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@THISHOUR WITH BERMAN AND MICHAELA

1.2 Billion Passwords Hacked; U.S. General Killed in Afghanistan; Crucial Mideast Meetings Under Way in Cairo; Egypt Plays Key role in Peace Talks

Aired August 6, 2014 - 11:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


JOHN BERMAN, CNN CO-ANCHOR: A billion user names and passwords stolen by a Russian gang. So do they have your secrets? We'll speak with the man who uncovered this plot.

MICHAELA PEREIRA, CNN CO-ANCHOR: Then, the number of Ebola deaths is on the rise. As two Americans fight to recover, CNN goes to Sierra Leone where they outbreak started for a look at what it's like living in that hot zone.

BERMAN: Then, swept up in severe weather, flooding just picking up cars, carrying them away. Man, the rescuers had to move in really quickly on this (inaudible). We'll show you more of this dramatic scene ahead.

Hello, everyone. I'm John Berman.

PEREIRA: That makes me Michaela Pereira. Good to see you on this Wednesday. Those stories and so much more, right now, @THISHOUR.

BERMAN: So how is this for a headline? One-point-two billion passwords stolen, not just passwords but user names as well, and not just stolen by anyone but stolen by a Russian gang. Happy Wednesday, everybody.

PEREIRA: Let's get beyond the headline a little bit. It is possibly the biggest heist of stolen digital credentials in history.

I want to turn to our CNNMoney tech correspondent Laurie Segall and Alex Holden. He is founder of Hold Security.

You both are at, conveniently enough, a hacker conference, a security conference, so you are the two people to talk to about this very issue.

Alex, I want to talk with you, first off. It was your company that uncovered this breach. How did that happen?

ALEX HOLDEN, FOUNDER, HOLD SECURITY: My company, Hold Security, works on behalf of our clients and scours the Internet, all the dark areas of the Internet, trying to find where the hackers congregate and talk about stealing or sharing stolen information.

So this is what we do, and we know that this particular gang is doing some nefarious activities in very high volumes. BERMAN: So, Laurie, I'm still a little confused here. We hear 1.2

billion user-names --

PEREIRA: That's a lot.

BERMAN: -- and passwords. That's a lot. It seems that either I'm affected by it. You're affected by it. He's affected by it. We're all affected by this.

So what does this exactly mean, and what are these Russian gang members doing with these passwords?

LAURIE SEGALL, CNNMONEY TECH CORRESPONDENT: What this means, first of all, everyone should be changing their passwords. I'll go ahead and say that. And we need to take more safety precautions.

But, you know, what this report showed is apparently right now they're using this for phishing attacks. So you might on Twitter get something for a weight loss pill that you click on and then they have your information and they collect a fee.

Now where this gets really scary, guy, is if they start using this information and selling it on this black market, this Dark Web, where they sell your information. And people can take your e-mail address, they can take your user name and passwords and figure out a lot about you and have -- and this is where you face things like identity theft.

And I will say we are at Black Hat, we are at this conference, where this is the kind of thing that's talked about. You bring together these security researchers, these hackers, who oftentimes find these vulnerabilities that big companies ignore to a degree.

And security researchers oftentimes I like to joke that they have these skills like Batman. They can use this for good, their hacking skills, or they can use it for bad.

And the ones that use it for good go to the companies and say, hey, I want you to fix this, and oftentimes the companies ignore it and that's a problem.

PEREIRA: But here's the problem that I have with this, is that the Web sites, they say, from Fortune 500 companies to small Web sites. That doesn't help me as a consumer much to know, Alex, that if I went to one of those Web sites, am I potentially a victim, could I have been targeted?

How are folks to know? Will we be able to even detect that we have been hacked?

HOLDEN: Absolutely. What we are trying to do is create the way for the individuals and the companies to communicate back to us and ask if they have been compromised.

It's a very difficult task for us to reach out to half a billion e- mail addresses that were affected or the 420,000 Web sites that also could have been affected. It's just an impossible task. So we are asking for the companies and individuals to come to us, and we will be able to answer that question for them, once we authenticate who these people are and make sure they are asking questions about their e-mail addresses or Web sites.

BERMAN: I read in the "New York Times," Laurie, that these gang members, these mobsters, are also stealing information from people in Russia. It's not like they're just picking on us or picking on countries outside Russia.

