1
00:00:00,120 --> 00:00:01,920
Speaker 1: Well, you know, taking a look at the world of

2
00:00:02,000 --> 00:00:06,480
Speaker 1: cyber security as well as online safety brings to mind

3
00:00:06,519 --> 00:00:09,720
Speaker 1: at least one very important name. And I know that

4
00:00:10,119 --> 00:00:13,640
Speaker 1: here are taking Stock, Kathleen Hayes. You know I'm talking

5
00:00:13,680 --> 00:00:19,759
Speaker 1: about McAfee, John McAfee, who created the first commercial anti

6
00:00:20,079 --> 00:00:25,480
Speaker 1: cyber theft, anti sort of security UM program. And I'd

7
00:00:25,480 --> 00:00:29,560
Speaker 1: like to welcome all of our Bloomberg Television audience. We're

8
00:00:29,640 --> 00:00:33,120
Speaker 1: here with a special guest. First, I'm Pim Fox. This

9
00:00:33,240 --> 00:00:36,400
Speaker 1: is taking Stock, my co host Kathleen Hayes. And joining

10
00:00:36,479 --> 00:00:39,680
Speaker 1: us is David Garrity. He is the principal at g

11
00:00:39,840 --> 00:00:43,920
Speaker 1: v A Research. He is also a columnist for Investor PDA.

12
00:00:44,159 --> 00:00:48,080
Speaker 1: And joining us now is that John McAfee. John McAfee,

13
00:00:48,120 --> 00:00:53,440
Speaker 1: as I said, first commercial program for computer security. He's

14
00:00:53,440 --> 00:00:57,840
Speaker 1: worked for NASA, Lockheed, uh, and he I want to

15
00:00:57,840 --> 00:01:01,520
Speaker 1: welcome him now. He is the incoming chairman and incoming

16
00:01:01,600 --> 00:01:06,440
Speaker 1: chief executive of m g T Capital. John McAfee, thank

17
00:01:06,480 --> 00:01:08,120
Speaker 1: you very much for being with us. Well, thanks for

18
00:01:08,200 --> 00:01:10,680
Speaker 1: having me to him. Yeah, I gotta I gotta first

19
00:01:10,680 --> 00:01:13,520
Speaker 1: say that, um. You know when I mentioned the people

20
00:01:13,560 --> 00:01:15,880
Speaker 1: that you would be coming in and we'd be speaking

21
00:01:15,920 --> 00:01:19,280
Speaker 1: to you. Uh, there was this kind of blurring of

22
00:01:19,360 --> 00:01:23,000
Speaker 1: the line between your personal life and your business life.

23
00:01:23,160 --> 00:01:27,000
Speaker 1: And I'm wondering if you can clarify any of the issues.

24
00:01:27,160 --> 00:01:29,080
Speaker 1: And I know we only have about nine minutes, so

25
00:01:29,120 --> 00:01:31,320
Speaker 1: that's not going to take is not gonna be that long,

26
00:01:31,360 --> 00:01:33,760
Speaker 1: but can you clarify some of the issues that related

27
00:01:33,800 --> 00:01:37,120
Speaker 1: to your time and I guess believe Guatemala and and

28
00:01:37,160 --> 00:01:40,959
Speaker 1: also what you're currently doing, what you're up to. Okay,

29
00:01:41,000 --> 00:01:43,959
Speaker 1: the clarify my time, my time and belife, I'm afraid

30
00:01:44,000 --> 00:01:46,679
Speaker 1: we'll never get clarified. A share Time is coming out

31
00:01:46,720 --> 00:01:50,360
Speaker 1: with a movie, a ninety minute movie on the twenty

32
00:01:50,440 --> 00:01:54,200
Speaker 1: four this month. Um and it's it's actually it was

33
00:01:54,560 --> 00:01:57,520
Speaker 1: co produced by a general named Jeff Wise, who is

34
00:01:57,560 --> 00:02:00,840
Speaker 1: one of the people who was made a life career

