Ep 48: Marc Goodman, FBI Futurist, on High-Tech Crime and How to Protect Yourself

Marc Goodman has been Resident Futurist for the FBI and a senior adviser to Interpol. He is also author of the much anticipated Future Crimes http://www.amazon.com/gp/product/0385539002/ref=as_li_tl?ie=UTF8&camp=1789&creative=390957&creativeASIN=0385539002&linkCode=as2&tag=offsitoftimfe-20&linkId=C3IW2SM2FGCGBFER. In this episode, we'll go deep into the digital underground to expose the alarming ways criminals, corporations, and even countries are using emerging technologies against you…and some simple steps you can take to decrease your vulnerability. To start, 3-D printers can produce AK-47s, bio-terrorists can download the recipe for Spanish flu, and cartels are using fleets of drones to ferry drugs across borders (all of which we touch on), but what else is waiting for you? What else is potentially targeting you right now? If you want to hear about current and future threats, and simple defensive steps you can take, this interview is for you. Show notes are available at www.fourhourworkweek.com http://www.fourhourworkweek.com (click "podcast")

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:01Speaker 00

  At this altitude, I can run flat out for a half mile before my hands start to shake. Can I ask you a personal question?

• 0:07Speaker 01

  No, where does it seem appropriate to me?

• 0:12Speaker 00

  I'm a cybernetic organism, living tissue over metal endoskeleton.

• 0:23Tim Ferriss?

  Thank you for supporting the sponsors of this show. 99designs, which is your one-stop shop for all things graphic design-related. Go to 99designs.com/tim to see the projects that I've put up, including the mock-ups and drafts of the book cover for The Four Hour Body. Exoficio, Exoficio and I go way back. Exoficio.com/tim. You can see the clothing that I've used for traveling through 20-plus countries, including the underwear. By the way, that's about half of my underwear drawer right now. Exoficio.com/tim. You can also see the viral video that I put out, which shows you how to travel the world with 10 pounds or less. As always, you can subscribe to this podcast on iTunes, and you can find all of the links

• 1:06Tim Ferriss?

  and resources from this episode, as well as every other episode, by going to fourhourworkweek.com/podcast. Spell it all out, or you can go to fourhourworkweek.com and just click on Podcast. Feedback? If you have feedback, I would love your thoughts, anything at all, who you'd like to see on this show. Ping me on Twitter, @TFerriss, that's twitter.com/TFERRISS, or on Facebook, at facebook.com/timferriss, with two R's and two S's.

• 1:38Tim Ferriss?

  Hello, ladies and germs, this is Tim Ferriss, and welcome to another episode of The Tim Ferriss Show. For those of you new to the program, this is where I try to deconstruct excellence. I talk to people who are the best in the world at what they do, and try to distill or extract the tools and tips and resources that you can use. And this episode is a very unusual one, a very fun one, a very useful one, I hope. The episode guest is Mark Goodman. Mark Goodman has been a resident futurist with the FBI and worked as a senior advisor to Interpol. Specifically, he's considered one of the world's leading authorities on global security. And in this episode, we'll go very deep into the digital underground to expose

• 2:19Tim Ferriss?

  the many ways that criminals, corporations, countries, organized crime, and the list goes on, are using emerging technologies against you, and some of the simple steps that you can take to decrease your vulnerability. Sure, 3D printers can produce AK-47s, bioterrorists can now download the recipe for Spanish flu, and cartels are using fleets of drones to ferry drugs across borders, all of which we'll touch on. But what else is waiting for you? What else is potentially targeting you right now? We'll dig into it all. And this is not from a paranoid nut job, and I think it's important to underscore this. This is from a very pragmatic, real-life-oriented problem solver who has been hired by people

• 3:00Tim Ferriss?

  like the FBI and Interpol. This is an informed insider. And he will describe the Wild West that is the internet. And in that Wild West, ignorance is no excuse for being defenseless. If you want to hear about current and future threats and simple defensive steps you can take, then this interview is for you. So without further ado, please meet Mark Goodman.

• 3:26Tim Ferriss?

  Hello, ladies and gentlemen, boys and girls. This is Tim Ferriss, and welcome to another episode of The Tim Ferriss Show. I am so excited, I can barely enunciate properly, because I have Mark Goodman on the show. And I'll give a quick bio for Mark, and you'll very quickly realize why I'm excited to have him on. And this is pretty much directly from the bio, but he has spent a career in law enforcement in many different capacities. That includes work as a futurist for the FBI, who knew they had such a thing, senior advisor to Interpol, and also on the street as a police officer. He's the founder of the Future Crimes Institute, and the Chair for Policy, Law, and Ethics at Singularity University, where I've had some involvement, often at NASA Ames. And he's continued to

• 4:09Tim Ferriss?

  investigate the often terrifying intersection of science or technology and crime, and uncovering all sorts of different nascent threats, and combating the darker sides of technology, which I think don't get as much sort of radio time, perhaps. As all of the promise that we hear about and the benefits of Moore's Law. He is also the author of the forthcoming Future Crimes and subtitle pretty much tells you a lot of what you need to know. Everything is connected, everyone is vulnerable and what we can do about it. So Mark, thank you so much for being on the show.

• 4:44Speaker 03

  Thank you, Tim. It's an honor to be here with you.

• 4:46Tim Ferriss?

  And I am thrilled to have you on because I wanted to grab you as quickly as I could because I think that you are going to be getting interviewed a lot in the upcoming months because many people are completely unaware of, I think, the threats that are not only in some cases ubiquitous now or at least upcoming, but soon will be right at our doorsteps. And just as some background for people who are listening, because I've had a lot of public exposure since the unexpected success of the first book, I've really come to realize this in a very personal way.

• 5:27Tim Ferriss?

  And I've had people try to hack my sites, hack my phone, impersonate different people in my life to get information from other people. It's been a real fast education and cloak and dagger stuff. But I wanted to make sure, I gave a very brief overview, but is there anything from your background or bio that I missed that I should share with folks?

• 5:49Speaker 03

  One thing you didn't mention is the fact that I'm a huge fan of Tim Ferriss. I really love The Four Hour Work Week and it's quite an honor for me to be speaking with you today. I actually got one of the earliest editions of the book and some of the entrepreneurship suggestions that you covered were ideas that I tried to implement in law enforcement and with some difficulty, but I tried and it was a pretty good fun. And I actually took your advice on some of the things you did. I went on an information diet, not a real diet, but an information diet. And I also have a love of foreign languages the way you do and actually enrolled in the Hartnach Schule in Berlin in Germany, just the way you did. So thank you for your book. That's something else I wanted to mention right off the top.

• 6:34Tim Ferriss?

  Well, that of course completely makes my week and bitte schön.

• 6:39Speaker 03

  So danke schön.

• 6:41Tim Ferriss?

  I hope you had fun. That was, I had a great time at the Hartnack Schule in Berlin. And, you know, I think that, that language is, is a, is a metaphor for so many different aspects of life and the, the becoming fluent in a language or becoming fluent in technology, I think can sound very intimidating to people, but it doesn't have to be super, super complicated. But before we dig in, I'm going to try something a little different and that is to do-

• 7:12Speaker 03

  We're going to do the interview in German.

• 7:14Tim Ferriss?

  We're going to do the interview in German and I'll try to teach you Swahili. No, I thought that we might do just a little bit of calisthenics by doing some rapid fire questions first, just to loosen up the joints.

• 7:26Speaker 03

  Great.

• 7:27Tim Ferriss?

  And then we can jump into all of the, the spy versus spy stuff, which I am absolutely obsessed with, which a lot of people might not realize. But before we do that, I have to get into the, the really important stuff, such as

• 7:42Tim Ferriss?

  if Sean Connery came to your house for dinner, what would you cook him?

• 7:46Speaker 03

  What I'd cook him? I don't know if he'd eat, but I'd make him some drinks. I'm sure he'd have a nice drink.

• 7:50Tim Ferriss?

  What would you, what's, what's the cocktail or the drink of choice?

• 7:54Speaker 03

  I think for him, a martini. He'd be a martini kind of guy.

• 7:56Tim Ferriss?

  Martini kind of guy. Do you have any favorite documentaries or, or films that come to mind?

• 8:04Speaker 03

  God, I love film and I love stupid eighties comedy. So Ghostbusters was great. And, you know, anything of that genre, anything with Bill Murray or Dan Aykroyd in it. I'm a fan. And of course I like all those eighties hacking movies like War Games and Sneakers and that type of stuff.

• 8:22Tim Ferriss?

  So of the, of the, the hacking genre or the crime slash spy genre, what movie, what movies that you like are closest to reality and furthest from reality?

• 8:35Speaker 03

  That's interesting. It's very funny when you see how Hollywood goes at and portrays hacking on the screen. You know, most hackers get a good laugh of what they type at the C-prompt. It's pretty funny. But I think actually, I have to give a hat tip to Walter Parks, who did the original War Games, because considering that it was in the early 80s, before most people were thinking about computers, I mean, modems were, you know, super slow and incredibly rare. And the fact that he was able to bring that hacker type out there and show that the Department of Defense was connected to the internet and you could change your grades, I mean, he did that 30 or so years ago. So that was really awesome.

• 9:18Speaker 03

  And I think that's great. Some of the other hacker movies, Sandra Bullock, The Net, you know, it was a nice movie, not particularly realistic, but there were elements of truth in it. So there have just been a lot of silly hacker movies out there, because as I've been told, it's difficult to show, you know, cool hacker stuff on the screen in a way that people will understand.

• 9:37Tim Ferriss?

  Yeah, I had a computer scientist friend of mine also say that you can always, it's always amusing to watch hackers typing in movies because they never use the spacebar. And you can tell when people are BSing on a keyboard because you never hear the distinctive sort of thwack of the thumb hitting the spacebar.

• 9:58Speaker 03

  Same as you will know, all the best hackers never use the spacebar.

• 10:01Tim Ferriss?

  That's right.

• 10:02Speaker 03

  Very common.

• 10:03Tim Ferriss?

  All the Dvorak typers out there, like Matt Mullenweg. Let's see, what is the book that you're most likely to give as a gift, or the book that you've given most as a gift to people?

• 10:16Speaker 03

  This sounds like BS, but it's actually been your book. I have to say, I've given it to a ton of people. I have, I run into people all the time, both in law enforcement, friends of mine, folks that are struggling with their careers and trying to think about opportunities to see the world in a different way. And I know bullshit, I've actually given away about 10 copies of your book.

• 10:37Tim Ferriss?

  Wow, well, I appreciate that and my publisher thanks you for that as well.

• 10:42Speaker 03

  Yes, but that was before I had my own book, in the future, of course. I was giving them my book, but up until then, you were my favorite.

• 10:49Tim Ferriss?

