Transcripts For CSPAN2 Key Capitol Hill Hearings 20160504 :

CSPAN2 Key Capitol Hill Hearings May 4, 2016

From the Houston Institute in washington starting at 12 15 p. M. Eastern. Recently our campaign 2016 made a visit to pennsylvania during the primary stop in a growth city college, slippery rock, university, washington Washington College and Jefferson College where students, professors and local officials officials learned about our resources covering the campaign trail. Visitors were able to share their thoughts about the upcoming election. Are best ended the week in warrington, pennsylvania where this it a middle school. A special thanks to our cable partners, comcast and armstrong cable for their help and coordinating the community visits. You can view that when he documentaries at cam. Org. Coming up next on cspan 2, a conversation on smart homes, homes that have lighting, heating and appliances controlled remotely by phone or computer. We will hear about the benefits of smart home since privacy and Security Risk from the Atlantic Council in washington. This is about 90 minutes. [inaudible conversations] good afternoon. Welcome to the Atlantic Council. I am the director of the center here and Vice President for the council. We are thrilled to welcome you to our event, Smart Designs for smart homes for the launch of the new issue brief which we have out there. Smart homes in internet of things. And discussion also on the opportunity here that networked homes will offer to society as well as the risks that they pose to security and privacy, so interesting topic that will be increasingly prevalent in our daily lives and also with broader implications. It is thursday, and this afternoons conversation is part of our monthly series. I will go home tonight and figure that out, but, the series as many of you know if you come every month is designed to convene cyber experts from different sectors to examine topics at the core of the councils cyber mission. Today is a special cyber wrist thursday because its my pleasure to announce when it todays palace, joshua corbin, will start tomorrow april 1, as the director, new director of our Cyber Statecraft Initiative and even though its april 1, that is a true statement. Josh is also the cofounder no one is happier than me about that. [applause]. Josh is also the cofounder of im the calvary. A Grassroots Organization that encourages new secure you purchase in cyberspace and beyond in response to the worlds increasing dependence on infrastructure, so watch this and the program will be heading more in the direction of todays conversation, but even much further. Josh has employed a very unique approach to security and policy by connecting human factors, adversary motivation, social impact to help position him as one of the most trusted names in this space. Before joining the council, he served as chief Technology Officer for soda type and adjunct faculty member park Carnegie Mellon heinz and we are thrilled to have him. Before i let to josh take the stage for his remarks, i would like to think our media partner pasco from the Christian Science monitor for joining us and welcome those of you who are following the conversation online. I encourage all of you to join the conversation on twitter using ac cyber as well as cm passcode and josh will give you another count to tweet from a now josh come over to you. Thanks very much. All that right. Think you are coming. My name is josh corbin and for the next hour i was to be the chief technology on certain, but i am excited to start tomorrow. I think its a key point in history about three years ago we decided to do this, i am the calvary thing and in some ways its a terrible name and another ways its a wonderful name, but we found we are growing more concerned our dependence on connected technology was growing much much faster than our ability to secure it and while many of the best brightest in the Cyber Security realm is trying to protect credit cards and highly replaceable assets, we saw this defendants was permitting permitting our automobiles, homes, everything and we are putting software and connectivity into every aspect of our life what we know and Cyber Security is once you had software you make something palpable and once you connect to Something Else is exposed, so to me that internet is not that software is eating the world, but software is infecting the world and if we are going to place our dependence upon it we need to make sure its dependable and worthy of trust, seven and came from the recognition the cavalry isnt coming and it was a call to action to the voice of reason and technical literacy in the Research Community to say stop waiting for someone to come solve this for you, look to your left, look to your life right if youre not sitting in your chair theyre not coming coming. Is the personal adaptation that i am the calvary and once were outside our comfort zone and talk to public policymakers, general public where bits and bytes mean flesh and blood. We want to focus on the intersection of technology and human condition, but more specifically where the consequences of failure included Public Safety and human life. Without much of a plan other than boldly going in that direction, we started the chain of influence and meeting with people in washington and going to places we didnt normally go speaking with people we didnt normally speak with, but really with empathy and a score in the heart of an ambassador we have tried to bridge the divide between the Technical Community and policy community. In at just the last three years of experience as weve seen the fruits of that labor. In fact, on this stage last march i met suzannes