35
00:02:00,920 --> 00:02:03,760
Speaker 1: out of trashing me so and and in this movie,

36
00:02:03,800 --> 00:02:07,560
Speaker 1: apparently not only am I linked to the murder that

37
00:02:07,600 --> 00:02:10,000
Speaker 1: they wanted to link me to in police, but I

38
00:02:10,040 --> 00:02:13,000
Speaker 1: think multiple more in police. So it's it's liable to

39
00:02:13,040 --> 00:02:16,679
Speaker 1: get very interesting. Um but but polices, it's the third

40
00:02:16,680 --> 00:02:20,880
Speaker 1: world Banana Republic, and um uh, you can go down

41
00:02:20,880 --> 00:02:24,000
Speaker 1: there and make any story you want if you if

42
00:02:24,040 --> 00:02:27,280
Speaker 1: you pay your interviews, which have time did so. They

43
00:02:27,280 --> 00:02:30,080
Speaker 1: had a story in mind and created a fiction my

44
00:02:30,200 --> 00:02:35,120
Speaker 1: business life. I've been in cybersecurity forever. Um, not forever,

45
00:02:35,240 --> 00:02:38,800
Speaker 1: I mean for forty eight years, um, before it was

46
00:02:38,840 --> 00:02:43,160
Speaker 1: even called cybersecurity. It's it's the one thing I love. Um.

47
00:02:43,200 --> 00:02:46,520
Speaker 1: I love my personal freedom and my privacy, and um,

48
00:02:46,639 --> 00:02:50,760
Speaker 1: cybersecurity is the is the rock on which all that

49
00:02:50,840 --> 00:02:54,760
Speaker 1: rests in this today and age. So um mgt uh.

50
00:02:55,160 --> 00:02:59,160
Speaker 1: When I when I became the CEO, uh, we throughout

51
00:02:59,200 --> 00:03:02,480
Speaker 1: all the existing products and projects and became a pure

52
00:03:02,520 --> 00:03:04,919
Speaker 1: cybersecurity farm. And I think we have some of the best,

53
00:03:05,120 --> 00:03:09,280
Speaker 1: um certainly the most up to date and avant garde

54
00:03:09,320 --> 00:03:14,200
Speaker 1: cybersecurity products on the planet. Just as google, google became

55
00:03:14,600 --> 00:03:17,800
Speaker 1: a verb that means to search, McAfee is a name,

56
00:03:18,040 --> 00:03:22,080
Speaker 1: a word like that. It's what you associate with computer security,

57
00:03:22,120 --> 00:03:25,400
Speaker 1: online security. What about What is the technology though, that

58
00:03:25,520 --> 00:03:29,960
Speaker 1: is going to set this new venture you've joined apart? Okay, Well,

59
00:03:30,000 --> 00:03:33,720
Speaker 1: here's the thing. I invented the current technology it's based.

60
00:03:34,560 --> 00:03:38,160
Speaker 1: It started with anti virus technology and branched out into

61
00:03:38,240 --> 00:03:43,880
Speaker 1: a whole system of programs involved in finding malware. But

62
00:03:44,200 --> 00:03:46,360
Speaker 1: by the time you find malware, it's too late. It's

63
00:03:46,360 --> 00:03:49,200
Speaker 1: already in your system. As an example, the Office of

64
00:03:49,240 --> 00:03:52,760
Speaker 1: Personnel Management for the federal government was hacked in two

65
00:03:52,800 --> 00:03:56,560
Speaker 1: thousand and thirteen. Twenty one million records were taken. They

66
00:03:56,560 --> 00:03:59,840
Speaker 1: didn't find out until two thousand and fifteen. So all

67
00:03:59,880 --> 00:04:04,840
Speaker 1: of our products today are are reactive. Um I am

68
00:04:04,880 --> 00:04:09,200
Speaker 1: developing an entire line of proactive products. All of my

69
00:04:09,280 --> 00:04:11,720
Speaker 1: friends are hackers. It kind of odd. I started off