  Well, I'll take a runner up when your book comes out. Are there any fiction books that you particularly like? Doesn't have to be science fiction or any particular genre, but any fiction books that have been very influential in your life?

• 11:02Speaker 03

  You know, there were some, I love the old street crime drama. So, you know, having grown up in New York City and kind of been very in tune with the New York City Police Department. There was a book called One Police Plaza by a guy called William Connetts, which I thought was awesome and just really got what policing was and what policing was all about. I thought that was pretty amazing.

• 11:23Tim Ferriss?

  Very cool. No, I'd love to check that out. I know less about the police than I do the other aspects of the military, oddly enough, you know, so it's the law enforcement that I have the most contact with. I have the least knowledge of.

• 11:40Speaker 03

  I understand.

• 11:42Tim Ferriss?

  Ironic. Let's see here. I'm not going to ask too many more of these because I want to jump into, of course, the subject areas that are your expertise. But do you have any particular morning routines? What does the first hour of your day look like?

• 12:01Speaker 03

  I wake up, I take my dog out for a walk and then I have breakfast, which I really enjoy, catch up on some news, emails, and then go and take on the day.

• 12:11Tim Ferriss?

  What time do you typically wake up?

• 12:14Speaker 03

  It depends. I do a lot of traveling, so it depends on what time zone I'm in and how jet lagged I'm in. But more on the early side these days, I'd say.

• 12:22Tim Ferriss?

  Got it. And is that like a 7:00 AM kind of thing or a 6:00 AM?

• 12:27Speaker 03

  Yesterday I was up at 5:00, the day before I was up at 5:00, and then mostly I would say 6:30, 7:00, something in that timeframe.

• 12:35Tim Ferriss?

  Got it. And do you change your, how does your routine change on the weekends? How do you decompress if you do?

• 12:44Speaker 03

  I like to go for hikes. I like to go outside, like going to the movie theater, seeing films, hanging out with friends, all the kind of standard stuff. But, you know, for the past year when I was writing the book, it mostly was my butt in chair typing.

• 12:59Tim Ferriss?

  Right. When you think of the word successful, who's the first person who comes to mind?

• 13:08Speaker 03

  Wow, there's so many different ways to define success. I mean, Martin Luther King, you know, is one of the first guys that pops into my head. Clinton was a pretty successful politician. There are lots of folks out there. And of course, you know, any of the entrepreneurs like Steve Jobs and the like.

• 13:26Tim Ferriss?

  Got it. So let's jump into the subject matter at hand. And we can tackle this from many different perspectives, but perhaps you could give maybe a few facts or examples of things that might surprise people in the world of whether it's currently existing crime or things that you see right on the horizon coming down the pike.

• 13:54Speaker 03

  Sure, I'd be happy to do that. Basically, my take on this is that folks are very focused on the cybercrime of today. Every day in the news, whether it be the New York Times or the Wall Street Journal, we're hearing that Target was hacked and Home Depot was hacked and JP Morgan was hacked. And what's interesting to me is that the media treats all of these as distinct incidents. Like, oh, another company was hacked, you know, a bunch of celebrities had their naked photos, you know, tipped off by a hacker. That stuff is all treated as if it were an individual act. And what people don't see from a 35,000-foot view is that there's a systemic issue going on, which is something I try to mention in future crimes.

• 14:34Speaker 03

  It's the fact that we have, thanks to Moore's Law, which you mentioned earlier, we're just moving at an exponential rate. And so we're plugging more and more things into the Internet. And the fact is, as you well know, software is eating the world. So everything is becoming software. Everything is becoming a computer. A car is not a car anymore. It's no longer a mechanical device. It has 250 computer chips in it at a minimum. So a car is basically a Unix box that we ride in. An elevator is a computer that takes us from floor to floor. As Cory Doctorow says, an airplane is a flying Solaris box with a bunch of industrial controllers. So people don't realize that.

• 15:16Speaker 03

  And the big takeaway from that is that never has there been a computer system that could not be hacked. In other words, every computer system is hackable. There are no unhackable machines. And that has some really profound consequences for us as a society and the world that we're building. Because we're about to add between 50 and 200 billion new devices to the internet, to the internet of things, depending on who you ask. Cisco will say 50 billion by the year 2020. Intel says 200 billion by the year 2020. The impact of that is that we're going to go from an internet that is theoretically or metaphorically the size of a golf ball today to one that is the size of the sun.

• 16:01Speaker 03

  Right?

• 16:02Tim Ferriss?

  That's a

• 16:02Speaker 03

  Massive, massive increase. We're just at the very, very earliest days of the internet. And so the, I guess you would say, mistake that a lot of people make is they think we're technologically advanced today. But they have no idea of the tsunami of technology that's coming our way tomorrow.

• 16:20Tim Ferriss?

  And I think also to underscore that, that human beings intrinsically are very bad at thinking in exponential terms. They're just, they're very bad at predicting, for instance, I mean, the answers to a lot of these old riddles, such as you take one grain of rice and you double it for each square on the chessboard. And how many, how many pieces of rice do you have? How many grains of rice do you have by the end? And it's, it's very hard for people to anticipate how quickly things can change. For instance, I've listened to a number of your talks. You have a great TED Talk. And the fact that, and this may even be more accelerated now.

• 16:59Tim Ferriss?

  I think your talk was in 2012, but the DNA sequencing is proceeding at five times Moore's law. And the impact that that has on sort of privacy and the, the weaponization of, of different types of code. Right? And there's, there's another term that you also used, or phrase rather, and that's the technological arms race. Sort of the, the white hat versus the black hat. And then you have a bunch of folks in between. So I'd be curious to hear. Where things stand now compared to a horrible 60-hour siege in Mumbai that you've talked about before, where terrorists built their own ops center in Pakistan to monitor

• 17:43Tim Ferriss?

  the progress of these attacks in real time, and where they'd be executing people with a handgun in one hand while looking at their cellphone in another, which gave them huge situational and tactical advantage over the police. But those were with relatively primitive devices, all things considered, because I think that was in 2006 or somewhere along those lines.

• 18:04Speaker 03

  Right, the 2008 attack in Mumbai, yeah.

• 18:08Tim Ferriss?

  I apologize. And that, I remember doing research for The Four Hour Body at one point, I was chatting with a scientist who shall remain unnamed, but he was talking about how negligent it was, in his mind, for a very well-known tech titan to have released all of his genetic data, or his DNA sequencing, because people could create personalized biological weapons to attack him. And it's sort of, I think, to the uninitiated, seems like complete science fiction, like a fantasy. But where are we with that type of thing? I mean, is that already being used on people?

• 18:52Speaker 03

  Yeah, so you're spot on, actually, with everything that you just said. In fact, the cost of sequencing, you know, human genomes has dropped precipitously and is dropping at five times faster than Moore's Law. So with Moore's Law, silicon-based technology, ones and zeros, that is doubling every 18 to 24 months, depending on who you ask. And Ray Kurzweil has shown, and the singularity is near, and many times since, that there is this persistent exponential pace of technology. Synthetic biology and genetics are outpacing that by a factor of five. So biological advancements and computational biology were pretty much proceeding at Moore's Law's pace, until 2008, when there were some massive

• 19:36Speaker 03

  breakthroughs in genetic sequencing, which made it go five times faster. So what is the result of that? Well, there'll be tremendous opportunities for each one of us to know our genome. For example, today, most people would certainly never consider going in for a full genetic, you know, genome sequencing. prohibitively expensive. When the US government launched the Human Genome Project back a decade or so ago, they allocated $3 billion to sequence the first person's genome. And they didn't get it done. They didn't complete it. Craig Ventnor, a world famous biologist, came in and worked on the project, built upon the work done by the Human Genome Project.

• 20:17Speaker 03

  And he was able to sequence in full the first human being for a cost of $300 million about 10 years ago. And fast forward to today, you can actually get a full genetic sequencing for $1,000. And there are companies like 23andMe that will offer you partial genetic sequencing for just $99. Without a doubt, within a few years, it'll be the price of a cup of coffee. Everybody will have their full genetic sequence. So that's great news for medicine, right? Every cancer can be treated differently. You will know your proclivities for certain diseases. We'll be able to, you know, have really massive impacts on healthcare. But there's a flip side of that. When it costs $3 billion to, you know, sequence the human genome and pieces of equipment

• 21:02Speaker 03

  to do that were in the tens of millions of dollars, only the government or the wealthiest universities could afford that. Now, equipment that sold on eBay a year ago for $100,000 can be bought for $10,000 or $1,000 today. That is putting the tools of genetics and synthetic biology in the hands of the common man. So there are actually high school clubs that are doing genetic sequencing today, right? They have lots of groups. There's something called iGEM, which is a high school and college competition that focuses on this. So today's kids are very much at the cutting edge of science. And again, they'll do all different types of cool stuff. At Singularity University, we had a startup that was creating a glow-in-the-dark plant because they thought it would be cool. Let's do that. And you can do that.

• 21:47Speaker 03

  But the challenge with these things are is that not everybody playing with these tools, whether it be genetics, synthetic biology, robotics, artificial intelligence, is of a kind heart. And there are criminals and terrorists and bad guys that now, for the first time, have access to these tools. And I know you're chomping at the bit, so I'll shut up for a second and then happy to give some examples of what bad guys are doing with bio.

• 22:12Tim Ferriss?

  Okay, we're gonna come right back to that. I want to ask a very personal question, which is, so 23andMe, I've always been nervous about having my own name associated with genetic data. And so I have thought to myself and talked with other people about, well, perhaps you should have a friend pay for your 23andMe who is of a different gender, so that if that data is ever compromised, it's tossed out, or misattributed, or using a pseudonym, let's say with an authorized account under a separate credit card, etc., shipped to an address that isn't associated with your name, so that that that data cannot be used against you in some fashion.

• 22:55Tim Ferriss?

  Is that paranoia, or is that preparedness? Is that a practical thing in your mind, or something else? I'm just curious.

• 23:04Speaker 03

  Well, if it's paranoia, you and I are both paranoid, because that's the exact advice I give to my friends that want to do the test. So I don't know whether or not this violates their terms and services, but the simple fact of the matter is, we have no idea how they're going to use that genetic information. And there are lots of sites out there, and some I mentioned in the book. One is called PatientsLikeMe. PatientsLikeMe was a medical site where people were meant to be sharing confidential medical information with each other, and you know, get help for particularly rare diseases. And they had something called the Mood Form, where people were talking about psychotic breaks, suicidality, and the like. And it turns out, the folks that were running it were actually releasing all of that information to insurance companies.

• 23:46Speaker 03

  And it was mentioned very clearly in their Terms of Service that they do so. So you think you may be doing something that's safe and secure and private, but in fact, often you're not. So I would always look at the Terms of Services. Again, I don't know what the Terms of Services are for 23andMe specifically, but I would say the following: if I wanted to get genetic testing, I definitely share your concern, and would not be doing it under my own name, because we simply don't know where this technology is going. We have a naivete about, you know, the future and what it might look like. I'm not sure if you ever saw the movie Gattaca?

