Speaker 1: Broadcasting live to New York, Bloomberg to Washington, d C.
Speaker 1: Bloomber to Boston, Bloomberg twelve hundred to San Francisco, Bloomberg
Speaker 1: ninety to the country's US exam General one nine and
Speaker 1: around the globe, the Bloomberg Radio plus Bloomberg dot Com
Speaker 1: is taking stock, according to the latest annual cyber crime
Speaker 1: survey that was jointly conducted by CSO Magazine, the U. S.
Speaker 1: Secret Service, as well as Price Waterhouse Coopers, and Software
Speaker 1: Engineering Institute Search program. Do you know that a third
Speaker 1: of the electronic attacks Kathleen on organization's public and private?
Speaker 1: You know where they come from? Yes, you tell me though,
Speaker 1: they come from inside the organization. So you want to
Speaker 1: know what is happening inside your technology network, You're gonna
Speaker 1: have to listen to our next day. Yes. Ed Straw's
Speaker 1: co founder and chairman of Straw's Feed Freeber based right
Speaker 1: here in New York City. Career law enforcement specializing on
Speaker 1: cyber risks and technology led him to this very fascinating company. Him,
Speaker 1: I don't want him to put the software on me
Speaker 1: and never know. Well, let's put the software on Katherine Conry.
Speaker 1: Now she is in the newsroom with a Bloomberg Business flash,
Speaker 1: Thank you, Kathleen wall Street. Starting off this holiday shortened
Speaker 1: week with a retreat. Bank of England Governor Mark Kearney
Speaker 1: warned of prospects for a material slowing in the economy
Speaker 1: and then developing risks from Britain's withdraw from the European Union.
Speaker 1: William Dudley, President of the Federal Reserve Bank of New York,
Speaker 1: said today that Brexit is a cloud on the horizon
Speaker 1: for policy. He added that it's too early to understand
Speaker 1: the full consequences of the vote. Banks are taking the
Speaker 1: largest losses. We checked the markets every fifteen minutes throughout
Speaker 1: the trading day. Down Industrial leverage down one hundred fifteen
Speaker 1: points two thirds of a percent, trading at seventeen thousand,
Speaker 1: eight hundred thirty three. SMP five foundered down sixteen points
Speaker 1: three quarters of a percent at two thousand and eighty six.
Speaker 1: Then nazdak is down forty seven points and nearly one percent,
Speaker 1: trading at four eight sixteen. West Texas intermediate crude oil
Speaker 1: down two dollar sixteen cents a barrel four point four
Speaker 1: percent to forty six eighty four. Spout led up nineteen
Speaker 1: dollars twenty cents an ounce at thirteen fifty ten your
Speaker 1: treasury U seconds at one point three six percent. American
Speaker 1: Express is moving into some new territory. A planet debut
Speaker 1: an online loan platform for small business clients this year.
Speaker 1: Here's Bloomberg's Jenny Seraine. It's actually kind of on both sides.
Speaker 1: There's a lot of these smaller fintech players that offer
Speaker 1: really neat, convenient, easy to use products. But then there's
Speaker 1: also the large and trenched banks like Jping, Morgan Well
Speaker 1: Spargo that offer really similar products um that offer kind
Speaker 1: of low rates but maybe not as much convenience. So
Speaker 1: I think AMEX is trying to slide in right in
Speaker 1: the middle there. And and now look at some of
Speaker 1: the other stories. Thank you, Gatherine from the Bloomberg news room.
Speaker 1: I'm Raimi in aessentio. This news update is brought to
Speaker 1: you by Bentley University. What you're rebooting America's oldest ski
Speaker 1: shop and crunching numbers that Vista Print have in common.
