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[Music] [Applause] [Music] [Applause] we're about an hour outside of Portland Maine it's a pretty rural part of the state and we're heading into this Sheriff's Department because they've been hacked along with every other Police Department in the county this is the office where we received the virus that was downloaded from email right here at this terminal we didn't know anything had happened until was again the system started to slow down files weren't accessible we started getting error messages this is a copy of the ransom information right on the top ian has crypto wall 3.0 it was a readme type file don't ask me to explain that um what does this mean this means that the the structure and data within your files have been irrevocably changed and you won't be able to work with them read them or see them what did you end up doing after you read this we ended up clicking on the IT folks went to the the HTTP address and what we were able to locate the request for ransom that they were asking for in in Bitcoin I've never heard of a Bitcoin at that point myself you know I mean you know we're law enforcement agency right and I my first reaction was I'll be damned if I pay ransoms it's the cardinal rule I mean every negotiation police you can't ransom us you know which obviously I had a rude awakening there and actually I was I was really surprised when our IT folks recommended that that we pay the ransom we've made several changes since then and we were not successful another email came through lo and behold we we started to experience the problem again you guys paid twice what makes you think these hackers won't come back again we've been fortunate not to have encountered the virus again but I'm not I'm not kidding myself I don't believe we're a hundred percent immune a cyber attack has spread to every corner of the world Lincoln County Maine is not alone across the country thousands of police stations hospitals and businesses have been hit by ransomware attacks and 2016 alone Americans paid close to a billion dollars in digital ransom this massive uptick in attacks has the Department of Homeland Security on high alert we went to their national cybersecurity and communications integration Center to see just how dire the situation is thank you so in order to get into this control room here yeah we got to leave our phones behind Ultra is secure in here so this is our main watch floor for the National cybersecurity and communications integration Center and this is where we have our 24/7 and watch operations looking for threats and incidents across the federal government and in our critical infrastructures domestically we're hearing a lot about ransomware are you concerned about that yes ransomware has expanded significantly existing organizations are now taking advantage of the Internet what is the nature of the type of hacking that we see in the u.s. originates in russian-speaking countries everything from cyber criminals to more organized capabilities and the Russian influence in our election process we put out what we call a joint analysis report back in December this report was the first time government officials published evidence of the 2016 Russian election hack which showed Russia's ability to penetrate major American networks to understand why Russia has become such a hub for hacking we traveled to Moscow [Music] Andre soldato is an investigative journalist who recently wrote a definitive account of Russia's cyber espionage of course it was huge news in the u.s. when the DNC and Clinton campaign emails were hacked but is there really any evidence to show that direct link you can't identify country and you can be quite certain whether I suppose a state back at their fault either something absolutely wrong and how do we know that mostly affects the technical expertise and digital forensic provided by the cyber security companies so you can say with certainty that those hackers were working with the Russian government exactly this operation was if it was approved it was a profit oh it's very hollow the Soviet Union many years ago enjoyed the largest engineer community in the world a Stalin large lots of us a call it Polytechnical schools because he needed a lot of engineers to help him to build a mighty military industrial complex but specific thing about the Russian Technical Education still as well in this course you are not taught ethics the idea is what an engineer should just provide technical expertise never ask any questions when the Soviet Union collapsed they ended up in some computer companies so we have lots of these people who are quite ready to help the government if the government want them to do something and we have lots of people who started doing stuff because they have technical skills and but they have no ethics at all to actually see Russian hacking at work we went to one of the country's biggest gatherings of hackers welcome to Russia's biggest cybersecurity conference you have guys who are hacking into ATM machines right here into BMWs Tesla's average age here is probably 25 26 you have teenagers everyone seems to be under 30 cyber security expert and event organizer Andrew Prashad sqeeze showed us around these days is very unique IT security event nowadays when people hear hacker in most cases they have association with something bad because every time in the media we see that hackers do some bad job like privacy violation or data stolen from other companies or something else but actually hey Kirk is a good expert to understand security in every details alright so what are you excited about here can you show me some things yeah sure here we will see the real hot button so we have to hackers just one in front or father and they have the same application so it will be like a speed ahead I also have a bottle actually the name is a too drunk to you have application which is protected by firewalls so if firewall will detect a turn you need to drink one of the biggest thing that we have is a standoff this is a new format of CTF competition in this digital city we have a band we have industrial companies like oil and gas energy generation distribution all the things I quit by different smart and IOT devices and we have different teams who are trying to make ethics on those stands so what's their angle if they attack this what do they want to happen so if you have a control of the end of gestation you can just simply leave the whole city without energy and when it come to transportation you can easily crash to transit this is not a simulation this is not an installation if you can hack it here it means that you can pack it in the wild we wanted to see hacking in real time so we