i'm david shuster in for ali velshi. on target, invisible threat. proof your secrets are not safe on the internet. the media has it wrong about donald trump. nomination will serve again. the hacking of ashley mad son, a website that helped

married people cheat on partners, prompted cheating and jokes. behind the irony of a website that helps people break the rules, being hackers that break the rules, there's this irony. they object to a service that ashley maddison offers to 37 members, allowing them to delete profile information for a fee. this full delete feature is a lie, they say. ashley mad son rejects the claim and offers to scrub the information of members for free. that aside, here is something that is no joke. cyber crime cost $575 billion. by 2020, the cost of worldwide criminal data breeches will quadruple to 2.5 trillion. three-quarters of that will come from a tax on north american targets. the reason for the scary

forecast is clear, more of the data that the world relies on is online, making us vulnerable to hackers that want to scam, spy or steal. >> when it comes to stealing, credit cards are a key that opens the door. americans have 1.2 billion credit. debit and prepaid cards. credit and debit fraud costs 6.2 billion in 2014, up 12% from the previous year. banks that issued the cards are left holding the bags and consumers risk a world of trouble if hackers get private information like social security numbers. once they steal your credit card number, it imposes a threat. they can turn to the dark web for deep web, a world most of us never enter but more need to

understand. >> mary snow took a tour of the dark web to show us how vulnerable we all are. >> welcome to the underground chat room. where information is born and sold. not only do you have the person's name. the date of birth. you have their email addresses, their passwords. their ip address. the facebook profile. >> the credit card, bank account. you can take over their financial life. >> and how much is that worth? >> in this case, this person selling these for $8. >> $8 for all that information on one person. >> that's right. >> it works with the speed of wall street. deals made by strangers, selling banking numbers, paypal and social security numbers, driver's licences and ip.

it's like an ebay for stolen data. >> it's like a big bizarre. >> that's what it is, an online bizarre for stolen information. >> reporter: with a few kee strokes, they are traded as a result of hacks like those that took place in target. home depot and others that we don't know of yet. how much of is my social security number worth? >> it could be worth as little as a couple of dollars. >> a couple of dollars. >> $5. credit card without a social security number is $1, maybe less. >> former black hat hacker nose first hand the value of a stolen identity. he made money before being caught by the secret service. how easy was it to do it? >> it was easy, anyone with a computer and limited knowledge

can do it. >> reporter: it's not good news for americans that had bank or credit information stolen. the losses are 25 billion a year, $10 billion from all other property combined. making i.d. theft a past-growing crime, a crime first hand when we went trolling "on target." >> he's saying it was $5 for a dump. that could be used to encode cards, go to the score and buy things. we'll i understand out the banks and credit card. >> we were negotiating with viking. where many account numbers were sold. >> $500 for a 20,000 account. that's a good reason on investment. >> within six minutes he found out you could pay $5,000 for a

$20,000 bank account - they just lost it. >> that's right. >> how does he accept payment? >> bitcoin. >> and if you use bitcoin, it can't be traced. >> bitcoin is a crypto currency faster and easier to transfer than cash. importantly, there's ways to make transactions anonymous, making it the preferred method of payment on the deep web. with no one knows on the other end. >> with anonymous payments, chat rooms and websites, it's tough to know who you are dealing with. >> the data we collect shows most of the cyber crime activity comes from russia. james worked for the department of state and commerce, working with the administration an cyber policy and says consumer protection is a policy issue. >> the only hackers caught are

the one's dumb enough to vacation outside of russian, if he's smarters he'll go to sochi. >> case in point. a fore-most center of cyber crime is called carter.su. the u.s. secret service was able to arrest the american head of the site. carter.su, which boasts 10,000 members trades personal information, allegedly under the watchful eye of the founder. for scott tlairl, they can be devastating. his shop lost 45,000. >> the transaction that we did with the three gentlemen in question is no different to anything we have done in the past. we have probably done 1,000 transactions like that, where we

swipe the card and won't go through. once it was approved. we received payment. >> except in this case the trio used a stolen credit card number and forged cards with i.d. cards. i find it interesting when something like this happens, and it sucks that it happened to me. i know that it's happening to merchants over the country. >> taylor was not alone. the trio received stolen information up and down the i 20 corridor in denver. >> i believe it was things they can get cash for. it's the same kind of crime that our former black hat hacker bought online. >> i could print up my card. encode it, go to a store, buy a laptop, and there we go, i made $2,000 in a trip to the store. >> reporter: in one day. >> in one day. >> consumers that had their

