snapchat is the big story of the day.teresting because it is ephemeral, changed the way that teenagers are messaging with each other. but it goes beyond u.s. teens and messaging. you have companies like wehcat in china. in japan, one company has totally taken over. you even have business messaging apps. more efficienth and safe to communicate with coworkers. talk.co for free. >> people like messaging apps because people can keep their bills down, but there are some skyhigh barriers to entry. how do you stand out? >> there are commonalities in all of them. you have to be able to do that in a safe and secure way. it has to be immediate. snapchat was the one that came up with the interesting innovation, the ephemeral, it deletes within six seconds. that innovation, even though it was small, changed everything around messaging. >> let's talk about another theme, the shared economy. you are connecting with somebody, airbnb. what happens to that story in 2014? >> it only will get bigger. i love the collaboration space. underuti

because snapchat only has a team of a few people.compared to teams of, you know, like possibly hundreds of companies at twitter and google and facebook, it's, you know, it's just a start-up. >> are you still in conversation with them? i understand they actually interviewed you for a job. >> i still communicate with them. but it's definitely still a down since i have been breaking news, i guess. >> so what is your next project? what are you going to try to hack next? >> i'm going to stick with snapchat a little and just look into the changes that they implement in the future. but mostly i'm going to look into fun things that my friends suggest. because i do it for the hobby really. >> graham smith, keeping snapchat honest. thank you so much for telling us all about it. 16-year-old independent security researcher. well, he's the chairman of yahoo!'s board and former c.o.o. of ebay. so he know what's a top executive should look like. maynard webb is with us for "office hours" next. ♪ >> you're watching "bloomberg west," where we focus o

snapchat and chris christie. snapchat was warned several times it was exposing itself to hackers and managed to expose millions of phone numbers and user name. after days of denying it was a major problem and issuing several non-apologies, snapchat finally said sorry on thursday. on the same day, new jersey governor chris christie immediately reacted to his scandal, scrambling to get lady of it. apologizing for his administration's behavior, firing top staff, and saying, he was "heartbroken and ashamed." what lessons can entrepreneurs learn? charlie moore has decades of experience advising people about right and wrong. he's founder and executive chairman of the online legal service rocket lawyer. thank you for being with us this morning. my mom always taught me, get out and apologize early. but i've heard from lawyers, don't apologize because that admits you're wrong, and that's going mess you up later. >> scott, i think you're hinting at the difference between mom's p.r. people and lawyers now. they are going to

they tried to acquire snapchat. facebook recognizes that.said they need to focus on the app which i know they're doing. melissa: i think that is really true. susan, i wonder if that happens for older people as well. i have a facebook page but i love twitter. anybody follows the show, follows me i love to tweet. i love to see what other people are saying. just as keeley said, facebook is time sync. there is so much going on. there is too much to deal with. i will tweet and see what other people are saying and text my friends. final word. >> that true, melissa, that's a good point. there are different sides to serve different purposes. facebook as the mainstream and it is not going away. melissa: good point. thanks to both of you. outrage in japan, the company country is using homeless people to clean up radioactive waste? is this ethical? >>> "who made money today." china's middle class is crazy about gambling. making all-american ceo a very rich man. don't go away. "piles of money" coming right up. she keeps you on your toes. you wouldn't ha

snapchat is a photo-sharing app right out of mission impossible, whose photos self destruct. so popular with kids that facebook wanted to buy it for $3 billion. an offer the two young owners turned down. it's unclear whether the security breach will affect the company's value. snapchat says it has, "recently added additional counter measures," and would, "continue to make improvements to combat spam and abuse." >> this is a wakeup call that we've been getting for 20 years now and we keep hitting the snooze button. >> reporter: gibson, an internet security company says it discovered the security hole back in august, but when it tried to warn snapchat, the company responded that it was, "a non issue." matt gutman, abc news, miami. >>> much more ahead on "world news" this new year's night. the american spy scandal of the cold war, the cia who brought down a spy, as a new mini series hits tv. >>> later tonight the twins, one arm on the other there, get this. one born in 2013. the other born seconds later in 2014. imagine what one might one day say to the other. back in two minute

>> delete my account and never have snapchat again. >> reporter: snapchat allows users to send videos pictures that self-destruct after they are opened. a security company warned the startup about the potential hacking problem. snapchat even blogged about it on friday writing, if everyone was able to upload every possible number in the u.s. they could create a database of the results and match user names that way. the hackers claim they did it to teach snapchat a lesson and raise public awareness. so far, the company isn't talking or even acknowledging the breach. at its venice headquarters, people peeked out at us but at the door turned us away. >> story, no one is available. >> reporter: however, yesterday, the founder evan spiegel tweeted, working with law enforcement, will update when we can. that's not enough for frustrated snapchat users who say they are now looking for a social network they can trust. >> i guess i'll just text people now. >> reporter: several websites have popped up allowing usersfind out if their information was compromised and even the cofounder wasn't exempt

