Good morning morning. Welcome to squawk alley. Back at the desk on a monday morning. Governments and companies around the world working to contain the fallout from a global cyber attack that disrupted operations at factories, hospitals, and governments in 150 countries. C by the attack. Saying the attack should serve as a wakeup call for governments. Joining us this morning, aspen institutes isaacson. And now the chief Information Security officer at Cyber Security firm xtera. Good morning to you both. What was your first reaction upon hearing about this . It seemed like it was predictable. We saw in march with the publication of what were purported to be tools stolen from the nsa. It wasnt going to be long before cyber criminals took those tools. So were seeing something that is preventable but takes work to prevent. Its not enough to know about the threats that are out there. We have to do something about it. Did this have longer legs than you first expected . I didnt see that the impact would be this wide. And it shows the planning that went into this. This is an integrated multiphase attack. Its not just something someone threw out there. It was designed to maximize profits and impact. So were seeing something from a deliberate, organized, planning, strategic group. We have Health Inspectors for restaurants to make sure there are no rats crawling around. We knew this patch was out in march. Dop we need government regulators that check in at hospitals, Communications Providers and make sure theyve installed the patches that, say, microsoft has put out . I dont think thats workable. We have agencies already promulgating a number of burdensome rules that places need to follow. The problem is executing. Theres no way were going to have enough regulators to go around checking each of these systems. Its a matter of replace iing te strategies that we have now. In the past, we used to have Office Buildings with people inside and all of our infrastructure inside. It was easy to keep out the bad stuff. Now we have hybrid environments where we have data centers with part on premises. These infrastructures are harder to defend. We need a new way of thinking about it. There are some technologies out there that can be used. They need to be developed. They need to be deployed. And Enterprises Need to start thinking about a different approach like perimeter or some other approaches that we think are more effective. Were looking at some of the stock prices on the firms. Theyre soaring today. What stands out to you on this attack . What stands out to me is that were saying this over and over again week after week where there are hacks either by nonstate actors, criminal state actors. From sony to the russian hacks and the chinese hacks. And now this. What we have is a fundamentally insecure internet. And it didnt have to be that way and doesnt have to be that way. When the internet was created in the 1960s and then when tcpip protocols were created in the 70s, they were not designed to figure out where they were coming from. I think at a certain point when it gets to every week something thats undermining democracy costing huge sums of money, we need to find a way to say lets create a more secure base level architecture. People like jim clark who helped invent the first browsers created a secure socket layer. It tells the website what it is. If you could create and you could have a company that started creating more secure networks in a fundamental level, i think that would be the next big thing in huge stocks. Does that seem possible to you . Or is that the ultimate collection problem . Hes absolutely right. The fundamental flaws which authenticates after youve entered the network. There are technologies i mentioned Software Defined perimeter where you were authenticated. So we have the answers. Its a matter of deploying the answers to the enterprises. Its not easy to do, but it is possible. And its a matter of replacing some of the old architecture. If you think about it, the fire wall was introduced in 1994. Were in 2017. So trying to retool some of these old technologies to fit the new infrastructure is really the most expensive and difficult challenge out there. Some people are saying that this is an example of why government shouldnt stockpile these vulnerabilities because, you know, the nsa did it and then it got out. Maybe this is why we cant trust the federal government with ios source code which is one of the solutions the government was looking for to get into, say, a terrorist phone. Give us the source code to the iphone then we can figure out how to get into these things. What if that got out . Then everyone with an iphone would be vulnerable, right . Definitely. I think its very dangerous to have these source codes come out. But as youre saying, its a complex problem. We just watched on your network the north korean missile. Most of those have fizzled. Why . I suspect its because, you know, we were able to do Cyber Attacks on north korea. But youre right. I worry about the fact that the Government Holding the secret keys to everything, nothing stays secret this day and age. Good point. Right. So if this was stolen, leo, from the nsa which microsoft says it was, what else does the nsa have . How many types of things are there, these malwares . Its an extraordinarily troublesome concept to think the weapons made by the nsa can make it into the wild and attack infrastructure. This is something the nsa has to look at internally to address the potential Insider Threat in its own networks. But it hasnt been proven. However, the thought of it needs attention. I think we need congress to really take a look at it. One last question for you, walter. You walk in on a monday, see all these cyber stocks higher. The etf having its best day of the year. Whats your impression when you see that . Too little too late . Definitely too little too