data security cases. federathe federal government ist the only layer of protection. the handful of state law mandates security for the data of the citizens in the private sector has developed extensive standards to the pci security council at the preachers, identity theft, financial fraud continue protecting virtually every sector from the federal government to the merchants, banks and universities and hospitals. we must consider whether the current multilayered approach to the data security state industry self-regulation can be more ineffective or whetheeffective o approach the issue differently. in short the title of today's hearing is an appropriate question to ask can the data breaches be prevented. this is the right venue to discuss with the businesses can reasonably do to protect the data equally important we need to find ways to minimize or eliminate the ability of criminals to commit fraud with the data that they acquire. they are to have a piece of mine is that the government law-enforcement offi

caused by data breaches. the council was created to proactively protect consumers' payment card data. our standards represent a solid foundation for a multilayered security approach. we focus on removing card data, if it is no longer needed. simply put, if you don't need it don't store it. and if it is needed, then protect it and reduce incentives for criminals to steal it. let me tell you how we do that. the data security standard is built on 12 principles. capturing everything from everything from physical security to logical security. this standard is updated regularly through feedback from our global community. in addition, we've developed other standards that cover software, point of sale devices, secure manufacturing of cards and much, much more. we work on technologies like tokenization and point-to-point encryption. they work in concert with p.c.i. standards to offer additional protections. another technology, e.n.v. chip is an extremely effective method in a face-to-face environment. that's why the c

first of all, data. today, we'll present preliminary draft data you may be surprised we only knew about the length one hundred formula applications that had been applied for those businesses that preexisted or where located outside the areas we had a total blank. so today, you'll see anything unusual data about the formula retail study. under phase one for all today, we're looking for feedback on the topics to explore. in phase 2 we'll explore those additional topics and look at the others on a case study basis. so we'll be looking in phase 2 at particular neighborhoods with the limited funds that come available we'll be asking for your help. i want to reassure the public that the department will regain control of the policy recommendations. you've heard at previous hearings there was some that are not publicly accountable it will not be the case the department will be responsible after the sponsor work is duplicate. after the consulting work is finished the staff b will consider the changes and if the c

a recent study found that data breaches involved in malicious cyber attacks are the most hostile he data breaches around the globe. cyberr capita cost of attacks in the united states was $277 per compromised record in 2013. times that by millions upon millions. ,he highest cost for any nation fragileou are in a economic recovery, this is a significant hindrance to recovery. so before the judiciary , symantec, and we will hear from the u.s. secret service, department of justice, federal trade commission. we are facing threats to our privacy and security unlike any time before in our nation's own history. aboute also had hearings threats to our privacy by her own government agencies. i hope in this particular one we can get some good bipartisan , get some data privacy legislation on here. i think we will all be better for it. senator grassley. >> very important that we have this hearing. we have had well-publicized commercial data breaches. we are still learning about the details. this hearing will help bring more details out, i hope. it is clear that these and other breaches have intentio

we really care about your data security, and the security of your data, and if you give data to us, you know, nothing bad will come of it. and we, if if those -- we look to see be those claims -- if those claims are true by asking a lot of questions, getting data, doing hearings with officials at companies and consulting with experts to determine whether those claims are true. >> okay. ms. rich, then let me just clarify this. if a company's security standards are inadequate but the company says nothing about them, then the ftc is powerless at least under its authority to go after deceptive practices, is that right? >> we have two prongs of our section five authority and the other is unfairness. >> i'm going to come to unfairness in just a minute. i just want to find out how helpful "desentive" is for a company that has totally inadequate data protection standards. and i just want to clarify, i think what you're saying to me is if the be company never says they have great data protection standards, then the answer is under the deceptive prong the ftc has no authority to go after this com