it involves 4 million users of what's called snapchat, quick messages and images sent on your smart phone that then disappear. if you haven't heard of it chances are your kids have. now comes a warning about user names and phone numbers on those accounts. some of them are posted on the internet. here's abc's matt gutman. >> reporter: the embarrassing picture you take on the social app snapchat disappears 10 seconds after viewing it, but the information on your account stays put. and an anonymous hacker or group has exploited that. uploading to the internet the usernames and offering up the phone numbers of an estimated 4.6 million snapchat users. >> the biggest danger is stalking and you can see how something like this can lead to a bad result. >> reporter: making the security breach worse? many users tend to have the same username for multiple apps like facebook and twitter. >> this tape will self-destruct in five seconds. >> reporter: snapchat is a photo sharing app right out of mission impossible, whose photos self-district. so popular with kids that facebook wanted to buy it for $3 bi

as many as 4.6 million snapchat may be at risk.eir phone numbers and usernames may be leaked online. snapchat said it was no big deal and it had taken appropriate action. apparently the safeguards were not enough. >>> a georgia banker accused of embezzling millions is in custody. aubrey lee price was arrested tuesday in south jachlt he had been on the run for 18 months and was pulled over for a traffic violation. price disappeared in 2012 after telling family members he was going to kill himself. the fbi always believed he was alive. price and investors are accused of stealing $17 million of his clients' money. >>> a new study shows that dialing, reaching, or answering a cell phone increases the risk for a crash. the study did not distinguish between handheld and hands-free phones. anne-marie? >> there's so many distractions nowadays. wendy gillette at the new york stock exchange. thank you, wendy. >>> straight ahead, controversy at the rose parade. and in sports an emotional win for michigan state in the rose bowl, but the spartan

do you think he respects his commitment to snapchat? >> this is the kind of thing mark zuckerberg does not think about very hard. i am sure he considers it rude, but he has a very big business to run and he does not waste a lot of time looking back. i doubt he has given it much thought at all. i wrote an entire book about his company, which he never even read. almost everyone else around him read it carefully, but he never read it, which is actually interesting. he does not want to think about that sort of stuff. he did not want to spend the time on it. he thought it was a waste of time, he is very much an engineer with an engineer's mind and he wants to keep going and build the next feature. >> all right, it will be interesting to see where snapchat goes from here. they started the new year off with a bang. thank you so much, david. we will be right back with more of "bloomberg west." ♪ >> welcome back. i am emily chang. i want to get straight back to las vegas. jon erlichman has been on the floor there all day long trying on crazy gad

while the makers of snapchat. toronto's embattled mare, rob ford looking to keep his job. >> snapchat is keeping quiet about being hacked. more than 4.6 million accounts were compromised. a snapchat spokeswoman said the company will not comment on the breach until a full investigation is completed. snapchat user names and phone numbers were leaked online. a security firm warned snapshot of a potential vulnerability. the website where the stolen information was posted was shut down. >> in a mix up a chicago woman received an extra christmas gift from president obama and her family. she received a late christmas box from an uncle. it appeared to be repackaged bit the post office, and at the bottom a photo book with pictures of the barack obama's. it was intended for the godparents of the girls sasha and malia. >> toronto mayor rob ford is back on the ballot, announcing that he is running for a second term despite his bad behaviour. >> let's get rolling. >> four more years. that was the promise toronto's mayor made a

and if you or your kids use snapchat, take note. the online user names and partial phone numbers of 4.6 million users were posted by hackers on a website called snapchatdb.info which has since been suspended. now, hackers saying they're trying to raise awareness about snapchat's need to increase its security around user data. this hack, of course, deals a blow to the messaging app which allows photos and videos to be accesses and then quickly disappear. it's increasingly popular among teens. now, what's bad for snapchat could be good for facebook. it has a new rival called instagram direct to send photos and videos to individuals or groups. now, what wasn't hacked today is youtube. google's video website just announced a better and faster format, giving people access to hd-quality video at half the bandwidth. this will be key for mobile devices where broadband can be limited and also on new hd tvs. making it easier to watch more videos, hoping it will translate to more ad revenue. tyler? >> thank you very much. >>> let's take a look

for us it really showed snapchat is special and it was fun to see the snapchat around the world.o that was great. we now talk about it was the greatest christmas present we ever got. >> facebook built poke. is there a chance. >> we have not received any formal acquisitions. >> have you talked to them? you are snapping with them? >> unfortunately not. >> your last round you got 60 million. can you tell us about that experience? were you shopping around and were people coming to you? >> yeah. it's a good question. we tend to build those relationships over long periods of time to make sure that our investors really understand and support the division of the company. it gets less of the pressure is on and you can get into the deal. we really have spent time with each other over the last year, a lot to bring us into the family. to that effect we feel fortunate to have truly outstanding thoughtful investors involved with their company. >> 60 million is a big chunk of cash. i am sure your server bill is out of this world. do you need funding soon? what is that going to look like? >> i t

