WEBVTT - Will We Be Safe From Election Hacking in 2020?

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<v Speaker 1>July twelve, sixteen started out, It's just another day from

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<v Speaker 1>Matt Emmons. At the time, Matt was an I T

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<v Speaker 1>technician with the Illinois Board of Elections, and just as

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<v Speaker 1>everyone in the office was getting settled into the workday,

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<v Speaker 1>I think it was about one of his colleagues noticed

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<v Speaker 1>something strange with the state's voter registration system. It essentially

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<v Speaker 1>was at a dead stop. You couldn't do anything. So

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<v Speaker 1>Matt's colleague went about troubleshooting and found that the server

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<v Speaker 1>hosting the voter database was running on overdrive. Something was

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<v Speaker 1>jamming the system, so he took a look at the

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<v Speaker 1>request coming in. What's normally a trickle of orderly requests

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<v Speaker 1>like five times per second was suddenly more like a flood.

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<v Speaker 1>It was shortly after that that I believe I got

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<v Speaker 1>called over there. It didn't take long for Matt's team

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<v Speaker 1>to realize they were under attack. Within an hour they

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<v Speaker 1>found him fixed the security hole that the hackers used

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<v Speaker 1>to get into their system, and then for good measure,

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<v Speaker 1>they took the whole system offline while they started looking

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<v Speaker 1>for the culprits of the hack. Breaking news out of Washington,

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<v Speaker 1>twelve Russian intelligence officers indicted. Today, we now know this

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<v Speaker 1>is part of Russia's attempt to meddle with the sixteen

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<v Speaker 1>elections here in the United States, which of course has

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<v Speaker 1>dominated our headlines. Ever sank into and while we continue

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<v Speaker 1>to talk about what happened back then, the next election

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<v Speaker 1>is just around the corner, facing off government backed hackers

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<v Speaker 1>from Russia, Iran, North Korea, and even China. Our states

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<v Speaker 1>and municipalities ready for the next one. Am Ito, you're

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<v Speaker 1>listening to Decrypted stay with us? So, Cardike, you are

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<v Speaker 1>a cybersecurity reporter here at Bloomberg, brand new to our

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<v Speaker 1>tech team. Welcome to the show. Thanks so much. You're

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<v Speaker 1>just getting started on an incredibly complicated beat here. I

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<v Speaker 1>am it's been about a month. I am totally overwhelmed,

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<v Speaker 1>and I think I think I should be, because there's

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<v Speaker 1>just so much to understand in the world of cybersecurity. Um,

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<v Speaker 1>there's so many threat actors that pose risks to companies

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<v Speaker 1>and states and political parties. Fortunately, my focus will be

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<v Speaker 1>on election security and so I can narrow down my

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<v Speaker 1>attention reporting on that, and hopefully we'll have a lot

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<v Speaker 1>of interesting conversations to have in the weeks to come.

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<v Speaker 1>So this is the thing that you're going to dedicate

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<v Speaker 1>the next year to the next year. I hope to

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<v Speaker 1>be your guy on election security for our listeners who

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<v Speaker 1>don't quite remember all of the details of what happened

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<v Speaker 1>back in and this actually includes me. Can you go

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<v Speaker 1>over what Russian hackers actually succeeded in doing back then?

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<v Speaker 1>What they succeeded in most was disinformation and we're going

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<v Speaker 1>to set that aside. What we're going to talk about

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<v Speaker 1>are the three major hacks of election systems in the

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<v Speaker 1>United States. We are learning more about the hat into

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<v Speaker 1>the Democratic National Committee, including the first was of the

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<v Speaker 1>Democratic National Committee, which I think everyone knows the most

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<v Speaker 1>about on believe of the convention. Wiki leaks released thousands

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<v Speaker 1>of emails from the time. There are a number of

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<v Speaker 1>emails in which senior officials can be seen conspiring against

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<v Speaker 1>Bernie Sanders, the chair of the d n C, Congresswoman

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<v Speaker 1>Debbie Wasserman Schultz, has announced her resignation. It comes after

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<v Speaker 1>those leaked emails. We actually ran an episode about this

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<v Speaker 1>three years ago, so our listeners are well versed, very good.

