Transcripts For CSPAN Atlanta Press Club - U.S. Secret Servi

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 place, basically, is that we want to be relentless in pursuing them. They are having a substantial impact on our Atlanta Press<\/a> 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<\/a> 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<\/a> 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<\/a> 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<\/a>, 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<\/a> 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<\/a> chose the aggies. He is a genuine American Hero<\/a> who does not even want people to talk about his record. Alles was very highly decorated as a Fighter Pilot<\/a>, 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<\/a> 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<\/a> 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<\/a> partners. I want to talk to you about cyber. As it particularly impacts the Financial Sector<\/a> of the United States<\/a>. 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<\/a> sets. I will talk about the cyber area today. I will talk about the impact of cyber overall and the Financial Sector<\/a>. 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<\/a> 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<\/a> 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<\/a> 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<\/a> 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<\/a> 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<\/a> 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<\/a> dedicated to training state and local Law Enforcement<\/a> 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<\/a> officers and it is based on cyber investigative strategy that relies on partnering with academia, private industry, Law Enforcement<\/a>, 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<\/a> the secret service enjoys with the Law Enforcement<\/a> in georgia. I met the head of dbi, the atlanta leased department, the Georgia State<\/a> 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<\/a> 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<\/a> depend andechnology, convenience, efficiency. This exposes Financial Systems<\/a> threats. Ational cyber examples are network intrusions, malware to obtain Payment Information<\/a> 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<\/a> 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<\/a> platforms. We have a Transnational Corporation<\/a> 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<\/a> 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<\/a> 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<\/a>. 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<\/a> currency. Most are held outside the United States<\/a>. 10 countries use the u. S. Dollar as their official currency. This creates substantial Cyber Security<\/a> 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<\/a>. 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<\/a> 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<\/a> right now who are awaiting extradition to the United States<\/a> because they committed cyber crimes. This network, russian speakers in this case, is reaching the Global Information<\/a> 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<\/a> and being informants to us or potentially being convicted and held in prison. Our place, basically, is that we want to be relentless in pursuing them. They are having a substantial impact on our Financial Systems<\/a> and we want to do the best job we can to ensure this does not continue. We worked closely with a number of organizations. We normally work with them so we can develop information to get prosecutions and convictions. It is a very important area to us. Let me talk for a few minutes about digital currencies. This would be things like bitcoin,heory am opportunities for criminals to participate in criminal activity. They are used in Money Laundering<\/a>. There is a growing challenge posed by crypto ransomware. They disrupt financial Payment Systems<\/a>. These are significant areas that we are trying to work in. Have let me give you two examples. We have invested in apprehending currencies. S of two the first is called liberty reserve. It was the largest Money Laundering<\/a> case ever prosecuted billion. S. With over 6 of proceeds. The secret service is working actively with partners at treasury and across Law Enforcement<\/a> to combat the use of crypto currencies. They are very clever in using these clip these crypto currencies and also these business email hacks. One cant one company was initial use their Public Offering<\/a> of stocks with a crypto currency. I believe they were using ethereum, but i could be mistaken. The ceo had his email hacked and the hacker sent the ipo out. A half 1 million went right in. Accountas it got to the a different a theory of account he moved it over to a place it is hard for us to interact. We got some of the money back with a seizure warrant but part of it was lost. It shows how clever they are. Very clever on their part, very devious, and we have in this case, we havent identify the perpetrator but we did get some of the money back. Let me talk now about some current and future challenges. I would say that the subject of encryption is a matter for Law Enforcement<\/a> that we are facing continuously as we go forward with technology. There should be no doubt about the negative impacts certain implications of certain implementations of encryption can have. According to the House Homeland Security<\/a> Committee Staff<\/a> report , it has going dark brought value to the marketplace and devices with end to end encryption has prevented has presented Law Enforcement<\/a> with different challenges. It has allowed criminals to conceal their activities. We all understand that members of the public have a reasonable