snapchat was founded only two years ago by spiegel and another guy, bobby murphy.with teens because those photos that you post up might be embarrassing and they disappear shortly after they're sent, but it has online security holes. >> worried about who is using it, too. we're talking about teens. >> yeah. >> mandy, let's talk about beer and coffee coming head to head here. >> yes. there's this place in -- in st. louis, missouri, called exit 6 pub and breuery and they were offering frapicino. nonetheless, starbucks was annoyed and they sent a cease-and-desist trademark. he said i'm going to stop using the frappicino name. he didn't think customers drinking his beer would have mixed it up with the frappucchino coffee version and he included a check to starbucks for six bucks saying this was the total amount we made. we always prefer to resolve trademark disputes informally and amicably and it's ended well. >> and totally different reactions to drinking a starbucks product and that beer pub's product, right? absolutely. cnbc's -- >> in theory. >> in theory. >> thank

also trenning now, snapchat. -- also trending now snapchat. account information for more than 4.5 million users appeared online. fiestafiesta bowl is trending. antarctica as the world watches rescued passengers stuck on the ice for more than a week. and happy new year for those who think it's better late than never. remember, you can follow us on twitter at #cbssf. >>> kind of a holiday today and tomorrow i guess for the most part. >> yeah. still feels like it, right? >> some people going to work. >> we have to be at work but a lot of folks getting the day off. we can see i on the roads. a lot of green. if you are traveling along the peninsula, maybe past the airport, so far no delays. so if you are heading toward sfo picking up, dropping off, everything is at the speed limit. by the way, 280 also looks really good. this is how you can tell it's still a holiday for some folks. you can see highway 4 not a touch of slowing in antioch. this is usually one of our first spots to slow down. closer to "a" street, 54 miles an hour. a line of traffic a

in fact, snapchat had its own statement around8? were flying and they said over last year, we have implemented safeguards to prevent this and we continue to make improvements to combat spam and abuse but it looks like it wasn't enough because the group got in any way. >> hopefully, a warning this time. >> kind of like a red flag. >> like they were making a point and maybe not do anything with this information. >> what it sounds like. >> wasn't skype also hacked this week? that's a much larger established company. >> but none of your information may have gotten out. i think this is all for show ad done by a syrian electronic army claiming they did this and they linked to revelations last year from edward snowden that skype was part of the nsa's monitoring program. so skype, by the way, is owned by microsoft and this hacking group actually wound upxm÷iÑ targeting steve balmer and publishing his information and going to skype's facebook and twitter accounts and hacking in there. skype did tweet its own response saying that you may hav

snapchat is popular for its perceived privacy.tures and messages disappear after ten seconds at most. >>> the employees of american airlines have voted on the paint design for the tails of american jets. this is the winner. red, white, and blue horizontal strips. 52% picked this design which is a nod to the american flag. the company plans to repaint more than 1,100 of its jets. >> general mills is now manufacturing original flavored cheerios without genetically modified ingredients. the new boxes of cheerios will be labeled and should be on grocery shelves soon. the change does not apply to other types of cheerios. general mills followed a campaign of green america that prompted a flood of requests. >>> and walmart is recalling the donkey meat it sells in china. dna showed traces of fox meat in the donkey meat. donkey meat is considered a delicacy in parts of china. walmart is considering legal action against its chinese supplier. anne-marie? >> wendy gillette at the new york stock exchange. thanks a lot, wendy. >>> still to come

and they claimed that snapchat ignored them.people's phone numbers with their names, user names and stalk people. then, on friday, snapchat put up a blog post, basically saying, not a big deal. then, this other group comes out and actually does what gibson warned about. they blocked out the last couple of digits in the phone numbers but said, hey, we could release these under certain circumstances. it sounds kind of like a hostage negotiation, if you come after us, if you're mean to us, if you don't fix the flaws, we could make this worse for you, snapchat. they said it could have been fixed. i'm not a coder myself, do i don't know. they say with as few as ten lines of code, they could have minimized the damage here, the potential damage from user information. >> so are you saying that bei g benevolent, by saying, hey, you have a problem, just fix it. or is it malicious? >> there's a couple of ways to look at this. it's like vigilante consumer protection is probably what they would argue. "hey, your information was vulnerable al