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<v Speaker 1>The other two hacks they may not know as much about.

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<v Speaker 1>Justin Governor Rhonda Santis now says Russian hackers gained access

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<v Speaker 1>to voter databases into Florida counties ahead of the presidential election.

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<v Speaker 1>The first one is Florida, which nobody knows much about.

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<v Speaker 1>The DHS and the state officials have been a secretive

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<v Speaker 1>about this one. The governor can't say the names of

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<v Speaker 1>the counties involved because he signed a confidentiality agreement with

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<v Speaker 1>the FBI. Hackers sent phishing emails to county officials. Two

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<v Speaker 1>of them clicked on the links and allowed Russian hackers

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<v Speaker 1>access to their database. All we know is that votes

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<v Speaker 1>weren't changed. Then there's Illinois, which you know in a

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<v Speaker 1>lot more about because they've been forthcoming about what happened.

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<v Speaker 1>And briefly, what happened was that in the middle of

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<v Speaker 1>June of two thousand sixteen, hackers found an unlocked door

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<v Speaker 1>in the voter registration database, got in and downloaded as

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<v Speaker 1>much information as they could. After three weeks of unloading

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<v Speaker 1>and trying to change information, they said, Hi, Illinois, we've

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<v Speaker 1>been here all along, and they shut down their system.

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<v Speaker 1>This was the thing that Matt Emmons and his colleagues

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<v Speaker 1>discovered all the way out in July. That's right. So

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<v Speaker 1>three weeks after they got in in the middle of

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<v Speaker 1>July in two thousand and sixteen, Matt Emmons and his

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<v Speaker 1>colleagues discovered that Russian hackers have been in their system

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<v Speaker 1>all along, trying to gain access to social security numbers,

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<v Speaker 1>driver's license numbers, names addresses, phone numbers, anything related to

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<v Speaker 1>your voter registration information. They found that seventy six thousand

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<v Speaker 1>people's data had been accessed by Russian hackers in a

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<v Speaker 1>way that they could relate these data points to actual people,

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<v Speaker 1>and do these people know who they are? They do so.

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<v Speaker 1>They all received notifications in the mail shortly after the

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<v Speaker 1>hack informing them that their data had been compromised. Nothing

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<v Speaker 1>that's followed indicated that Russia did something with these names,

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<v Speaker 1>but they do have the information. But they do have

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<v Speaker 1>the information, that's right, So Illinois says nothing happened, No

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<v Speaker 1>data was changed because Russian hackers only had read access

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<v Speaker 1>to the data. They could download as much of it

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<v Speaker 1>as they wanted to, but they couldn't actually change anything.

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<v Speaker 1>They didn't have right permissions. The Department of Homeland Security

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<v Speaker 1>told the Senate Intelligence Committee earlier this year on the

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<v Speaker 1>report that we saw that they could have done more,

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<v Speaker 1>and they stayed quote. Why they didn't is an open

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<v Speaker 1>ended question. Yeah, it's weird. If if they were able

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<v Speaker 1>to go further, why wouldn't they The answer to that

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<v Speaker 1>is pure speculation, both on my part and the Department

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<v Speaker 1>of Homeland Security. They don't know the answer. But the

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<v Speaker 1>worst case scenario there is that they were seeking intelligence

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<v Speaker 1>for the future so that next time they really want

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<v Speaker 1>to access a database and change something they know how to,

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<v Speaker 1>or that they were there to drop secret malware that

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<v Speaker 1>they can trigger in the future when they want to.

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<v Speaker 1>Officials on both the federal and state level believe that

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<v Speaker 1>there is no malware in the Illinois voter registration database. Theoretically,

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<v Speaker 1>if hackers decided to do more than just download names

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<v Speaker 1>and addresses from the voter database, if they actually made

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<v Speaker 1>changes to that database, what could they do Because this

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<v Speaker 1>is different from going into the voting machines, for example,

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<v Speaker 1>and changing the ballots themselves. So the worst case scenario

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<v Speaker 1>here is that when you arrive to vote, the poll

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<v Speaker 1>book that has all the voter registration information wouldn't match

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<v Speaker 1>up with your own information. You couldn't verify that you

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<v Speaker 1>are the person who registered to vote, and you may

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<v Speaker 1>not be able to vote immediately, or you may have

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<v Speaker 1>to cast a provisional ballot that might be verified and

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<v Speaker 1>might not in the future. And why would hackers from

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<v Speaker 1>say Russia wants something like that. Well, there's a couple

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<v Speaker 1>of reasons. One, it's a form of voter suppression. There

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<v Speaker 1>might be fewer ballots cast if the registration system has

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<v Speaker 1>been altered b you, so mistrust in the election system.