caused by data breaches. the council was created to proactively protect consumers' payment card data. our standards represent a solid foundation for a multilayered security approach. we focus on removing card data, if it is no longer needed. simply put, if you don't need it don't store it. and if it is needed, then protect it and reduce incentives for criminals to steal it. let me tell you how we do that. the data security standard is built on 12 principles. capturing everything from everything from physical security to logical security. this standard is updated regularly through feedback from our global community. in addition, we've developed other standards that cover software, point of sale devices, secure manufacturing of cards and much, much more. we work on technologies like tokenization and point-to-point encryption. they work in concert with p.c.i. standards to offer additional protections. another technology, e.n.v. chip is an extremely effective method in a face-to-face environment. that's why the c

data on the u.k. when we saw chip and pin and face to face transaction fraud drop dramatically, it was like reading a balloon. you saw online fraud in the u.k. shoot up something like 30%. senator warren. >> i will just pick up on the same point about chip and pin. we understand why chip and pin works better. -- it seems that we are with we are years behind europe in developing adequate technology. the technology is out there, but applying it here in the united states. in yourteresting testimony, mr. leach, you said that you think that enters our best left to private organizations such as yours -- that standards are best left to private organizations such as yours. that is what we have done, and now we are way behind in technology and have become targets for data attacks from around the world. to should we leave this organizations like yours? >> senator, that is a very fair question to ask. for us, we look at it as being people, processing, and technology. chick, not migrated to but we have advanced f

a recent study found that data breaches involved in malicious cyber attacks are the most costly data breaches around the globe. the per capita cost of cyber attacks in the united states was $277 per compromised record in 2013. times that by millions upon millions. the highest cost for any nation, and if you are in a fragile economic recovery, this is a significant hindrance to recovery. so before the judiciary committee today, symantec, and we will hear from the u.s. secret service, department of justice, federal trade commission. we are facing threats to our privacy and security unlike any time before in our nation's own history. we have also had hearings about threats to our privacy by our own government agencies. i hope in this particular one we can get some good bipartisan support, get some data privacy legislation on here. i think we will all be better for it. senator grassley. >> very important that we have this hearing. we have had well-publicized commercial data breaches. we are still learning about the details. this hearing will help bring more details out, i hope. it is cle

data. . you think this precludes the need for a federal dado security ? >> no, i don't. we have used our authority under section five of the ftc act. we think we have used it effectively. in particular, we think there are three areas we could issue authority. we would like to see legislation that would give the fcc civil penalty authorities. that will enable us to deter more effectively. we also believe that we need jurisdiction over nonprofits. we found that a number of breaches occur at nonprofits. we lack authority over nonprofits. that is a gap we would like to see filled. in addition, to implement data security effectively, we would think it is appropriate to give the ftc, rulemaking authority to enable us to deal with the in this risks and harms area. >> thank you. this is why it is important we get this legislation. i want to ask. this is unrelated. it is something i have been interested in. testimony, hen said the department can use better tools to go after operators of spy software.

that store data, the data of tens of thousands of customers. d. think that the commissions existing authority in this space precludes the need for a federal data security and data breach law? >> no, i don't. we have used our authority under section five of the ftc act barring deceptive or unfair actual practices, and we think we use of that authority effectively. but i think what could be more effective in this area if the were a federal security law that the ftc could enforce. and in particular, we think there are three areas where we could use additional authority. we would like to see legislation that would give the ftc civil penalty authority. we think this would enable us to declare -- deter more effectively. we also believe that we need jurisdiction over a nonprofit. we have found that a number of breaches occur at nonprofits, and currently we lacked authority over nonprofits so that's a gap that we would like to see filled. and in addition, in order to implement the data security law effectively, we believe that it would be appropriate t

health-care data is confounded by what they said was an internet data hijacking involving the belarusian state-controlled networks. i just bring that up because this is a very serious discussion the goes far beyond maybe what the retail community .s concerned with >> thank you, senator lee. of you for joining us today. it is an important topic. i know it is important to each of you and to america's consumers. i generally trust that the marketplace will create the right kind of incentives for retailers to protect the personal data of their consumer base, but i think the creation of those incentives really the condition precedent that there be adequate notification procedures in place. in other words, consumers have to have received notification in order for any of this to work. they have to receive notification in order to take the steps they need to take to protect their identity. they also need notification so that they can decide where to take their business. trust a particular business with their data am they are not going to shop there. considerors do you when deciding at what point