. >> and a hack attack leaves millions of snapchat users feeling a little overexposed. the personal information that was leaked. >> they told us that she was born at midnight and then said it was just 2 seconds after midnight so we were surprised. >> winning the title by a hair. meet the first bay area baby of 2014 and her very proud parents. ,,,,,, massive explosion early this morning . some people could be seen climbi >>> flames engulfed an apartment building in minneapolis after a massive explosion early this morning. some people could be seen climbing out of the windows to safety. firefighters responded quickly but couldn't get inside because the second and third stories of the building collapsed. witnesses nearby say it felt like a bomb went off. more than a dozen people were taken to the hospital but no one was killed. >>> colorado is now the first state in the country to have legal recreational pot for sale. people lined the block at pot stores in denver this morning. howard nathan spoke to the man who bought the first ounce for sale legally. >> reporter: the fir

finance. >>> still to come on "street signs, snapchat's big snafu.ould mean to the brand that facebook was willing to pay a cool $3 billion for. >>> and here's a question for you. which three stocks are trading at their highest level since nixon was elected president? the big mac made its national debut, and this song -- ♪ and here's to you mrs. robinson ♪ >> -- was topping the charts. bill griffeth, do you know? >> i've got kelly evans here with me as well . >> she was about ten years away from being thought about being born. >> be careful. she reads a lot and knows a lot. >> we have how many stocks trading at their all-time highs here? it's more a question of what names were around. >> i'll give you a hint. 1968 is the year. that's the year the big mac rolled out. >> 1968. >> we'll think about that. >> we'll bring it up to you. >> i don't think you want us to come up with the right answer right now, do you? >> no. don't spoil it for everybody. >> we're just playing along right now. do you know the last time the dow, the s&p and the nasdaq opened th

snapchat had already admitted the flaw several days ago.the information to fish and defraud snapchat users. >>> the new year is ushering in a new era for the boy scouts. it's lifting its century-long ban on gay members. the move is creating some division among its ranks. abc's scott goldberg has the story. >> reporter: after 103 years, the boy scouts of america is opening its doors to young gays. >> this was a step in the right direction. >> reporter: the controversial decision is being hailed by pascal tessier who aims to be one of the first openly gay eagle scouts because of his homosexuality he was banned from the organization's highest honor. >> i guess i am very, you know, proud of the fact that there's finally, you know, they did change their mind. >> reporter: last may, 61% of the scout's national leadership said it was time to stop the ban on gay boys. >> no matter how you feel about this issue, kids are better off in scouting. >> reporter: one lesbian mom who fought for the change thinks it's only a partial victory. >> it's a small

. >>> snapchat is promising to beef up security after hackers breached accounts this week.ind friends feature. snapchat admits it knew about the security loopholes since august, but brushed off the warnings. >>> and facebook is facing a class action lawsuit over claims it monitories users private messages without their consent. the suit cite aes report from a swiss security firm which suggests facebook scans web links shaerd by private messages. facebook says the suit is without merit and the company will defend itself vigorously. facebook up 0.3% in frankfurt. >>> the season may be winding down, but the sales are still in full swing. josh lipton has been finding out about the top damages this christmas. >> as always, americans wait until the last minute to get their shopping gifts for christmas. we're only learning just now what they were buying. this year's top gift at brick and mortar retailers was the apple ipad mini, the 16 gigabyte version. apple's ipad accounted for four of the top 15 electronics sold. why the popularity? one reason could be a lot of major retailers

do you want a snapchat update?we talked, it was like 200 million snaps a day. >> now we are seeing 350 million snaps every day. >> that's a big number. >> it is super cool. last month, we saw a 50% lift on android stories bases great it is starting to compete with the iphone crew which is very exciting. >> let's talk about the demographics. it is a teen app, all about the teens, but parents are jumping on it. we were talking about how an older group is using it. what is that looking like? >> i was just snapping my mom this morning. we are growing across every demo. i see 16-year-olds using it at the mall and 30-year-olds using it at the airport. >> awesome. >> this idea of things that disappear and don't last forever on the internet, it is clearly working for you. do you think other apps or social services are going to pick up on this? where do you see the market for ephemeral content going? >> i think the fundamental premise of snap chat is that it is better and more fun if you delete everything except the things

snapchat is popular with young people for its perceived privacy.s at most. frank and michelle, back to you. >> wendy gillette, cbsmoneywatch.com, have a great weekend. >>> it is 5:41. an illegal immigrant will legally be able to practice law now in the state of california. the controversial ruling that cleared his path. >> plus, making a cop's job easier. the high-tech ticketing tool now in use in one bay area city. >> and a woman's home caught fire. how her dog was able to save her life when we come back. bulldog: bulldog: well, pup, it's out with the old and in with the new during mattress discounters' year end clearance sale! puppy: look, i found a red tag! bulldog: that means folks can save up to 40% on clearance mattresses. puppy: oh, here's another. bulldog: that means up to $300 off serta, posturepedic, even tempur-pedic. puppy: i found another red tag! bulldog: what! where? puppy: right here, silly. ha-ha-ha! bulldog: tickles! mattress discounters' year end clearance sale ends soon. ♪ mattress discounters announcer: every day across america