• 24:20Tim Ferriss?

  Uh, I I've seen the previews. It's about as far as I've gone.

• 24:24Speaker 03

  The short story is it's kind of a dystopian future where everybody is judged based upon their DNA. So let's say you want to be a scientist or you want to be an astronaut. Based upon your genetic profile, they'll say, no, you know what, Tim, you're not quite what we're looking for. And everybody's social strata is determined by their DNA and what that what people presume that means. So I won't say that exactly we'll be living in the Gattaca future, but for example, if there are genetic markers for sexual orientation, for example, which some people suggest there are, there are definitely genetic markers for predispositions to violence. Could be for schizophrenia and other diseases. So the opportunities from a public policy, law and ethics perspective

• 25:09Speaker 03

  to have your genetic material leak or the information about you and get out into the public sphere. I'm sure will happen, you know, we know today that presidential candidates are forced one way or the other to release their medical records to show that they're fit and ready for office. I guarantee that that will be happening with presidential genomes in the future. And in fact, I I talked about this, I wrote an article with two friends of mine, Stephen Kotler, who you may know, and Andrew Hessel, a synthetic biologist, and it was in the Atlantic Monthly. And it was called hacking the president's DNA. And it was all about what those risks would look like and the the a number of bio threats that could be launched if you had access to somebody's genetic material.

• 25:52Speaker 03

  So for most folks, I don't think they have to worry about biohacking today, but from a privacy perspective, I think I would definitely take precautions and the ones that you mentioned about using a prepaid credit card, for example, or having it shipped to a third party and all of that stuff. I think are good, logical, common sense steps to take.

• 26:12Tim Ferriss?

  So what are some other, yeah, and just for what it's worth, I want to do like a an urban myth check here because of course I get all excited about this stuff. And when I was doing research for the four hour chef and got became fascinated by marksmanship and hunting, of course, that very quickly leads to prepper communities and there's the good, bad, and the ugly there. And there are some very extreme edge cases. But I was speaking with a very well-credentialed scientist and the example he gave was, you know, a personalized weapon doesn't have to be a synthetically engineered, super fancy sci-fi like dart

• 26:55Tim Ferriss?

  or pill or anything like that. It could be that you know, someone's predisposed to a disease and that you can accelerate the onset of say, a neurodegenerative disease by blowing mallebdenum into their face at a, at a, at a public event where they wouldn't even, they, they might not even register that's what happened. But if you wanted to say, take a long-term, short position on their stock and they're running publicly to a company that it doesn't have to be, that type of crime doesn't need to be, the diagnostics and the determining of the target could be sophisticated, but the actual attack does not have to be something futuristic.

• 27:32Speaker 03

  I agree with that. I'll give you a perfect example. There's a medicine called warfarin, which is a blood thinner. And there's a certain small percentage of people that have a genetic marker that makes them allergic to that. And it's deadly if taken. So that would be a perfect example. It's a common pharmaceutical that exists today. And it's not something that you can see by looking at somebody whether or not they're allergic to warfarin. But if ingested, right now, you have that additional piece of information and you know about it and it could be fatal.

• 27:59Tim Ferriss?

  Yeah, yeah, that's crazy. I mean, yeah. And I think, you know,

• 28:04Speaker 03

  So don't do that, kids.

• 28:05Tim Ferriss?

  Yeah, don't do that.

• 28:06Speaker 03

  Don't, don't commit bio homicide.

• 28:08Tim Ferriss?

  And, you know, it's also, It brings up, and I want you to give some examples, but a misconception I think that a lot of people have about criminals, or particularly terrorists specifically, and that is that they're just uneducated. And maybe you can shed some light here, but it seems that there actually seems to be a disproportionately high percentage of very, very, very well-educated people who then are recruited by militant groups as operatives or terrorists.

• 28:47Tim Ferriss?

  I think people underestimate the, perhaps, the intellectual horsepower of some people who could perpetrate these types of crimes. But I would love to hear certainly examples. You mentioned you might have a couple of different examples.

• 29:04Speaker 03

  Sure.

• 29:05Tim Ferriss?

  Which I'd love to hear.

• 29:06Speaker 03

  Yeah, I mean, on the terrorist front, you're exactly right. People tend to underestimate them. You know, when we were first going into Iraq and Afghanistan, we talked about people with towels on their heads, living in caves, and what could they possibly do to defeat us? And as we saw, they were able to put up quite a hell of a fight. And, you know, Aiman al-Zawahiri, who was Osama bin Laden's number two, was an M.D. He was a trained physician, right? So there are any number of doctors that are in these terrorist organizations. We've seen them recruiting specifically on terrorist chat boards. They're looking for people with scientific backgrounds, with technological backgrounds. One terrorist by the name of Irhabi 007, he took the 007 from James Bond, and he was

• 29:49Speaker 03

  like basically the CIO for Al Qaeda for a while, running their technology in the wake of the Snowden disclosures. There's been a ton of chatter on terrorist chat boards, talking about the importance of encryption. So they follow the news very, very closely and are paying attention to it. They show tremendous sophistication. And let's go back to Bio for example. The terrorist organization Al-Shomrinkio, the folks that carried out the 1995 terrorist attack.

• 30:19Tim Ferriss?

  Sure.

• 30:20Speaker 03

  Exactly. Sarin gas on the Tokyo subway. That occurred in 95. What most people didn't realize about Al-Shamrinkio is the fact that they had a bioweapons project. They spent a million dollars a year for 10 years, from 1985 to 1995, trying to develop a powerful bioweapon, and the science wasn't there yet for them to be able to do it. That's why they went with the chemical sarin gas attack. Today, things like that would be much more trivial, given the wide availability of biotoxins and other type of infectious threats that are available online. The code is there, you can download it, basically build some of these things in your basement or garage, and release them. Another area where we see terrorists playing in really interesting

• 31:04Speaker 03

  ways are both robotics, and social media, and open source intelligence, and I'll just give a few crazy examples. So during the terror attack at the Westgate Mall that occurred in Nairobi about a year ago, we saw the terrorists from Al-Shabab, the militants, were incredibly sophisticated in how they were using social media and Twitter. They were live tweeting the entire event, and they were actually mocking the Kenyan police force and military guards throughout the incident, putting out information, adding to the confusion. And ISIS, or the Islamic State, has been doing the same exact thing. You mentioned earlier, also, the 2008 Mumbai terrorist attack. In my humble opinion, that

• 31:47Speaker 03

  was perhaps one of the most sophisticated terrorist attacks we've seen to date from a technological perspective. Ten terrorists were able to keep a city, a metropolitan area of 20 million people, completely shut down for 60 hours. So 10 guys, not just armed with standard weapons, AK-47s, RDX, explosives, hand grenades, but these guys had night-vision goggles, they had satellite phones, satellite imagery, encrypted BlackBerrys, they used Skype-type VoIP communications during the incident. Because they had all that technology, they had phenomenal situational awareness. Situational awareness that beat the capacity

• 32:28Speaker 03

  of the Indian National Guard and the Mumbai Police to respond, and they used it to great effect to actually kill more people. There's an example I talk about in the book of a man called K.R. Ramaporti, who was staying at the Hitaj Mahal Hotel in Mumbai. You may have been there, it's one of the most beautiful hotels in the world, and... When the terrorists took over the hotel, they started going room to room trying to find more hostages. And they came across Mr. Ramaporti, who was on the top floor in a suite at the Taj. And they broke into his room and they said to him, "Well, who are you and what are you doing here?" And he said, "Oh, no, I'm nobody. Leave me alone. I'm just an innocent schoolteacher." Well, the terrorists were dumb, but to your point about not being that dumb,

• 33:13Speaker 03

  they looked at this guy and staying in a suite at the Taj Mahal, beautiful hotel, and they said, "There's no way any Indian schoolteacher could afford this suite." They picked up his ID at his bedside and then they phoned it in via a satellite phone to the terrorist war room that was set up across the border in Pakistan. There, in the war room, the terrorists were monitoring live. They had IBN, CNN, BBC, Al Jazeera, and a bank of computers where they were doing real-time research. So you had the 10 operatives from Laksha Atohba, an Al Qaeda affiliate based in Pakistan, that were carrying out the attack, broken down into five teams of two terrorists. And then you had the terrorist war room.

• 33:57Speaker 03

  So when they phoned in the name of this guy to the terrorist war room, they simply Googled him. They came across his photograph. As it turns out, he was not a schoolteacher. He was the head of one of the second-largest banks in India called ING. They came across his photo and then we know from the intercepted conversation, which we only discovered after the fact, that the terrorist war room said, "Hey, we found a picture of your guy. Is your hostage heavyset?" "Yes." "Does he have glasses?" "Yes." "Is he kind of bald?" "Yes." "Okay, we found him." The terrorists then said to their ops center, "What shall we do?" And then the order came down: "Kill him."

• 34:35Speaker 03

  So the fact of the matter is, back in 2008, terrorists were using search engines like Google to determine who shall live and who shall die. And though it's a black swan event, and I know you talk about those, the fact of the matter is, when you're sharing in Facebook, it's not just, you know, the media and marketing companies that you need to be concerned about. When you share openly, everybody has access to this. And even though it's a black swan, we're a event that could be terrorists or organized criminals as well.

• 35:02Tim Ferriss?

  And I should, I think you, I think it's a terrifying example, particularly when you consider that 2008 was the Stone Ages compared to the implications of big data and ubiquitous availability of tools today and sophistication certainly of a lot of those tools, including reverse image search and things like that through Google or Ten Eye or others. The black swan events also, just because a black swan event is considered a black swan event to the victims doesn't mean it's a black swan event, i.e. a low probability random event.

• 35:42Tim Ferriss?

  It could be completely engineered, as it was in this particular case, through extensive preparations on the part of the terrorists. So, I'd love to talk a little bit about a phrase I've heard you mention before, and that is "public safety is too important to leave to the professionals." So, there are a number of ways I'd like to try to unpack that. The first is, just as a, to try to bring out my inner prepper. So, if you live in San Francisco, in a city like New York City, or San Francisco, or

• 36:24Tim Ferriss?

  Chicago, what are the things that should be keeping you up at night, that you should be thinking about mitigating as risks or black swan events?

• 36:34Speaker 03

  Well, traffic, but it's not a black swan event. Keeps me up at night. When I talked about that, I was speaking more broadly about kind of the cyber threat, but it's also true in physical space as well. I mean, the fact of the matter is that the line between kind of order and society and chaos is actually quite thin in law enforcement. They talk about the thin blue line. And I was a patrol officer in Los Angeles during the LA riots, and what I realized is that the police are in charge as long as the public wants them to be in charge. Once the public decides that they are not in charge, you are no Longer in charge. I think LA had 1.7 police officers for every 100,000 citizens at that point.