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<v Speaker 1>There are fewer people coming out to vote if they

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<v Speaker 1>believe that even by registering to vote, when they arrive

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<v Speaker 1>they can actually vote or vote in the way that

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<v Speaker 1>they expect to. So they're creating roadblocks and mistrust in democracy.

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<v Speaker 1>So what is Illinois doing this time to better protect

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<v Speaker 1>their systems? So all states got a portion of million

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<v Speaker 1>dollars from the federal government in grants and they match

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<v Speaker 1>that with a small portion of their own, So thirteen

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<v Speaker 1>million in federal funds and five million from the state

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<v Speaker 1>to hire a new staff. The biggest hiring push has

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<v Speaker 1>been in a program called cyber Navigators, which is probably

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<v Speaker 1>the coolest name in election security since in the it

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<v Speaker 1>is kind of nerdy election security as Canton nerdy. So

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<v Speaker 1>they've spent a large chunk of change hiring these nine

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<v Speaker 1>cyber navigators who oversee different pockets of Illinois, and a

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<v Speaker 1>lot of these counties don't have much I T support,

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<v Speaker 1>so these individuals are meant to be the front lines

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<v Speaker 1>for these counties and ensuring that any vulnerabilities that currently

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<v Speaker 1>exist are plugged. So they're going to go through cycles

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<v Speaker 1>of assessment between now and over and over again to

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<v Speaker 1>ensure that there are no new vulnerabilities between now and

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<v Speaker 1>an election day. Are they doing anything else? Illinois has

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<v Speaker 1>a couple of things going on. They have what are

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<v Speaker 1>called Albert sensors installed. They allow both state and federal

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<v Speaker 1>officials to monitor Illinois voting apparatus, so if there's any

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<v Speaker 1>outside infiltration, both the state and the Department of Homeland

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<v Speaker 1>Security will know and should be able to respond. They

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<v Speaker 1>also have the National Guard on call and and what

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<v Speaker 1>the National Guard do. The National Guard is available in

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<v Speaker 1>the event of a hack on election day, so if

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<v Speaker 1>a remote county in Illinois is infiltrated, the National Guard

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<v Speaker 1>can call on their cyber warriors to get in a

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<v Speaker 1>chopper and fly to DeKalb County to respond to any

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<v Speaker 1>hack to protect the integrity of the election. We'll be

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<v Speaker 1>right back. So before the break Cardike. You walked us

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<v Speaker 1>through the different things that Illinois is doing to better

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<v Speaker 1>protect itself. It actually sounded like quite a bit to me.

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<v Speaker 1>I guess the big question is will that be enough?

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<v Speaker 1>I talked to a lot of people in the last

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<v Speaker 1>month and a half and it's a little more complicated

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<v Speaker 1>than just yes or no. One expert I talked to

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<v Speaker 1>is an analyst at fire Eye. His name is Luke McNamara.

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<v Speaker 1>I think you have with the states and many of

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<v Speaker 1>them playing catch up with the resources they have, and

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<v Speaker 1>I think it's a very difficult place to be in

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<v Speaker 1>when trying to reach a more coroactive footing to deal

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<v Speaker 1>with this threat. As the threat evolve, are these states

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<v Speaker 1>in a perpetual cycle of playing catch up? I think

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<v Speaker 1>some are are putting the right resources in place, that

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<v Speaker 1>putting the right investments in place, But it is a

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<v Speaker 1>very difficult problem to address, uh. And there's there's some

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<v Speaker 1>amount of irony here in that. A lot of the

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<v Speaker 1>threat vectors, a lot of the methodologies that we see,

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<v Speaker 1>even some of the more advanced threat actors utilizing, are

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<v Speaker 1>very simple in nature. When we look at how the

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<v Speaker 1>majority of intrusions begin, the majority of attacks begin, they

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<v Speaker 1>begin with spear fishing for the most part, and I

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<v Speaker 1>think even helping those county clerks, those election administrators understand

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<v Speaker 1>how to look for signs of spearfish and how to

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<v Speaker 1>identify that that I think can pay dividends and that

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<v Speaker 1>doesn't necessarily need to involve the deployment of expensive technology.

