most phishing is done to random users. these were targeted to specific people. if you look at the use of people. u.s. government officials, asian government officials, in particular south korea, chinese political activists, if you look at that list, it appears whoever was carrying out this hacking did have some form of political motivation because all those people have access to sensitive information. >> doesn't the u.s. have its own e-mail system? it seems odd they would use a system that millions of people around the world also use? >> i'm pretty sure these were e-mail accounts of government officials. i don't think there is anyway that the official e-mail accounts or anyone who has attempted to actually, as we know, hack into the official e-mail accounts of the u.s. government. but google said this appeared to take place in eastern china, but halfway down china in a city there. there is no suggestion at this stage that the chinese government was directly involved. but there has been a scam in the past, as you mentioned in the introduction, that targeted googl

. >>> google said hackers have targeted g mamail users with a phishing scheme that may have begun in china. those are the headlines. i'm zain verjee in london. "world business today" starts right now. >>> good afternoon, welcome to "world business today." i'm andrew stevens in hong kong. >> good morning for me, nina dos santos in london. >>> japan's prime minister survives a no confidence vote but signals he'll step down after the earthquake aftermath is cleaned up. >>> and hundreds of high-profile gmail accounts are breached after suspected chinese hackers go phishing. >> this guy is not the only trader who has had better days on wall street. the steepest u.s. stock slide in a year exposed fears of a stalling economy. the dow and the broader s&p posted their biggest loss since june of last year after a dismal job data, economic slowdown and a new downgrade in greece. that puts greece on par with cuba now. >> that downgrade to a caa-1 rating by moody's, something that perhaps you would expect from an impoverished developing nation but not one from a major eurozone partner. that greek

>> from a consumer standpoint i think the biggest threat really is phishing. >> reporter: phishing ishen attackers send you a message. it appears that it's from somebody you already know but of course it really isn't. it's just a trick to try to get you to send information on the internet. the world of cloud computing is vast and the rules chain from one region of the globe to the next. so, location's key. >> different countries have different regulations around how data needs to be protected and how data needs to be kept private. in the u.s., those regulations aren't as strict as what you might find in europe. >> reporter: just like you wouldn't want to accidentally flip the switch it cut out all the lights, cloud service providers have to make sure there's no service disruption. that's exactly what happened to amazon in the united states back in late april. amazon says it was a cass indicateding technical glitch caused during an upgrade to its own service. >> i think the amazon outage was actually a good thing for cloud computing. it highlighted to people that the cloud isn't magic.

phishing can involve something as simple as this, a seemingly harmless log in request. the only problem, the link is a fake. >> and provides cyber crim nams with back door access to the system. >> we know if you send that to 100 people, one will click. >> cybersecurity expert says the imf data makes it an attractive target. >> if you were a trader, a criminal who wanted to sell information or a government who wanted to figure out how to tailor your economy policy, it's a logical place to go after. >> imf says it remains fully functional, but internal memos, the imf asks employees not to open e-mails and video links without authenticating the source, a familiar warning. google, sony, scg&e and lockheed martin have all fallen victim to cyber attacks in the past 3 months suspected of being launched by haikers. >> if you you commit acybercrimn russia, china, and you car out the crime in the u.s. there is almost 7 chance they'll end up in jail. >> banks and corporations often pass on their losses to customers. >> >> maybe it's only a nickel a month but 130 million, you've go

now, google says this was clearly a phishing attack.n their own servers or their own systems. this was down through this phishing campaign. google says it was traced to jinan in china. chinese government put out a statement saying they were victims, too, saying china we firmly oppose computer hacking or any illegal activity and will severely punish anyone engaging in such activity according to law. computer hacking is an international problem and china is also a victim. now, the u.s. government has said they are looking into the problem. they have no evidence of their accounts being hacked so far, but they are cooperating with google, they said. >> what about people who have gmail accounts, what are they supposed to do? any advice? >> as a general rule, be careful about any links that you open, especially if you don't know the source of where that e-mail comes from. in this particular case, however, it does seem to have been very targeted toward u.s. government officials, chinese activists. the e-mails that came in were very good copies

day all right that's how phishing works see fishing is asking the victim to share personal information under the guise of credible channels like google or someone's bank now you think that since al gore invented the inner webs decades ago that senior level government officials would at least learn how to properly operate an e-mail inbox by now but let me break this down for any government officials you know like parks police officers with a hard on for the show who might be watching tonight there was no security breach don't blame google don't start a war with china over this passwords only work when you don't give them away apparently this is been going on for months which means maybe it was deliberate we've got only time to lock up hundreds of government officials put them in solitary strip them naked let's get bradley man some company here's to the real whistleblowers. going to watch a movie on your roommate's netflix think again i put down the lookout remote if i were you we wouldn't want to have to call the swat teams to burst in your front door burst out of your door shoot your d