• 37:19Speaker 03

  And so if you make the citizens really, really mad, as was the case during the Rodney King incident, then it's over and there's nothing you can do. So in physical space, I mean, all the basic stuff that you talk about the Prepper movement, but the Red Cross would give you the same type of advice for the California Office of Emergency Services, FEMA, there are any number of good checklists out there about having water and food and, you know, just be prepared, have an emergency plan. All of that is really good and useful. And I also had, unfortunately, the opportunity to be in New York City down at Seven World Trade on 9/11. So that was another experience that I happen to have lived through and, you know,

• 38:01Speaker 03

  that brought out the best of people in that particular instance where you saw total and complete strangers being as warm and helpful to one another as they could. So it can really go both ways. When I talk about public safety being too important to leave to the professionals, what I would say is that people often abdicate their concept of safety to the police or to the authorities and think that everything will be just fine. And mostly in our physical space in the developed world where we have rule of law. So, you know, think Australia, Western Europe, you know, North America. That's a system that works quite well. If you look at what's going on, you know, with Al Shabab and others in, you know, Africa, it's a different story.

• 38:45Speaker 03

  But in cyberspace, it's a complete, you know, every man for himself type scenario. What I find fascinating is, is that from the most part, law enforcement has abdicated any responsibility for cybercrime. Now, I know that some of my colleagues in law enforcement might, you know, take issue with that and certainly they're trying hard, but the volume of the threat and the nature of the technology makes law enforcement nearly impossible as a solution for the cyber threat. You know, I talk about law enforcement is a nation-state type solution, right? A policeman in New York cannot make an arrest in Moscow and vice versa. And so law enforcement is a local solution to a global problem.

• 39:28Speaker 03

  So no matter how good the cops get, even though there are organizations like Interpol also that are trying to make a difference, they're just fundamentally mismatched, and that's what we need to deal with. You know, if somebody came into your house and broke into it and stole something, you dial 911. If some kid spray painted your car or your house, you'd call the police, you'd file a report for vandalism. And yet we have the equivalent of these things going on every single day in our homes, in our computers, on our cell phones, on our tablets, and if you dialed 911 to report a computer virus, the cops would come for you as opposed to sending a car to investigate it. So I think from that angle, we need to get average and everyday citizens involved in this.

• 40:13Speaker 03

  On the one hand, law enforcement has very limited resources, it doesn't work internationally, and not all agencies are particularly well schooled on the cyber threat. Whereas, and you know this, living in San Francisco and Silicon Valley, there's tremendous talent in the private sector that fully is versed in technology. There's a global community of people that could contribute significantly to this problem. And I think that it'd be a great opportunity to get them engaged. And the last thing I would mention, particularly since we are living so much of our lives online, you know, staring at screens on our, you know, smartphones or on our computers every single day. There's a part of our life that is taking place in cyberspace,

• 40:55Speaker 03

  and yet we don't have a common defense force for cyberspace. So, you know, for a hundred years, we've had reserve army, we've had reserve and auxiliary police officers. We don't have any equivalent for that in cyberspace. And so when the big cyber attack comes, we're going to have a paucity of resources and talent to respond. So one of the things I call for is the building of a national cyber reserve corps. Take average, ordinary citizens, men and women, young and old, it doesn't matter. Put them through a background, get them cleared and part of the solution, because we definitely need their help.

• 41:30Tim Ferriss?

  So I definitely want to come back to that type of distributed or crowdsourced workforce. And on a, on a related note, I want to talk a little bit about the physical world, so meat space and those types.

• 41:46Speaker 03

  Yes. By the way, on crowdsourcing, I'll give you some great examples when we come back about criminals crowdsourcing.

• 41:51Tim Ferriss?

  Okay, great. And, and we can talk about the counterforces to that also. So I remember going through a Northern Emergency Response Team Training Course, which was, which was organized by the San Francisco Police and Fire Department. So this was not a fringe group teaching this class.

• 42:11Speaker 03

  Right.

• 42:11Tim Ferriss?

  And I remember, I'm paraphrasing here, but roughly they said, they polled the audience, said, okay, how many people live in San Francisco? How many fire engines do you think there are? And it was something like, you know, 38 fire engines for

• 42:24Speaker 03

  Right.

• 42:25Tim Ferriss?

  At, at a, at a minimum, several hundred thousand people. And the point they made was if there is a, if there is a, in, in the event of a real event, a, let's just call it a seven-point or higher Richter scale earthquake, you could go and very realistically could expect to go seven to 10 days without food or water. And, you know, the, the fact that the Lord of the Flies type scenario, while unlikely, is not as unlikely as people might think. And I recall when I was writing a, a section of The Four Hour Chef called the Wild Section, which was all about sort of foraging and hunting and, and preparing

• 43:06Tim Ferriss?

  food without the use of a kitchen. I got, went down the, the prepper rat hole pretty quickly.

• 43:13Speaker 03

  Right.

• 43:14Tim Ferriss?

  And I remember having some editorial feedback from the publisher, which was critical of how deep I went into this stuff. And just at that moment, when I was being told that I was, it was too alarmist and too extreme, Hurricane Sandy hit New York City. And it was just a perfect illustration of how ill-prepared most people were for what is going to be an increasingly common occurrence with climate change, at least according to a lot of scientists who have looked at the modeling of, say, 100-year storms and how this might occur every decade or even more frequently. But let me ask you, do you think having, you're mentioning biochemical weapons or biological

• 43:58Tim Ferriss?

  agents and how people, it's become increasingly easy in a way to fabricate these or to engineer them. Do you think having iodine tablets and gas masks at home is overkill if you live in a metropolitan area?

• 44:17Speaker 03

  I guess I would say it depends on your philosophy in life and how you choose to live your life. You were talking about 30 or 40 fire engines for the city of San Francisco. There were nights when I was working with the LAPD on morning watch, midnight to 8:00. And for a precinct that had 400,000 people living in it, we had three police cars on the road. So, in that precinct. Now, we had other guys in other precincts that we could call, but that's, you know, three police cars, six guys and gals, you know, for 400,000 people. So, yes, the thin blue line can be quite thin at times. And I'm always encouraging of people to be prepared, to have a plan, to be cognizant of the threats. Now, you can take that to an extreme. You can say, "I have to have a bunker. I need to live underground.

• 45:01Speaker 03

  We need to be prepared for, you know, nuclear Armageddon." And that's not the way that I choose to live my life. But I think common sense, tools, first aid kit, having iodine perhaps, opportunity to have tablets to make sure that you have access to clean water that's decontaminated and things like that. I think that just is logical. I don't think there's anything over the top about that at all.

• 45:25Tim Ferriss?

  With international travel, and we're not going to get into necessarily kidnapping and all of that, but I want to, I want to, I want to use this as a

• 45:35Speaker 03

  We can, I have a great kidnapping example.

• 45:37Tim Ferriss?

  Well, all right. Well, if you're going to dangle that carrot in front of me, let's go there. So I want to, I want to, no, I want to hear the kidnapping example.

• 45:43Speaker 03

  Okay. So this is just something that occurred in Mexico City a couple of years ago when smartphones were first starting to come in. The cops in Mexico noticed a phenomenon that was really weird. So I'm sure this has happened to you. You get off an airplane in another city and somebody's holding a piece of cardboard with your name on it and you walk up to them. Have you done that?

• 46:03Tim Ferriss?

  Yes.

• 46:04Speaker 03

  Yeah. So guess what? Cardboard can be hacked. Sometimes people lie and sometimes the person holding the sign is not the person that you expect them to be. So about three years ago, four years ago in Mexico City, when smartphones first came out, organized crime groups and narcos were hanging out at the Mexico City airport. And with all the signs up, they said Mr. Smith from Dow Chemicals and Mrs. Jones from, you know, whatever the company may be. The bad guys were sitting there and they were using their smartphones to Google the people whose names were on the signs and looking for those that they estimated to be of the greatest net worth. Once they figured out

• 46:44Speaker 03

  who that was, the criminals were going up to the chauffeurs and saying, you know, here's a hundred pesos, get out of here and we'll kill you, or we'll kill you. And they were taking the cardboard sign. The executive flying in from New York, San Francisco, London would then get off the plane, see the piece of cardboard with their name on it, walk up to the person who also took the limousine, was dressed like a limousine driver, got into a car and was kidnapped as a result. And there were actually a few people that were killed. So my point is, is that most people are very trusting and they should be. That's the way you want to live life. That, you know, you want to be happy and think about that stuff. But when everybody thinks like that, those who think differently, for example, criminals, terrorists and others, it's really easy to subvert the system and cardboard can be hacked.

• 47:29Tim Ferriss?

  Yeah, it's, I hadn't heard that specific example, but that is yet another reason for me to use pseudonyms when using car services. Right. Which I do, I have done for the last couple of years, just because I've had some weird experiences with travel, even though, you know, this is where, this is where the internet really fucks me, because people think, people can't run publishing numbers, they don't understand book economics, so they think I have like a hundred billion dollars, and I'm like, no, no, no. One hundred billion dollars. Just like, you got the wrong guy. But, the, the, oh god, yeah, the kidnapping is terrifying.

• 48:11Tim Ferriss?

  I, I know, I have known people in Argentina and in other countries who've been kidnapped, or- Colombia, Brazil, very, very common. Extremely common. I know many people who've had family members or friends kidnapped in South and Central America, the, and certainly not exclusive to those places at all, but, the, the question I was gonna ask you is a segue to virtual attacks, and, one of the startups that I'm close to is, it used to be called Reputation Defender, it's now Reputation.com, and, one of the executives there told me that when he travels to China on business, he will

• 48:52Tim Ferriss?

  use a brand-new throwaway netbook, because he does not want any of his data compromised on his, on his hardware, you know, if he brings a laptop with him. If someone is traveling, let's just, let's just say it's a businessperson, they're, they're traveling to any number of countries, but let's just assume it's China, what are the precautions that they might take, to try to prevent any infiltration of their data or sensitive information?

• 49:22Speaker 03

  Yeah, that is an awesome, awesome question, and it's one that people don't think about nearly often enough, you know, whether it be an executive from Houston or New York City or those in Silicon Valley. Obviously, business will take them to, you know, the most populous nation on earth, the People's Republic of China. And there, the rules are very different in terms of what the so-called police can do and how they will treat you and your technology. So all I would say is if you're going over there for business, pay close attention. The fact of the matter is their screening of you begins when you fill out your visa application, right? It's nothing there is random. So why do you have to do a visa application? Because they want to know who you are. And if you're interesting, and if you're Andy Grove from Intel traveling into China, they're going to pay attention to you.