access to data, propagation. aggregation for the big package and excellent trait and. -- exfiltration. it is important for the public sector to focus on the last step. the private sector had the first step. if we get there, we're closing the barn door after the cars -- the cows of gotten out. not an effective way to fight this battle. how can we be part of the public-sector and help with all four phases of an attack? not just exfiltration. >> try to focus our efforts, getting at that first phase of the adversaries actions. we do not want to be the responders, we want to be the prevention mechanisms. where we discover challenges are that they have already happened. i would like to highlight that our industrial control, we are doing in spearman tatian -- experimentation. we work with the private sector very closely to see where the vulnerabilities are. we close those doors as we find them. >> just by having some doubt, there are future damages. >> the proactive approach is that we are information sharing. as we see

payment card data which affected proximally 49 million guest and certain personal data that affected up to 70 million guest. we believe the payment card data was accessed through malware placed on our point-of-sale registers. it is designed to capture the data that resided on the magnetic script -- magnetic strip. this focused on supporting our guests and strengthening security. in addition to the media steps i described, we are taking the following concrete actions. first am a we are undertaking and into inferencing review of our and our network and will make security enhancements as appropriate. fraud, we increased detection for our target red card guests. to date we have not seen any fraud on a proprietary credit and debit card do to this breach. we have seen only a very low amount of additional fraud on our target visa card. her, we are issuing new target credit and debit cards to any guest who requests one. fourth, we are offering one year of free credit monitoring and identity theft protection to anyone who has ever shopped in our u.s. target stores. guess they have zero liabil

why are we using 2010 data? we collect data on the community wide basis about every two years because it takes a lot of effort to do it. and it takes a long time. for example, a pg&e representative just told me the other day that they still had not completed the coefficient of greenhouse gas emissions verified and approved for the 2012 data. so, even if we tried to collect the 20 2012 data today, we would not be able to. we would have the data this summer and go to third-party verification and go you through that process some time in august or early september. so, we would be able to give an update to the update in terms of where we are. and i'm hoping the number will come in very close to the 20% production during the 1990 levels that we had set as a target, but are all waiting with bated breath to find out. but don't hold your breath for 10 months. keep breathing. so, where are our reduction strategies coming from? and the biggest one is the 100% renewable electricity. that's the big orange slice there. and if

since our first data security case in 2001, the ftc data security program has been a strong bipartisan effort that includes law enforcement to my education, and policy initiatives. several lawsces that protect consumer data. under the ftc act, the agency can take action against companies that engage in deceptive or unfair practices, including deceptive or unfair data security practices. the ftc also enforces several laws that require special protections of certain business sectors. the credit reporting industry, among financial institutions, and also among all mine services for our kids. in enforcing these laws and investigating potential data security failures, the commission recognizes that there is no such thing as perfect security and instead examines whether companies have undertaken reasonable procedures to protect consumer data from the risk of identity theft and other bits use. since 2001, the ftc has used its authority to obtain settlements , 50 settlements with businesses that fail to provide protections. the best-known case may be 2006 action against a data broker that alleg

many of the major electronic health records systems cell data -- sell data. many of them, as part of their business practice, sell your data. there are others that don't. that is at least worth asking your doctor. which electronic records system do you have and doesn't sell my data? are you selling my data? you have to ask this of hospitals, two. it depends of a physician has an independent practice. they do not have to even use electronic health records. there are lots of small practitioners and concierge physicians that are sticking with paper, primarily for privacy reasons, to keep people's records private. but the government wants president- this is bush and president obama, both share the same goal. they want each of us to have an electronic health record by this year. the problem is, most of the electronic health records that are out there to not do anything that we want and that we expect from these systems. they don't allow us or our doctors to hold back any information in violation of the law and in violation of our right to privacy. host: 202 is the