70
00:04:11,880 --> 00:04:15,040
Speaker 1: fighting hackers, but as I got older, I guess I

71
00:04:15,080 --> 00:04:17,520
Speaker 1: got some sort of grudging respect, and they asked me

72
00:04:17,600 --> 00:04:20,760
Speaker 1: to actually keynote def Con two years ago, which is

73
00:04:20,760 --> 00:04:25,120
Speaker 1: the Worldwide Hacking Convention. Uh. And I've actually hired a

74
00:04:25,160 --> 00:04:28,760
Speaker 1: bunch of hackers to help me. Why because they're the

75
00:04:28,800 --> 00:04:31,400
Speaker 1: ones doing the hacking. I mean, if if you're going

76
00:04:31,440 --> 00:04:36,039
Speaker 1: to build the best bank fault, you're gonna hire the

77
00:04:36,080 --> 00:04:40,120
Speaker 1: best bank vault cracker, aren't you, because otherwise you're gonna

78
00:04:40,160 --> 00:04:46,080
Speaker 1: miss something. So the proactive products are actually catching hackers

79
00:04:46,200 --> 00:04:49,320
Speaker 1: within the first few seconds as I start sniffing your systems.

80
00:04:49,600 --> 00:04:52,960
Speaker 1: It takes hackers months to get what they want, and

81
00:04:53,040 --> 00:04:56,440
Speaker 1: for the first few days they're just probing around. Well,

82
00:04:56,760 --> 00:04:59,480
Speaker 1: since I know how hackers work, and since the people

83
00:04:59,520 --> 00:05:02,800
Speaker 1: I've hired to know how hackers work. Within ten seconds

84
00:05:02,800 --> 00:05:05,960
Speaker 1: of a hackers sniffing your system, we've identified him, we

85
00:05:06,080 --> 00:05:09,359
Speaker 1: found out where he lives, we found out what technique

86
00:05:09,360 --> 00:05:12,560
Speaker 1: he's using, and we send an instant message to the

87
00:05:12,600 --> 00:05:15,200
Speaker 1: I T managers saying you've got a hacker on Poart

88
00:05:15,240 --> 00:05:18,960
Speaker 1: eighties in Russia. Do something. Now, we don't do anything,

89
00:05:19,000 --> 00:05:20,720
Speaker 1: it's up to that. But but what we're doing, we

90
00:05:20,760 --> 00:05:24,640
Speaker 1: are the alarm company hacker in your system. So this

91
00:05:24,720 --> 00:05:29,359
Speaker 1: is infinitely preferable to waiting until the mail work gets in,

92
00:05:30,000 --> 00:05:33,599
Speaker 1: destroys your database or shuts everything down and demands a

93
00:05:33,640 --> 00:05:37,640
Speaker 1: hundred thousand dollars to bring it back up before they

94
00:05:37,640 --> 00:05:40,480
Speaker 1: can even plant the mail where we say they're here,

95
00:05:40,839 --> 00:05:44,040
Speaker 1: shut them down. John. In terms of some of the

96
00:05:44,040 --> 00:05:47,080
Speaker 1: people that you brought on, Chris Anderson Agia, your your

97
00:05:47,120 --> 00:05:50,279
Speaker 1: chief technology officer at MGT S talks about trying to

98
00:05:50,400 --> 00:05:54,680
Speaker 1: leverage social networks in terms of the security products that

99
00:05:54,720 --> 00:05:56,440
Speaker 1: you're bringing out. Is there anything that you would care

100
00:05:56,480 --> 00:06:00,600
Speaker 1: to discuss about how social networks are figuring cominently in

101
00:06:00,680 --> 00:06:05,640
Speaker 1: terms of these preventative products that you're putting out well, Uh,

102
00:06:05,680 --> 00:06:07,480
Speaker 1: I know it mostly is Egypt. When you mentioned his

103
00:06:07,560 --> 00:06:09,680
Speaker 1: named Eric Anderson, I go, who is he? Because I've

104
00:06:09,720 --> 00:06:11,800
Speaker 1: known him as Egypt for years. That's his hacker name.