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<v Speaker 1>By the way, Luke's employer, fire I is helping at

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<v Speaker 1>least fifteen states along with municipalities and counties, the bigger

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<v Speaker 1>counties that can actually afford to pay fire EYE prepare

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<v Speaker 1>for And so we just heard Luke talk about spear fishing.

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<v Speaker 1>This is when hackers send county officials an email with

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<v Speaker 1>an attachment something like a click here exactly. They shouldn't

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<v Speaker 1>be clicking, but when they do, they allow the infiltraders

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<v Speaker 1>access to their networks. So fire I is trying to

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<v Speaker 1>make sure that county clerks aren't clicking. One of the

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<v Speaker 1>other things they're doing is offering intelligence to local officials

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<v Speaker 1>about their attackers. Fire I believe is that the best

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<v Speaker 1>way to prepare foreign adversary is to understand your adversary,

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<v Speaker 1>to know exactly why they want to infiltrate your system

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<v Speaker 1>and how they'll do it. I think certainly Russia, from

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<v Speaker 1>what we've seen UM they are have shown themselves to

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<v Speaker 1>be the most aggressive and going after democratic institutions and processes,

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<v Speaker 1>and I think as a result, it's very important for

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<v Speaker 1>us to pay attention to what we see, particularly with

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<v Speaker 1>European elections between now and UM. But I think that

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<v Speaker 1>maybe more hasn't been said about that there are other

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<v Speaker 1>threat groups that are active in the space. We've seen

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<v Speaker 1>China target elections Cambodia last year, certainly the case probably

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<v Speaker 1>as well for Iran. What's at stake when we talk

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<v Speaker 1>about election hacking? Are you worried about hackers hijacking election results?

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<v Speaker 1>Are we talking about the credibility of results? Or is

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<v Speaker 1>it something else altogether? Yeah? I think in many respects

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<v Speaker 1>it's the activity that falls short of actually compromising votes

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<v Speaker 1>that concerns me more. Um, they could do a repeat

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<v Speaker 1>of what we've seen them do in Ukraine in previous years,

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<v Speaker 1>where they compromised the central election commissioned website and then

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<v Speaker 1>posted out erroneous results. None of the actual results themselves

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<v Speaker 1>were changed, but it was sufficient enough to cause some

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<v Speaker 1>people probably to question what is is really real in

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<v Speaker 1>the situation. So I think those sorts of intrusions, those

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<v Speaker 1>sorts of attacks, the sorts of disinformation campaigns that maybe

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<v Speaker 1>fall short of actual compromising and deletion or destruction of

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<v Speaker 1>voter data, but I can still be effective at causing infusion.

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<v Speaker 1>Those are things that we should heavily consider and be

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<v Speaker 1>prepared for. Okay, So to sum it up, the good

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<v Speaker 1>news is that we now at least know to prepare

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<v Speaker 1>for this, which is a big step. And we also

0:14:33.160 --> 0:14:35.880
<v Speaker 1>know that the hackers gained access in pretty simple ways,

0:14:36.160 --> 0:14:40.240
<v Speaker 1>which means the defenses could be pretty simple too. But

0:14:40.280 --> 0:14:42.320
<v Speaker 1>then the bad news is that the hackers might step

0:14:42.400 --> 0:14:45.360
<v Speaker 1>up their game this time, and there are now more

0:14:45.600 --> 0:14:49.280
<v Speaker 1>potential adversaries than just Russia. Does that sound like a

0:14:49.280 --> 0:14:53.640
<v Speaker 1>good summary. That's about right, and that's probably pretty daunting

0:14:53.680 --> 0:14:57.000
<v Speaker 1>on its own. But that's only part of the problem.