thank you so much for your data. much appreciated. at this point i'd like to call -- we have people here from applied research who did the hsa count and were involved in that. are they still -- and peter [speaker not understood], samantha, a colleague of yours. thank you for coming today and thank you for doing what you do for us. we're just letting you be an opportunity to speak. i think when people see, they walk to talk about how it was collected and what have you, talk to the people who did the collection themselves and also i think my understanding is what you've done as well look at other jurisdictions also. just want to give you an opportunity to speak, maybe talk about what you've dub, if there are relevant insights in terms of what other places are doing that would be helpful as well. >> sure. well, first off, thank you for the opportunity to talk about the 2013 point time [speaker not understood]. there's a little background, applied survey research has been in business since 1980 and we've been doing point in time counts si

the target breach which has data data and marketing data hat could be used to and now it affects between110 million and 7 million. /3 of the entire population. just last week white lodging a major hotel operator announced that it was investigating a potential breach involving thousands of guests who stayed hoe tills including marriott, sheridan and west-in. given the constant security threats, i hope that's past and try to go forward where consumers ulledcomboumed more confident. so the it's alarming. it affects him and rely on details. ere are bags and famous card processor. and dibt card information. millions of americans have had to contend with fraudulent charges on their financial statements. identity theft schemes in which next. ls open -- there are many other unanswered questions about these recent attacks including how they will prevent t and how to this. whether these companies responded to early warnings and whether they go to fight consumers in a timely manner. we also need to understand the appropriate federal brawl between data security and breach notification. now they are

it is the data connection. if you are owning an iphone for two years, it costs about $2000 in the u.s.. five hundred dollars, 1500 is the data plan. really on a path to connect everyone, unless something pretty dramatic changes. that is something that, after facebook -- facebook reaches this milestone of connecting one billion people, we took a step back and said, what problem in the world can we help to solve next. try tonot come here to connect 1/7 of the world. it is to try to connect everyone appeared in order to do that, we need to form partnerships because no one company can change the way the internet works by itself. it is an important problem. the reason i care about it is it is not the connectivity by itself as an end in itself. it is the things it brings. when you have access to the internet, you have a lot of people for the first time having access to things like a sick financial services second get credits to start a business, or to basicr access health information so they can understand conditions

we do have data, manual data, but we will have -- that's one of our goals. >> okay. and by the way i just want to say to the public i know we have in front of us a very hard working public servant and she is very short staffed within her department. so, i do under the concern. this is an area many people want to get transparency in this area. i'm happy to work with you to hopefully work with mayor lee to get more transparency in this area because a lot of people want to know, again, how we spend our money, how the contract decisions are made. let me make a couple other observations about this chart. it does look as supervisor avalos suggested, the ratios awarded to lbes seems high. when i read the report, this is looking at the ratio of contracts that are awarded, but not at the contract dollar awards. for example, for the airport, while it says that 65% of the contracts are awarded to lbes, if i'm reading correctly, the actual contract dollars is -- in my mind, it is the dollars out to the community that is more important than the actual contracts. could you tell us

to grab that data.now that we have seen that bad guys can access data in less time than it takes to swipe a credit card. tonight, we have to fight. we have to win. as we say in houston, failure is not an option. i look forward to this discussion. >> mr. lance. >> thank you, mr. chairman. i welcome this very distinguished panel. data security has been prominent in public debate dating back to at least 2005. 160,000 records were acquired by hackers in the choice point data breach. for the last eight years, 660 million records have been made public through various data breaches. data breaches occur not only in commercial settings, but also hospitals, financial institutions, banks and insurance companies. there is no doubt that every american can be at risk of a data breach. since our last data security briefing in july, we have heard of additional data breach incidents that occurred in 2013. at target, nieman marcus, and michaels are the recent reminders that there are dangers that present in our economy.