105
00:06:12,279 --> 00:06:14,599
Speaker 1: He's one of those brilliant programmers I've ever met. He

106
00:06:14,720 --> 00:06:19,400
Speaker 1: was He was responsible for all of the artificial intelligence

107
00:06:19,440 --> 00:06:21,720
Speaker 1: for Grand Theft Auto five, for example, one of the

108
00:06:21,720 --> 00:06:25,400
Speaker 1: most successful games of all time. Brilliant. Um. What he

109
00:06:25,440 --> 00:06:29,160
Speaker 1: has developed is is a platform using social encryption, which

110
00:06:29,160 --> 00:06:32,560
Speaker 1: is a brand new concept and it will eventually replace

111
00:06:32,600 --> 00:06:36,000
Speaker 1: the Internet, I'm sure of it. Uh, but social networks

112
00:06:36,000 --> 00:06:38,120
Speaker 1: that good heavens, what can you say about it? I mean,

113
00:06:38,240 --> 00:06:42,599
Speaker 1: for example, Facebook, Um, kids are going to Facebook to

114
00:06:42,600 --> 00:06:45,520
Speaker 1: get news. Now, well, half the news on Facebook is

115
00:06:45,560 --> 00:06:49,080
Speaker 1: written by satire sites, which it's really not satire when

116
00:06:49,120 --> 00:06:52,760
Speaker 1: you when you when you say, you know, zombies just

117
00:06:52,880 --> 00:06:56,400
Speaker 1: invaded at Walmart in Lexington, Tennessee and eight three people

118
00:06:56,680 --> 00:07:01,039
Speaker 1: and it all sounds legit, right. So, um, I think

119
00:07:01,200 --> 00:07:05,159
Speaker 1: young kids are getting smarter because they're recognizing that, you know,

120
00:07:05,160 --> 00:07:08,400
Speaker 1: there's a lot of people trying to fool me out there. Um,

121
00:07:08,760 --> 00:07:12,400
Speaker 1: and old people are getting dumber by putting information on

122
00:07:12,480 --> 00:07:15,600
Speaker 1: social media, which is going to come back and bite

123
00:07:15,600 --> 00:07:18,560
Speaker 1: you and you go, how did that happen? Well, you

124
00:07:18,680 --> 00:07:23,680
Speaker 1: told the world basically, so um where it's going I

125
00:07:23,720 --> 00:07:26,520
Speaker 1: do not know, but I know that Facebook and Twitter

126
00:07:26,600 --> 00:07:30,400
Speaker 1: are just the beginning. And as we as we get

127
00:07:30,480 --> 00:07:33,560
Speaker 1: into the virtual reality systems that are being built by

128
00:07:33,640 --> 00:07:38,760
Speaker 1: Japan and China, and I've tried many of them, unbelievable,

129
00:07:39,360 --> 00:07:41,960
Speaker 1: the world is gonna change radically. I mean, we're gonna

130
00:07:42,000 --> 00:07:47,880
Speaker 1: be having remote relationships with you know, bodily contact, you know,

131
00:07:47,960 --> 00:07:51,160
Speaker 1: when one person's halfway around the planet. I wonder if

132
00:07:51,160 --> 00:07:54,880
Speaker 1: you could speak a little bit about Intel, because talking

133
00:07:54,920 --> 00:08:00,680
Speaker 1: about securing your identity, you're trying to secure your name.

134
00:08:01,200 --> 00:08:05,360
Speaker 1: Intel purchased McAfee. You had already left the company by

135
00:08:05,400 --> 00:08:08,040
Speaker 1: that time. What is going on between you and Intel?

