WEBVTT - John McAfee on U.S. Cybersecurity: We Are Not Number One(Audio)

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<v Speaker 1>Well, you know, taking a look at the world of

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<v Speaker 1>cyber security as well as online safety brings to mind

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<v Speaker 1>at least one very important name. And I know that

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<v Speaker 1>here are taking Stock, Kathleen Hayes. You know I'm talking

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<v Speaker 1>about McAfee, John McAfee, who created the first commercial anti

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<v Speaker 1>cyber theft, anti sort of security UM program. And I'd

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<v Speaker 1>like to welcome all of our Bloomberg Television audience. We're

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<v Speaker 1>here with a special guest. First, I'm Pim Fox. This

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<v Speaker 1>is taking Stock, my co host Kathleen Hayes. And joining

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<v Speaker 1>us is David Garrity. He is the principal at g

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<v Speaker 1>v A Research. He is also a columnist for Investor PDA.

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<v Speaker 1>And joining us now is that John McAfee. John McAfee,

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<v Speaker 1>as I said, first commercial program for computer security. He's

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<v Speaker 1>worked for NASA, Lockheed, uh, and he I want to

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<v Speaker 1>welcome him now. He is the incoming chairman and incoming

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<v Speaker 1>chief executive of m g T Capital. John McAfee, thank

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<v Speaker 1>you very much for being with us. Well, thanks for

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<v Speaker 1>having me to him. Yeah, I gotta I gotta first

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<v Speaker 1>say that, um. You know when I mentioned the people

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<v Speaker 1>that you would be coming in and we'd be speaking

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<v Speaker 1>to you. Uh, there was this kind of blurring of

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<v Speaker 1>the line between your personal life and your business life.

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<v Speaker 1>And I'm wondering if you can clarify any of the issues.

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<v Speaker 1>And I know we only have about nine minutes, so

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<v Speaker 1>that's not going to take is not gonna be that long,

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<v Speaker 1>but can you clarify some of the issues that related

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<v Speaker 1>to your time and I guess believe Guatemala and and

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<v Speaker 1>also what you're currently doing, what you're up to. Okay,

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<v Speaker 1>the clarify my time, my time and belife, I'm afraid

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<v Speaker 1>we'll never get clarified. A share Time is coming out

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<v Speaker 1>with a movie, a ninety minute movie on the twenty

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<v Speaker 1>four this month. Um and it's it's actually it was

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<v Speaker 1>co produced by a general named Jeff Wise, who is

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<v Speaker 1>one of the people who was made a life career

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<v Speaker 1>out of trashing me so and and in this movie,

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<v Speaker 1>apparently not only am I linked to the murder that

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<v Speaker 1>they wanted to link me to in police, but I

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<v Speaker 1>think multiple more in police. So it's it's liable to

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<v Speaker 1>get very interesting. Um but but polices, it's the third

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<v Speaker 1>world Banana Republic, and um uh, you can go down

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<v Speaker 1>there and make any story you want if you if

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<v Speaker 1>you pay your interviews, which have time did so. They

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<v Speaker 1>had a story in mind and created a fiction my

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<v Speaker 1>business life. I've been in cybersecurity forever. Um, not forever,

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<v Speaker 1>I mean for forty eight years, um, before it was

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<v Speaker 1>even called cybersecurity. It's it's the one thing I love. Um.

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<v Speaker 1>I love my personal freedom and my privacy, and um,

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<v Speaker 1>cybersecurity is the is the rock on which all that

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<v Speaker 1>rests in this today and age. So um mgt uh.

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<v Speaker 1>When I when I became the CEO, uh, we throughout

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<v Speaker 1>all the existing products and projects and became a pure

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<v Speaker 1>cybersecurity farm. And I think we have some of the best,

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<v Speaker 1>um certainly the most up to date and avant garde

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<v Speaker 1>cybersecurity products on the planet. Just as google, google became

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<v Speaker 1>a verb that means to search, McAfee is a name,

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<v Speaker 1>a word like that. It's what you associate with computer security,

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<v Speaker 1>online security. What about What is the technology though, that

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<v Speaker 1>is going to set this new venture you've joined apart? Okay, Well,

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<v Speaker 1>here's the thing. I invented the current technology it's based.