words from fda, which really catalyzed by trust, high collaboration relationship and you saw the januarys postmark that its for connected medical devices and anthony 180 in their attitude toward Security Research and now essentially almost requiring medical manufacturers have a positive relationship with the Research Committee by encouraging the adoption of court needed disclosure programs research. We have seen the excrement work and what becomes clear in the meantime is if you look at the headlines, this has gone from a concerned we are worried on the horizon to one happening in real time. Just the week before that security conference we saw the hack of eight nissan. We saw the first self driving car have an accident going at 2 miles an hour, but google did hit a bus. More recently we saw when somewhere we so did bill debilitating to a hospital in hollywood, 40, that they had to move patients, potentially Critical Care patients and now, we see yet another one, which is now actively probing other hospitals. Whether they are targeted attacks are indiscriminate collateral damage, this dependence in areas affecting Public Safety and human life are coming to the forefront. I was just in munich for the security conference discussing how maybe this is not about norms and treaties between nationstates, but we should also be looking at cyber safety exposure to sub nationals, activists, people maybe with less resources and less hacking skills than the will and might of a nation nation state, but with more willpower to use it and as you have seen recently we saw the unsealed documents confirming iranian hackers manipulating controls in a water facility, so if not now, then when . Im really excited up coming here and it todays topic is someone has to fill this void and we have to act quickly to know what the right thoughtful and plentiful response will will be to cyber safety and im honored to be picking up where jason healey left off with Cyber Statecraft Initiative and bring a heavy focus into cyber safety because this is not only the impact will simply be measured in Public Safety and human lives, but confidence in human key markets like automotive and medical and if we would like to avail ourselves of the safety advances or if we would like to improve the state of patient care through use of modern technology, a critical element of that is public trust with these technologies and its up to us in this room to dry that conversation and make sure we dont wait for a really serious failure that scares people away from trusting these technologies, but we preserve and deserve the trust we less upon them. In todays installment we would like to talk about a paper originally it collaboration between the members of the calvary and myself and the Atlantic Council of great lindsay on smartphones and while there are several reasons to look at safety and privacy in the home with ever connected Consumer Electronics and home alarm systems and appliances etc. And while there are promises we want to make sure in our desire to adopt these new technologies we can maintain the trust and confidence in them, so we dont have a nightmare state scenario. A report came out today and if you have not looked at it and if you read one and what only one thing please look at the scenario from 2025, but we will get into that a bit on the panel, so without further do im excited to have my first panel at the council. In a different role. Us about our panelist to the stage, please. We can clap for them. [applause]. All right and i will go down the line here. Please wait your hand, great lindsay. Andrew and beau woods, Deputy Director for Cyber Statecraft Initiative. Would you like to introduce yourself claimant im great lindsay. Greg lindsay. I am also a senior fellow in the city foundation, contributor as company and variety of other sort of posts regarding city, technology. Once we go down the line we will get opening remarks. Andrea matwyshye. I am a professor of law and Computer Science at Northwestern University and also a visiting Research Collaborator at the center for Information Technology policy at princeton and affiliate scholar of the Stanford Law School center for internet and society. I also had the privilege of serving in 2014 as a federal trade Commission Senior policy advisor focusing on securing privacy and their academic residence. And beau woods. I have to follow that intro, unfortunately. I am beau woods Deputy Director of the Atlantic Council Cyber Statecraft Initiative with about 10 years on the technical side and now, for the past couple years working with the calvary coming more to the policy side. Okay. We will start with greg and give us framing thoughts on the idea of smart homes, the promise, the peril, how do you see this is you . I have been covering really the notion of smart cities at my way into this issue and i covered when ibm and its big three during 2008, after that election of president obama and the financial crisis and there was a whole shift in how we approach what is now the discourse or at the internet of things. When we look at smart homes its always been extremely tech heavy market campaign. Theres more no organic reason to want a smart home. When you are back to the 1930s the first vision of smart home started appearing and that trickled in divisions in the 1960s of the jetsons. Walt disney and the notion of these pushbutton automated phones that would relieve us of drudgery, but in the 80s is that tech come hes like microsoft and others pushing this idea that the future of computing was the smart home, home of tomorrow and filled with these visions of how we would automate our homes. Consumers never really wanted them. We