we had some pretty strong data. u.k. housing data. the bloomberg top headlines. was hijacked landed in a geneva. to proceedwas forced to geneva. all passengers and the crew were safe. the spokesman said a press conference will be held later today. bank said newl credit rose to a record in january. the measure of credit rose more than 2.5 trillion won. the data added to better than forecasted suggesting that china may be able to limit the scale of a slowdown. japan's economy grew at a less than half of the pace that economist had forecasted for the gdp expanded 1%. wasmedian economic estimate 2.8%. japan has said to be considering a monetary base forecast for 2015 which left the bank of board qualified its commitment to easing. let's continue the conversation on japan's economy. christian joins us. he said abenomics appears to be losing its magic stop rated to have you on the program. there are almost more questions than answers. -- >> of thisa data was headlined is disappointed. you do see evidence that autonomic's is working. -- abenomics is working. consumption

in july of 2013 we embarked on data sharing and data base with mta as well as the department of public health that allows for immediate access of our data unfortunately that process is still a paper driven one in terms offed police department generating a police report. we're moving in the direction of instant population of collision data into a central source but in the interim we have this system that's working. what it does effectively is decrease the time that it takes to have the data compiled u analyzed and reported. our prior reporting every time was through the state wide traffic integrated system and mandated by law and every agency has to. there is a turn around on that time as every agency is providing it. what our system decreases the turn around time. we're hoping to the point where the decreasing and turn around time is a matter of days. interesting enough as i sit in the audience i received an email from our cio susan merit who indicated now we have the ability -- the police department has the ability to inn instantly map collision locations. >> >> as it relates to calls

there is also important other data that come out of the survey that's been cited earlier such as the residency and so on, and that's been expanded significantly since the beginning of the point in time counts. in 2013 in particular, a big enhancement is part of the continuous improvement effort in the pit count has been to comply with the hud requirements to better profile youth homelessness. and in particular, the development of a new reporting category which is transitioning age youth, which is roughly 16 to 18 through 24 which is a separate reporting group, and was not previously profiled effectively in the county and which arose out of a national observation that the typical count logistics and methodology excluded certain groups such as families and especially children in their data collection efforts. so, thats was resulted in just under -- just around 00 additional persons found in the 2013 count that were in this unaccompanied youth category, the transition aged youth. so, there's just been an ongoing participation in these best practice reviews and we've seen a very good, st

consumers might use up the entire monthly data quoted in one day. compared to the calling plan for fourteenth on us china mobile charges did not command high prices when the largest telecom operators of us. the company for tea packets plan included on the mic only time take messages and two gigabytes of data. the total cost of sixty with the last month. china mobile for de colon cleanse beijing includes five hundred minutes of calling time and twenty gigabyte of data the total charge the hunter thirty eight us for twenty three us dollars. if not considering calling times and text messaging. we believe that he did spend thirty dollars each to go by before to gather in beijing the price to fourteen dollars for nicolette. if in the forties help with gas prices in china. half of us you'll be totally different compared to people and comes in the two countries the securities times reports the average monthly salary of china's urban residents and two dozen twelve. but did hundred forty us dollars the cost of a gigabyte of course the data would account for

thing i am looking at is the quality of the data, the underlying data below the headline data.u're looking at weekly earnings, you see a tick higher to 1.1%. it is slightly better than anticipated. encouraging but still below the rate of inflation. this is a key metric. we are talking about capacity, weak productivity. inflation might be coming lower but wage growth isn't matching it just yet. that is a concern. those two metrics are not mutually exclusive. if you see rates push much higher it will feed into a higher number as well. if you are worried about guidance, look at the minutes. they agree, no change to current policy. no knockout was breached and guide us. unemployment has take higher. it hasn't breached that seven percent threshold. right now you have sterling a little lower on this one. a lot of room to keep rates lower for longer. the output gap maybe even bigger than anticipated. let's get some more perspective. let's bring in a bank economist. 7.2%? >> what we are seeing is payback for two extraordinarily strong months rent employment has fallen by 60,000 or 70,0

analyze the businesses based on commercial district and not supervisorial district it could skew the data and consider looking at the retailer should include charitable giving. thank you >> next speaker is there any further any public comment? >> good afternoon, commissioners peter cowen i'm a resident in the upper market area and worked on formula retail controls in 2003 and 4. a couple of thoughts an issue areas to focus on. there's a lot to choose from. having seen the impact of the formula retail controls the two things that stand out to me unfortunately in the orange and red they're the most complex analyze but the ones i having ask you have your consolute look at. the first one is the economic relationship this is item kj human resources h i the relationship between the formula retail. this is the cross-examination of it. when most community respond to a formula retail proposal it's about real or per served the impact on other small businesses. we have small information there's an impact and it's fear of being out priced and predatory practices but we don't know. if they could have