Speaker 1: An NBA from Bentley University that prepares graduates to innovate
Speaker 1: and lead because business is everywhere, prepare here. The FBI
Speaker 1: has recommended that no charges be filed against Hillary Clinton
Speaker 1: over her use of a private email server as Secretary
Speaker 1: of State. FBI Director James Comey told reporters that Clinton
Speaker 1: and her aids were extremely careless with the emails, but
Speaker 1: he said there was no intentional misconduct. State Department spokesman
Speaker 1: John Kirby disagreed with Comey's assessment about how things are
Speaker 1: handled at the State Department. I'm saying that the State
Speaker 1: Department has, in the past and and does today, take
Speaker 1: the treatment of classified information very seriously. Meanwhile, Hillary Clinton
Speaker 1: says if she is elected, she will do all she
Speaker 1: can to stand with America's teachers and fight to improve
Speaker 1: the country's education system. For anyone who has faced a
Speaker 1: hostile state legislature, a union busting governor, or both, how
Speaker 1: is on the way. Clinton addressed the National Education Association
Speaker 1: Assembly in Washington, d C. Today, and longtime New Yorker
Speaker 1: and Tuskegee airman Roscoe Brown Jr. Has died. Brown was
Speaker 1: part of the first African American group to serve in
Speaker 1: the Air Force during World War Two and would later
Speaker 1: be awarded the Congressional Gold Medal. Global News twenty four
Speaker 1: hours a day, powered by more than twenty undred journalists
Speaker 1: and analysts in more than one hundred twenty countries from
Speaker 1: the Bloomberg news room. I'm Rainey and assent to you.
Speaker 1: This is Bloomberg, Catherine, thank you. And now let's get
Speaker 1: a quick check of the equity benchmarks. Down Industrial Hovergetown
Speaker 1: at nine eight points, trimming earlier losses. Currently trading at
Speaker 1: seventeen thousand, eight hundred fifty smp F I founded down
Speaker 1: fourteen points at two thousand eighty eight. Nastakis down forty
Speaker 1: two points at And that's a Bloomberg business flash. You're
Speaker 1: listening to taking stock with pim Box and Kathleen Hayes
Speaker 1: on Bloomberg Radio. Of US organizations believe that they are
Speaker 1: vulnerable to insider threats. That's according to the data security
Speaker 1: firm war Metric. Here to tell us more about security
Speaker 1: threats and how to protect against them is Ed Straws.
Speaker 1: He is the co founder and the chairman of Straws Freeburg.
Speaker 1: You're based in New York City and Mr Straws is
Speaker 1: a former FBI agent. He spent sixteen years with the
Speaker 1: Federal Viewer of Investigation. He was then appointed to form
Speaker 1: a computer crime squad in New York City at the time,
Speaker 1: it was only the third in the country at Straws.
Speaker 1: Thanks very much for being here. Happy to be here.
Speaker 1: This idea of internal threats versus external threats, you know,
Speaker 1: hold your friends close, hold your enemies closer. Uh. Tell
Speaker 1: us how this relates to people in the workforce. It
Speaker 1: relates to people in the workforce two ways. The first
Speaker 1: is you could have an insider that represents a threat,
Speaker 1: and by threat I would say somebody who intends to
Speaker 1: do something that they know they shouldn't do. Maybe they're disgruntled, um,
Speaker 1: maybe they've been paid to do something. But then there's
Speaker 1: another side to it where you're just talking about good
Speaker 1: people who represent one of the biggest risks to your organization.
Speaker 1: That is, they're either careless or in some ways are
Speaker 1: responsible for clicking on an action uh in an email
Speaker 1: that infects the system. And those both those situations malintent
Speaker 1: and maybe carelessness come down to the human factor. And
Speaker 1: so what we've tried to do is say, if the
Speaker 1: human being is the ground zero for the action that
Speaker 1: we're talking about, shouldn't we be analyzing the human being
Speaker 1: as a human being. So and in fact, electronic attacks
Speaker 1: on organizations, public and private come within according to many services.
Speaker 1: You know, that is just noting some of these statistics.
Speaker 1: But so, so what does scout scout do? What is
Speaker 1: what is the program? Like the software the algorithm. So
Speaker 1: Scout is the name of the tool that Strasfreeberg developed
Speaker 1: to try to unders damn people better. And the tool
Speaker 1: analyzes the language that appears in your emails and other
Speaker 1: forms of communication that are written. It does not work
Speaker 1: on voice, and it analyzes the language and the way
Speaker 1: you normally speak and looks to see does it change
Speaker 1: in a meaningful way over time and if it does change,
Speaker 1: in what ways does it change? And we have about
Speaker 1: sixty different attributes that we can analyze about people just
Speaker 1: through their language. Can you give us an example, just
Speaker 1: share with us how this might work? Sure? Um, So
Speaker 1: we drew from psychology, and in fact, the software has
Speaker 1: ten patents on it based not on computer science but
Speaker 1: on psychological science. So we analyze words and relationships two
Speaker 1: of words to each other, the way you normally speak. So,
Speaker 1: for example, if you are normally somebody whom communicates in
Speaker 1: shades of gray talks about well, you know, this could
Speaker 1: work out this way, it could work out that way.