saw this elaborate push to create elaborate interoperable homes and of course they were buggy and brittle and taking great analog systems and make them harder to use. The real problem with smart homes separate from hacking is the notion we all remember in the early 90s when it was we could even make the computers worked our printers and the question is do you want your house to work the way. This led to consumers not embracing it and if you have seen the press release out there, poland 9000 people around the world asking about their appetite for smart homes and the american in the study who live with the vision the longest, 45 could see no reason at all why they would be smart home. By far the number one reason to want it would be costsaving, electricity and so even today this notion that we will live in these beautiful perfect seamless homes that of class where everything is a touch screen service, people just want cheaper electricity bills. So we are still looking for the first really killer app. We have a whole nightmare scenario in there that josh mentioned about what it will be like living in one of these haunted houses, made haunted by hackers and worms and every thing else but it boils down to the question of how will we realize the problems of the end realize this vision. Will it be powerball, electric cars that will free us from great dependence of [inaudible] you are the coauthoring we will let you go next on framing remarks. So, one of the things and doing the research for this that we can clear quickly is looking at statistics, some of the statistics until announced today, for instance, but also some of the other work done, it became clear that while consumers have an excitation that they will have to have these devices, they are terrified of them. Something like 66 are afraid their Smart Devices will be hacked and the data in them will be extracted out of their homes for some kind of commercial value by unwanted intruder. Thats a pretty scary number for anyone who is trying to sell into that market. So, what are the biggest things as josh highlighted early on is we are already trusting these devices and smartphones clearly consumers dont necessarily trust them. They may not want, but they feel like they will have to buy them and in going around to some of the other places and other Industries Like the automotive industry, like the medical device industry, every auto conference i go to know people say, i dont want one of these new cars, its hakuba. I will get an old car from the 70s or 80s and dry that around the cuts that will be way safer. Though, it wont. Thats the opposite thing. In medical you see people like diabetes patients like j radcliffe who have set i dont trust this device to working away thats automated that can affect my body chemistry. Im going to go back to it injecting myself 15 to 20 times a day within it insulin. These are personal choices people make, but in aggregate those choices have a really significant potential impact on the market Share Organization think they will get from some of these investments that they have made in internet of things and smartphone devices. So, if you are a kick starter size project and you think you got a 10 milliondollar potential pipeline, but it in the pulley being 1 million that you got a business. Your Business Model wont sustain a 90 degradation of your market. Same thing for larger players only with less severe consequences in their Business Model, but some of the internet connected things they are creating make offline. You may not have the products and services associated with the smart home that you thought you would when he bought it. Because there will be Financial Impact if we dont recognize and realize the market potential that exists for these or projected market potential, so i think that is one of the hidden bad things that could come up in two or three years is we start to see significant investments that have been made by corporations and cities in connecting everything go away. They are not realized and that has a significant financial consequence to us as well as to global product makers and markets. Indeed. All right. What about you, andrea . Following up on the excellent points i will highlight one competition concerns and one Consumer Protection concern. On the competition side following the comments, there is currently a deficit of Market Information to allow consumers to make informed decisions across devices. For example, pricing structure disclosures with products dont usually disclose what the lifecycle is of a particular product. How many years world cup product be patched . How may times have penetration test and run . The quality of the security and code integrity in a particular device is not necessarily something that a reasonable consumer can take into account when trying to decide whether this product a cost of 15 more is worth an extra 15 versus this other product when they are both apparently the same iot device with respective marginality. Thinking about those hidden costs rather the park is rewarding Iot Companies that are investing in security and taking care of the consumers that are trusting those products with access to their homes and information. So, thats a competition point and on the Consumer Protection side, there is a bigger conversation plane up on some of the other comments about the question of what i Call Technology suitability or sometimes the fancier technology is not necessarily the Better Technology for getting a particular task accomplished. I say better with bacon because as some perhaps overzealous chefs think if they sparkle bacon on everything

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