we think of snapchat as it is today and say that is a lot of value.ould say the same thing about twitter at one point in time. i think the expectation is that, in all likelihood, snapchat will be a lot more than what we see today. we just do not know what it looks like. >> turning down $3 billion, is that the right decision? >> i do not know if i would have done it. >> so you would not have done it ? >>ou were evan spiegel probably not. >> thanks so much for joining us today here on "bloomberg west." we will watch to see how your trends play out over the next year. overstock is now accepting bitcoin as a form of payment. will other retailers follow suit? that and more when we come back. ♪ >> welcome back. i am emily chang. bitcoin fans can now use their loot on overstock.com. it is the first major retailer to allow payments in bitcoin. overstock is working with coin based to make this happen. coin based provides online merchants with the tools to handle bitcoin transactions. brian armstrong joins us in the studio. first of all, your story is really in

snapchat turning down a $3 billion offer from facebook in november of 2013 and nest, the maker of the start thermostat taking a $3 billion from google earlier this month. jason venkin knows a thing or two about selling a company. he recently sold his company eco sign to adobe, and so when did you know the time was right? did you take the first offer on your company? over the life cycle we had about six firm offers that were term sheets. >> there is a thing like poker where you know this is going to bet it. this is where we know how do you know? >> it's tough. two thoughts, first of all, it turns out deep down in your gut there is a magic number. i didn't know this. i worked on eco sign for over five years before we sold. i didn't know the magic number until three weeks beforehand when a good friend of mine asked. and that magic number has nothing to do for personal wealth. it's a number that clears. unless you're accelerating so quickly, there is no number. because you've so exceeded that number and you're mark zuck zuckerbe zuckerberg, it doesn't matter. >> what's it your decision or

snapchat let's you share pictures or videos that disappear after a few seconds. this week, a group of hackers says it accessed information for 4.6 million of those snapchat users. they posted some of that information online, including partial phone numbers and user names. the hackers claimed no malicious intent saying they want to send a message that we trust companies with our information and they should be more careful with it. for more stories that matter to your money, give me 60 seconds on the block. >> it's a 50% raise this year for netflix ceo. a $3 million salary and $3 million allowance for stock options. netflix was the top stock in the s&p last year up nearly 300%. big donations. 15 individual gifts of $100 million or more last year. that is four more than 2012. mark zuckerberg made the biggest donation. facebook shares valued at almost $1 billion. to the silicon valley community foundation. zappos is doing away with job titles. they will answer to one another instead of a big boss. home prices jumped 13% in october. the largest gain since the height o

so snapchat being an example of thatbut certainly when it comes to content, with those 4 k tv's that talked about behind me, netflix is still doing so well with their original programming and now 4k programming coming. so netflix is one to watch. of course the likes of samsung and sony and lgthe big tech powerhouses. google is about to debut google glass, although not expected to be a mainstream hit at the beginning. this is a wearable computer. wearable tech is becoming really big. apple isn't going anywhere. they didn't really launch anything new in 2013 that raised a lot of eyebrows but certainly they've got a lot of r&d going on in the background. we'll see if 2014 is the year we will see the itv if you will or the iwatch. so all the usual suspects as well as companies like twitter whose stock is doing well and facebook as well. >>thank you markappreciate it. >>thanks for having me. don't go anywhere coming up next.. find out whether yahoo shares are a buy or a sell as the stock reaches record levels... and, it's a wrap! the best and worst of the 20-13 box office, plus who will w

snapchat responded by creating a web page. members can find out if their profiles were hacked. >>> a 12-year-old girl in england received a royal surprise when prince william posed for a selfie with her on christmas day. she went to watch the royal family when she asked if she could take a photo. prince william took her phone and snapped a selfie of them together. madison posted it on facebook. and it's made it to the pages of newspapers. >>> a huge test for the warriors in miami. >>> all this talk about the 49ers and the cold weather. we're going to start with the warriors and a big night in miami. ahmed fareed is here. >> the miami heat, they're very, very good. the last team from the western conference to beat them in miami. that was the golden state warriors in december of 2012. more than a year later, could they do it again? warriors at heat, looking for win number seven in a row. former warrior and heat player, tim hardaway. stop, jump over lebron james. warriors up ten. and more vintage curry after that. if we can see i

. >>> a popular social media site snapchat is looking into a major breach of security. hackers got into the system and posted account information for some 4.5 million of its users. snapchat was warned about the possibility just a week ago and claimed it took precautions. hackers say they wanted to draw attention to the security shortcomings of snap chart. >>> toronto's crack smoking mayor is not letting his sordid reputation get in the way of his political ambitions. rob ford was at city hall this morning filing papers to run for another term. ford has been criticized and condemned for his self-admitted drug use and his erratic behavior. last month, the toronto city council stripped him of most of his powers. the election is next october. >>> and the first catholic priest to be imprisoned for covering up complaints of child sexual abuse is free this noon. william lynn was released this morning after winning an appeal of his landmark conviction. the 62-year-old former philadelphia monsignor was the first u.s. church official ever charged for hiding complaints that priest

