History of the secret service. The Atlanta Press club posted this earlier this month. Good afternoon. Name is tom johnson. I am proud to say that i am a cofounder of what we think is the new Atlanta Press club. It is second only to the National Press club. In quality it is the number one press club in america. This is a joint meeting read several years ago pete and i peak was then, i guess at that time he was chairman of the board for the Woodruff Foundation and later the Commerce Club we thought it would be a real good thing to bring together the strengths of the atlanta media and the atlanta Business Community into this, and particularly at time to time to have speakers with a message that we felt was important to this community, as well as to the nation. We have had speakers like general betray us general petreaus. We can go down the list. I knew absolutely no one on Lyndon Johnsons staff in 65. I had no political connections. I was not part of the president ial family, even though my last name in fact is johnson. [applause] [laughter] but fortunately for me the agent in charge of president johnsons protection was a man named rufus hometown ofrom my decatur. Who her old s literally hurled Vice President johnson to the floorboard of a limousine in dallas and placed his own body on top of lbj after the fatal shots were fired at president novembern that fateful 22, 1963 in the president ial motorcade. Secrete never asked the service to do anything for me, but i have enormous respect for this organization. After the kennedy assassination, rufus and another agent replace president kennedys detail four president ial protection. Along with the then secret rowley,director james those two agents and the successfully pulled off an 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 his agents and the agency had 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 abusive president s and abusive reporters and media. There is almost 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. Many hours of 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 John Hinckley fired at ronald 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 and Vice President. The protective challenges of a new president , president , President Trump, has a large, extended family. Protection of both of the present pro homes in new york as well as florida, as well as continuing their investigative 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 thenleadership. One of the outcomes of that in addition to some important reorganization was a search we made from outside and inside the government, inside the cia, fbi, and i am delighted the only person who got a 10 across the board in all categories is here. Just stand up. And say hello. [applause] much to 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. And, director alles was very highly decorated as a Fighter Pilot, major general, one of those very rare top guns. He fearlessly served as director 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. Masters degree from and down. 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 thanks so much, tom. It is an honor to be here. 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. It is an important part of our 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. I will talk about jack potting. Future challenges. I am not going to address protective operations. If you have 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 changed the work of Law Enforcement. The secret service was forced to adapt to this in the 1970s as Payment Systems began to digitize and the environment changed. In the marine corps, my paycheck was originally paper and then it 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. Verizon, at t, microsoft, facebook, they might have some data. Evidence might be found in a wide range of visual devices. Android, laptop. Across a wide area. It brings a challenge for investigations. Criminals are 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 current 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 and we provide them with 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. The partnerships are typical in 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. Working in this regime, the cyber area, they are very clever and how they exercise their criminal schemes. Preparedness is important. Information sharing. 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 conveyed against the president. 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 on technology, convenience, and efficiency. This exposes Financial Systems to transnational cyber threats. Examples are network intrusions, malware to obtain Payment Information and pointofsale systems like macys or department stores. Using ransomware to hold personal information. Somebody uploads ransomware on your computer and you can no longer access your files. They ask you to pay a fee. It is blackmail to access your data. We have business immunocompromised schemes. Criminals take over systems and 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 jackpotting operation. It is a form of that causes the atms to dispense funding. 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. It was overseas in europe and 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. It downloads about 40 bills 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. A second example is some cases 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 caused 3700 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. 1. 7 million cards and he is spending a lot of time in prison as a result. The trends are related to major data breaches showing there is increasing sophistication and to increasing financial impact. We see more countries participating. Years 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 attentional losses from cyber 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 network that has never met in person but are able a globally dispersed network where they may be able to connect online virtually. Core members are usually located in a country where there is a high degree of corruption. The most significant threat to 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