. >>> and a renewed effort to ban pet sale in san francisco may now include banning gold phish. the animal control and welfare commission originally proposed a pet sale ban last year. the idea was to stop the sale of pets from puppy and kitten mills. the san francisco chronicle reports now one commission member wants the ban to cover goldfish, guppies, and aquarium fish. some pet store owners said the city is attempting to take too much control and that a ban will hurt their business. >> you ask me to ban it? how can i live? you sigh, this is my life and i also afraid i will lose my fish. i e sell 70 a week. how about my family? i have no money and depend on the government. >> right now it's a recommendation from the commission. the board of supervisors will have the final say. >>> just ahead, we'll update the bay area home sales. new numbers just came out. >>> why it's a big day for an online radio company. >>> taking a live look at the big board, big drop for stocks. the main reason, the violent protests we mentioned against the greek government austerity package hitting stock

had a tight shot deal i visited several of images and unveiled and you from the stadium i've met the phishshows and discussed lots of issues and that if you choose the camera region we'll probably host several important sporting events and i want to be involved in making sport more affordable in the same period. but it wasn't just about promoting sport in the region as a share in spencer and getting to know the locals was impressed by the number of weddings i've witnessed here so far and many of the couples had their photos taken with me so i hope that when they look at these pictures and their family albums it will make them smile. so two of russia's most famous athletes all of us the key to time value being a heavyweight champion go imo you and you are two thousand eight hundred manolis arsenal midfielder and russia captained the national anthem when face to face in a friendly football match luckily for the thirty year ghana he had to go up against a thirty seven year old books and with suffered only two losses in the boxing ring and on an affordable page when his sports some more popula

phishing expeditions. >> right. exactly. that's the epsilon breach. a way to steal knowledge is through the social engineering. they know that you bank at bank of america, so they're going torement themselves as though they're a representative from bank are america. >> tom: but even legit, don't answer? >> never answer. everything to lose. >> tom: and make your personal data personal. we're in the age of social networking. fi. you're in line at the grocery store, you don't go ran up to somebody and tell them your name. why do that online >> and vacation and personal travel plans offline. >> and personal security, why let criminals know you're not going to be at home. >> financial costs for corporations and we appreciate the idea. denis kelly is our guest, and the author of the official identedity theft handbook. >> susie: late today, groupon filed to go public. the daily deal web site hopes to raise up to $750 million. now, it's the latest in a growing number of companies jumping on the i.p.o. bandwagon. that's not just good news for investment banker

. >> reporter: the international monetary fund was likely infiltrated by what's called phishing. bogus e-mail that relies on computer skills and old-fashioned trickery. >> we know if you send that to 100 people, one of them will click and the minute they do, the attacker is inside. >> reporter: cyber security expert james lewis says the imf's data makes it an attractive target, even for state-sponsored espionage. the imf says it remains fully functional but in internal memos obtained by bloomberg news, the imf asks employees not to open e-mails and video links without authenticating the source. it's a familiar warning, google, sony, citigroup and lockheed martin have all fallen victim to cyber attacks in the past three months, suspected of being launched by hackers abroad. >> if you commit a cyber crime and you live in russia or china or a few other places, and you carry out the crime in the u.s., there's almost zero chance you'll end up in jail. >> reporter: meanwhile, banks and corporations often pass on their losses to customers. >> maybe it's only a nickel a month on your bil

google says the hackers phished for passwords. the fbi and homeland security are now looking into the attacks. >>> u.s. treasury secretary timothy geithner is going to get an earful from europe's top banking regulator. michel barnier says the obama administration too lax and shouldn't be allowing the huge bonuses for bankers. he also wants to make banking rules here and in europe harder to skirt regulations. >>> summer is usually a good time to buy a car. but not this year. buyers have been snapping up fuel-efficient models. and japanese vehicles are in short supply after the earthquake. so, there aren't too many incentives going on. things should be back to normal by the fall. >>> it also looks like someone in new york is waking up as the country's new multimillionaire. one winning powerball ticket was sold. the jackpot, $200 million. was that you? you have to let me know if it was. >> it wasn't me. >> bummer. >>> when we come back, a pro baseball team's plane makes an emergency landing. >>> plus, tarnished image. what republican