the inflation data will be key. a good step down to the inflation number, 0.05% which will really load up the pressure on the ecb at its march meeting to deal with the threat of deflation. the cac 40, ftse mib fairley flat, as well. a number of stocks in focus this morning. luxotica disappointing today, stock down nearly 3%. had a $27. euro charge in the fourth quarter, hitting net profits down 65% in the final three months of the year. iag, which is the owner of british airways slowing a little bit despite growing profit in the fourth quarter boosted by performance before british airways today. most of that performance comes from british airways. still problems at iba and that should swing into profit during the course of the year. and erste bank, the australian lender proposing half its dividend after net profits slumped 47%. now, we expect to see quite a downward revision today in the gdp. remember, the annualized rate in the first months since december, 78%. that keeping pressure yields lower, 2.64% is where we

to enable the energy requirement to move the data and extract information from the data. with the growth of smartphones there are only about 2 billion of them in use against about eight billion. there are a lot more consumers using smartphones, generating data. way to dealhe only with all that is to deploy a very energy-efficient processes into networking that links these so the together processing can be done in an energy-efficient way. privacy?bout there has been a lot of talk about concerns are data might be seen by institutions. is there any pressure when you're developing chips to have the redacted to protect data? >> we see this as a big issue and an important issue. what we are doing is trying to create technology in our designs to allow encryptions to occur in an energy-efficient way. we are seeing there is a lot that needs to be done between technology companies with governments to work out a framework for how privacy and data is going to get protected. we don't want to over regulate things because that is going to slow down innovation. at the same time we believ

data on the u.k. when we saw chip and pin and face to face transaction fraud drop dramatically, it was like reading a balloon. you saw online fraud in the u.k. shoot up something like 30%. senator warren. >> i will just pick up on the same point about chip and pin. we understand why chip and pin works better. -- it seems that we are with we are years behind europe in developing adequate technology. the technology is out there, but applying it here in the united states. in yourteresting testimony, mr. leach, you said that you think that enters our best left to private organizations such as yours -- that standards are best left to private organizations such as yours. that is what we have done, and now we are way behind in technology and have become targets for data attacks from around the world. to should we leave this organizations like yours? >> senator, that is a very fair question to ask. for us, we look at it as being people, processing, and technology. chick, not migrated to but we have advanced f

so we're putting in place a new data drug shortage data system that's going to make the data more robust. make it more standardized. >> i recognize the gentlelady from tennessee, mrs. blackburn, for five minutes. >> thank you, mr. chairman. and, again, thank each of you for being here with us. i want to -- i got just a couple of questions. i know that the f.d.a. report said, you know, the number of reported new shortages has declined in 2012 and for the first third quarters of 2013. but then g.a.o. says the total number of active shortages continues to be high. so do you each agree with that? >> the number of new shortages has decreased and we think that the early notification has been helpful in that regard but a number of shortages have persisted across time. >> ok. >> i think we present there information -- that information in our report. >> dr. thockmorton, do you think the shortages it be too high? >> absolutely. >> just want to be sure everyone is in complete agreement on that. what i'm hearing from the providers in tennessee, they agree with the g.a.o. report. dr. throckmorton, th

i think from an adult perspective we sometimes look at the data and numbers. but i'm really understanding on whether or not it's happening at the right time and happening at convenient locations and whether or not the teachers are engaging is so important. i always thought that our best teachers should be teaching summer school and classes. it shouldn't be based on seniority system. it should be our best teachers because you want our students to succeed. i'm really looking forward to the student evaluations of the program and how they feel the program is going and of course the data on whether or not students are passing and it's great to hear from commissioner fewer that graduation rates are going well. i would like the numbers from 2012-2013. i'm curious as to what that rate is. it's great to see that the school district is going up every year in our graduation rate. there is something that i know that gets lost in graduation rates of course is it the graduation rate of seniors that come in in august or is it of when they comen as a freshman? >> the cdg has