• 50:07Speaker 03

  And I'll give you one simple example, and this was reported several years ago. Andy Grove, the former chairman of Intel, actually took a flight into Beijing. He gave a lecture before a thousand people and presented from his laptop. After his presentation was over, two very young, pretty Chinese women approached him, and they were ever so subtly just moving their own bodies to get him to turn away from his own laptop. He had a lovely conversation, and when he turned around, his laptop was gone. Now, the big mistake in that particular case is not that he brought a laptop per se, but as the chairman of Intel, he actually had the designs for one of the latest Pentium

• 50:48Speaker 03

  chips, some extremely valuable intellectual property on the computer that disappeared along with the laptop. So my general rule of thumb is, you know, laptops, as you, you know, netbooks, whatever they are, they're just a couple hundred bucks today. If you can afford a trip to China, you should be able to afford a laptop. You can bring a dummy phone with you. And just to give you an idea of some of the information that leaks, the minute you connect to a hotel in a potentially hostile territory, whether it be Iran, China, you know, whatever country you're traveling to. They have the ability to insert malware onto both your phone and your computer the minute your device connects to their network. So you know, when you have to log into the hotel webpage to pay,

• 51:31Speaker 03

  that's when the handshake takes place and that's when your device gets infected. So that's step one. If you go ahead and leave your laptop in any hotel safe, routinely, the hotel security gives access to the local police. So they all know the combinations. Anybody can open up one of those safes incredibly easily. So what I would recommend is if you bring technology, carry it on you if you want to hold on to it. I would limit the amount of information you put on it. I would certainly consider what we call a throwaway laptop or mobile phone. And I would make sure that those devices were encrypted. If you know you're going to call 10 people when you're over there, have those 10 phone numbers and don't walk out there with all of your contacts,

• 52:14Speaker 03

  with your business plans, with your sales figures. The thing that mostly the Chinese are interested in besides intellectual property is they're very aggressive about being helpful to their state-backed industry. So if you're over there as an American businessman or woman, or regardless of what country you're from and you're negotiating a deal with the Chinese, they'll be very careful about monitoring your email, what you're doing, and any negotiations that you may be having with your counterparts from your own company in the United States, whether it be your general counsel, the head of sales. They're going to take that information and feed it to their Chinese equivalent in order to do that. And in fact, there was a case that I mentioned in the book where an executive from Coca-Cola got phished with a spear phishing email.

• 52:59Speaker 03

  And they were in a multi-billion dollar deal with a Chinese beverage, a state-sponsored Chinese beverage company. And they were underbid and lost out. So one phishing email to the right executive, crafted in the right way, infected the computer, and then the deal was done and billions of dollars were lost.

• 53:16Tim Ferriss?

  Wow. So the phishing email was something like... Whatever it might be, your account is overdrawn for the Bank of America. Click here to confirm your.

• 53:25Speaker 03

  Exactly. And if I could just give one general tip, something to keep in mind, and you know, I don't know everybody that's going to listen to your podcast, but I'm going to postulate that most of your listeners actually do not know a prince in Nigeria. If you get an email from a prince in Nigeria, do not click on it. He's not your friend. He doesn't know you.

• 53:44Tim Ferriss?

  That's, yeah, very good advice. Very, very good advice. Yeah, the, the opportunity cost of missing the real email from the prince in Nigeria, pretty, pretty low when you look at the probabilities.

• 53:56Speaker 03

  But you hit on something major right there, which is actually, that is one of the major causes of infections to people's computers is that they're clicking on the wrong link. And in the old days, you used to be able to tell a phishing email because they use bad language, bad English, bad grammar. Now they're perfectly well crafted and a spear phishing email targeting, targeting a specific individual or executive is even more so. So you have to really careful. Basically, my general rule of thumb is don't click on links. If people send me a, a link, I'll call them and say, hey, did you send this to me? And they think I'm crazy, but I don't click on links.

• 54:28Tim Ferriss?

  Yeah, well, ditto for attachments, which can be.

• 54:30Speaker 03

  Right, exactly.

• 54:31Tim Ferriss?

  Executable files. The, uh, okay, so I have a, I'm gonna, I'm gonna ask about an edge case because I, I love asking these absurd or extreme questions, but if, if someone has an unlimited, a nearly unlimited or unlimited budget, let's just say it's a hedge fund manager who's worth a billion dollars plus, and you are their personal sort of, uh, security consultant, and you can interpret that any way you'd like.

• 55:04Tim Ferriss?

  Security slash sort of Armageddon proofing consultant. What are, what are some of the things you would have them do?

• 55:10Speaker 03

  I would have them hire a guy who didn't discuss their security plan on a podcast with Tim Ferriss. My first piece of advice.

• 55:18Tim Ferriss?

  Right, good advice.

• 55:19Speaker 03

  Don't, don't do that. Generally speaking, you know, every person you work with is unique and different. So I work with a lot of folks of high net worth and a lot of general public corporations. And the advice is very specific on what people's threats are. So for some people, the biggest threat, you know, to a hedge fund manager may be that their son or daughter is addicted to meth. And that's bringing all types of other, you know, people into their home that causes them difficulty. In others, it may be some of their personal proclivities, things that they're looking for online that could be personally embarrassing, you know, mistresses, extramarital affairs, all of that type of stuff.

• 56:00Speaker 03

  So those are the general things that you look at and then you work up a threat profile. That's something that I find that most individuals don't do and certainly most corporations don't do. And the fact of the matter is, in the same way that hackers are using the internet to gather lots of information about their targets, you yourself can go out there and use tools. And you talked about reputation.com and others, but there are lots of tools out there that will allow people to get really good open source information on themselves and the threats against them. And that's one of the key steps that I always mention to my corporate clients is that they need to go ahead and implement an open source intelligence program. Because if you are working on a secret project, let's say, you know, it's the latest iPhone

• 56:43Speaker 03

  or you're working on the latest version of Android, something that you don't want people to know about. If you've got your search engines up and running and you start seeing people talking about it, or sales lists are leaking out there, or employees' resumes are out there showing that they're about to jump to the competition, you know, there's just a lot of stuff that you can detect. And the other point that I tell them is, and most people don't realize this, is make sure that you're looking in the digital underground. So most people think, you know, when they search Google, they're searching the internet. And when you're searching Google, in reality, you're only searching about point oh three percent of all the available electronic information stored on the planet.

• 57:23Tim Ferriss?

  So how do you go about searching the digital underground?

• 57:26Speaker 03

  Ah, you have to go underground. The quickest way to do that, I mean, one of the ways that people do it is by using Tor, the onion router. So that's a specialized piece of software actually produced by the US Navy and it was meant originally to help democracy and human rights activists overseas bypass their national firewalls, whether in China or Iran, so that they can get around to communicate. And it was very useful for their personal safety. And there's a million great reasons why you would use Tor again, if you want, in the wake of Snowden, if you wanted to go ahead and have good encryption of the information you're looking for, then Tor is a great useful tool for that with some noted limitations. But the other side

• 58:08Speaker 03

  of that is that there's something called Tor Hidden Services. And if you're running this particular piece of software, you can now get access to a whole world that you don't know exists. So this is where hackers and terrorists and hacktivists and spy agencies and law enforcement hang out. So I'm sure you will be familiar with the Silk Road and what went on in that case. It broke very close to you in San Francisco. And the fact of the matter is Dread Pirate Roberts, the alleged person who was running that, had the largest drug website in the world. And whether or not you like drugs or not, and whatever your position may be, a National Institute of Health Drug Abuse Agency study said at some point, 20% of all narcotics purchased in the United States transited the Silk Road.

• 58:53Tim Ferriss?

  Wow, I had no idea the number was so big.

• 58:56Speaker 03

  And the money that Dread Pirate Roberts brought in in those 30 months was $1.2 billion. So $1.2 billion and 30 months of methamphetamine, AK-47s, UZIs, child pornography, fake passports, whatever you're looking for, you could buy it there. And because Silk Road operated kind of like eBay, where the house took a cut of everything they sold, Dread Pirate Roberts is alleged to have amassed a personal fortune of $110 million. So, you know, let's say you're a 28-year-old entrepreneur, and kids don't do this out there, but if you're a 28-year-old entrepreneur, you know, getting, going from zero to $1.2 billion in 30 months,

• 59:38Speaker 03

  he had a relatively successful exit, except for the life imprisonment he's facing. But other than that, you know, pretty good gig.

• 59:46Tim Ferriss?

  Right, the rather punishing asterisk.

• 59:50Speaker 03

  Yes, exactly.

• 59:51Tim Ferriss?

  On the income statement note, yeah, comes with free imprisonment for life.

• 59:56Speaker 03

  Free prison companions.

• 59:58Tim Ferriss?

  Yeah, oh god. The, the, so you mentioned drugs. I want to chat about that for a second because I've heard you mention, and maybe you can elaborate on

• 1:00:11Tim Ferriss?

  drug production. So this is something that I'm very fascinated by. I mean, I think drugs is a bit of a

• 1:00:19Tim Ferriss?

  so that in the Nancy Reagan, say no to drugs sense, it's a bit broad. I think it's it a lot gets mixed into this so-called war on drugs that that shouldn't be part of it at all. And a lot of good therapeutic agents get disregarded and blah, blah, blah. But the point being, when you look at just some of the real cash cows, if you look at the opiates, right, if you look at the, look at heroin, you look at cocaine, you know, marijuana is very interesting case. We won't get too far into that, but just the this decriminalization of marijuana is really fascinating, but

• 1:00:50Speaker 03

  Isn't it used mandatory in San Francisco?

• 1:00:52Tim Ferriss?

  It's pretty, it's pretty

• 1:00:53Speaker 03

  If you go into Dolores Park, you by law are required to, yes, be using marijuana.

• 1:00:57Tim Ferriss?

  Yeah, if you skip, if you, if you stub your toe and therefore have chronic pain, then you can

• 1:01:03Speaker 03

  You're permanently disabled, yes, and now you need marijuana.

• 1:01:06Tim Ferriss?

  But I've heard, and I can't, I haven't verified this, but there are poppy fields, even within some national parks in the US that are policed by Mexican narcos. And you have to be careful even as a hiker in some cases, if you go too far off the beaten path. Is that going to change in so much as will drugs, the example that you used was involving yeast to synthetically produce cocaine, or not synthetically perhaps, but in a, I guess it would be synthetically, produce cocaine or other drugs like that. Are these, are these fields, is that entire production chain and all the shipment, is that just going to go away?