So what do we do other than, as you suggest, hire some of these bad hackers and flip them, make them good, and make them design systems that can't be hacked?

SEGALL: You know, look, I think we need to call on our companies to do a little bit better too. I think folks should always be aware that your information is increasingly out there.

You should be changing your passwords all the time. You should set up two-factor authentication where you actually have to go through a couple steps to get on there.

And I should mention, guys, and I hate to be the bearer of bad news here, but Alex and I were just talking right before this, and he said a lot of these Web sites, these Fortune 500 Web sites, a lot of these companies, the vulnerabilities are still out there.

So we need to operate with caution. And we're also just reaching this brink, this turning point, where we need to, as consumers, call on our companies to do a better job protecting us, because if this is the case, this has gone on a couple years and with all of this information stolen, and it could be used, as I mentioned, even for worse than these spamming attacks. We're talking identity theft.

PEREIRA: Well, and that's why the importance of these convention like the one you're attending.

Laurie Segall, our tech expert, we appreciate it so much, our correspondent there who's out in Vegas at this convention.

Alex Holden, thank you so much for letting us know about your company uncovering this breach.

And I think what you've learned here is "John Berman is awesome" isn't going to work on all your passwords anymore. You need to change it, OK?

BERMAN: "John Berman is awesome one" --

PEREIRA: One?

BERMAN: -- or "John Berman is awesome exclamation point."

PEREIRA: Exactly.

BERMAN: Things can be done. PEREIRA: But the point is we actually have put some notes online for you if you want to do yourself a favor and protect yourself from becoming a victim of cyber crime.

You can go to our Web site I believe, CNN. There's actually a quiz. It's called the Can You Outsmart a Hacker? I'm guessing I can't. The quiz, you can take it at CNNMoney.com.

BERMAN: Some other news we're watching this morning, the pursuit of a long-term truce is under way. CNN has learned that Palestinian officials are meeting with Egyptian intelligence officers behind closed doors in Cairo right now, Egypt serving as the go-between between the Israeli and the Palestinian delegations.

The two sides, at least as of now, have no plans to meet face-to-face.

The U.S. State Department also now sending a delegation to monitor these talks, Egypt reportedly trying to extend the cease-fire until Sunday, the current one, which is apparently holding still, is set to expire Friday. We'll have more on this ahead.

PEREIRA: Someone is leaking sensitive U.S. secrets. This time it's not Edward Snowden.

An article on the Web site Intercept cites government documents dated after Snowden went into exile in Russia. These newer documents detail an explosive growth in federal databases that track terror suspects.

The U.S. is actively pursuing the source of that leak. This is another story that we'll follow a little more in-depth later on in the show.

BERMAN: I want to show you some drama playing out on a Nevada highway. Take a look at this. It's the rain, so much of it, which we'll show you (inaudible). It turned -- there was a lot of flooding, swept some cars away. As of now I think you'll have to take my word for it.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Look out! Get out! Get out! Get out! Get out!

(END VIDEO CLIP)

BERMAN: Told you if you were patient, you would see it.

A group of airmen pulled an elderly women out of that (inaudible) as another car swept toward her. One of the men who was doing the rescuing had to be rescued himself. The wonderful thing here, the lucky thing here, the amazing thing here is that no one was hurt.

PEREIRA: People think. oh, I can go through, it's not that deep, but the force of that water is nothing to be reckoned with. It's such a shock to see that near Las Vegas which is known to be so dry.

I want to show you another incredible video from Perth, Australia, the worst nightmare of a subway commuter come true. Nischelle Turner will never get on a train after this, let me tell you. A man slipped and fell between the train and the platform. His fellow passengers, though, came to his rescue. They all got off the train. Look at this. They pushed on it. They were able to tilt it just enough for him to wiggle free.

The identity of the lucky man is still a mystery. The video has gone viral. What a love about this, they push it, a brief moment of celebration, they all get on the train, they all carry on, only 15 minutes behind schedule.

BERMAN: Amazing.

All right, ahead for us @THISHOUR, how did a gunman manage to kill a U.S. general inside a secure military training facility? Was this an inside job? We have new details, coming up.