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<v Speaker 1>It started with anti virus technology and branched out into

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<v Speaker 1>a whole system of programs involved in finding malware. But

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<v Speaker 1>by the time you find malware, it's too late. It's

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<v Speaker 1>already in your system. As an example, the Office of

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<v Speaker 1>Personnel Management for the federal government was hacked in two

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<v Speaker 1>thousand and thirteen. Twenty one million records were taken. They

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<v Speaker 1>didn't find out until two thousand and fifteen. So all

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<v Speaker 1>of our products today are are reactive. Um I am

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<v Speaker 1>developing an entire line of proactive products. All of my

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<v Speaker 1>friends are hackers. It kind of odd. I started off

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<v Speaker 1>fighting hackers, but as I got older, I guess I

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<v Speaker 1>got some sort of grudging respect, and they asked me

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<v Speaker 1>to actually keynote def Con two years ago, which is

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<v Speaker 1>the Worldwide Hacking Convention. Uh. And I've actually hired a

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<v Speaker 1>bunch of hackers to help me. Why because they're the

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<v Speaker 1>ones doing the hacking. I mean, if if you're going

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<v Speaker 1>to build the best bank fault, you're gonna hire the

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<v Speaker 1>best bank vault cracker, aren't you, because otherwise you're gonna

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<v Speaker 1>miss something. So the proactive products are actually catching hackers

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<v Speaker 1>within the first few seconds as I start sniffing your systems.

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<v Speaker 1>It takes hackers months to get what they want, and

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<v Speaker 1>for the first few days they're just probing around. Well,

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<v Speaker 1>since I know how hackers work, and since the people

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<v Speaker 1>I've hired to know how hackers work. Within ten seconds

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<v Speaker 1>of a hackers sniffing your system, we've identified him, we

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<v Speaker 1>found out where he lives, we found out what technique

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<v Speaker 1>he's using, and we send an instant message to the

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<v Speaker 1>I T managers saying you've got a hacker on Poart

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<v Speaker 1>eighties in Russia. Do something. Now, we don't do anything,

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<v Speaker 1>it's up to that. But but what we're doing, we

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<v Speaker 1>are the alarm company hacker in your system. So this

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<v Speaker 1>is infinitely preferable to waiting until the mail work gets in,

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<v Speaker 1>destroys your database or shuts everything down and demands a

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<v Speaker 1>hundred thousand dollars to bring it back up before they

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<v Speaker 1>can even plant the mail where we say they're here,

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<v Speaker 1>shut them down. John. In terms of some of the

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<v Speaker 1>people that you brought on, Chris Anderson Agia, your your

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<v Speaker 1>chief technology officer at MGT S talks about trying to

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<v Speaker 1>leverage social networks in terms of the security products that

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<v Speaker 1>you're bringing out. Is there anything that you would care

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<v Speaker 1>to discuss about how social networks are figuring cominently in

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<v Speaker 1>terms of these preventative products that you're putting out well, Uh,

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<v Speaker 1>I know it mostly is Egypt. When you mentioned his

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<v Speaker 1>named Eric Anderson, I go, who is he? Because I've

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<v Speaker 1>known him as Egypt for years. That's his hacker name.

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<v Speaker 1>He's one of those brilliant programmers I've ever met. He

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<v Speaker 1>was He was responsible for all of the artificial intelligence

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<v Speaker 1>for Grand Theft Auto five, for example, one of the

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<v Speaker 1>most successful games of all time. Brilliant. Um. What he

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<v Speaker 1>has developed is is a platform using social encryption, which

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<v Speaker 1>is a brand new concept and it will eventually replace

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<v Speaker 1>the Internet, I'm sure of it. Uh, but social networks

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<v Speaker 1>that good heavens, what can you say about it? I mean,

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<v Speaker 1>for example, Facebook, Um, kids are going to Facebook to