if you are a snapchat or skype user, your information may have been compromised. hackers got into and posted a database of 4.6 million snapchat users and their phone numbers. the attack on skype was separate and unrelated. >>> the federal government still considers it an illegal drug, but colorado does not. this was day two of retail recreational marijuana sales in colorado. it's as easy as going to the store. and sales are brisk with customers remaining mostly mellow. in-state residents 21 and older can buy an ounce at a time. visitors, up to a quarter ounce. you can't smoke it in public. it's a felony to have over eight ounces, and you can't bring it to the airport. nonetheless, it's now available in stores. and as one customer told the "l.a. times," quote, this is the amsterdam trip we couldn't take. >>> former first lady barbara bush is resting comfortably in the hospital in houston. she was hospitalized on monday after doctors feared pneumonia. she has been responding to respiratory treatment. she and former president bush 41 are just four days away from thei

snapchat will release an update, more secure version of the app.numbers and user names were compromised. no snaps were leaked. ashley: you always get nervous when they say more securr. believe that. >>> facebook under fire. two user of the social media company filing a lawsuit alleging that facebook has been invading their privacy. a fascinating story. liz macdonald has the bottom line. what are the actual allegations being made? >> this is an eyebrow-raising suit that is catching the attention of people across the country especially if they're facebook users, filed in federal district court in san jose. two facebook users alleging the following. let's look what they're saying in the lawsuit. essentially if you were a facebook user and you sent a web link, say you like a website and put that link in your message, that facebook actually scans the contents of your private message in order to improve the profile of you or lori on facebook in order to use that profile to sell to web advertisers. so they use it to do user profiling, data mining. they gi

another breach on photo sharing app snapchat with user names and phone numbers of five million peoplee briefly posted onryan. the problem is compounded by the fact that many people have the same user names on other sites. hackers posted the information to she holes in security. snapchat was founded by two stanford university graduates. >> gas pries are up five cents a gallon in the past week but that will not last. gasoline prices have declined the past area and that trend is expected to continue. aaa says the average price during 2013 was $3.49 a gallon and the administration predicts gas will cost an average of $3.43 a gallon. >> strange lights in the sky were spotted in northern california on new year's eve and those who saw them are certain they were not fire works. the reporter has a closer look at what some believe was u.f.o. >>> it was bright enough to shine directly through the trees without any problem seeing it. >> steven watched it over sacramento, hans spotted it over auburn. >> approached from that direction and came across slowly. >> did they see the same anyone that kay

popular social messaging service "snapchat" is scrambling to deal with a hack attack. user names and phone numbers of over 4 and a half million people were posted online this week.the majority of those affected live in the u.s.reports say the hacker was attempting to reveal snapchat's potential security flaws.the site is not commenting about the security breach and the site that posted the user data has been taken down. you can check if your information has been leaked by going to snapcheck dot org. macy's and martha stewart have reached a truce.stewart's company, martha stewart living omnimedia, and the retailer have settled a breach of contract lawsuit with j-c penney.m-s-o and j-c penney signed a merchandising deal in december 2011 to develop mini martha stewart shops.macy's planned to sue both companies for violating its exclusive agreement with martha stewart. its lawsuit against j-cpenny is ongoing.settlement terms with m- s-o are confidential, but the two say they look forward to a long partnership. some of the world's most notable billionaires are stepping up t

account information for more than four-and-a-half million snapchat users appeared online yesterday. user names and at least partial phone numbers were available for download on a web site. that site has now been suspended. the hackers said they released the information in an effort to put pressure on snapchat to beef up security. >>> the new year, a new paycheck for tens of thousands of workers in the bay area, the minimum wage in san jose went up to 10.15 an hour. in san francisco, it's 10.74. they are the only two cities in the state that have inflation-based raises. >>> high sales in colorado today where it is now legal to sell marijuana for recreational use. at least two dozen shops opened up. nathan howard shows us that the lines were out the door and down the block. >> by noon, there was a three-hour wait to get inside this denver store to buy marijuana. one of the first kus mers was an iraq war veteran who says he needs it for post-combat stress. >> i couldn't be happier. it's a huge steppingstone for other stats, as well. >> and eighth of an ounce of marijuana called bubba c

thank you for calling me on snapchat. >> now luckily the no screen shot rules don't apply when you'retor. his second post was unforgettable play on words. it says you've been mooned but it's disappearing. better get a screen shot fast. all i can say senator paul is really on the cutting edge there. >> what happens if anthony wiener gets a hold of rand paul's phone? just sayin'. >> i want to put that thought in my mind. >>> unhome depot employee has gone above and beyond the call of duty. this worker was at the right place at the right time and swooped in to catch a baby falling out of a shopping. online commentators pointed out it could have been avoided if the child was security properly in the cart which i'll agree. this has nothing to do with what we were just showing you. is this a devil paper baby that terrorized new york city. t.j. couldn't help but show you this clip that gives us all nightmares! >> nobody is looking to catch devil baby. nobody. they are just covering up the baby and moving on! poor thing! louis, thank you, sir. >>> ahead, your most creative tweets. "morning jo