PEREIRA: Also, what really happened to Bowe Bergdahl that day in 2009 when he fell into Taliban hands? Today, he faces the chief investigator. You know that he's got a lot of questions for Bergdahl.

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PEREIRA: We are now getting new details on the brazen attack that killed a major general, Harold Greene, in Afghanistan. He was gunned down yesterday at a military training facility. He became the most senior U.S. officer to be killed since 9/11.

BERMAN: Now authorities say they think it was an Afghan soldier who was the gunman.

I want to bring in Pentagon correspondent Barbara Starr. Barbara, from what you're hearing, this is the very definition of an insider attack.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: You know, it really is. By all accounts what they have learned so far is General Greene and a number of other U.S. troops, other military personnel, had gone to this facility. They were standing outside a building when suddenly the gunman opened up from inside another nearby building.

So, you know, we don't even know at this point if his security personnel, if anybody was even able to return fire. By all accounts, it was a man in an Afghan military uniform. They believe he had some considerable time of experience with the Afghan military. He'd been through all the security checks, all the vetting, and this still happened.

I think it's really going to the challenge that the U.S. continues to have, even though they've brought the number of attacks down, really the challenge they have with insider attacks.

PEREIRA: Yeah, especially when you talk about the drawdown of U.S. troops there.

Let's talk about the fact that we've seen that number decline. I think we actually have some data to support it. Talk about that. Do we know any reason why, if they maybe put new measures in place? STARR: Right. You can see right there. The numbers have come down.

Now, some of it is, they believe, because they put some security measures in place. You know, troops generally now, even when they're inside buildings, they will have their weapons with them. They'll be much more watchful. They have a program called Guardian Angel, one person assigned to sort of stand back and keep watch over everybody else, these sorts of things.

But, you know, when you look at it, it's still very difficult to determine. I think we also have some data to show about what they think the causes of these insider attacks have been. If you look at some of them, yes, some of them they determined that people are Taliban infiltrators, some they just don't even know what the motive is. Some is combat stress. But about one-third of the time, in these cases that they investigate, they're never able to determine what leads these Afghan troops to go ahead and conduct violence against those who are supposed to be their allies.

Always we're saying, terrible news for all the families involved in yesterday's incident. This has been going on for some time and it has hit really has all the ranks from enlisted out in the field who have fallen to this kind of attack all the way to General Greene.

BERMAN: Barbara Starr, thanks to you for that. It is so sad for the family and a big blow as the U.S. tries to change the scope of its involvement in Afghanistan.

Quarter past the hour right now. Still ahead, trading weapons for words. Will the talks going on @THISHOUR in Cairo keep the current cease-fire going, and maybe even turn into something more permanent? We will speak to an experienced peace maker, a former ambassador, a former cabinet secretary, about what exactly is going on inside that room.

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BERMAN: @THISHOUR, crucial meetings under way in Cairo, as representatives of both sides of this Israeli/Palestinian conflict try to find common ground and perhaps a more lasting peace. The current truce still holding, technically, set to expire on Friday. Egyptian officials serving as the peace brokers and intermediaries in Cairo, they would like to extend the cease-fire into the weekend.

PEREIRA: The U.S., meanwhile, is sending a team to help monitor those talks but only in a supporting role.

I want to bring in our Reza Sayah. He is in Cairo. Really good to have you with us. We have been watching this situation, as I know you have Reza. Give us an idea of what the status of these talks is right now. They began a short time ago, I understand.

REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: At least a portion of the talks have started, Michaela, but it's been very challenging to figure out how these talks are progressing and taking shape. Because, remember, this is not your usual sit down face-to-face dialogue. These are indirect talks. They're complicated. Even though these two sides have agreed to stop fighting, there are growing indications that they're not on the same page with how they should move forward.

So let's explain to you what we know at this hour. According to Egyptian government officials, both delegations are here, the Israelis and the Palestinians. A Palestinian official telling CNN that they are meeting at this hour with Egyptian intelligence officials. There are some reports that the Israelis are meeting with the Egyptians as well, although we haven't been able to confirm that yet.

Here's where things get a little murky and you start seeing the mistrust that's really fueled this conflict. A Palestinian official telling CNN that he's not convinced that the Israeli delegation in Cairo is authorized to talk about the core demands of Hamas, in other words, to talk about a permanent truce, which is something that Hamas wants in these negotiations. And then we have this statement from a senior Egyptian official who is telling us these talks are an experimental discussion in order to consolidate the cease-fire.