google believes hackers used phishing scams to trick them. >>> a doomed elementary school in pinole willtay open for at least another year. the west contra costa school board just voted to keep shannon elementary school open. the decision to close the school was made two years ago and it was set to shut down after next week. but the board decided to reverse that decision. the "contra costa times" says there were concerns about the cost of moving students to other campuses and adding portable classrooms to other schools. >>> californians want to vote and they would likely vote no. that's what a new survey has found about governor jerry brown's proposal to extend temporary tax increases. the public policy institute of california survey found 62% of state voters approve of the governor's revised budget proposal that calls for a special election but only 46% support the tax plan he wants on the ballot and 48% are opposed. >>> wall street has another employment report to look at today. the weekly update on new jobless claims coming out in about 45 minutes. the market took dive yesterday after

google believes that hackers tricked people in sharing the passwords in phishing scams.he attacks are not believed to be tied to a assault originating from china in the past few years. >> and democrats and republicans are fighting over whether recipients should be frint - fingerprinted. >> california is one of three states that requires foot stamp applicants to be fingerprinted. advocates for the poor cite the fingerprinting process as one of the major reasons that the state has the lowest foot stamp program in the country. some didn't like to give the fingerprints. >> it is hard to go anywhere knowing that you are getting fingerprinted and different things of that nature. it is uncomfortable. >> more people are joining the food stamp program. they have a proposal to remove the fingerprint requirement. with more participation millions more in federal matching dollars come in the state. >> by increasing participation. they serve as a massive economic stimulus program for california. >> they say that fingerprinting is one of the way to combat fraud. >> we'll open the flood

they tricked people into sharing their passwords in phishing scams.ctims have been notified and accounts have been secured. attacks are not to be tied to a more sophisticated attack originating in china over the last two years. >> a few of brightest kids will begin the scripps national spelling bee. it was whittled down to 41 contestants. they stumbled on a few zingers. >> competition had two local girls, kate anoufrieva and ten-year-old varsha senthil, a fifth grader at challenger school in san jose. neither girl received another points to move on to today's semifinals. it will air friday night on espn >> penguin -- volunteers named the new swan swimming in the lagoon. her parents are keeping protective watch oversee hour and the hatched eggs. assuming the eggs are fertile they should hatch in the next few days. >>> still ahead, new information police have now released about a person of interest in the disappearance of a bay area student. >> also a defense attorney offers hints on the results of two polygraph it is given to the primary suspect arrest

phishing and spear phishing -- it is resulting in allowing breaches. should the scale of the breach be a factor in determining if consumers receive immediate notification? >> a good question. we believe that there should notification triggered when there is a significant risk of harm. we think there are important provisions in the bill are the ones that encourage the industry to adopt security measures using encryption or other technologies that would render the information indecipherable or unreadable. that is at the end of the day, the most important safeguard because that when it is effective, if that information is obtained but the criminal cannot do anything with that information, we believe that you should not have to notify consumers because it is that excess of notification we believe races consumers' concerns unnecessarily and what the markets should be doing is driving people to store data in a readable format so when breaches occur and they will, the criminal cannot do anything with that data. >> we agree that and this is true of your bill.

natalie we have to contend with phishing. we also have to deal with spear sphishing. at the outset, my sense would be that, given the fact that the house last year passed a strong measure, the problems are getting worse and larger likely to continue to do so. i would have started there and try to figure out how to improve that bill. in that spirit, wanted to commend you for incorporating the data minimization information in the draft bill. i think this is an important safeguard that not only limits the risk at the outset by telling companies -- really think if you need to have social security numbers on health club members, for example. if you lose control of that information, you have created a risk. so you reduce the risk at the .utset in th one of the other things we have learned based on the citibank experience and the sony experience is that these companies are reluctant to notify their customers when they have a problem. that is why legislation is so important for companies to tell customers that there is a problem and that you will need to act on misinformation