credit cards stolen are not the only ones victimized. scott taylor lost his money. his employeesered account numbers, he saying visa told them they would not reimburse him for stolen merchandise. what we did was a minor slip up, costing several thousand. >> we contacted several credit card companies. about the buying and trading of credit cards. and we asked visa about taylor's case. visa said it commnt comment but pointed to technologies expected to roll out in the upcoming year, they believe will make it harder to do. >> they do not see the protections having an effect on the black market soon. >> it will take a long time to get the magnetic strikes phased out. this is not going anywhere for a

while. >> when we thought we had seen it all, it took us deeper. >> it can sell access to your computer so someone can use the computer you own, to order things with your information. >> do most people know the computer has been taken over. >> they have no idea. there's so much funny to be made, they'll find a new way to continue making the money. >> it is enticing to foreign hackers facing little rivals making the crimes a way of life. >> you are not going to be mugged or shot. they are not going to steal your car. it's a different kind of crime. they sit in st. petersburg and go into your bank account and take money. >> mary snow joins us now. it may be nonviolence, but it's devastating in the course of putting this together. what was the most striking thing to you about it?

>> it was so trying. as we saw when we went on the dark web, how quickly we could commune request people, selling that information, information so valuable to us. >> it's been a few years since the hacker was arrested and reformed himself, he said what struck him is just the ease and sophistication of hackers, and they are not just taking information, but taking over your computer, ordering things. and you don't ein know it. >> it's prevalent, why isn't more done to stop it? >> the op stackles are big. there's no one governing body regulating the internet or the dark web, right. also, the fact that people remain anonymous, they have ways to stay anonymous, and the fact that we don't have extradition

treaties with other countries where there are hackers doing this. it's a huge challenge. some prosecutors are trying to break through that barrier, and we'll report on it tomorrow. >> looking forward to the next chapter in this amazing series. >> "snow dragon", thank you very much. appreciate it. >> mork is a day late and a dollar short when it comes to protecting people from a danger of the dark web. we look at why, coming up.

consider that the united states accounts for half of the global credit card fraud, and these cards with mack nettics strikes -- magnetic stripes are a reason why. united states lags europe using cards with a chip technology that is more secure. credit cards are issuing upgraded cards. if they don't convert the systems to read the chip cards

by october, retailers will be liable. banks eat a majority, but if others have used this technology for years, why is the united states so far behind. >> doug johnson joins us from washington. he is a senior policy and trade group representing banks and credit card companies. using chip cards, the united states is just catching up, why is the united states behinds european states. >> we had technology in states at an earlier stand point than europe that was catching frauds as they occurred. we had the ability to manipulate the large bases. europe didn't have the telecommunications technology to do that. they went to pib and chip and we

did not. as you know in the united states, we have a tendency to work towards market solutions. it's not a good idea to legislate technology because it changes. a lot of target customers might have wished we legislated that technology. wouldn't most put the break into target, that it had been prevented if it had the chip and cards. >> no, sir, the chip would have had no effect on the breach. the target breach was a msive in trusion in credit and debit card data. half had pins associated with it. the information would have been available to use in the online market where most are going. it did not protect. it did a good job of protecting in-store-sales. we want to move past the pin, the chip. and put in technology allowing

for dynamic numbers as opposed to graphic numbers. the pin and the card number do not change, and the fact that i don't change makes them vulnerability. we can put other protections in place. that's where we are going with the technology asserted with tokenization. what you acknowledged about the banking industry, is it too complacent in not addressing the fraud. will the size of some breeches put the banks off said. >> to some degree some breaches are more impacting of our economy. target impacted 10% of the customers of every financial constitution, were impacted by the breach. that had a tremendous knack on the industry.

so i think that what it does is demonstrates about huh to demonstrates a call to arms and what you are seeing now. it may not be a lot for another people to look up and say the united states is behind europe and the pins and ships. why should be be confident in fall, about new systems in place, that they will work. >> for one thing, as you indicated in the peace earlier. the consumer is not reliable for the transactions that occur against the account. the bank will reimburse them. >> we are talking about inconvenience here. >> what we want to do it build a world where it is minimised. that's one thing that will happen in october. there'll be yeses need to reissue cards. when the chip on the card, it's clear, it's harder to duplicate

that. it is less reissuing going forward. >> for the customers shopping online or in stores. what is the best guidance you'd give them in terms of keeping immune from the threats? >> what the customers need to realise is you can be part of the solution. leveraging internet banking and the platform is important. monitor your accounts. you are the one that will see the unauthorised transactions. report them, they'll report you. that's first and foremost. ensure that you protect your pin. don't let your pin be able to other individuals. there's a tendency to put the pin on the back of the card. there's general standard protection measures that consumers can take. keep the cards in your wallet as you practically need.

