>> WELCOME BACK TO CHEDDAR'S
OPENING BELL THE UNITED STATES
GOVERNMENT FACING A MASK AND
COMPUTER HACK. THE DEPARTMENT
OF HOMELAND SECURITY SAYS
MULTIPLE AND CITIES HAVE BEEN A
FACT DID AMONG THOSE REPORTEDLY
IMPACTED THE ENERGY DEPARTMENT
AND NATIONAL NUCLEAR SECURITY
ADMINISTRATION WHICH MAINTAINS
THE U.S. NUCLEAR WEAPONS
STOCKPILE AND I'M JOINED NOW BY
MORGAN WRIGHT CHIEF SECURITY
ADVISER AT
SENTINEL ONE. MORGAN REALLY
GOOD TO HAVE YOU ON IN THIS
CASE FROM WHAT I UNDERSTAND
HACKERS WERE ABLE TO INFILTRATE
A SOFTWARE UPDATE BY A
3RD PARTY SOLAR WINDS CAN YOU
TALK A LITTLE BIT ABOUT WHAT
HAPPENED HERE.
>> YEAH, THANKS FOR HAVING ME
ON TEAL OF WHAT THIS WAS THIS
WAS ONE OF THE BIGGEST
EXPLOITATION OF TRUST THERE
CAN BE WE ALL RELY ON SOFTWARE
UPDATES FOR.
>> OUR COMPUTERS FOR OUR
SERVERS FOR.
>> I MEAN YOU JUST NAME IT
EVERYTHING RELIES UPON THAT
TRUSTED SUPPLY CHAIN OF
DELIVERING THE UPDATES WHAT
THESE ATTACKERS DID IS THEY
FOUND RATHER THAN TRYING TO
ATTACK 18,000 COMPANIES.
THEY FOUND ONE COMPANY THAT
SERVICED OVER 300,000.
THEY WERE ABLE TO PENETRATE
THAT COMPANY SOLAR WHEN YOU GET
INTO THERE. DEVELOPMENT OF
UPDATES AND GET INSERT THEM OUR
SO WHEN IT WAS CRYPTOGRAPHIC
LEE SIGNED YOU DON'T WRAP TO
NOBODY'S MESSED WITH OUR UPDATE
SINCE WE PUT IT TOGETHER
DELIVERED IT. WHAT THEY DIDN'T
UNDERSTAND IS THAT STUFF WAS
ALREADY INSIDE THE UPDATE.
SO THIS IS WHAT HAPPENED AND IT
ALLOWED THE BAD ACTORS WHICH
EVERYBODY DID ALL THE
INDICATIONS ARE IN THE TRADE
CRAFT IS IT'S THE SPR FROM
RUSSIA, ONE OF THE 3 MAIN
INTELLIGENCE AGENCIES THAT WAS
ABLE TO HAVE UNRESTRICTED
ACCESS FOR ALMOST 9 MONTHS
BEFORE THEY WERE DISCOVERED.
>> THAT'S WHAT I WANT TO TALK
ABOUT NOW THIS NEWS 9 MONTHS
THAT THEY'VE
ALREADY BEEN LOOKING AT I DON'T
EVEN KNOW WHAT THEY HAVE ACCESS
TO IS THE
DAMAGE DONE ALREADY, I MEAN
EVEN IF JUST SAY WE WERE ABLE
TO FIX THE PROBLEM TODAY WHICH
I DON'T BELIEVE IS THE CASE IS
IT TOO LATE.