google believes the hackers tricked people into sharing their passwords in so-called phishing scams.have been notified and their accounts secured. they are not believed to be tied to a more sophisticated assault originating from china in 2009 and last year. >>> japan's prime minister said he is willing to resign once reconstruction efforts are fully underway. u.n. inspectors faulted japan tore underestimating the tsunami threat to nuke facilities. and with the power supply still limping along the normally buttoned down japanese are bein being asked to make changes. david wright has the story. >> reporter: a government sponsored fashion show. official encouragement for workers to adopt a look in summer. supercool bis may be a fashion risk. but a country where air conditioners can no longer run full blast. we have a power shortage this year so the government is calling for a 15% cut in electrical usage. office buildings are being told to set their thermostats to 82 degrees. mcdonalds is allowing executives to work from home. in many buildings escalators and elevators are shut down. jap

google believes hackers using phishing scams to trick them into sharing their passwords. >>> 6:24.eds are about to serve up new nutritional guidelines. the old food pyramid is being replaced. here's what they are dishing up instead. first lady michelle obama will unveil the new plate symbol later this morning. it has four sections with fruits and vegetables taking up half. the other section will include grains and proteins. dairy items will be in a separate circle. >>> this morning the san francisco giants are doing something no other professional sports team has ever done before. >> promise you it gets better. >> it get better. >> the team just posted a message on its website to gay and lesbian teenagers. it's all part of an online campaign against gay bullying and homophobia called it gets better. >>> one of the most recognizable men in basketball one of the biggest guys, too, is hanging up his sneakers. >> shaquille o'neal says he is done playing the game after 19 years in the nba. shaq posting a video to fans yesterday announcing his retirement. his latest team the boston celti

the company says the hijacking probably happened after pass words were stolen through a phishing scamle is reminding customers to update security on their accounts. >>> orbits.com will start listing american airline fares and flights on its website again. that's after an illinois court ordered the airline to give the information to the online travel site. american pulled its listings from orbits earlier this year in a dispute over fees. exmedia and american airlines settled a similar dispute last april. >>> apple apparently cracking down on people who offer i pads and iphones as prizes. the company says it's using its products and give aways infringes on its brand. the ipod touch can be used under special circumstances, but only if 250 or more of the devices are bought. and it says it must approve all marketing that includes its products. so far there's been no legal ruling on apple's guidelines. >>> time now 5:52. a bear on the loose. where this one was roaming the streets very close to little kids at an elementary school. >>> plus yet another report aimed at cycling legend lance arm

the company said it happened after some passwords were stolen from a phishing scam. >>> microsoft showedperating system. it's a full version of windows that will operate on than lets and personal computers. it responds to finger swipes but can also be commanded from a keyboard and mouse. the current devices are finally able to run a full version of windows. for now microsoft is calling this version windows 8, but they slay that cop change. >>> today is the beginning of the first insider trading trial. this case has some pretty strong bay areas. prosecutors say winifred jowl allegedly gave inside information while working for a mountain view company. eight of the 13 haven terred guilty plea. >>> prime minister kahn said he would be killing to resign after the rebuilding effort of the earthquake and tsunami were well underway. opposition parties submitted that no confidence motion saying they're unhappy with the way he handled the crisis. >>> there's new details in the drug allegation case involving cycling's biggest star. the head of a swiss lab now says lance armstrong's test results fro

the phishing scandal with google, that hit close to home. >> one of my students at stanford is a tibetan activist, well known, and she has now had her account hacked twice by the chinese government. this is a big deal. in her case, she's a political activist, a young woman, but well known political activist internationally. and so what happens is, you know, the government in this case is actually hacking gmail accounts in order to find out sensitive, confidential information. what this means to you as a parent is you've got to be aware of password creation, right? >> right, china isn't trying to hack into the accounts of many of our kids, but it's something to keep in mind. >> but other people are! anthony wiener this week had his twitter account hacked. so you need to be very careful with e-mails that come to you that appear to be from someone who they are not. that's the other thing. so there's a lot of stuff that goes out there. it shows you again the whole new world that we live in today, with the internet and with cell phones, where people can obtain your private information without

those who do it to support criminal enterprises, meaning g-mail bad hack or phish and thousands of passwords e-mails were taken and that may be supporting criminal enterprises for identity theft, for example. then, finally, social causes. pbs to a social cause. they ran a story anti-wikileaks and anti-julian assange. the message don't mess with giving information to people who want it and, therefore, they attack pbs to make a point. >> all right. sending a message, punking an organization. let's take a look, though, at the cia site. it's a public site. not the internal site. when you look at that hack job, how much of a threat is it really since it wasn't the internal site, but, rather, the public site? >> reporter: the reality is the cia is correct in the sense that attacking the public website is not in and of itself a threat. what the real worry needs to be here is that it's exposing the fact that there are vulnerabilities in the government's systems and if you're an attacker who wants to do some true criminal damage or attack the security of the country, for example, an enemy foreign nat