0:14:57.040 --> 0:15:00.560
<v Speaker 1>And so I called Illinois Governor J. B. Pritzker I

0:15:01.440 --> 0:15:05.000
<v Speaker 1>riser Governor fritzger Good afternoon to talk through the other

0:15:05.080 --> 0:15:08.960
<v Speaker 1>challenges he's facing. And the biggest one is probably the

0:15:09.000 --> 0:15:12.400
<v Speaker 1>fact that he's trying to solve a federal security crisis

0:15:12.840 --> 0:15:16.920
<v Speaker 1>on a state budget. It's a national security issue, um,

0:15:17.400 --> 0:15:22.600
<v Speaker 1>and the federal government should be at the forefront. And

0:15:22.640 --> 0:15:24.920
<v Speaker 1>I'm finding, at least for our state, that the state

0:15:25.000 --> 0:15:27.400
<v Speaker 1>is at the forefront and the federal government is there

0:15:27.800 --> 0:15:33.360
<v Speaker 1>for uh less than the leadership role. I'm not viewing

0:15:33.400 --> 0:15:37.920
<v Speaker 1>myself as dependent upon Washington d C. I would say

0:15:38.080 --> 0:15:42.240
<v Speaker 1>the states would like more help, and we are. Um,

0:15:42.360 --> 0:15:45.880
<v Speaker 1>you know, we've expressed that by more help, is he

0:15:45.960 --> 0:15:49.720
<v Speaker 1>talking about federal money. Yeah, he wants Congress and the

0:15:49.720 --> 0:15:54.040
<v Speaker 1>Trump administration to approve new grants to give to states.

0:15:54.080 --> 0:15:58.040
<v Speaker 1>So far, Illinois received thirteen million dollars in two thousand

0:15:58.040 --> 0:16:01.480
<v Speaker 1>and eighteen. They matched five million of their own. But

0:16:01.560 --> 0:16:04.400
<v Speaker 1>what they really say they need is a hundred and

0:16:04.440 --> 0:16:08.360
<v Speaker 1>seventy five million dollars to gut their election apparatus and

0:16:08.440 --> 0:16:11.080
<v Speaker 1>build a system they believe is safe and secure, not

0:16:11.160 --> 0:16:14.880
<v Speaker 1>just for but for the future. So that's a major shortfall.

0:16:15.120 --> 0:16:17.400
<v Speaker 1>There's a massive gap in what they have and what

0:16:17.480 --> 0:16:20.720
<v Speaker 1>they need. And so aside from the shortfall and resources

0:16:21.280 --> 0:16:25.200
<v Speaker 1>to rebuild the state's election infrastructure, state and local governments

0:16:25.280 --> 0:16:28.239
<v Speaker 1>also don't have the money to hire the best engineers

0:16:28.240 --> 0:16:33.240
<v Speaker 1>to protect their systems. Look think about what someone like

0:16:33.480 --> 0:16:38.720
<v Speaker 1>Ron Garry, a with his background was probably earning in

0:16:38.760 --> 0:16:41.600
<v Speaker 1>the private sector Ron Garry, A, by the way, is

0:16:41.640 --> 0:16:46.200
<v Speaker 1>the state's Chief Information Officer and the Secretary of Innovation

0:16:46.240 --> 0:16:48.640
<v Speaker 1>and Technology, And so he used to be the c

0:16:48.840 --> 0:16:52.320
<v Speaker 1>i O at Farmers Insurance and Toyota of North America,

0:16:53.000 --> 0:16:56.640
<v Speaker 1>and then in Illinois the you know the showeries which

0:16:56.640 --> 0:17:00.640
<v Speaker 1>are published. So I'm not revealing anything that isn't publicly out.