>> YEAH, YOU KNOW THAT DURING
THIS PHASE RIGHT NOW AND WHAT'S
CALLED DAMAGE ASSESSMENT YOU DO
IT WITH ESPIONAGE CASES YOU DO
IT WITH YOU KNOW WHEN YOU DROP
BOMBS, YOU TO BE A BOMB
DAMAGE ASSESSMENT. NOW WE'RE
DOING CYBER DAMAGE ASSESSMENT,
HOW MANY COMPANIES WERE
PENETRATED THIS ISN'T JUST THE
FEDERAL GOVERNMENT, IT'S THE
PRIVATE SECTOR LIKE YOU SAID
SOME OF THE MOST CONCERNING
ONE'S ARE SOME OF THE AGENCY'S
PENETRATED NOT ONLY THE NSS IN
AN ESSAY TO NATIONAL NUCLEAR
SECURITY AGENCY BUT THE F D
R C. THE FEDERAL ELECTION A
RARE ELECTRICITY REGULATORY
COMMISSION WHICH HAS ALL THE
VULNERABILITIES OF OUR
ENERGY GRID. THIS IS VERY
SIMILAR TO WHAT ADVERSARIES DO
WHEN THEY'RE PREPARING FOR WAR,
IT'S CALLED INTELLIGENCE
PREPARATION OF THE BATTLEFIELD.
YOU HAVE THIS LONG SLOW
CAMPAIGN TO GATHER AS MUCH DATA
AS POSSIBLE.
SO WHETHER OR NOT THAT'S THE
CASE I DON'T THINK IT IS, BUT I
THINK TO YOUR POINT YOU ALL
WEEK THAT DAMAGE IS ALREADY
DONE NOW IT'S JUST
UNDERSTANDING WHAT THE
DAMAGE IS WHERE IS IT HAPPENING
AT ENDED POINT ABOUT
REMEDIATION IS HOW YOU FIX IT.
THIS WILL BE A LONG PROCESS
WITH NUMBER ONE WE DON'T KNOW
STAN HOW MUCH DAMAGE HAS BEEN
DONE WE DON'T KNOW THE AMOUNT
OF INFORMATION THAT'S BEEN
LOST. THEY WERE ABLE TO GET
AWAY WITH THIS BECAUSE THEY
DIDN'T GET GREEDY THEY STATE
GLO THE STATE'S LOW THEY STAYED
UNDER THE RADAR
AND THEIR TRADE CRAFT WAS ONE
OF PATIENTS, LOGISTICAL SUPPORT
THIS WAS YOU KNOW THIS WAS A
NATION STATE AND LIKE I SAID A
LOT OF THE INITIAL INDICATIONS
ARE IT WAS A RUSSIAN
INTELLIGENCE.
>> ARE YOU CONFIDENT
THAT THE FACE THOSE SIR, THE
COMPUTER SYSTEMS WILL
EVENTUALLY
BE SECURE OR DO YOU THINK THIS
YEAH AS YOU SAID
THE STATE UNDER THE RADAR THEY
DIDN'T GET GREEDY. THIS WAS
ALREADY GOING ON FOR 9 MONTHS.
OR DO YOU FEEL LIKE
THIS IS DAY BY THE
ADMINISTRATION FOR EXAMPLE IS
GOING JUST HALF TO ASSUME THAT
HACKERS ARE WE'RE LOOKING AT
THEIR COMMUNICATIONS.
>> YOU HAVE TO ASSUME YOU'VE
BEEN BREACHED THAT DUTY DID
WE'VE GOT TO GET AWAY FROM THIS
MENTALITY WHICH THINKS WE HAVE
TO DEFEND EVERYTHING YOU'VE GOT
TO HAVE A BREACH MENTALITY THAT
SAYS WE NEED TO WE NEED TO.