. >>> hackers went phishing for information and struck gold. we'll tell you how they did it. >>> also, why attacks on the president's economic record are spinning the white house sort of badly right now. stay with us. you're in the situation. ♪ ♪ membership rewards points from american express. they're a social currency with endless possibilities. ♪ ♪ [ male announcer ] with amazing innovation, driven by relentless competition, wireless puts the world at your command. ♪ [ female announcer ] wake up to sweetness with honey nut cheerios cereal. kissed with real honey. and the 100% natural whole grain oats can help lower your cholesterol. you are so sweet to me. bee happy. bee healthy. >>> let's go right to jack. he has the cafferty file. jack? >> to quote a dear author and friend of mine, it's getting ugly out there. housing prices have fallen below what it was in 2002. a slow down in consumer spending, take your pick. not a lot of rosy news on the economy this week. so much for that whole recovery thing. stocks got slammed on the bad economic da

[laughter] >> this month, phishing activities were used. they're put to use in an attempt to penetrate defense contractor networks. based of forensic evidence, the companies involved were acting on behalf of a foreign intelligence service. >> ok. so, this one -- you are all smiling. this is interesting for a couple of reasons. somebody made some assumptions. you can push back on that, but somebody did something that was a preparatory action that was used later in of what would appear to be a more classic attempt. some of the variables might be elephant do we see this? is this the same actor? -- might be how often do we see this? is this the same actor? what do you do in a case like this? this is the kind of thing i think we are going to see consistently in the future, where sophisticated setups to an attack. >> in what you have not told me this was anything lost. we are describing an act of espionage, whether it is an individual or nation state. you're not told me whether there is any damage. you have described the methodology that is a lit

because of the importance of improving our cybersecurity as demonstrated by the recent g mail spear phishing attacks at sony, lockheed martin and the senate here itself, i rise to make initial remarks today. american technological innovation ushered in the internet age, bringing with it facebook, youtube and the rest of the worldwide web. it set off an explosion of new commerce, freedom of expression even in the details of our lives, allowing a car company to help you remotely if you lock yourself out of your car. however this allows terrorists and hostile nations to exploit cyberspace, to attack america, to invade our privacy, to loot our intellectual property and to expose america's core critical infrastructure to cybersabotage. entire online communities are dedicated to stealing and selling american credit card numbers. consider the disturbing fact that the price of your credit card number stolen on line actually goes up if the criminal also is selling your mother's maiden name. some criminals have learned how to spy on americans, hacking into our home computers and looking at through the

online initiative that by the ftc helps consumers brought against theft and avoiding e- mail and phishing scams. just yesterday, we held a workshop with the commission on location-based wireless services and privacy issues that they raised. at this webcast event, t whichhe ftc participated, we gathered information from wireless carriers and business and academic leaders about services. industry best practices for protecting personal information. and what consumers and parents should know about protecting themselves when using these services. we heard about the many but the benefits of location-based technologies and the challenges of educating consumers in protecting privacy while using new products and services. the ftc brings expertise about technologies and services. protecting privacy is a necessary part of providing communications services. so, too, is it part of the fcc passed a mandate to provide a healthy marketplace that meet consumer needs. thank you for this opportunity to testify today, i look forward to your questions. >> thank you, mr. schlick. we will proceed to the questio

. >> phishing techniques reused by major defense contractors and the authentication was used in an attempt to penetrate defense contractor networks infiltrate data on advanced weaponry. based on forensic evidence, the companies involved had a proxy's acting on behalf of the foreign intelligence service in asia. >> ok. you are all smiling. i did not know if that is good or bad. first, this was a two step, and we are making some assumptions here and you could push back on that. somebody did something that was a preparatory action that was then used later in the what would appear to be more class activities, but what is the response here? some of the very rules may be how often we see this? is it the same actor? how confident do you feel? if you do not know what was lost, does that inhibit your ability to respond? would you do in a case like this? this is the kind of thing that i think we will see consistently in the future, very sophisticated set ups. >> what you have not told me is if anything was lost. we've are describing an act of espionage, whether industrial or nation state. but you ha