Service operations. This is just under one hour. Secretary good afternoon. Is tom johnson. I am proud to say that i am a cofounder of what we think is the new Atlanta Press club. Today it is the secondlargest press club in the usa, second only to the national is club and it is the number one press club and america. This is a joint meeting of the leaders. , myself ands ago another thought it would be a good idea to have dinner with the Atlantic Community to bring them into this and have speakers that would tell the message we thought was important to this community as well as the nation. Weve had speakers like general generals like petraeus. Absolutely nobody on the stuff in 1965. No political connections. Not a part of the president ial family even though my last name it is johnson. [laughter] mr. Johnson the agent in charge of president johnsons protection at the time was a man named Rufus Youngblood from my hometown. We became good friends. It was rufus who hurled president johnson to the floor board of a limousine and dallas and placed his own body on top of lbj after the shots, including the fatal shots were kennedy onsident that fateful day in 1963 in that president ial motorcade. My friendship was rufus with rufus was the beginning of a 53year association with united dates secret service. To the best of my knowledge, i have never asked the secret service to do anything for me but i want you to know i developed an enormous respect for this organization. After the kennedy assassination, rufus and another agent replaced president kennedys detail on president ial protection. Along with the thensecret service director, after home a major secret service is a liddy is named, those two agents and director riley successfully pulled off a strong effort by thenfbi director J Edgar Hoover to have the fbi takeover president ial protection after the dallas assassination. Much to mr. Hoovers disappointment, president johnson did not transfer president ial protection or any other elements of the secret service to the fbi. I have often felt that without that decision and respect president johnson had for his agents and agency a gotten to know quite well, there might not be the secret service of today. There is absolutely no organization for which have more respect or admiration than the women and men of the secret service. And i emphasize the women and men because in earlier years there were no women as agents. But i have seen them stand at their post in a storms, rain, sleet, freezing weather. I have seen them splattered with red paint by protesters as they walked alongside the president ial limousine. I have seen them deal with abusive white house staff and president s and abusive reporters and media. Nothing that i guess, and one way or the other, that they have not explored. I once i heavily armored president ial limousine crush the bones of an agents foot. Overtime are not paid were not paid the weight they are today. They work on thanksgiving and other holidays where most of our government officials and employees are home with their families, except for our armed services. I watched one take a bullet as at ronaldley fired reagan. One of those bullets ricocheted and hit president reagan. Those are not the only times that of men and women of the secret service have placed themselves in the line of fire to protect the president. You might think about last year when multiple president ial candidates, 17 i think at one point, they protected the pope as they toured, they protected countless others. Multiple foreign trips for the president. Nd vice the protective challenges of a new president , president , President Trump, has a large, extended family. Protection of both of the president s homes in texas, new york as well as florida and continuing investigation duties. During 2016, i was asked by the former director and Deputy Director to assist on major projects. I did so. Total privacy, total anonymity. It gave me an opportunity to go back and work with the then leadership. One of the outcomes of that in addition to some important reorganization was a search we the from outside and inside government, inside the cia, fbi, the onlyighted person who got a 10 across the is here. All categories just stand up. And say hello. [applause] the dismay of the university of texas longhorns, President Trump chose the aggies. He is a genuine American Hero who does not even want people to talk about his record. Alles was very highly decorated as a Fighter Pilot, major general, one of those very rare top guns. As directory served of the u. S. Border agency and has been in many other leadership positions. His number one job was protecting americas borders then. It has continued to be quite a task. He was in the marines 35 years. Down. s degree from and naval war college. He is every award you can imagine. I am honored he accepted what i think is his first Major Community event of its type and that is here in atlanta. Ladies and gentlemen, director randolph alles. [applause]. Director alles colon thank you so much. It is an honor to be her. I want to recognize the leaders from the atlanta area and this room. I also want to thank our Law Enforcement partners who are critical to what the secret service does. Ours an important part of mission set. It is an honor to address you all and a privilege to work with each one of you. Particularly with our Law Enforcement partners. I want to talk to you about cyber. As it particularly impacts the Financial Sector of the United States. I am sure that is of interest to you all. It is one of the mission of the secret service. By statute, we are obligated to protect the president and other designees. We are responsible for financial