with snapchat, users can send photos and videos that disappear shortly after they're viewed. so popular with kids that facebook wanted to buy it for $3 billion. >>> chrysler's days as an independent automaker are numbers. fiat has struck a deal with an auto union trust fund to buy the 51% of chrysler it doesn't already own. the price is $4.3 billion. the automaker got control of chrysler during its bankruptcy reorganization five years ago. >>> on this, the first business day of 2014, the u.s. financial markets are opening in record territory. the markets gained steam last month after the federal reserve announced it was easing out of its economic stimulus program. analysts expect the rally to continue. >>> and you don't have to be a louisiana state fan to celebrate the tigers' win in the outback bowl yesterday. the restaurant chain will give you a free bloomin' onion appetizer today anywhere in the country. if iowa had won the bowl, it would be coconut shrimp. >> i'd take either. >>> when we come back, on the lam and no one knew it. a banker wanted for fraud is found after ev

a photo sharing app snapchat what is broken into. 4 million user names and partial phone numbers were posted. the site where the information appeared was suspended. the hack may have been done to encourage them to tighten their security. >> technology - we had a lot of new tech innovations last year, what is ahead. we have a look at what is coming your way. >> here are the basics of how to use glasses. >> much hyped and years in development. 2014 will see google's glasses iwear go on sail. questions remain as to whether function tore style make it more than a fad. same with the smart watches that link to your phone. some are on the market but apple, google and microsoft will add their assets. >> bitcoin is freedom. >> some predict we'll see the rise of bitcoin. the value has been volatile. some say they have the potential to disrupt traditional attempt systems. >> transaction fees are almost zero. once you have the bitcoin you can put it in any currency you want. a lot of people are seeing it as a virtual safety depost box. once you have the money, the interaction will be done through

snapchat c.e.o.esponded with his own question: no, did you change your setting so only your friends can send you snap? they have apologized for unwanted photos and videos users may have gotten and says the team is working to resolve the issue. >> if you look if a two-for-one deal, this homes with a car, check it out, a multi million dollar home has included a ferrari valued at $200,000 waiting in the garage for the buyer with the price at $2.4 million for the house which is 7,600 square feet on one level on an a acre with no homeowner association fees but it does include a fancy pool. >> okay. why not. usually people they in the dish wanter, throw in the ferrari. >> the ceiling fans ... nice hooking car. >> how does it look for us? >> we are read -- red hot, red flag wanting. rather have a red officer -- red ferrari. >> no clouds in santa rosa. no radar runs. the weather is long the east coast. if you travel that way call ahead. the major airports are wet but for atlanta, they are now clearing the ai

snapchat was fond by two stanford university graduates. >> trading is underway for the very first time14. the dow is down 85 points to 15,489. 2013 was a banner year but not starting out on a good note today. >> more money news, gas prices are up five cents a gallon in the past week but that will not last. gasoline prices have declined over the past year and that trend is expected to continue. aaa says the average price during 2013 was $3.49 a gallon. it is predicted gas will cost an average of $3.43 a gallon. motorola is slashing prices of the smartphone now costing $399 without a contract. normally it sells for $550. last month, it was discounted to $349. the company says in a blog it is not a temporary price tag. making it significantly less expensive than samsung's galaxy or apple's iphone. >> mike nicco has the weather forecast, the first snow survey. >> not impressive. about 20 percent of average for today and only 2" water equivalent so that is not good. it is miserable up there as it is here. the winter rain and snow. we are seeing signs of the offshore flow developing as the c

snapchat says they fixed it.hey put a couple patches on there with a couple modifications this he can still do this exploit. if you're really concerned, delete your account. >> my goodness. every time any of us sign up for anything you're always nervous about your personal information, where will it go past this point and now i guess new inspiration for the leariness that we all feel. laurie segall, thanks so much. >>> still to come, a big storm is headed for the big apple. alexandra fields is there live poised and ready. >> reporter: we're talking about sub-zero windchills and a lot of snow. new york city officials are getting ready and the crews are working around the clock. we'll have a live report coming up. [ female announcer ] right when you feel a cold sore, abreva can heal a cold sore in as few as 2 1/2 days when used at the first sign. without it, the virus spreads from cell to cell. unlike other treatments, abreva penetrates deep to block the virus, to protect healthy cells so cold sores heal fast. as f