PERFORM AS THOUGH WE ARE HAVE
ALREADY BEEN BREACHED WHAT DO
WE NEED TO DO TO FIND THE BAD
ACTORS INSIDE RATHER THAN
WAITING FOR SOMETHING TO HAPPEN
AND DISCOVERING. YOU KNOW,
WE'VE GOT SOMEBODY INSIDE OUR
SYSTEM. YEAH, THIS IS NOT JUST
SIMPLY RIPPING HIM REPLACING
YOU JUST CAN'T COME IN AND RIP
OUT ALL THE ROADS IN THE CITY
AND REPLACE THEM WITH NEW ONES
OVERNIGHT THIS IS GOING TO TAKE
A VERY
LONG TIME. THE BIGGEST THING
THAT YOU HAD A PONCHO, IT'S THE
CONFIDENCE CAN WE HAVE THE
CONFIDENCE IN NOT ONLY IN THESE
UPDATES IN THESE ONE COULD YOU
KNOW. THE ONE COMPANY THAT
SUPPLIED THIS TO ALMOST
EVERYBODY AND I'M NOT TALKING
ABOUT THAT THEY HAVE A MONOPOLY
OR NOT BUT WHEN WE ARE
SO DEPENDENT UPON ONE THING I
DON'T HAVE TO GO OUTBREAK AND
18,000 HOMES. I JUST BREAK INTO
ONE THAT HAS THE KEYS TO ALL
18,000. AND THAT'S THE ISSUE OF
TRUST CAN WE EVER TRUST THEIR
SYSTEMS ARE SECURE. IT'S GOING
TO MEAN IT'S GOING TO REQUIRE
PERSISTENT VIGILANCE 24 7
BEYOND WHAT WE'RE ACTUALLY
DOING RIGHT NOW.
>> MICROSOFT MEANWHILE SAYS
40% OF ITS CLIENTS HAVE BEEN
IMPACTED AS WELL.
80% AND THE U.S.
SO HOW CONCERNED SHOULD
AMERICANS BE RIGHT NOW THAT
THEIR INFORMATION IS UNSAFE.
>> YOU KNOW WE NEED SOME MORE
TRANSPARENCY FROM THE DNI YOU
KNOW RECKLESS SO WE NEED TO
REALLY UNDERSTAND WHAT'S GOING
ON WHAT'S THE WHAT'S THE
INITIAL DAMAGE ASSESSMENT.
THAT'S THE ISSUE WITH MICROSOFT
OFFICE 3.65, IT'S
REALLY ABOUT THE ACCESS TO
INFORMATION I CAN TELL YOU FROM
HAVING WORKED IN BOTH
CLASSIFIED AND UNCLASSIFIED
ENVIRONMENTS EVERY NOW AND THEN
YOU GET WEAK AND YOU GET STUFF
THAT SHOULD BE CLASSIFIED, BUT
IT ENDS UP IN UNCLASSIFIED
EMAIL AND THE ABILITY TO START
CONNECTING ALL THE DOTS TO PULL
THIS INFORMATION TOGETHER
THAT'S THE BIGGEST THING I'M
WORRIED ABOUT IS NOT SO MUCH
INDIVIDUAL AMERICANS YOU KNOW
AS CONSUMERS BUT IT'S REALLY
THE TARGETED PEOPLE THE PEOPLE
IN THE MILITARY INDUSTRIAL
COMPLEX, THE PRICE WATERHOUSE
THE
LOCKHEED MARTIN'S. THE OTHER
COMPANIES THAT HAVE BEEN
TARGETED BECAUSE THEY PROVIDE
THE COMMUNICATIONS MICROSOFT
THEY PROVIDE THE NETWORK
MANAGEMENT SOFTWARE SOLAR
WINDS. SO THAT THIS YOU KNOW IN
TERMS OF
PROPORTION WHILE IT DOLLAR
DAMAGE WHAT IT DID FROM A
SECURITY STANDPOINT IS FAR
BEYOND WHAT NOTPETYA DID OR
SOME OF THE OTHER RANSOMWARE
CAMPAIGNS WHICH CAUSED
PHYSICAL DAMAGE. THIS DAMAGE
ESTIMATE RIGHT NOW TO ME IT'S I
DON'T EVEN KNOW IF WE CAN BEGIN
TO PUT A DOLLAR AMOUNT ON IT
BECAUSE IT'S THE VALUE OF
INFORMATION AND SECRECY AND
TRUST. YOU KNOW IT'S GOING TO
TAKE I DON'T KNOW THAT WE'LL
EVER GET THERE WE'RE GOING HAVE
TO RETHINK WHAT SECURITY MEANS
AND WHAT TRUST MEANS GOING
FORWARD BECAUSE AN EXPLOIT LIKE
THIS IF IT HAPPENED ONCE IT