expectation of privacy as guaranteed under the constitution. You can imagine, if we did not have encryption, how would you do your financial work . If you wanted to send your credit card information over a nonsecure internet line banks going to other banks for transfer. We are big supporters of encryption overall. We are concerned about the increasing use of pervasive encryption that impacts our ability to investigate crime and identify and aid victims. The lawmpede enforcements ability to conduct timely and thorough investigations. Another quote here from the new york countys district attorneys office. He says Smartphone Encryption<\/a> keeps digital evidence beyond the reach of Law Enforcement<\/a> agencies with valid search warrants, making it more difficult to provide justice for victims. It was recently stated that our a system where evidence of criminal wrongdoing was impervious to detection, especially when a warrant is obtained. Mostr investigation, the transnational cyber criminals have been dark for a substantial period of time. To say that Digital Sources<\/a> of evidence are no longer available and that we now depend more on human sources to penetrate the networks. In fiscal year 2017, encryption examscountered in 46 of conducted by the secret service. Saidbi director recently to gain access to more than 7000 devices. He said, being able to access nearly not being able to access more than 7000 devices is a major issue. Are noton that, we interested in millions of devices owned by citizens. We are interested in devices used to plan terrorist or other criminal activities. We are not talking about Law Enforcement<\/a> getting your phone because we feel like. We have a valid warrant from a court to access your device. The secret service side, mobile phone encryption is especially problematic. In 2010, we examined more than 2000 mobile phones. To2017, the number dropped 500. If you think about the explosion of smartphones in that time, percentagewise, that is a huge change for us. While we recognize mobile device encryption is designed to protect the privacy of users, it also puts users at risk by hindering ron by hindering Law Enforcement<\/a>. A lot of this information is tored and not being able unlock them definitely impacts our ability to introduce the information into evidence. The increasing use of encryption is detrimental to our ability at the National Center<\/a> of missing and exploited children. In 2017, 21 computer forensic exams focused on child exploitation. Our state and local Law Enforcement<\/a> partners reported that there was encryption in 360 of their exams. What are possible solutions . At this time, there has been no viable legislation to really address the challenge. Groups are highly organized on this subject. It is, in a sense, bipartisan. There is opposition both on the republican and democratic side, and also support on the republican and democratic sides. It is an area of concern for Law Enforcement<\/a>. We will continue to work with all partners to find ways to adapt investigations using communications technology, including the use of encryption. We are determined to work under authorized court warrants. We will work with congress, the department of justice, and our friends at state and local Law Enforcement<\/a> to make this more of a reality. We will continue to work with companies and the Technology Industry<\/a> to help them understand the way their products and services are being misused by criminals. Addressing this issue is of paramount importance to us. If you talk to the officers around the room involved in these areas, they will relate to you the significance of it. If we work stepbystep, we can protect the privacy of citizens at the same time we can allow Law Enforcement<\/a> to do their work and ensure that criminals committing crimes are convicted and put in jail, where they receive their due punishment also through due process. Im going to pause and move on to questions. Before i do that, im going to thank you for the opportunity to speak with you. As you can see, this cyber area is upon us. The criminals that work in this area are very clever in their schemes. The jackpotting one is a good example of that. Focusing on the security of the banking sector, for the secret service, is critical. Ill just point out that is why the service was created. The founding of it was right after the civil war. It was one of lincolns last acts to authorize a service that would work against counterfeiting, which was prolific. About 40 of notes in circulation were counterfeit. They were substantially impacting our Financial Sector<\/a>. It is a different realm now in cyber but still very important overall. Let me pause there and take questions. [applause] cspan, an opportunity to get to you, will you please come to where the mikes to where the mics are . How does it feel to be the first outsider to head the United States<\/a> secret service . Randolph good question. I think it is a tremendous organization. Im very impressed by the quality of the people in the organization. We have a number of former agents in the room here. They can speak to that also. The men and women who make up the secret service are of an exceptional quality. It is just a tremendous honor to be there. On the director of the Georgia Bureau<\/a> of investigations. I wanted to publicly thank the secret service to the support inen to the state of georgia our child sex trafficking and child pornography investigations. We would not have the successes that we had without the secret service. Cyber investigation Training Center<\/a> in alabama is a critical training state and local Law Enforcement<\/a> officers on how to conduct cyber investigations. Theres a waiting list for investigators to attend this course. Expand they plans to capabilities of that center . Alles randolph quick answer, yes. We have requested, through the department of Homeland Security<\/a> and office of management and the budget to increase the