account information for more than 4.5 million snapchat users appeared online over the week. user names and at least partial phone numbers were available for download on a website. that site has been suspended. the hackers said they released the information in an effort to put pressure on snapchat to beef up security. >>> the 2014 winter olympics in sochi are just weeks away. and after this week's bomb attacks in russia, there are concerns about security. but as kpix 5's sharon chin reports, those concerns are not stopping people from traveling to the games. >>> reporter: 1960 olympic gold medal swimmer ann warner cribbs has attended several games over the years. she has followed news of two deadly bombings in southern russia but the violence is not stopping her from traveling from her palo alto home to the sochi olympics. >> i met a lot of people who were very different than i and, uhm, yet we were united in kind of our love for sport and performance and so i feel like i can't not go. we can't let terrorists win. >> reporter: russia's government has promised the safest olymp

i can relate to that, dow, snapchat, yelp. now snapchat, whatever they do -- liz: texting.posedly, don't believe it. >> they turned down a $3 billion offer from facebook. katie roof's five reasons why maybe you just might want to think about a treasury bond. i don't know, municipal bonds as opposed to -- liz: money's been dead in treasuries, but you're right in that there's certain things you really have to be aware of. >> have to worry about. that's why we have whippersnappers like katie to help guide us through these -- liz: see, they all walk around with glasses, but when charlie and i wear our glasses, it's not as hip. >> i'm wearing them because i can't read the damn thing. [laughter] liz: charlie, thank you very who are you picking for the super bowl? >> my heart's with peyton, but you never bet with your heart. you take the points and seattle. liz: i'm going seattle. >> i could be wrong, but i predicted romney was going to lose. liz: i love the underdog -- >> they're not really an underdog, that's why this is a good bet. liz: bye, charlie. >> i'm still rooting for pe

snapchat, massive valuation, only two years old, this is the corporate version. to be able to send messages that disappear. a quick demonstration. we have a message, you slide your thumb over. you slide your thumb over and then you see the message. i cannot read it. you only live once. our last message was on insider trading. this one on ryan. a it appears and you have message for three minutes, then it disappears. >> it cannot be recoverable. >> really? >> who knows. this is an issue about the angela merkel smartphone, can you make a smart that the nsa cannot hack? if someone really wants to get into something, they can. it is a question of how difficult you make it. not that you need to be faster than that there, you need to be faster than your body.-- your buddy. it is just the one additional layer of security. given the financial scandals we have lived through over the last few years, libor, etc. the regulators are going to be taking a hard look at this. >> you saw that with barclays, they paid $3.75 million for not storing electronic data. their real enemy i

snapchat, based in l.a., says more than 4 million of its users were affected which is about a fifth of its clients. what's different about this security attack is snapchat members can find out instantly if their information was compromised. the company has created a web page allowing snapchatters to enter their user names to find out whether their accounts were hacked. >>> still ahead, a first in the fight against also himers. >>> he had to push past his comfort zone. local olympic legend brian boitano, what led to his recent decision to come out. >>> and a bit more blue sky across the bay area for today. winds also increasing. another spare the air alert in effect. we'll have full details on what this means for that all-important weekend forecast coming up in just a few minutes. >>> in health matters, taking a certain type of vitamin may help slow alzheimer's disease. a study found taking high doses of vitamin "e" helped patients. it slowed the progression of the disease by six months. vit min "e" should be viewed as a possible supplement to traditional medications and not an alternat

>> snapchat. >> snapchat's worth more than the -- i'm sorry. that's nothing to laugh at for sure. commentary. >> in the state of the newspaper. >> it's sad commentary on the state of the internet. >> are you sure? >> 100%. >> snapchat's worth more than "the new york times," andrew? >> i'm suggesting that's not true. >> oh, you are. but you don't know. i mean, it is what it is. >> i feel very confident -- >> it is what it is on any given day, isn't it? >> that's on any given day. any given day. >> i'll give that you. i think it's worth more. >>> congress is already dealing with high-profile issues just a few days into the new year. and our guest host this hour is peter orszag, former omb director under president obama and currently citigroup's global banking vice chairman. we were talking off camera, and i didn't realize this, but when you speak, it's the truth, basically. you just told me, right? >> there we go. i'm glad you got the talking points. >> then i'm not even going to try and argue with you on any of this stuff. >> anybody else have any questions? there we go. done. >> y

snapchat probably worth a gazillion.snapchat all all in two years. >> no, it will be acquired by somebody. >> we'll see for how much. >> i still think back to when i interviewed the u.s. attorney and didn't know what snapchat was. snapchat has a corporate version to say, i hear that beam's going to get a bid from suntory this weekend and disappears so you have no evidence trail. >> yeah. >> nsa will figure out a way. >> nsa will? >> absolutely. >> do you think they're -- >> snapchat will not be able to avoid the nsa. they'll grab it in ten seconds. >> what happens if the nsa is behind target hacking? >> don't even. >> where are you going? oh, three days in the condor here. >> bring back nixon. he would have been spying, said, i want these people spied on, not them, these people. >> that's right. he has horse sense that nixon. >> yes, he did. >> he had horse sense. >> bertha coombs looking at commodities with crude back to 92. good morning. >> good morning. i'm trying to wrap my head of praise for nixon. oil lower followi