0:17:01.280 --> 0:17:03.720
<v Speaker 1>Got a salary that we're offering to a c i

0:17:03.800 --> 0:17:06.040
<v Speaker 1>OH is in the neighborhood of a hundred and seventy

0:17:06.160 --> 0:17:09.480
<v Speaker 1>thousand dollars a year. And I don't think that typical

0:17:10.359 --> 0:17:15.680
<v Speaker 1>salaries that are offered for chief information officers or chief

0:17:16.160 --> 0:17:21.440
<v Speaker 1>information security officers for state government are commencer with being

0:17:21.440 --> 0:17:25.240
<v Speaker 1>competitive in any way with the private check Do you

0:17:25.240 --> 0:17:29.439
<v Speaker 1>get the sense that the governor thinks Illinois is writing nonetheless?

0:17:29.960 --> 0:17:31.760
<v Speaker 1>I don't think the governor of Illinois is going to

0:17:31.800 --> 0:17:34.000
<v Speaker 1>put a target on his back and say, we're not

0:17:34.080 --> 0:17:37.680
<v Speaker 1>prepared to come hack us, please please come hack us. No. Now,

0:17:37.720 --> 0:17:41.320
<v Speaker 1>I think I think, uh, they've hired some some good

0:17:41.320 --> 0:17:44.560
<v Speaker 1>people with their limited resources. The I T technician with

0:17:44.600 --> 0:17:48.840
<v Speaker 1>the Illinois State Board of Elections, Met Emmons. What's he

0:17:48.880 --> 0:17:52.280
<v Speaker 1>doing today? He's running the I T Department for the

0:17:52.320 --> 0:17:55.679
<v Speaker 1>State Board of Elections, and they are working with the

0:17:55.720 --> 0:17:58.560
<v Speaker 1>Department of Homeland Security and their own internal staff too

0:17:59.359 --> 0:18:03.280
<v Speaker 1>pepper their system with tests to ensure that there's nobody

0:18:03.280 --> 0:18:05.760
<v Speaker 1>in their system now who shouldn't be, and there's no

0:18:05.800 --> 0:18:09.280
<v Speaker 1>malware in their system now. He spent the last month

0:18:09.320 --> 0:18:13.199
<v Speaker 1>and a half reporting on this topic. Is America ready for?

0:18:15.080 --> 0:18:18.960
<v Speaker 1>It's so hard to say is America ready for? Because

0:18:18.960 --> 0:18:22.480
<v Speaker 1>the truth is that you have fifty states and all

0:18:22.520 --> 0:18:25.639
<v Speaker 1>the counties within those states that are now tasked with

0:18:25.720 --> 0:18:35.359
<v Speaker 1>defending the integrity of the presidential election. Is every county ready?

0:18:36.640 --> 0:18:39.880
<v Speaker 1>We certainly know that Illinois has done everything they can

0:18:40.240 --> 0:18:42.520
<v Speaker 1>in the last three and a half years to prepare for,

0:18:43.640 --> 0:18:47.400
<v Speaker 1>but there's all these smaller swing states and counties that

0:18:47.680 --> 0:18:49.720
<v Speaker 1>may not have the resources that a big state like

0:18:49.800 --> 0:18:53.840
<v Speaker 1>Illinois has to prepare. The DHS is traveling the country

0:18:53.880 --> 0:18:57.679
<v Speaker 1>to inform these and educate these county clerks, but to

0:18:57.760 --> 0:19:00.480
<v Speaker 1>what extent are they going to take action to respond?

0:19:00.760 --> 0:19:05.520
<v Speaker 1>And so is the entire country ready? Probably not, But

0:19:05.600 --> 0:19:09.960
<v Speaker 1>there's time between now and November, and everyone with a

0:19:09.960 --> 0:19:12.400
<v Speaker 1>stake in the game is probably doing everything they can

0:19:12.720 --> 0:19:22.679
<v Speaker 1>to prepare. Card K Rotra. Thank you for your story today,

0:19:23.280 --> 0:19:36.000
<v Speaker 1>Thank you for having Me Decrypted. Is produced by Meat

0:19:36.960 --> 0:19:40.240
<v Speaker 1>and Ethan Brooks, Emily Buso and Ann vander May are

0:19:40.400 --> 0:19:44.720
<v Speaker 1>story editors. Francesca Levi is the head of Bloomberg Podcasts.

0:19:45.040 --> 0:20:04.879
<v Speaker 1>We'll see you next week. No Came.