i think that's another important cox pond. when you are online, try to verify that the things you are doing, and buying from are legitimate stores. those are some of the things you can do. >> doug, thank you, we appreciate it. >> tomorrow, part 2 of the invisible threat. dangers of the dark web. we explore more of the secrets bought and sold on part of the internet you never see. >> it's the c.e.o.'s email, the boardroom meetings discussing which projects are funded. >> this is about taking the information to replicate the business models that are successful at major global corporations and put them in place elsewhere. that is part 2 of a 3-part special report tomorrow. >> if people thought donald trump's attack on john mccain - why it could not be further from

the tuth,

in presidential politics, ohio republican governor spoke. at his al-marr martyr and joined the 2016 race for the republican nomination. >> i am here to ask you for your prayers, for your support, for your efforts because i have decided to run for president of the united states he is now the 16th prominent republican to enter the nomination rate, and by many accounts is considered one of the most electable republicans in a general election. he is popular in his home state.

and they have gone with the winner of every presidential contest since 1960. the national primary system is controlled by outside systems, and polls suggest na donald trump opened a double-differentlying it lead over -- digit lead over competitors and has opened up a lead against jed bush. main stream media suggests because of donald trump's remarks disparaging john mccain's measures as a prisoner of war, they'll drop. in fact, they may go higher, you see john mccain had difficulties with the g.o.p.'s conservative base, many consider john mccain moderate. others buying into the lies. when donald trump brings up the same issues, as hyperbolic as it

seems, it may get some fired up about supporting trumps candidacy. a republican strategist joins us from los angeles. the register says that donald trump ought to get out of the race. doesn't that play in to the feelings. >> yes. >> do you think people like to be told what to do, in an editorial board. it was nice that they want to say that. i think it will make a difference in people's minds. the reason donald trump is resonating. he was an individual, it's not politics as usual. we talk about quentin and bush again. he's an individual businessman. they like that he'll say what he means. because of his economic success,

people believe he's the best to deal with the economy, he's not beholden to lobbyists. he's saying what is on the mines of a lot of people. he called politicians losers. is there a line that donald trump may cross, getting him in trouble with republican voters? >> well, it's interesting you say that. if there was a line, it would be what he said about john mccain, remember he's talking about a p.o.w. i am - was concerned about that. i have to tell you, donald trump has been master fully handling it. he was a war hero. he may have slipped, if you want to call the slip. he turned lemons into lemonade, making a positive ot to talk about veteransing making a pivot saying donald trump was a veteran. it's amazing when he was done.

she showed a skill. i think this will be the next nominee. he is that good. if it was a test, how he can deal with a debate. i think if he's the nominee, she will not know what to do. you have to remember, she announced twice, her second announcement so staged and put together. i think donald trump will blow her up. >> no one doubts that donald trump was present and perhaps the rest of the republican and democratic field combined. do you think donald trump was good for the republican partiy? >> i do. the republican party - you don't believe me, i was on the republican national committee. i say from experience, i worked on the presidential campaign. the republican party needs a wake up call, and should be

thankful and put their arms around me saying thank you. >> should they put their arms around donald trump's policy positions of embracing social security, of supporting gay marriage and suggesting entitlement of programs. is that something that republicans support? >> well, some republicans support them, some are not. regan said, if you agree with me 80%, you're my friend. you are not going to agree with the candidate 100%. i think donald trump made good points, importantly, he is not owned by washington. that is what is resonating. he's a good business guys, we have to get the check economically, and have to have a president that will stand up poouti putin, and stand up to i.s.i.s. people are tired of weakness. >> not all the republican candidates are talking about

that. a lot of them are talking (talking at the same time). >> you may not agree with him on everything, he has a spine and loves america. >> everyone who loves america is running for president. a lot of people say we need to be tougher with vladimir putin and stand up for i.s.i.s. that's a talking point. the key issue with donald trump, and i leave it at the end, the republicans will decide they have to canning up. establishment will see they cannot handle donald trump, they need to get him out. in any case... >> do you think the establishment matters in this. >> no, the electorate is tired of the establishment. he's winning now. here is the last thing. >> 16 candidate. how much do you need to win by. not much. >> except when you are in a 2-3 way race. >> except when jed bush has

$100 million in pack money, i think it will be relevant in eliminatiing donald trump, but we'll see. >> that's the show for today. i'm david shuster in for ali velshi. thanks for watching. tense traffic stop. >> get out of the car. i will let you up. >> new video of a confrontation between a texas trooper and a woman dead in her gaol cell. >> men being fences. >> the prime minister made it clear that he disagreed with us, with respect to the nuclear deal. >> defense secretary, ash carter on a mission to