136
00:08:08,120 --> 00:08:12,200
Speaker 1: Right now? There is only one piece of paper signed

137
00:08:12,200 --> 00:08:18,160
Speaker 1: by John McAfee the individual, and John McAfee associates the company,

138
00:08:18,160 --> 00:08:21,440
Speaker 1: and I signed both of them where I only gave

139
00:08:22,000 --> 00:08:28,200
Speaker 1: rights to McAfee anti virus, that one name, that one thing.

140
00:08:28,640 --> 00:08:31,840
Speaker 1: Intel has rolled it out into every product in the world.

141
00:08:31,960 --> 00:08:33,840
Speaker 1: And I'm not mad, and I would never have sued

142
00:08:33,880 --> 00:08:36,440
Speaker 1: them over that. But when they told me I couldn't

143
00:08:36,520 --> 00:08:39,640
Speaker 1: use my name. Well, I'm thinking, well, maybe I can

144
00:08:39,679 --> 00:08:42,240
Speaker 1: make you not choose not use my name either, because

145
00:08:42,280 --> 00:08:45,600
Speaker 1: you don't have the right so and I didn't. I

146
00:08:45,600 --> 00:08:50,319
Speaker 1: didn't want to call it McAfee, John McAfee. It's my identity.

147
00:08:50,360 --> 00:08:54,480
Speaker 1: I mean, some people know me um as John McAfee.

148
00:08:55,000 --> 00:08:57,320
Speaker 1: So who knows what the courts will make up at

149
00:08:57,320 --> 00:09:01,080
Speaker 1: the courts are mysterious affairs, John mc You are pushing

150
00:09:01,120 --> 00:09:03,720
Speaker 1: for the government to create a cyber security defense strategy.

151
00:09:03,760 --> 00:09:06,240
Speaker 1: What's the number one thing that the US government that

152
00:09:06,280 --> 00:09:09,480
Speaker 1: the next presidented States should do? Okay, well, this is

153
00:09:09,679 --> 00:09:13,200
Speaker 1: very very topical. I went on RT yesterday and called

154
00:09:13,320 --> 00:09:17,719
Speaker 1: President Obama clueless because at the G twenty summit the

155
00:09:17,800 --> 00:09:21,199
Speaker 1: day before, he said America is the most advanced nation

156
00:09:21,280 --> 00:09:25,040
Speaker 1: in the world for cybersecurity, way ahead of China and Russia.

157
00:09:25,520 --> 00:09:29,000
Speaker 1: And he said that the Nation States must work together

158
00:09:29,559 --> 00:09:35,599
Speaker 1: to restrict the growth of cyber weaponry. Okay, so the

159
00:09:35,640 --> 00:09:37,720
Speaker 1: first thing I said was, if we are in fact

160
00:09:37,760 --> 00:09:41,560
Speaker 1: the most advanced nation in the world, then we're all doomed.

161
00:09:41,800 --> 00:09:45,440
Speaker 1: For example, a fifteen year old boy four months ago

162
00:09:45,760 --> 00:09:49,640
Speaker 1: hacked into the FBI and walked off with every undercover

163
00:09:49,760 --> 00:09:56,120
Speaker 1: agents photo fingerprints, name, social Security number and address UM

164
00:09:56,160 --> 00:10:01,440
Speaker 1: and and so yes we are we are not number one.

165
00:10:01,720 --> 00:10:06,280
Speaker 1: And secondly, this is not a nation stage issues. John McAfee,

166
00:10:06,320 --> 00:10:07,640
Speaker 1: we thank you so much for joining us. You're gonna

167
00:10:07,640 --> 00:10:11,120
Speaker 1: have to come back and continue this conversation. I'll forget

168
00:10:11,120 --> 00:10:13,200
Speaker 1: it by them, but thank you very much. Like John McAfee,

169
00:10:13,200 --> 00:10:16,160
Speaker 1: Executive Chairman and CEO mg T Capital Investments, we also

170
00:10:16,200 --> 00:10:18,679
Speaker 1: thank Dave Garrity from g b A Research. We thank

171
00:10:18,720 --> 00:10:21,160
Speaker 1: our Bloomberg television audience as well for joining us