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<v Speaker 1>get news. Now, well, half the news on Facebook is

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<v Speaker 1>written by satire sites, which it's really not satire when

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<v Speaker 1>you when you when you say, you know, zombies just

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<v Speaker 1>invaded at Walmart in Lexington, Tennessee and eight three people

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<v Speaker 1>and it all sounds legit, right. So, um, I think

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<v Speaker 1>young kids are getting smarter because they're recognizing that, you know,

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<v Speaker 1>there's a lot of people trying to fool me out there. Um,

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<v Speaker 1>and old people are getting dumber by putting information on

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<v Speaker 1>social media, which is going to come back and bite

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<v Speaker 1>you and you go, how did that happen? Well, you

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<v Speaker 1>told the world basically, so um where it's going I

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<v Speaker 1>do not know, but I know that Facebook and Twitter

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<v Speaker 1>are just the beginning. And as we as we get

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<v Speaker 1>into the virtual reality systems that are being built by

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<v Speaker 1>Japan and China, and I've tried many of them, unbelievable,

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<v Speaker 1>the world is gonna change radically. I mean, we're gonna

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<v Speaker 1>be having remote relationships with you know, bodily contact, you know,

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<v Speaker 1>when one person's halfway around the planet. I wonder if

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<v Speaker 1>you could speak a little bit about Intel, because talking

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<v Speaker 1>about securing your identity, you're trying to secure your name.

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<v Speaker 1>Intel purchased McAfee. You had already left the company by

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<v Speaker 1>that time. What is going on between you and Intel?

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<v Speaker 1>Right now? There is only one piece of paper signed

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<v Speaker 1>by John McAfee the individual, and John McAfee associates the company,

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<v Speaker 1>and I signed both of them where I only gave

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<v Speaker 1>rights to McAfee anti virus, that one name, that one thing.

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<v Speaker 1>Intel has rolled it out into every product in the world.

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<v Speaker 1>And I'm not mad, and I would never have sued

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<v Speaker 1>them over that. But when they told me I couldn't

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<v Speaker 1>use my name. Well, I'm thinking, well, maybe I can

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<v Speaker 1>make you not choose not use my name either, because

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<v Speaker 1>you don't have the right so and I didn't. I

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<v Speaker 1>didn't want to call it McAfee, John McAfee. It's my identity.

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<v Speaker 1>I mean, some people know me um as John McAfee.

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<v Speaker 1>So who knows what the courts will make up at

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<v Speaker 1>the courts are mysterious affairs, John mc You are pushing

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<v Speaker 1>for the government to create a cyber security defense strategy.

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<v Speaker 1>What's the number one thing that the US government that

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<v Speaker 1>the next presidented States should do? Okay, well, this is

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<v Speaker 1>very very topical. I went on RT yesterday and called

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<v Speaker 1>President Obama clueless because at the G twenty summit the

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<v Speaker 1>day before, he said America is the most advanced nation

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<v Speaker 1>in the world for cybersecurity, way ahead of China and Russia.

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<v Speaker 1>And he said that the Nation States must work together

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<v Speaker 1>to restrict the growth of cyber weaponry. Okay, so the

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<v Speaker 1>first thing I said was, if we are in fact

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<v Speaker 1>the most advanced nation in the world, then we're all doomed.

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<v Speaker 1>For example, a fifteen year old boy four months ago

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<v Speaker 1>hacked into the FBI and walked off with every undercover

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<v Speaker 1>agents photo fingerprints, name, social Security number and address UM

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<v Speaker 1>and and so yes we are we are not number one.

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<v Speaker 1>And secondly, this is not a nation stage issues. John McAfee,

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<v Speaker 1>we thank you so much for joining us. You're gonna

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<v Speaker 1>have to come back and continue this conversation. I'll forget

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<v Speaker 1>it by them, but thank you very much. Like John McAfee,

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<v Speaker 1>Executive Chairman and CEO mg T Capital Investments, we also

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<v Speaker 1>thank Dave Garrity from g b A Research. We thank

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<v Speaker 1>our Bloomberg television audience as well for joining us