president chiu referenced about data, getting access to data immediately. we do have a solution for you. that you can get the data immediately and it's used by the corporate america today, integrating a lot of their system. >> you'll probably have to take a contracting process to be able to use it. >>> yes, i know that, and that's one of the reasons i haven't approached the city. it's out there. the second reason i'm here i appreciate you looking into the 14b, i think it can be improved. helping local businesses, local businesses will hire more people, provide jobs in the community and i think, you know, if you can do more with the 14 b making clear that the local lbe companies that are in san francisco hire people to work that they get access to contracts and opportunities and that's what i'm here for. thank you. >> thank you very much. i don't believe there are any other speakers. and if there are no other speaker, we'll close public comment. [gavel] >> and give it to president chiu. >> just a final concluding comments. first of all, i appreciate everyone

data. now that we have seen that bad guys can access data in less time than it takes to swipe a credit card. tonight, we have to fight. we have to win. , failure is houston not an option. i look forward to this discussion. >> mr. lance. >> thank you, mr. chairman. i welcome this very distinguished panel. data security has been prominent in public debate dating back to at least 2005. by,000 records were acquired hackers in the chase point a data breach. for the last eight years, 660 million records have been made public through various data reaches. -- data breaches. ina breaches occur not only commercial settings, but also hospitals, financial institutions, banks and insurance companies. there is no doubt that every american can be at risk of a data breach. since our last data security briefing in july, we have heard data breachl incidents that occurred in 2013. at target, nieman marcus, and michaels are the recent reminders that there are dangers that present in our economy. while that iss

written a link about this phenomenon as well as its potential dangers in his new book smart city big data civic akers' and the quest for a new utopia and then he joins us from our new york studios anthony walker. great to be here thanks for joining us let's start with you what what gets somebody so interested in animated about urban planning issues that they dig in and write a brilliant book like this. well i was recently graduated student from rutgers university back in one thousand nine hundred four and i had my degree in urban studies but my first job out of college actually was in the telecommunications industry i worked eighteen t. in south plainfield new jersey at the headquarters of there just launched an internet service called world net and i got to see the internet basically spinning up firsthand and sometimes i would work the overnight tech support shift when a friend of mine down the hall would bring me into the control room and they had this big map almost like the map from the movie war games or you know what you might imagine nasa mission control kind of seen a big screen s

it would simply be reacting to the data that the fed sees and the data the market sees. i don't think there would be an added signal of worry there and -- >> but you're implying the fed would fight it. >> the tool is not working. >> michael, you have to believe that once the morphine drip starts to slow down the market it's are going to go through a period of thed dts, don't you think, and isn't that what we're going through? >> dts, yes. >> it's a reminder that risk still matters in markets. after last year i think every single retail investor came a little too late. the new bulls came in too late and believe that you'd see a continuation of the stock rally, and this idea you'd have no volatility. we live in a volatile world. everything is interconnected and moves faster. we keep talking about qe and tapering. the issue is not qe. the issue is is it working to begin with. this was the only iteration that did not juice inflation expectations. >> you could blame the fed or you could just say that a broader environment has changed. we look at what's happening in so much of

by reports i mean both performance reports, meaning backlog type data, land use data. we have designed the system to capture a ton of information about property and projects that we do not collect very well today. so, we, you know, thought ahead a little bit about that and we'll be doing a lot more data entry with the system, but we'll then be able to produce reports about it. also all of our written documents. so, we can ask the system to pre-populate a notice with the information that's already in the system and spit it out. and some notices will be 90% to 100% automated through the system. somewhere we have to customize depending on the project or the document, we'll pull up what we can from the system and edit and complete the document. it offers a lot of kind of streamlining of process and -- through the reports features. as i mentioned, this is a web-based system. so, we struggle today to access our information from anywhere outside our offices and this will be available to staff and the public basically anywhere you have an internet connection. so, 24/7 access.