crimes, counterfeiting, and supporting state and local agencies in terms of child exploitation. Those are our primary Statutory Mission sets. I will talk about the cyber area today. I will talk about the impact of cyber overall and the Financial Sector. I have my wallet back here. It has some cash in it, all right . It does not have nearly the amount of money i have, it is all electronic right . It is no longer a cash economy, per se. It is all electronic. So criminals worked their way into the Electronic System and manipulate it. This is a big concern as we see in our investigative areas. Counterfeiting is still an area of concern, especially for Small Business owners. It is a big deal to lose cash to them. But the biggest concern is in the cyber area. I will talk about the National Computer for in six institute. I will talk about our partnerships. Potting. Lk about jack future challenges. I am not going to address protective operations. Questions i am happy to answer those, but i am not going to devote any time to it in my presentation. As we all know, modern technology has substantially lawged the work of enforcement. The secret service was forced to adapt to this in the 1970s as Payment Systems began to digitize and the environment changed. Paycheckrine corps, my then itinally paper and was mandated electronic. The environment has changed. The evidence and criminal investigations is changed because it is scattered across jurisdictions and maybe across a number of technology providers. Microsoft, t, facebook, they might have some data. Evidence might be found in a wide range of visual devices. Android, laptop. Area. A wide it brings a challenge for investigations. Using cyberspace more to collaborate with each other, to form transnational organizations, to organize criminal schemes, to reach victims around the world while maintaining anonymity. They traffic and illicit information globally and illicit information globally. It is something they are doing across cyber. These investigations require Law Enforcement investigators to be knowledgeable of computer ran six, digital investigations. We need to identify these bad actors. The secret service, to address this issue and 2008 started a National Computer for in six institute. I am pleased to report an 2017 that institute was authorized by congress and recognize. It is the nations only federally funded Training Center dedicated to training state and local Law Enforcement and prosecutors and judges and ,urrent cyber crime trends digital evidence, investigative methods, and prosecutorial challenges. Im number of small municipalities throughout the country would have no capacity to work here. They get a five or six week of course of instruction with us withe provide them computers to do investigations. A lot of criminal investigation is now spread across different domains and devices. It is important to criminal investigators and prosecutors and judges know how to work with this information. It is not a coming trend, it is here today. We have provided training for 328 prosecutors, 628 Law Enforcement officers and it is based on cyber investigative strategy that relies on partnering with academia, private industry, Law Enforcement, and the legal community. In partnerships are typical combating cybercrime. A few weeks ago, the atlanta task force hosted a tabletop exercise with 80 partners locally. The purpose was to promote awareness and understanding of how a cyber incident could impact businesses. I will give you examples later. Theing in this regime, cyber area, they are very clever and how they exercise their criminal schemes. Preparedness is important. Sharing. On on the subject of partnerships i would like to knowledge the Extraordinary Partnership the secret service enjoys with the Law Enforcement in georgia. I met the head of dbi, the atlanta leased department, the Georgia State patrol, the georgia fire department. These are out critical to us. One thing the service tries to do is recruit partnerships and local communities. We need those partnerships when we have to be protective operations. Also, it is a collaboration between us and local communities on how we can best knockdown these criminal enterprises. It is very important to us overall and i thank you that we have a strong relationship here in atlanta and also in georgia. As an example, the recent visit to the College Football championship demonstrated how critical the partnerships are. Without those partnerships we could not operate in these areas. We do not have enough people to secure a venue against the threats that are commonly the president. T i would like to knowledge the tremendous work we have in the community in particular to those locally. Thank you very much for your cooperation and your outstanding work. Let me move on to current trending. Modern Financial Systems depend andechnology, convenience, efficiency. This exposes Financial Systems threats. Ational cyber examples are network intrusions, malware to obtain Payment Information and pointofsale systems like macys or department stores. Using ransomware to hold information. Somebody uploads ransomware on your computer and you can no longer access your files. They ask you to pay a fee. Your blackmail to access data. We have business immunocompromised schemes. Andinals take over systems do fraudulent transfers to domestic or foreign bank accounts. They hack a ceos email address and use it to solicit Payment Information and use that with account managers to transfer money to overseas or domestic accounts and quickly move it out of the mystic accounts and out of the domestic accounts and do bitcoins or others hard to trace. They are using those and other Money