Speaker 1: A kind of it of sense that this might be
Speaker 1: a good idea. You're showing sort of subtle, nuanced communication patterns.
Speaker 1: If you suddenly change from that and to start saying
Speaker 1: this will never work or this is always going to
Speaker 1: go this way, Um, you're now going into a more
Speaker 1: black and white zone. Also, if you refer to the
Speaker 1: organization that you work for in the normal course to
Speaker 1: say this is my company, our business, and then over
Speaker 1: time you start talking about this place the organization, that
Speaker 1: is psychological distance, and there's a reason why your language
Speaker 1: is changing from first referring to it as our firm,
Speaker 1: our company, my company, into one where you put distance.
Speaker 1: So analyzing the sixty different attributes, there's too many to
Speaker 1: go into here, but these are examples of the kinds
Speaker 1: of things that people indicate through their language that psychologists
Speaker 1: understand very well. But nobody had really brought that insight
Speaker 1: into the insider. How accurate is it? Accurate is it?
Speaker 1: How have you tested it? It seems to me a
Speaker 1: lot of people can turn that like get mad your company,
Speaker 1: But doesn't mean you're going to hit it with some
Speaker 1: kind of cyber attack. How do you know this works?
Speaker 1: Now that's true? I think, well, for one thing, if
Speaker 1: you do see this kind of language, it raises a
Speaker 1: question for inquiry, it does not provide the answer, and
Speaker 1: you have to look to see how often is this occurring,
Speaker 1: and we typically flag less than one one persentable communications
Speaker 1: is even deserving any additional analysis. And then you really
Speaker 1: have to look to see, well if it does flag,
Speaker 1: if it does indicate a significant variation and deviation on
Speaker 1: one attribute, do we see other attributes that are moving
Speaker 1: at the same time, And that is what I think
Speaker 1: you need to have. The seltware is designed to make
Speaker 1: sure that you do protect privacy, but you're not left
Speaker 1: in the dark so that you're blindsided. Is it also
Speaker 1: designed to protect intellectual property and also flag compliance issues.
Speaker 1: Intellectual property is one of the most important things to
Speaker 1: guard against because when it is stolen, it tips it
Speaker 1: is not um stolen in a way that deprives the owner.
Speaker 1: Everything that is stolen is still there. So to indicate
Speaker 1: whether or not an individual who had the authority to
Speaker 1: access and copy files is actually um in a state
Speaker 1: of mind where maybe they're going to do something they
Speaker 1: shouldn't do becomes very very key. So the intellectual property
Speaker 1: is quite important. So what's the next step for the company.
Speaker 1: Tell me in a nutshell, Well, we've always been a
Speaker 1: services company at Straws Freeburg, but there are certain areas
Speaker 1: where we cannot find the tools that we're looking for
Speaker 1: and so we had to build them. So the next
Speaker 1: stage for us is really to continue growing the company
Speaker 1: and work with investors to make sure the values there well.
Speaker 1: Fascinating company and obviously the need for it seems to
Speaker 1: be growing, or maybe we've just become aware of how
Speaker 1: great that need has been all along. Ed Straws, thank
Speaker 1: you so much. Co founder and chairman of Straw's Free Work.
Speaker 1: Here in New York City, I'm Kathleen Hayes along with
Speaker 1: pim Fox. This is Bloomberg. Coming up on taking stock,
Speaker 1: will be speaking with Rob Hayworth. He is the senior
Speaker 1: investment strategist for U S Bank Wealth Management, helping to
Speaker 1: manage a hundred and thirty three billion dollars. What is
Speaker 1: he telling his customers to do that's next