• 1:01:48Speaker 03

  Yeah, so you've hit on a really, really interesting point, which is, you know, in the same way that Apple can go ahead and disrupt Microsoft and Google can disrupt, you know, somebody else, the fact of the matter is, is that the old school, original gangsters and narco dealers are going to be faced with some challenges to their business model from a new generation of dope dealers. And it's going to be really fascinating. So to your point, when you think about what is required for the production of cocaine today or heroin, right, you need these massive fields of cocoa leaves or marijuana plants or poppy plants, et cetera. And that is really tough for the dope dealers.

• 1:02:30Speaker 03

  A, they're expensive to mine, they have a very huge footprint in terms of hectares and hectares of fields that need to be maintained, and they're easy for law enforcement to detect. So now, thanks to synthetic biology, one of the amazing things that you can do is because all of those marijuana, poppy, or cocoa plants are all naturally occurring, you know, substances that contain DNA, you can actually go in and sequence cocaine plant or poppy seed or any of those things, and from that deduce the genetic code for cocoa. And you can go further in and say, well, what's the active ingredient here? And you can isolate that, and you can snip that part of the plant or the active ingredient, and you could insert it into yeast, and then you could grow those yeasts, and you could

• 1:03:15Speaker 03

  bake bread with it, and you could make beer with it. So we're not quite there yet, but all of these things are very close off on the horizon. And it completely breaks our current global security model around narcotics, because, again, we have these, you know, big fields, and we look for the big fields, and we have dope sniffing dogs when you arrive at the airport or going through customs and immigration, but they're not going to smell, you know, a loaf of bread that is just as powerful as cocaine. So there are some really interesting opportunities there moving forward. It's going to make for some really interesting beer and bread in the future.

• 1:03:49Tim Ferriss?

  Is it conceivable, this is just now I'm gonna really go off the deep end into my sort of detective novel mode, but is it conceivable that the US government could decide that it would be pragmatic to in some way seed people domestically with technology to, in a very decentralized way, produce, meaning synthesize cocaine, heroin, et cetera, to disrupt the incentives and finances of, say, cartels who are shuttling drugs from,

• 1:04:31Tim Ferriss?

  and I know that the Mexican cartels are now as far south as Colombia, where I've spent some time.

• 1:04:38Speaker 03

  Right, right.

• 1:04:39Tim Ferriss?

  Very, very prevalent, but basically in a way to reduce violence and disrupt that chain, do you think there's any conceivable scenario in which the government or some facet of law enforcement would decide that that type of, even the introduction of that type of production would either be done deliberately or have a blind eye cast to it to, for the trade-off, which is disrupting the immensely violent and problematic influence of the cartels in Mexico?

• 1:05:12Speaker 03

  Yeah, I mean, you're asking for a particularly interesting public policy and political question. There are plenty of folks who are advocating for this. There's a great talk by a gentleman called Ethan Nadelman, who I just saw speak down at Global, who really gives a very powerful and compelling talk for why drugs should be legalized, and you can Google that and find his talk. We're kind of seeing the beginnings of that now with marijuana, and there are other countries like the Netherlands that have allowed people to be on heroin for years and put them on methadone. So there have been lots of different experiments around this. I would say, I don't know that the public policy, and more importantly, the politics around this is there yet, but you can certainly look at the cost of what it

• 1:05:55Speaker 03

  is doing to our society, particularly here in the United States. We have the largest incarcerated population in the world. I think there are something like three million people that are somehow in the criminal justice system at state pen or at the local level in federal penitentiary. So the cost of maintaining that, and most of those folks are there for drugs one way or the other. So there's certainly an economic cause to be put forth. And again, I'd refer you to Ethan Neilman, who makes that way better than I can. I don't know that the government anytime soon is going to see this more as a public health issue and focus on demand reduction. Right now, public policy in the United States has been almost heavily geared towards

• 1:06:37Speaker 03

  supply reduction. So, you know, let's go ahead and, you know, drop napalm on cocaine fields in Colombia and that'll solve it. And of course, as the the people in Latin America, the Mexican president and others have mentioned, well, don't blame us. You guys are the ones that want to buy it. So it's really complex, right? How this works, I will mention that the narcos are all over the drug trade, from all over the technology space in really amazing ways. So narcos are using robots. They are flying drones. They've got drug subs. There are now quadcopter drones and octocopter drones that can carry like thousand kilo loads of cocaine and marijuana across the Mexican-American border.

• 1:07:22Speaker 03

  We're starting to see that. There are 2,000 tons carried by remote-controlled narco subs. The, some of the Colombian cartels literally have a R and D budget. So the cocaine cartels in Colombia have like $5 million allocated to R and D for robotics because the day that they can launch autonomous subs up against North America, they've hit pay dirt. So we're seeing that. And the money and the sums are involved. We were talking earlier about how clever terrorists may or may not be. You should look at the sophistication among the narcos and the money that they have allows them to bring in tremendous talent. El Chapo, Joaquin Guzman, who ran the Sinaloa cartel was recently

• 1:08:03Speaker 03

  arrested in Mexico. And at the time of his arrest, he had a room in his, you know, mansion. In a cash room with $200 million in cash just sitting in his house. We call that the Tim Ferriss room, obviously, for obvious reasons.

• 1:08:19Tim Ferriss?

  Right.

• 1:08:20Speaker 03

  He was actually listed at number one on the Forbes wealthiest list ahead of Oprah and French President Sarkozy. Right. So the amount of money, by the way, to put $200 million in perspective, Interpol's annual budget is $90 million.

• 1:08:34Tim Ferriss?

  Wow.

• 1:08:35Speaker 03

  So, you know.

• 1:08:36Tim Ferriss?

  So if you were a sports team, you would bet on that sports team against Interpol in a heartbeat?

• 1:08:41Speaker 03

  It would seem to be the wiser bet. Yes.

• 1:08:44Tim Ferriss?

  Man, in terms of talent recruitment, he should have, he should have a number of incentives to use. I will kill you, or you work for me, or

• 1:08:52Speaker 03

  Exactly.

• 1:08:52Tim Ferriss?

  I will give you twice as much as anyone else, any other law enforcement agency, or at least Interpol can pay you.

• 1:08:58Speaker 03

  And by the way, that's exactly happening right now. There's, you know, we were kind of joking about what's going on with the narco wars in Mexico. But there have been 50,000 innocent Mexican citizens, nationals that have been slayed in the past six years. So just south of our border, 50,000 people, right, you know, more than live in Palo Alto or the suburb of New York have been murdered. And so there's a massive war going on between the people. We talked about crowdsourcing before. There's a ton of incredibly brave Mexican citizens who are actually crowdsourcing the location and activities of the narcos. And they're using open source tools like Google Maps to report dope dealers and bring that information forward.

• 1:09:39Speaker 03

  The dope dealers have gotten hip to that and have now actually gone ahead and killed off a bunch of these citizen reporters. And so to protect themselves now, those guys are using encryption. And the narcos have gone out there and actually kidnapped hackers. They've kidnapped like top hackers off the street and brought them back to their headquarters and say, hey, you decrypt this or I'mma kill you. And the payback, once somebody is identified as being a potential snitch for the narcos have been draconian. You know, it's kind of gross and you can edit this out if you need be, but to make their point, some of the narcos have gone ahead and kidnapped some of these folks who are using tools like Google Maps to to crowdsource what was going on with the drug dealers and their activities.

• 1:10:22Speaker 03

  Kidnapped them and killed them and decapitated them and taken their heads and brought them to the central square of the town, like right in front of the church when everybody shows up on Sunday morning. And they took two computer keyboards, put them in the town square in front of the church that everybody shows up at with a head, the human head of the snitch right there. And with a note in big letters that said, this is what happens to rats.

• 1:10:47Tim Ferriss?

  It's horrifying, of course. And the the number that I have so much trouble grasping is 50,000. It's so many people. Are what? How does that break down? If you're looking at the pie chart of reasons for these deaths, how many of them are snitches? Or what percentage versus stray bullets and just collateral damage versus shock and awe campaigns to instill fear and terror into entire cities into compliance? Because I've read these stories of, say, 20 or 50 students being killed and decapitated.

• 1:11:25Speaker 03

  Right. We had that right now. In the past couple of weeks, we've had all these, you know, innocent high school students who were just murdered allegedly by the mayor and the police in the town. So, you know, I can make up a story, but I don't know the exact breakdown of what it is. My gut tells me based upon what I've read and researched that brought, you know, there's some percentage of this that is drug dealer, on drug dealer violence. So one cartel fighting with another. The others are people that won't go along with the narcos and what they are against and what they want to do. So they get taken out, law enforcement officers get taken out. And then there's just a tremendous number of casualties when, you know, the trucks come through the little town and everybody's shooting AKs and M16s. And then, you know, five year olds get gunned down as kind of

• 1:12:10Speaker 03

  collateral damage.

• 1:12:11Tim Ferriss?

  Man, good to count, count our blessings when you don't have to contend with that on a, on a regular basis or an anytime basis. It's really horrifying.

• 1:12:23Tim Ferriss?

  To just maybe project forward a bit, and I'm not sure if it's projecting forward that far, in fact, but artificial intelligence. There are a lot of differing opinions on this, but what are the threats, if any, of artificial intelligence? And where are things now versus where you think they might be?

• 1:12:43Speaker 03

  That is a great question. It's actually very much in the news today. Elon Musk, and I quote him in my book, talks about the threat from AI being greater than nukes. And Stephen Hawking actually put an op-ed in The Independent in London about a month or two ago where he was very cautious about widespread adoption of AI. Just for folks who aren't particularly familiar with AI, you know, there are generally two types. There's the narrow AI, that's the artificial intelligence that goes ahead and puts a recommendation for you out there on Netflix or Amazon about what book you might like. If you enjoyed this movie, you might like this movie. So that kind of narrow AI is widespread and ubiquitous.

• 1:13:26Speaker 03

  It's, you know, AI that allows you to talk to American Airlines while you're on hold, and we're seeing that every place. And then there's the broader, more widespread AI, which is kind of artificial general intelligence. That's kind of the Skynet AI that people fear will run the planet. And there are some concerns about both. Broadly speaking, you know, we all saw, or most of us may have seen, the television episode for Jeopardy when IBM's Watson was playing. Did you happen to catch that?

• 1:13:54Tim Ferriss?

  I didn't personally see it.

• 1:13:56Speaker 03

  So it's, you know, IBM built this computer called Watson, and it's doing a narrow AI, and it played against the top, top Jeopardy champs and just kicked their butts, right? So this big computer with a funny voice called Watson was able to beat the best champions in the world at Jeopardy. And before that, you know, we had our greatest chess champions being beaten by a computer. But the question that people don't realize or don't often ask themselves is, what would happen if Watson turned to a life of crime? Right? How much healthcare fraud could Watson commit? How much identity theft could Watson commit? The fact of the matter is, is that day in and day out, we are turning over more and more of our lives to algorithms.

