God knows how many systems

113:56from, you know, that compromise turning into something

113:59that more closely resembles sabotage.

114:03So, you know, go be a hacker, or go be a journalist.

114:08So you wrote the book,

114:13This Is How They Tell Me The World Ends,

114:15as we've been talking about,

114:17of course, referring to cyber war, cybersecurity.

114:21What gives you hope about the future of our world

114:25if it doesn't end?

114:26How will it not end?

114:31That's a good question.

114:32I mean, I have to have hope, right?

114:34Because I have a kid and I have another on the way,

114:37and if I didn't have hope, I wouldn't be having kids.

114:42But it's a scary time to be having kids.

114:46And you know, it's like pandemic, climate change,

114:50disinformation, increasingly advanced, perhaps deadly

114:55cyber attacks.

114:57What gives me hope is that I share your worldview

115:01that I think people are fundamentally good.

115:04And sometimes, and this is why the metaverse

115:07scares me to death, but when I'm reminded of that

115:10is not online.

115:13Like online, I get the opposite.

115:15You know, you start to lose hope and humanity

115:17when you're on Twitter half your day.

115:19It's like when I go to the grocery store

115:22or I go on a hike or like someone smiles at me

115:27or you know, or someone just says something nice.

115:31You know, people are fundamentally good.

115:33We just don't hear from those people enough.

115:37And my hope is, I just think our current political climate,

115:42like we've hit rock bottom.

115:44This is as bad as it gets.

115:46We can't do anything.

115:47Don't jinx it.

115:49But I think it's a generational thing.

115:51You know, I think baby boomers, like it's time to move along.

115:57I think it's time for a new generation to come in.

116:01And I actually have a lot of hope when I look at you.

116:06I'm sort of like this, I guess they call me

116:08a geriatric millennial or a young gen X.

116:12But like we have this unique responsibility

116:14because I grew up without the internet

116:17and without social media, but I'm native to it.

116:20So I know the good and I know the bad.

116:25And that's true on so many different things.

116:28You know, I grew up without climate change anxiety

116:32and now I'm feeling it and I know it's not a given.

116:34We don't have to just resign ourselves to climate change.

116:39You know, same with disinformation.

116:41And I think a lot of the problems we face today

116:44have just exposed the sort of inertia

116:47that there has been on so many of these issues.

116:49And I really think it's a generational shift

116:52that has to happen.

116:54And I think this next generation is gonna come in

116:57and say like, we're not doing business

116:59like you guys did it anymore.

117:00You know, we're not just gonna like rape

117:02and pillage the earth and try and turn everyone

117:05against each other and play dirty tricks

117:07and let lobbyists dictate what we do

117:11or don't do as a country anymore.

117:14And that's really where I see the hope.

117:16It feels like there's a lot of low hanging fruit

117:19for young minds to step up and create solutions and lead.

117:23So whenever like politicians or leaders that are older,

117:30like you said, are acting shitty, I see that as a positive.

117:34They're inspiring a large number of young people

117:38to replace them.

117:39And so I think you're right, there's going to be,

117:42it's almost like you need people to act shitty

117:45to remind them, oh, wow, we need good leaders.

117:47We need great creators and builders and entrepreneurs

117:51and scientists and engineers and journalists.

117:54You know, all the discussions about how the journalism

117:56is quote unquote broken and so on,

117:58that's just an inspiration for new institutions to rise up

118:02that do journalism better,

118:03new journalists to step up and do journalism better.

118:06So I, and I've been constantly,

118:08when I talk to young people, I'm constantly impressed

118:11by the ones that dream to build solutions.

118:16And so that's ultimately why I put the hope.

118:21But the world is a messy place,

118:23like we've been talking about, it's a scary place.

118:27Yeah, and I think you hit something,

118:29hit on something earlier, which is authenticity.

118:33Like no one is going to rise above that is plastic anymore.

118:40You know, people are craving authenticity.

118:43You know, the benefit of the internet is it's really hard

118:46to hide who you are on every single platform.

118:49You know, on some level it's gonna come out

118:51who you really are.

118:53And so you hope that, you know,

118:57by the time my kids are grown,

118:59like no one's gonna care if they made one mistake online,

119:04so long as they're authentic, you know?

119:07And I used to worry about this.

§13Transcript · 1:59:09–2:01:47

119:09My nephew was born the day I graduated from college.

119:13And I just always, you know, he's like born into Facebook.

119:17And I just think like, how is a kid like that

119:21ever gonna be president of the United States of America?

119:24Because if Facebook had been around when I was in college,

119:27you know, like Jesus, you know,

119:31how are those kids are gonna ever be president?

119:34There's gonna be some photo of them at some point

119:37making some mistake, and that's gonna be all over for them.

119:41And now I take that back.

119:43Now it's like, no, everyone's gonna make mistakes.

119:46There's gonna be a picture for everyone.

119:49And we're all gonna have to come and grow up

119:53to the view that as humans, we're gonna make huge mistakes.

119:56And hopefully they're not so big

119:58that they're gonna ruin the rest of your life.

120:00But we're gonna have to come around to this view

120:02that we're all human.

120:04And we're gonna have to be a little bit more forgiving

120:07and a little bit more tolerant when people mess up.

120:10And we're gonna have to be a little bit more humble

120:12when we do, and like keep moving forward.

120:15Otherwise you can't like cancel everyone, you know?

120:18Nicole, this is an incredible, hopeful conversation.

120:21Also, one that reveals that in the shadows

120:28there's a lot of challenges to be solved.

120:30So I really appreciate that you took on

120:32this really difficult subject with your book.

120:34That's journalism at its best.

120:35So I'm really grateful that you took the risk

120:38that you took that on,

120:40and that you plugged the cable box back in.

120:42That means you have hope.

120:43And thank you so much for spending

120:46your valuable time with me today.

120:47Thank you, thanks for having me.

120:49Thanks for listening to this conversation

120:52with Nicole Perlroth.

120:53To support this podcast,

120:54please check out our sponsors in the description.

120:57And now let me leave you with some words

121:00from Nicole herself.

121:01Here we are, entrusting our entire digital lives,

121:05passwords, texts, love letters, banking records,

121:09health records, credit cards, sources,

121:10and deepest thoughts to this mystery box

121:14whose inner circuitry most of us would never vet.

121:17Run by code written in a language most of us

121:20will never fully understand.

121:22Thank you for listening and hope to see you next time.

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