overall secret Service Budget<\/a> by about 470 million per year. Part of that is to bring the National Computer<\/a> Forensics Institute<\/a> up to full capacity. Right now, it is at about 33 capacity. There are plenty of facilities in alabama to train folks. We can probably about triple the current work. 10 million per year into it now. We would like to wrap that up to about 25 million, 30 million per year. Our intent is to start doing that in 2019, 2020, 2021. Without that, a lot of Law Enforcement<\/a> agencies are left without any capacity to work in the cyber area. They cant get information off devices and cant introduce it into evidence without some sort of expertise. Room. Have bankers in the what do the local bankers do to make sure they are taking advantage of the resources you are describing . Is focused on Law Enforcement<\/a>. Working with our local cybercrime taskforces would be the way to go. Theres one in atlanta. Thats how we got the information out of the jackpotting. We discovered, as soon as we posted that information, that there was more going on than we expected. Crime, cybercrime. I would access them right there. We have a very robust staff in washington, d. C. To our localht in Electronic Crimes Task<\/a>forces. Im president of a local company here in atlanta. We are deftly cnn increase in bot definitely seeing an increase in bot technology. Private enterprises that join with your organization and follow these folks. Randolph the best place to hook and is with our Electronic Crimes Task<\/a> force. We are seeing more of those roam thehat basically internet looking for open devices they can access. We had a camera hack at one of the municipalities where they lost control of their cameras. That was a botnet. Will tell the ectf you to make sure your software is updated, make sure the patches are on your devices. For the more technical parts, is where i would go. The field office of the greater atlanta area. [indiscernible] [laughter] we didnt talk yet about president ial protection. You have perhaps the largest offices in new york and in florida, and almost the ,argest set of protectees people who in the past were not protected by the secret service. Enormous stress to the system. The super bowl, the College Championship<\/a> here. E us some sense of what it of what that is all about. Randolph one thing i should clarify is, the statutes that direct protection of the president and his family are unchanged. Theres nothing new. Any president who would be elected with that large of an immediate family would receive protection by law. The fact that the trump family is larger, there is obviously more stress on the service, but that has been the law for years. It has put a stress in the service. We are attempting to grow the service from our current size at 6000 two upwards of 8000, 9000 officers and agents. More so we can do investigative work in the field. This stuff i talking about is very complex. You need very highly skilled agents to work in these areas. To have more of them available in the field to support our u. S. Attorneys so they can bring cases to trial is vital. The u. S. Attorneys are dependent on us and other Law Enforcement<\/a> agencies to bring cases to him so we can take it to court and possibly get a conviction. Tom if you want, if you could come over, because you are in the line of the cameras fire. President emeritus, morehouse college. Know, georgia has an isle of institutions what you are doing with the higher and sector what do you need from us . Randolph first off, advertise for us. We want to get out to all of these institutions. Im doing recruiting today, by the way. Locally, i look into the field office and make sure were getting out to your institutions. That is critical to us, to get out there and do recruiting. We do run a number of things consolidating hiring centers in different parts of the country. Its a great way for individuals to apply to the agency and work their way through the hiring process in a quick fashion. I think, tying into the local special agent, making sure we are getting onto your institutions, hitting them adequately. Director, you have the head of worldwide operations for cnn in the room. Tell us about the relationship with the agency today with the media. We tried to be proactive with the media overall. I think im impressed with what i see in the media in terms of the end the interaction we are having to get the story out overall. I dont really have any complaints about that. Tom not yet. Randolph theres always a negative story, right . Frank brown. For a young man like that, what does it take to get to your level . Tom what does it take for young man over here to get to your level . Does that mean to be a marine Fighter Pilot<\/a> . What does it take to get to that level of responsibility . Randolph first off is the basics, education. If you want to be in the secret service, to compete adequately, you have to have a college education. ,fter that, hard work consistency in your job performance, innovating and what you are doing, making sure that you take care of your people. Part of what i do obviously his leadership. A key part of that is how you look out for your organization and how you take care of those inside the organization. I dont know if there is a particular magic pathway to director of the secret service. This was unexpected for me. I was not planning on being the secret service director. Here i am. That is what appointments are like. I do think those basics are where you want to work from. Tom other questions . Where should i stand . Retired military and ceo of an ai company in atlanta. For the past 10 years, it has been a challenge achieving all of the successes that we have to counter the cyber threat, but we have had successes. If you were to look at stretch now, whatears from would you like to see take place in a Global Operating<\/a> system to where we can thwart this threat . Thats a hard question. I will have to say. From