late. One thing, i was at a graduation this weekend with robert gates the former cia and defense director. He said we need internationally a new geneva convention, something microsoft said as well. In which we know how to deal with the question of nuclear proliferation. Not only perfect at a it but we have a General International agreement. We do not have that in the cyber realm. Nor do we know how to react in the cyber realm. Well said, walter. Hopefully we can get there in some way. Its good to have you two gentlemen together. Thank you. Thank you. Do want to check in on the markets. The nasdaq and the s p are both hitting record highs this morning. In fact, the s p is half a percent higher. Thats more than it lost last week. Starting to see these moves getting a little bit bigger. Helping drive the nasdaq higher, cisco upgraded to overweight seeing its best day since february. In fact, its Goldman Sachs and j j. Shares of tesla under pressure. Downgraded to overweight citing growing competition from Companies Like apple. Also one of the most noted bulls on tesla. When we return, in the wake of the cyber attack over the weekend, how social lending giant is keeping data safe. And tracking amazon 20 years since becoming a publicly traded company. Where jeff bezos might take it next. And the battle of a. I. When squawk continues in a moment. Finding time to get things done isnt easy. But weve got the Digital Tools to help. Now with xfinitys my account, you can figure things out easily, so you wont even have to call us. Change your wifi password to something you can actually remember, instantly. Add that premium channel, and watch the show everyones talking about, tonight. And the bill you need to pay . Do it in seconds. Because we should fit into your life, not the other way around. Go to xfinity. Com myaccount well, this weekends massive cyber attack has companies focusing on how they protect user data. Joining us now is Joanne Bradford the coo of sofi. Welcome. Nice to see you. Thank you. Good morning. Good morning. So as a company that does lending and wealth management, you have a ton of peoples sensitive financial data. How do you protect that in an age where were seeing attacks like this one today and this weekend . Yeah, well, we do a couple of products. We have student loan refinancing, personal loans, mortgages, and investment accounts. So we have lots of information. We monitor all the time. We have in place measures, extra authentication for consumers. And have not had any issues to date. So we hope we can keep it that way Going Forward. Generally the whole industry is built around more online lending and online finance. Is it more or less vulnerable than traditional banking . Well, we think that were less vulnerable because we actually have just one control point. The only place you come to sofi. Com is one place. We dont have branches which make it less points of vulnerability. But really for the consumer its more about speed and ease of use and getting things done quickly on your mobile device, et cetera. So we feel good that we have a point of entry for the consumer. I think you guys at sofi made it clear you dont want to be a bank. But you recently acquired zen banks which will give you the capability to offer checking, savings, more credit cardlike services. Where is that headed beyond the type of service you already offer . Yeah. Our goal is to make everything easy for consumers. Our consumers care about a couple of things. Their careers with their relationships, and their money. Your money is something you want to use every single day. So we will get to a place where we can take deposits. Were pursuing a couple different avenues right now. But eventually we will be able to take deposits. You need somewhere to put your paycheck and get your money from. Well have that eventually. Well be the first unbank bank. Yeah. Im curious what youre seeing in the Mortgage Business which is a sort of new area for you. And who your target audience is for that. Mortgage is 10 down and you can do everything online. Our consumers really like that. They find its easier to do it, they call it Customer Service folks. As well as mort ganls. And mostly ease of use, competitive rates. Services and benefits we offer. We know that your career is the financial engine of everything that you do and your salary drives it. Youre talking about the record highs in the dow. I dont know if the people in those companies have record salaries now, but were going to start to help them this week think about asking for raises because most people dont. When you get a raise, you can buy a better house or when you refi a house, you can put money towards doing something you want to do in your life. Yeah. Wage growth obviously something we keep our eye on closely. Joanne, a lot of people believe loan growth in general at any kind of from any kind of Financial Institution is beginning to roll over. That were in this late cycle economic stage, savings rate is bumping up a bit. Is that born out in your data . Well, you know, we created this refi several years back. You know, Student Loan Debt and refiing it is a big business for us. Personal loans have many use cases. Home improvement, credit card consolidation, all those thunin. Weve doubled our business. We had our record quarter last quarter which was Pretty Amazing for us. And so our Mortgage Business is on a tear. And our Investment Business is growing quickly. We do it differently. You dont have to go into a brampbl. You can come right online and get to it. We offer different benefits. We dont see an impediment to growth for a long time. Well be happy to take your loans from all those folks that want to make you go in and stand in line. Any update on the ipo plans . We have no update at this point in time. There is one thing that you guys do differently also is you have these mixers in new york, l. A. , and san