Laundering platforms. We have a Transnational Corporation who is conducting a operation. That causes funding. To dispense they unlock it with a common key and that allows them access to the computer in the atm machine itself. With that access, they cannot get into the cash dispenser. They actually load malware onto the machine and they booted backup and relieved. Ok . If you come to use the machine is a standard citizen and put your card and it will say it is out of service. Once that is done, the cash mule shows up with a bad at the preappointed time and communicates with the folks running the malware and they command the machine to download the entire contents of the dispenser into his back. Depending upon how much money is in the machine, it can run from 10,000 up to millions of dollars depending upon where the machine is located. They have systems in places like 7eleven and places like that, not the bank atms. Some driveins and places like that. It is a clever scheme. Once the cash is uploaded, the cash real leaves, comes back later, reconnect to the internet and all the bank knows is the machine is out of money and when they go to access it they discover they have been robbed. Very clever how they do that. Were put a bulleted out about that. Andas overseas in europe south america, mexico. We had not seen it here until recently. They can get a lot of money out of the machine in a hurry. 40 billsads about every 20 seconds or Something Like that. It cap some out pretty fast. So if you see anybody standing by a machine with a bag and their hand i would point out they are not there using their atm card, write . Even though it downloads 40 and 20 seconds, it could take them an hour or so for some of the larger machines of it has a lot of cash. We are working with the banks and local Law Enforcement to knock that down. Casesnd example is some involve multiple of the elements i described earlier. I talked about malware, ransomware, network intrusion. A famous cyber criminal was convicted in seattle for his role in a hacking scheme that millions in losses. He received a 27year sentence. His convict within atlanta and las vegas. We located him and on his laptop he had more than 1. 7 million stolen credit cards. There are places you can go to obtain these stolen credit card numbers. You cant as an average citizen by the point is, there is a lot of information out there that is stolen in available to criminals if they know where to get it and want to pay money for it. In this case, 1. 7 mine carts and he is spending a long time in prison. Cards and he is spending a lot of time in prison as a result. Trends are related to major data breaches showing there is increasing sophistication and to increasing financial impact. We see more countries participating. Ago, we did not think of her veranda or north korea as a cyber player but we see them iran or north korea as a cyber player but we see them increasingly now. Lets talk about u. S. Financial Payment Systems. To understand the gravity, you have to understand the importance of the u. S. Dollar worldwide. The u. S. Dollar is still the worlds foremost reserve current scene. I know the chinese have made progress but still the u. S. Dollar is the foremost World Reserve currency. Most are held outside the United States. 10 countries use the u. S. Dollar as their official currency. This creates substantial Cyber Security risks. The industry estimates hundreds of billions of dollars of cyberional losses from activity. Lets think about criminal threats as a risk to financial and Payment Systems. Financial systems are common target for both domestic and transnational terminals. Trimbles use a number of different organizations to attack systems. Some may have a core group in the city. Some might have a globally dispersed a globally dispersed network where they may be able to collect connect online virtually. Core members are usually very usually located in a country where there is a high degree of corruption. Threat toignificant our nations Payment System is transnational cybercrime networks that emerged in the former soviet union space in eastern europe. This is where i see a large amount of our activity coming out of these areas, where they operate remotely to orchestrate these cyber crimes, and we cant get to them because they are overseas. These are countries that we do not enjoy extradition treaties with. Once we have the sufficient information on them, we attempt to access them if they travel. We have a number of folks who we are sitting on in Different Countries right now who are awaiting extradition to the United States because they committed cyber crimes. This network, russian speakers in this case, is reaching the Global Information system. They steal billions of dollars from the u. S. Organizations, they manipulate equity markets, they build and employ their own cyber attack capabilities. We consider them to be our top priority in this sector of cybercrime. Let me pause for a second. As i look at our agents, we have accomplished a number of extraditions that have resulted in hundreds of millions of dollars of losses being prevented in u. S. Businesses. Is successful in these cases, foreign governments interfere with extradition agreements. With a number of the countries with which we have extradition awaiting the russian government has actually come in and try to pull their citizen back into russia even though we have an extradition awaiting on that individual. Far as to sayo they are accused of a crime in russia, but they were cute but they are interested in these cyber criminals not being lost to the United States and being informants to us or potentially being convicted and held in prison. Our p