asked former NSA hacker capture portal and his associate Mikhail's to sunken to put my personal cybersecurity to the test well you know this was your first hacker conference and we really wanted to make the experience very authentic so we decided to just act you in as many ways as possible well I thought our crew was filming background footage they were in fact capturing me getting hacked generally there's too many ways to hack people remotely and with physical access so we designed some attacks to do both of these basically we set up wireless access points and we made it look like it was a hotel Wi-Fi there was like no thing that suggested the correct one and says guests so you probably thought that that's the one you shouldn't be connecting to oh wow and so when you connect it to it everything you entered in there like your last name your a rule number we basically collect a better hotel room numbers it's kind of what what hotels use as an authentication key oh my god and with that then we were able to pull off a social engineering attack which gave us of your limited good afternoon could you print another key for my room please we needed someone to impersonate you essentially and we had my lovely wife Diana call up the reception and say hey can you please give my colleague another key my coworker Gianna she's in room 2086 you know the question that asks give me a key to your room then with that we were able to gain access to your room where we installed some hidden cameras so we could see when you access the safe what the keypad was wow so even if you put your laptop or your phone in there wouldn't matter we could have could've gotten it so at this point we kind of had complete access to your laptop there's the binary that's what we basically did was we installed something called a back door on your system that then would connect out to a computer we controlled allowing us to execute commands on your computer so at that point we could share your screen see exactly what you were looking at at all times we could record off the webcam to watch you as you walked around the room hijack your Skype sessions so how did you get my credit card information every time you press a button there's an event that happens in the machine and we can capture that you can see here we have your credit card information from when you were booking your trip to Cuba is there any personal information of mine that you couldn't have gotten access to I don't think so so you could have hijacked my whole identity yeah and you know the attacks we pulled off here really weren't hyper sophisticated so I always like to say if someone wants to hack you they're gonna be able to yes we bought you some souvenirs this is obviously the flag of Russia actually you know we use your credit card so cyber attacks originating in Russia have become increasingly brazen including a data breach of more than 500 million yahoo mail accounts and a scheme that stole 160 million credit cards from american corporations russian cybersecurity firm Group IB puns hackers they showed us online hacker forums filled with droves of stolen data people here they have different specialization technical intelligence they do monitoring of high performs high community this looks like malware could access between the information ceiling money record to your conversation just by dumped of thousands and thousand credit cards very easily I would like to show you how many government resources and different countries are compromised we're looking at websites that are DC US government websites and when we click on them you can see the username and the login it's all the information to access these accounts so these people may not know that her email has been hacked yeah so my name could be in there I wouldn't even know of course right now it's quite easy so a lot of people not from AG industry starting goodness and the second problem that people don't think that they're criminals so we will see more and more crime every year these cyber crimes are committed by blackhat hackers who can steal critical data and damaged networks they exist anonymously on the web but we found one who agreed to talk to us are there gianna nice to meet you Jana nice to meet you [Music] we first hesitated kocha eventually agreed to show us some of his hacks Wakita completely done almost beaten like us fact and indeed by his recruiting commission this one convinced and inform us the least what can we sit company Eve with sheet for quite a compliment accompany reached and done elicit runic of total me excited no is internet magazine of negatory has a little switch show at the script Kotori proponents and emotionally he was valid near all dogma from industry partnership in HTML postal site if convict street of Steel clear school Basel and so what are you doing with all this personal information yep only absolute buzzer done is plus the brothers like a chicken so he pulls you and then what will they use that information for the dogs to appear minor is pretty under serious you need to consider the Senate Democratic article describes or build poster we didn't with your daily marketing whispers also the rebuttable I was wondering if dollars cheaper the victim says if plea until a what's the most money you've made off of like this one yes ago eat piranhas Luthor tumbler sumo boy cheated off me on spurred by the trillions of dollars online in a generation raised on the web hacking from Russia and around the world is flourishing and increasingly Packers are targeting the world's most lucrative market the US but at DHS the first line of defense are hackers themselves i hack into agencies and then after the hacking is done I go in and I teach them how we did it so then they can actually go through and fix those vulnerabilities so the actual bad guys can't get in that's a map of 82,000 critical infrastructure sites the United States that are basically exposed directly to the Internet Wow we're talking about water systems manufacturing plants building automation when you start to aggregated at a scale of 80 mm right now you know intruding upon a lot of those systems all at once could cause you know a significant issue how do you see cyber attacks advancing in the next 10 20 30 years at a technical level we're going to be constantly evolving right as adversaries creating new capabilities will create new countermeasures as we advance past their capabilities with countermeasures they'll create new capabilities it's always going to be that kind of arms race type of activity I think this problem is one that it's certainly one that we can work on it's something but I don't think it's ever gonna completely go away so this is going to be with us for a long time [Music]