Tim Stenkovic, Michael Chertoff, Nancy Lyon discussed on Bloomberg Businessweek
Vaccines and their possible connection to heart inflammation. Apparently they're more than 1200 cases reported now. Shares in the M RNA vaccine makers are trading lower. On that list. We've got fighter stock is down more than 1% right now, and Moderna shares also being hard hit wt crude oil above 73 the barrel right now. U. S crude supplies down last week for 1/5 straight week. I'm Doug prisoner. And that is your Bloomberg business flesh. You're listening to Bloomberg Business Week with Carol Matter, and Bloomberg Quick takes Tim Stenkovic on Bloomberg Radio. So solar winds. Microsoft exchange email colonial pipeline JBs cyberattacks. They do feel like they're worsening and the frequency is picking up and Tim I recently spoke with Michael Chertoff, chairman and co founder, the Chertoff group, former secretary of Homeland security. I did so from Bloomberg's Qatar economic form, and we talked about a lot, including how companies and governments can protect themselves from cyberattacks. Here's a portion of that conversation. If you go back a number of years, re mainly worried about the issue of theft of money, impersonation of identity theft of intellectual property espionage that still continues. But now we're seeing more and more destructive and destructive attacks, including those that have an effect on critical infrastructure. And are really touching people in their everyday lives. This is clearly increasing as a more serious national security issue. One of the things that you hear about, as you go about work at the Chertoff group, and you work with clients and you're working with governments are working with companies and institutions. What is it that they are also seeing on a regular basis? I think the biggest recent stories ransomware, which is of course, infecting a network with an encryption that locks down all the data, and then saying, if you don't pay me money in Bitcoins, I'm going to throw the key away. You'll never get your data back. And that has the potential to be hugely disruptive. There have been hundreds of attacks on health care institutions and those attacks of ransomware make it impossible to actually carry out necessary medical things. Colonial Pipeline Ninja ransomware attack Brazil unique company company was a ransomware attack. So that is the emerging new threat. But when we continue to see the old fashioned, festive money and identity impersonation as well, You and I and our prep call for this. We're talking about how companies have been very lean and mean cutting costs, you know, just in time, just doing things when they need it. And in many ways, Wall Street has certainly applauded that move, and we've seen that play out in the financial markets. But I do wonder are a lot of companies institutions governments really prepared for maybe the cyber attacks to come. Well, Carrie, you're actually right. For many years. The mantra in the business community was, we needn't mean just in time. Don't have any access capacity that keeps keeps costs down, and it makes us hyper efficient. The flip side of hyper efficiency use your vulnerable. If something happens, and now you don't have a plan B. You know why they don't have an alternative way to carry out your mission Or you don't have an alternative way to store your data. So I do think it's causing businesses and governments to rethink Whether they need to build in a margin of safety and a margin of security against the possibility of some kind of a disaster. And by the way, let me shake a pandemic has been less than the same principle that you've got to have a backup plan because sometimes either mother nature Or criminals. Why didn't interfere with your plan? A. Well, let's talk about who's actually doing the cyber attacks. At this point. We know we saw the summit between President Biden and Putin and, um, you know Biden pretty much laying out that he understands that There are things going on in Russia that possibly likely that the president President Putin is aware of. I mean, that's part of the problem. Governments know there's stuff going on in their countries and their kind of allowing it. Well, some governments are allowing it now, with the Russians regime two types of bad actors dressing the SPR. The Russian intelligence service, which was behind the shoulder winds hack into the supply chain. But we've also seen criminal groups organized criminal groups based in Russia carrying out attacks. In other countries, and essentially, the tacit or even explicit understanding in Russia is if you're a criminal group as long as you carry out your crimes outside of Russia's borders. Russia. The Russian authorities will leave you around, and they do that, because sometimes they go to these very criminal groups and then listen to carry out attacks with a national security element. We sure that, for example in 2000 and seven in Estonia Where criminal groups acting at the behest to Russia attack east Syrian government and the Estonian financial system. So I think President Biden was quite right to be cleared about to Putin. But we know it's not just the intelligence agencies themselves, but it's the fellow travelers are in Russia that are carrying out a lot of these most devastating attacks. And and do you think governments need to be ready to launch? Attack a cyberattack back, basically go on offensive if they are attacked. Well, that raises the critical issue of deterrence and up to you Now we've typically done things like for criminal cases or impose sanctions, which have a certain amount of of deterrent impact, but not really as much as we need given what's going on there, and therefore, I think we need to get to the point. That there is a a cyber response where there is an attack, and that made me disabling the Attackers. Um, sure, servers or otherwise in different where the Attackers conduct of operations and maybe most important Follow the money. If you can get the money back. That is a major blow to the criminal works and one of the great stories out of colonial pipeline in the FBI was able to track Cryptocurrency students that were used to pay the ranch and I'm getting most of that money back. And if we can do that, That's going to be a major dent into being Shan't kids. These groups have Michael. One last question just got under a minute here. Have we seen the worst of it when it comes to cyber attacks, or you kind of getting ready for the big one? I'm afraid we haven't seen the worst times, particularly as tensions heat of geo. Politically, we may actually see attacks that are direct on critical infrastructure. We've seen Russian reconnaissance and our electric grid. They haven't done anything. But of course you have to ask. Why are they looking? And that's why we need to have the capability to make it clear that a response it causes a loss of life were very serious economic damage, where, in our view being the initiation of a hybrid conflict And we will respond forcefully and unequivocally and that was Michael Chertoff, former secretary of Homeland security. Speaking from the guitar economic form, you can sign up to see more from that event. At Bloomberg live dot com, including the full conversation and we're Financial like, Think about that. That would certainly be crippling. All right. You're listening to Bloomberg Business Week. Right now. A check on world the national news over to Nancy Lyon..