• 1:14:38Speaker 03

  People worry about individual bits of data being stolen, but that's like kind of a low-level threat. Of course, that's happening. The bigger threat is having our algorithm hacks. Algorithms are very complex mathematical formulae that go out there and carry out everything from the anti-brake system in your car to the GPS navigation used by aircraft around the world to all the trading on the stock floors. And those are all algorithms. And we've seen a couple of really crazy, wacky things going on in the world of algorithms, such, you know, which look like market manipulation. The challenge is, is that Moore's Law applies to criminals as well. And the big paradigm shift in crime has been as a result of algorithmic programming.

• 1:15:23Speaker 03

  So in the book, I talk about the fact that the old paradigm of crime is you get a bad guy. He goes out and buys a knife or gun, hides in a dark alley and says, "Stick him up." Right? That was a good, that was a good business. You could be your own boss, set your own hours. Startup costs were low. But Tim, you know this better than anybody else. What was his problem?

• 1:15:41Tim Ferriss?

  Didn't scale.

• 1:15:42Speaker 03

  How do you scale your business? Right? That was tough for a criminal.

• 1:15:45Tim Ferriss?

  Two arms, two guns.

• 1:15:47Speaker 03

  Exactly. And, and everybody you rob might shoot back and kill you. So technology came along that actually improved upon that business model. And the technology was the locomotive. Now, rather than robbing one person at a time, we could rob 200 people at a time. Now, when they created trains, nobody thought about that. But of course, that was a consequence. Fast forward today to the days of the internet, and we've had hacks like at Target and the Sony PlayStation hack before that, where 100 million people were simultaneously victims of a crime. In the target hack, one third of all Americans were affected by that. So if you talk about exponentials, we've gone from criminals robbing one person to one

• 1:16:32Speaker 03

  single lone individual being able to rob 100 million people. That is a complete paradigm shift in crime. And because it's exponential, it's only going to grow. And so my big fear and concern that I write about in Future Crimes, the book, is the fact that our systems of justice and law and order and public safety are all deeply, deeply linear, and yet the threat is entirely exponential. And we're seeing criminals use algorithms, right? You know why you can rob 100 million people? Because computer crime has been reduced to an algorithm. The old days, I talked about the movie War Games earlier, the old day was you'd have the, you know, high school kid with the bag of Doritos and, you know, Monster or Red Bull

• 1:17:16Speaker 03

  sitting at his computer hacking away at all hours. You don't need to do that anymore. You can write scripts that carry out crime. You've heard of software as a service? Guess what? There's crime as a service. You can actually go out there and buy programs like Black Shades and others that will go out there and commit crime for you. And so when a computer program can do the identity theft, can do the denial of service attacks, can do that for you, it can run in the background 24/7, you know, 365 days a year to carry out that crime. That's why it scales and that's why the profits are so high. And, you know, a lot of the principles in the four-hour work week have been implemented by organized crime. I'm not saying they read your book, but I'm saying that the logic that you developed

• 1:18:01Speaker 03

  in a lot of this, you know, people are seeing that. And so now we have fully automated crime and it's algorithms that are carrying it out and AI.

• 1:18:09Tim Ferriss?

  Yeah, it's, I mean, these, these principles, whenever you look at principles for effectiveness and efficiency or scaling or building an organization, they, they can, they can...

• 1:18:21Tim Ferriss?

  Of course, cut both ways. I mean, they can be used as a surgical tool to do good things. They can be used to decapitate people metaphorically or physically even. But

• 1:18:33Speaker 03

  And that's an important point I'd love to make is I'm not saying, by the way, technology is bad. You know, I like you live in Silicon Valley, I'm a huge proponent of technology. It has the opportunity to bring tremendous abundance and positive good to the world. But as you mentioned, whether it be a knife can be used by a surgeon to heal or by a criminal to kill. And it's just about how we use it.

• 1:18:56Tim Ferriss?

  No, absolutely. And I'd love to chat. I know we're probably going to be wrapping up pretty soon, but I wanted to ask you just about what can be done. So let's assume that the people listening are for the most part not going to they're not going to feel compelled to dig a spider hole in their backyard because they're afraid the black helicopter is going to come for them. And you know, they're going to fight off the US government with their stash of handguns. Let's just assume that that's not who we're talking to primarily. But for people who are like, all right, I'm busy. I've got a little bit of money. I'm well educated. I'm very worried about doing stupid things that compromise me. You know, what are what are a handful of simple steps that they should take?

• 1:19:42Tim Ferriss?

  Or might consider taking to decrease the odds of bad things happening?

• 1:19:47Speaker 03

  Sure. Well, I can throw out some tips for individuals and then some for startups and companies. So on the individual front, you know, common sense actually is not so common. And the number of people that will click on links and open attachments is really high. As a really strong piece of advice, just don't do that. It's really bad cyber hygiene. And I talk about the concept of cyber hygiene and the idea of keeping yourself clean. And if you think about, you know, sexually transmitted diseases, right? If you're not clean, you transmit it to other people. The same is true with our computers. So don't do that. Another thing that you can do is make sure that your computer or your mobile phone is constantly up to date. Have you ever been sitting in front of your computer when you get a little notification like, hey, there's a new update to win?

• 1:20:31Speaker 03

  Or there's a new update to iOS or something like that. Have you come across those? Sure, yeah, I get notifications all the time. Right. So what people don't, what that isn't saying, it sounds really nice when they say, oh, there's an update. What it really means is our software has been riddled with security holes for the past six months, you know, since the previous update, and we're now finally fixing them. So, you know, there's the flip side of that. I would say always make sure that your software is up to date across all of your devices and keep that updated. Another thing you can do, I am not a fan of single sign-on and using the same password to log on to, you know, all your services. The challenge with that is if your account at Target gets hacked and you use your same Target email and login

• 1:21:16Speaker 03

  across multiple sites, now the bad guys, and they do routinely do this. Once they get 100 million accounts from Target, they're taking your Target, you know, name and password, and they're trying it at Bank of America and Citibank, and they're trying it at Facebook and Google. So if you have, you should definitely have a different name and password for all of your sites. Now, I know people will say to me, oh, great, Mark, how am I going to remember, you know, 300 passwords? And this one wants a capital letter and the other one wants the name of, you know, my favorite child actress, and it's all too complex. There are a number of pieces of software out there called password managers or password wallets that I recommend. You have to use some caution because guess what? Organized crime have created their own versions of those.

• 1:21:58Speaker 03

  So they'll upload something, it's like, super number one best password program, and get it into, you know, the Android PlayStar and tens of thousands of people download it. And of course, your passwords are just being fed to organized crime in the background. So I recommend one password. There's another one called LastPass, which is quite good. And then there's KeePass, K.E.E.P.A.S.S., which is an open source version. So definitely do not use the same password. If you're in a public space, always make sure that you use a VPN, a virtual private network. This way, any of the information that is transiting from your computer to the internet is encrypted from that point to point. If you're not, and you're sitting at a local Starbucks, I can go ahead and just be

• 1:22:41Speaker 03

  We're on the same network, see everything you're doing on your computer. There was a hack a few years ago called Fire Sheep where I could steal your Facebook session cookie and login as you and post things to your Facebook account just because we were on the same network and you didn't need to be sophisticated. Actually, it was just a browsing for Firefox browser that allowed me to hack. So the tools of hacking are becoming particularly, you know, easy to use. So if you do those things, if you maintain your site, if you go ahead and constantly updating them and use password managers, you can actually avoid eighty-five percent of the threats out there. So you can make a massive, massive difference. The last one that I tell people that most folks don't consider is

• 1:23:24Speaker 03

  do not use the admin account from your own computer as your primary account. So if you have, you know, on your computer, a Tim Ferriss account, that account should not have administrative privileges. You should have a primary account, which is administrative privileges and the one that you use day in and day out should be a user account with degraded, non-administrative privileges. Why would you do that? Because if you click on the email from the Nigerian prince by accident and get your computer infected, if you're already logged in under an admin account, then that code needs no further permissions to go ahead and infect you

• 1:24:04Speaker 03

  and to get onto your machine. But if you're on a user account and you get that infection in order to change the system files, it will ask you to enter in your password, which should be a good clue that you've been hacked.

• 1:24:16Tim Ferriss?

  Got it. Okay, so you're talking about for the the computer access, the local computer access?

• 1:24:20Speaker 03

  Correct. Yeah, if you're logged on to your personal, you know, your MacBook Air or a Windows machine or Samsung machine, whatever it is, your laptop, your home computer, it's really wise to never run it as an administrator.

• 1:24:33Tim Ferriss?

  Got it. Okay, I know that makes sense. And just to add to your password recommendation, which I think is a smart one, whether it's one password, last pass, or otherwise, is enabling two-step authentication.

• 1:24:46Speaker 03

  Excellent.

• 1:24:47Tim Ferriss?

  Is really a good idea for Gmail, for Facebook, for any account that you can to enable two-step authentication. For those people listening who don't know what that is, it's usually within Settings somewhere. And all that means is if you or someone else tries to log in to, say, your Gmail account from an unrecognized computer, it's going to shoot you typically, very often, a text to your cellphone with a pass key that you need to enter in order to then enter your password. So it's just another barrier.

• 1:25:22Speaker 03

  Yeah, that's a great piece of advice.

• 1:25:25Tim Ferriss?

  What about, so with the startups, are there any other pieces of advice that you would have? Low-hanging fruit for those folks?

• 1:25:30Speaker 03

  Well, so for the folks that are working in the startup world, and I advise a lot of different startups, as I know that you do, they're running around crazy trying to get their beta out. They want to ship their code, whatever their product is. And so probably the very last thing on their list is security. They don't think about it. And so for a company, you need to think about these issues, right? Because all you have is your intellectual property. And there are actually companies out there that specialize. The minute Facebook is launched, they create the German version of Facebook. And they create the Chinese version of eBay. And so ripping off your IP is very much what they do. So both for startups and particularly for larger corporations, one thing I often suggest is that you need to be keenly aware of what's going on with your competition and with your own company.

• 1:26:15Speaker 03

  So that goes back to implementing an open-source intelligence program. You also need to have somebody who's in charge of your security and kind of thinks with the more of a conspirial mindset that you and I seem to have in talking about this stuff and figuring out what can go wrong. Because most people are good people. They don't think like bad guys, right? I put handcuffs on bad guys for 20 years all over the world. I know how they think. So if you're not trained in that, it's not at all obvious.