francisco. You dont have branches, but you help your members meet each other and date. What is the purpose beyond behind that and what kind of a cost is that going to be Going Forward . So tomorrow night well be holding an event in new york city where well have 400 people talking about how to get a raise meeting each other, having drinks. What people really care about are networking, meeting people that are like them that have the same kind of career ambition. And were really focused on doing those all over the country. Its a pretty low cost expense. And what we get from it are large referrals, great word of mouth, and a real understanding of our customer set. Well do raise week in eight cities this week and teach people how the to get raises. Give them tips because most people. Net ask. Its the financial engine to your career. And about your career, relationships, and money. It all goes together. I dont think any Financial Institution really approaches it that way. Joanne, thank you for joining us to talk about the moves youre making. Joanne bradford is the coo of sofi. Thank you so much. Have a good day. Dows up 85. Lets get to seema mody for a flash. Zcitron research has taken a short position. Exact sciences. New Research Report says the stock will be cut in half saying it is pushing a cancer test that is inferior but its own admission and loses money doing it. We reached out to the company for a comment. Andrew left will be a guest on Halftime Report at noon eastern. Crude hovering right around 50 a barrel. The impact of opecs latest move next. And then taking on alexa. Apples latest bet on Artificial Intelligence. Squawk alley is back after this. Nd just by playing air guitar. The babys room wont build itself. And her paw wont heal on its own. Were allng forward to something. Synchrony financial can help your customers make it happen sooner. So she can plug into her dreams. And theyll have a new addition for their new addition. Whatever youre working forward to, even if its chasing squirrels, Synchrony Financial can help you get there. Apple acquiring Artificial Intelligence lattice. Io. They use technology to turn dark data like raw text and imannals into usable information. Apple says they do not discuss the purpose or plans. A lot of people wanted to read into this. Hard to do on the small deals. Its hard to do because this is at the intersection of so much of where technology is right now. Trying to take raw info from the real world whether in a camera from your car or in a picture of a map that apple or google flew over a city and turn that into something searchable that you can ask alexa or siri about. I think it also speaks to the broader trend we talk about every day. Which is the fight is on. Amazon, microsoft, siri, versus watson versus alphabet to build up their a. I. Teams as big as they can be. Theres still this fight for the consumer product. Amazon seems to be ahead for now. Clearly theirs works more at each company. Intel is investing more to understand for driverless car data and those sorts of things. How to get this data in the real world to the computer in a way that we can do something with it. When we come back, much more on that massive cyber attack. Cyber stocks are surging this morning in reaction. Plus it has certainly been a wild ride. Amazon marking 20 years as a publicly traded company. Whats in store for bezos and company next . I love how usaa gives me the peace of mind and the security just like the marines did. At one point, i did change to a Different Company with car insurance, and i was not happy with the Customer Service. We have switched back over and we feel like were back home now. The process through usaa is so effortless, that you feel like youre a part of the family. I love that i can pass the membership to my children, and that they can be protected. Were the williams family, and were usaa members for life. Call usaa today to talk about your insurance needs. Good morning once again, everybody. Im sue herrera. Heres your cnbc news update at this hour. Venezuelas opposition is blocking the main streets of caracas and other cities in protest against the government of president maduro. At least 38 people have been killed during the unrest. Frances newly announced Prime MinisterEduardo Philippe has moved into his new offices meeting with his previous occupant. Earlier marcone appointed to bring in new faces. A conservative candidate dropped out of irans president ial election to back a hardliner narrowing the field of those hoping to outseat rouhani. And we end on a sad note. Former chairman and ceo of viacoms Paramount Pictures brad grey died of cancer last night in his home in california. He was a top deputy and confidant of sumner redstone. He was 59 years old. Thats the news update this hour. Back downtown to squawk alley. Carl, back to you. All right. Sue, thank you very much. Cyber stocks as you probably know by now surging in the wake attack. New targets are being reported today in korea, japan, and taiwan. More than 200,000 computers already impacted across at least 150 countries. Big concern here has been that these numbers would only increase as people return to work today and new variance of this malware comes online. Take a look at fireeye, syman c symantec. Others include fedex and renault. Cyber Security Firm avas says the ransom note looks like this. Oops your important files are encrypted. You will not be able to access them anymore until decrypted. It used in old versions of microsoft as an offensive cyber weapon. Chief legal officer saying this attack provides yet another example of why the stockpiling of vulnerabilities by governments is such a problem. Russias Vladimir Putin also weighing in. Pinning the blame on the u. S. For this attack. Saying to the media in beijing, malware created by intelligence agencies can backfire on its creators. Guys, back to you. All righ