Now, this is a statement that suggests that these two sides, along with Egyptians, are still talking about the framework of the current cease-fire and talks of a permanent truce is still a long ways off. So a lot to sort through. Some important hours coming up tonight and tomorrow, and we'll see where things go Michaela.

PEREIRA: Certainly an indication of the fragility and also the diplomacy required and the many steps. Like you said, it does not happen immediately in one sitdown. Reza, great reporting for us from Cairo. Thank you so much.

BERMAN: At least they are communicating, they are not shooting. So it is the first step.

PEREIRA: It is a start, absolutely.

BERMAN: It's the first step in what could be a longer process. We have got a man who has been in the room for these types of situations. Former U.S. ambassador to the United Nations, among many other jobs, Bill Richardson on the phone with us right now.

Ambassador, we've learned that the state department is sending a team to help monitor these talks in a supporting role. I wonder what that means, the U.S. is supporting these talks right now. In a supporting role, what can they do there on the ground to actually move them forward?

BILL RICHARDSON, FORMER UNITED STATES AMBASSADOR TO THE UNITED NATIONS: Well, I think the U.S. role here is still essential. We're still brokers in the Middle East peace process. We're strong with Israel. We have leverage and strength with Abbas, obviously not with Hamas. We're still the leaders of the quartet, Britain, France, other mediators. So our presence, I believe, is important.

But the key role is Egypt. Egypt has emerged as the brokers trying to bring the two sides together. I imagine at the beginning of the negotiations both sides are putting out their strongest demands, but the fact that the mediation by Egypt is taking place, even though they're not meeting directly, is a good sign. I predict that there will be an extension of the deadline 72 hours. They're not going to reach an agreement right away, but at least there's a lessening of tensions. Whether there will be a lasting peace, I have my doubts. But at least the fighting has stopped temporarily.

PEREIRA: I think there's a lot of us with caution optimism but somewhat skeptical, if you can be both at the same time. Ambassador, I'm curious, as John was alluding to, you have been in these kind of conversations and in these kinds of negotiations. I'm really curious, given the absolute distrust that these parties have for one another, profound, historic, fundamental, what is that conversation even like when you sit in that room?

RICHARDSON: Well, it's very heated. It's very tense as I said at the beginning. What the Palestinians are going to want obviously is a lasting truce. They're going to want the end of the blockade between Israel and Egypt of the Gaza, which gives Egypt leverage as the negotiator. What Israel wants is Hamas not to rearm again, that's not going to happen, to reign in its military wing. That's probably not going to happen.

But what I think Egypt will push for is a mediating role by Abbas, the Palestinian moderates. Maybe they will be the ones that can monitor a potential fragile cease-fire and then find a way -- I think the key may be to fund, an internationally funded -- and maybe that's why the U.S. is there, a reconstruction effort of the coastal strip of Gaza's power plants, of their entire infrastructure that literally is collapsed. They have 260,000 refugees. I think Israel is going to demand and want -- I think they've destroyed most of the tunnels. They're going to want no reconstruction of those tunnels. That want those rockets. They've destroyed about 3,000. The remaining rockets that Hamas launches to stop.

There's a lot of issues to discuss, but I see a ray of hope with Abbas, the Palestinian moderates, the Egyptians pushing towards that moderating role, anchored by the United States and the European Union and the U.N. to play a role in the reconstruction of the area.

BERMAN: A lot of pressure on the Egyptians right now. This will take a deft touch. Ambassador, Governor, Secretary Bill Richardson, thanks so much for being with us. Really appreciate your time.

PEREIRA: We talk about those two sides but I also wonder, the other players in this, the other countries in the Middle East what they need to come to the table with as well to provide assurance to both sides.

BERMAN: They've been hands off lately a lot of the other countries right now. Egypt has the only skin in the game directly at this point. We will see how far they push.

PEREIRA: All right , we're going to turn to another story ahead after this break. Two Americans are being treated, as we know, for Ebola in the U.S. Meanwhile, the virus is spreading out of control, you could say, in West Africa. CNN is going to take you to the epicenter of the crises. We're going to take a look at the so-called hot zone next. (COMMERCIAL BREAK)