• 1:26:43Speaker 03

  Important to realize that not everything needs to go into a computer. Both Coca-Cola and Kentucky Fried Chicken, KFC, the secret recipes for their food is not in any electronic uh system and be retrieved. It's air gapped, written down on a piece of paper. So if it's really important, uh, think about that. We talked about some of the travel tips earlier. The last thing that I would mention is to red team and test your assumptions. Red team is a term from the military. You kind of have the blue team and the red team. The blue team is the United States. The red team is always the bad guys and the military trains this way where they use, you know, sets of bad guys to try to break their stuff. I can guarantee you that if you're doing anything interesting on the internet or in your personal life,

• 1:27:25Speaker 03

  there's somebody who's trying to get access to it. It may not be an individual hacker sitting at a keyboard targeting you. Because as I mentioned earlier, a lot of these attacks can be scripted. Uh, the thing I hear all the time is, oh, I've got nothing to hide. I've got nothing to lose. Uh, then you don't lead a very interesting life if that's the case. Um, I, I would think we all have something at risk here. And so you should be testing those assumptions and because if you're not trying to hack yourself, the bad guys are so better that you uncover those threats first.

• 1:27:53Tim Ferriss?

  No, definitely. And just to your point, I mean, there are some real hotbeds. I think I want to say Estonia for some reason, but it might be Bratislava, somewhere out in that neck of the woods. I mean, there, there are entire cottage industries that have popped up.

• 1:28:07Speaker 03

  In Romania.

• 1:28:08Tim Ferriss?

  Romania, that's what it was. That's what it was. Romania.

• 1:28:11Speaker 03

  It's actually called like, you know, the cybercrime headquarters of the world where it's very funny. They have something like 500 people in this village, but that one Western Union office in Romania does more than most of Western Europe because of all the illegal cybercrime payments coming in there. So, uh, and in, you know, Nigeria, they have what are called the Yahoo boys. These are the ones that send out all of those emails, you know, trying to trick you. So yeah, there's definitely a very vibrant cybercrime economy out there. A study by McAfee and CSIS, a think tank in DC, estimated the global cyber economy at $400 billion a year. Tremendous.

• 1:28:50Tim Ferriss?

  That is so wild. Yeah. And growing, uh, no, uh, no doubt about it. Uh, well, I would, uh,

• 1:28:58Tim Ferriss?

  I think this is a good round two, uh, round one, rather, for us. I'm already looking for round two. So I think, I think this is a good introduction for folks, gives them plenty to think about. Uh, any, okay, here's one for you. Do you have any habits that, um, people that might be non-obvious to people, or are habits that you think improve your security or give you peace of mind that, uh, other people find odd?

• 1:29:26Speaker 03

  Well, one that I get commented on all the time is if you look at any of my devices, whether it be my cellphone, my laptop, or my computers at home, they all have yellow stickies over the camera. The fact of the matter is, is that not only can people hack your camera, but they can hack it in a way such that the little green or red light isn't on. And we had, there's malware out there, so that does this really easily. I mentioned black shades earlier, that will do that. Uh, there was a girl called Cassidy Wolf, who was Miss Teen America, and she went ahead and had her camera taken over. Ultimately, we found out by one of her classmates, she clicked on infected email, and as Miss Teen America, seventeen-year-old girl, was coming out of her own bathroom, you know, after

• 1:30:07Speaker 03

  taking a shower, her laptop was open. This creep was going ahead and surreptitiously filming her and taking the video, and then blackmailed her and said, "Hey, you know, if you don't do specific sex acts for me in front of the video, I'm gonna release all this stuff live." Uh, so I, unlike Teen America, people are not lining up just naked, but I still go ahead and cover up the video camera, and it's super cheap, uh, to do, and it's, you know, it's, it's just something to keep in mind.

• 1:30:35Tim Ferriss?

  So funny you mention that. I have masking tape over my, uh, over my, uh, camera on my laptop right now, because I was hanging out with a buddy of mine who, in a previous life, got in a lot of trouble with the FBI for hacking. He is a, he is a world-class hacker. I mean, if you want to talk about a very competent red team, he now gets, he now gets paid by companies to do that, to try to beat their systems, which he usually does successfully. Uh, and he said, "You know, you might want to put some tape on that." And I was like, "What are you talking about?" And he's like, "Well, like, if I wanted to hijack your computer and videotape you, I could do it pretty easily." And I was like, "Okay, say no more."

• 1:31:11Tim Ferriss?

  And I've actually heard of business travelers who have been blackmailed very similarly, usually female travelers who have had people attach cameras to their hotel peepholes from the opposite side. And so, business travelers, there's some business travelers I know who will similarly cover up that, cover up that keyhole so that people cannot surveil them.

• 1:31:39Speaker 03

  Absolutely. Talking about cameras, you know, I mentioned earlier that everything is becoming software or hardware, and cameras are a perfect example of that. You know, we all go ahead and have cameras around us, not just on our cellphones or on our laptops, but everywhere we go, right? There are now cameras at the dry cleaners, cameras at the bakery, cameras at the ATMs. And all of those cameras are connected to the internet and they're all hackable. And some crazy number, like 30 to 40% of all camera systems have absolutely no password, and another 30 or 40% have the admin password that's written in the manual that's available on PDF on the internet if you Google the name of the camera system. So, that means they're widely available to be hacked.

• 1:32:21Speaker 03

  And yet, people use things like baby monitors, nanny cams, things like that to protect themselves, and we're finding that they're just easy marks. Within the past week, actually, here in late October, we had an incident where it was reported that 76,000 camera systems had been compromised and were being livestreamed to the web. So, you could log in because all of these cameras had been hacked and easily taken over, and you could see women sitting on the couch, you could see people in their bedroom having sex, you could see mothers breastfeeding their kids, people sitting in dry cleaners, you know, cooking stuff at bakeries. So, we think these systems are there to protect us, but in fact, they can be compromised and used in really interesting ways. If you have time, I'll tell you another funny story about that.

• 1:33:05Tim Ferriss?

  I have time.

• 1:33:06Speaker 03

  Awesome. There was a case called the Crown Casino in Melbourne, Australia. This happened about a year ago and a man comes in and starts playing poker and he's doing really, really well. He ends up playing for two days almost straight and he walks away from the Crown Casino in Melbourne, Australia with $33 million, playing poker, gets back on a plane and flies back to his home country in Asia. What the hell happened? Because the casino got cleaned out, they had no idea. They ended up looking at it and it turns out that he was part of a hacker team that went ahead and hacked the security cameras in casinos. You know, all casinos have a ton of cameras and

• 1:33:46Speaker 03

  the hackers that were working with this guy had given him an earpiece. And so with the, by having commandeered the casino's own security system, they could see perfectly clearly what the dealer's cards were and the players of all the different players at the table. And they were basically via electronic message into his ear, telling him, you know, stay pat, hold, double down, all of that stuff. And in just 48 hours, you know, 33 million bucks. So the cameras that are meant to protect us, if they're not locked down and encrypted, can definitely be used against us.

• 1:34:16Tim Ferriss?

  Wow. Yeah. Good, good luck extraditing that guy.

• 1:34:19Speaker 03

  Yeah, exactly.

• 1:34:20Tim Ferriss?

  Oh, man.

• 1:34:21Speaker 03

  He can now afford a good defense.

• 1:34:24Tim Ferriss?

  Yeah, I bet. Wow. Well, there's so much more to talk about, but I, I will, I will certainly look forward to some follow on conversations. Maybe we'll inject some wine into the, into the mix to make things more rambunctious. But, but since I know we're practically neighbors, even though we're doing this virtually.

• 1:34:46Speaker 03

  No, I would love to meet you in person someday and hang out again.

• 1:34:48Tim Ferriss?

  Likewise. And the, the, the recommendation I'd make to folks is go to futurecrimes.com, check, check this out. And Mark gave me a very big favor by coming on the show early for you guys. And do me the favor, the book is very inexpensive. It's going to be spectacular. Pre-order the book. So just, it's, it'll take two seconds. Grab it on Amazon or wherever. Futurecrimes.com, check it out. Definitely take a look at his TED Talk. Where else should they, should or can they find you, Mark?

• 1:35:22Speaker 03

  I'm at Singularity University, so I teach there. We have a bunch of great executive programs. And other than that, on a plane, somewhere, traveling the world.

• 1:35:32Tim Ferriss?

  So Singularity University is fascinating, guys. If you really want to train yourself to think about exponential or exponentially growing technologies in a new way to expand your mind, I can guarantee that Singularity U will help. And that's what it is on the web, singularityu.org. You can take a look at everything there. And I will also include links to various resources and books and whatnot that we mentioned in this episode, as well as future crimes in the show notes. For those of you listening who want to simply find the one-stop shopping for everything we talked about, go to fourhourworkweek.com/podcast, all spelled out. And Mark, until next time. Thanks so much for taking the time. This was a blast.

• 1:36:17Tim Ferriss?

  This was awesome, Tim. Thank you so much.

• 1:36:24Tim Ferriss?

  This episode of The Tim Ferriss Show is brought to you by 99designs and Exoficio. 99designs is the world's largest online marketplace of graphic designers. And I have used 99designs for years, including to get cover concepts for The 4-Hour Body, which went on to become number one New York Times, number one Wall Street Journal. It was a huge hit. And here's how it works. And you can check everything out, including some of my competitions. You can see these book covers and so on at 99designs.com/tim. Whether you need a logo, a car wrap, a web design, an app, a thumbnail, a t-shirt, whatever, you go to 99designs.com, you describe your project, and then, within a week or less,

• 1:37:07Tim Ferriss?

  you have tons of designers around the world who compete for your business and submit different ideas and designs and drafts. You have an original design that you love, or you pay nothing. It is fantastic. I have used it. I have mentioned it before, including in The 4-Hour Workweek as a resource. Check it out, 99designs.com/tim. And if you use that link, you'll be able to see what I've done on the platform. You will also get $99 as an upgrade for free, which will get you more designs, more submissions. So check it out. Exoficio.

• 1:37:40Tim Ferriss?

  Boy, where do I begin? I have a long history with Exoficio. Exoficio makes clothing. And as far back as 2007, 2008, I had a hit video that went viral called "How to Travel the World with 10 Pounds or Less." And I talked about Exoficio underwear. Exoficio underwear is lightweight, ultra-lightweight, quick drying, and antimicrobial. Why is this important? Well, I've gone through 20-plus countries with two pairs of underwear before, both from Exoficio. And I'm not alone in this. This might sound crazy, but a lot of executives, for instance, will take this underwear, they'll wash it in the sink or somewhere else, roll it up in a towel, like a burrito, step on it, and a few hours later, they are completely dry, completely clean. You don't have to just have two. And yes, they have to be comfortable for all day wear.

• 1:38:25Tim Ferriss?

  But check out their clothing, as well as their underwear. You can go to exoficio.com/tim. That's X-E-X-O-F-F-I-C-I-O dot com forward slash tim. And you can see this video, which has a bunch of other packing tips. But this underwear, this clothing, is not just for the gents. Ladies, you have choices too. And they really have an incredible collection of high-quality products that I've used for almost 10 years now. So check them out, exoficio.com/tim. And until next time, thank you for listening.