my standpoint, it is more capacity to investigate the crimes. I think, in the Financial Sector<\/a> itself, it is how we secure the Financial Sector<\/a>. Encryption is part of that, as you are aware. It is a plus and a minus. Ensuring diligence and training on the part of those operating their systems. A lot of the examples i gave you are people who are basically fooled. They are fooled by a simple email. They diebolds information that they shouldnt. This is one of the vulnerabilities. That information is used for nefarious activities against a company. The stretch goal for this is that, obviously, we have investigative capacity, more expertise in the cyber areas, and we have more expertise on the industry side in terms of preventing these kinds of intrusions into the system. A lot of them are maybe not as complicated as we think they are. They involve some basic breakdowns in the Information Systems<\/a> in some of these companies. Some of it is as simple as updating software or using software that is antiquated. In some systems, they are still , what we used in the 70s. It is still running some operating systems and they dont patch well. Ar companies, there has to be certain amount of money devoted to Information Technology<\/a> refreshment. It is not whether the computer stops working, it is whether you can run it with the latest security and patches. Criminals are very innovative. They are always constantly updating and finding new ways to get into our systems. , davelkinson wilkinson was one of the two agents on 9 11 with the president. One of the only aircraft in the sky was air force one but he told the president he could not return to washington from florida, told him he could not return from new orleans, and he told the president , who had ordered air force one to return, that he couldnt. He told the president , what did your mother tell you that you should do . President bush said, always listen to the United States<\/a> secret service. Formerlkerson is the agent in charge of atlanta, former agent in charge in austin, texas. He has done a tremendous job bringing Law Enforcement<\/a> together in many ways. My question is, how safe are our cities today from another 9 11 . Randolph another tough question. [laughter] i think safer than they have been. We expect the unexpected. Part of our challenges to think ahead about what potential threats might look like in those areas, the counterterrorism areas. We think about, in protecting the president , where we put him, where he is, and where he shouldnt be. A lot of that revolves around how we develop intelligence toward threats around the president. Threats against the presidency are pretty much consistent, about the same they have been for 10 years. People who think it is a matter of personality, its not. That, protecting cities, is thinking about the outrageous or the unexpected and how you can counter or work against it. When we think about what happened on 9 11, it was totally unexpected. Theres more of that mindset in Law Enforcement<\/a> and certainly the secret service as you think about protecting those who are in high levels of office. U. S. Before we break, the attorney for the Northern District<\/a> was sally yates. Many of you in the room know her. Many of you have not met the current u. S. Attorney for the district of georgia. [applause] i thank you for joining with us today to give you insight into the secret service. You should also know that the press club and the Commerce Club<\/a> they have invited christopher , to come fbi director back home, and he will try to balance off the success that the director of the secret service has had today. The director will be here a very few minutes before he asked to head back to washington. Thank you for coming today to what i think was a very important speech. [captions Copyright National<\/a> cable satellite corp. 2018] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. Visit ncicap. Org] members of the british journalist media were inhouse to talk about media and fake news. We will include cbs correspondent commentary. Every journalistic outfit, large or small, has tried to find a way to merge video, audio, and publishing together, to do it critically. To some of the earlier questions, i have been in this business since 1984. When i worked at a community newspaper, it was the Community Talking<\/a> to itself. Its values and sense of perspective. There was one choice in that theunity that was newspaper in local television. The choices are now all over the place. We exist in a world where are eating junk food. They dont think it is junk food. They think it is finished. What i was being fed was the junk food and what im actuallyd food. We have to knowledge that that separation from our journalistic organizations that was probably built on a foundation of having limited choices, ok, has gone away. We now have to compete over credibility and trust and that is an hour and out hourbyhour and day by day pursuit. You can see more of that hearing talking about the impact of fake news tomorrow night at 9 00 eastern here on cspan. At the white house this week, President Trump<\/a> and the first lady marked africanamerican History Month<\/a> with a recession that included u. S. Surgeon general jerome adams this is just over 15 minutes. Ladies and gentlemen, the president of the United States<\/a>, mr. Trump companied by the sergeant general dr. Gerald adams. [applause] President Trump<\/a> thank you very much, ladies and gentlemen. I really appreciate you being here, and its an honor for the first lady and i and a true ho","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia800108.us.archive.org\/12\/items\/CSPAN_20180218_053600_Atlanta_Press_Club_-_U.S._Secret_Service_Director\/CSPAN_20180218_053600_Atlanta_Press_Club_-_U.S._Secret_Service_Director.thumbs\/CSPAN_20180218_053600_Atlanta_Press_Club_-_U.S._Secret_Service_Director_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240630T12:35:10+00:00"}