Anatomy of a Hack: How the NY Times Was Hit

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Aug. 28 (Bloomberg) -- Mark Risher, CEO at Impermium, breaks down the hacking attack on the New York Times and the potential cybersecurity loopholes of new wearable technologies. He speaks on Bloomberg Television's "Bloomberg West."

Live from pier 3 in san francisco, welcome to the early edition of "bloomberg west" where we cover the technology and media companies that are reshaping our world.

I'm cory johnson in for emily chang let's get straight to the rundown.

The syrian electronic army claiming responsibility for the hacking attack that took down the "the new york times" and also hit twitter.

How did they do it?

Cbs has been dark on time warner cable for nearly a month.

The government may be stepping in to buy but does the fcc really have the power to bring this fight to the end?

And we will look at the mega battleship's for the defense department or in setting a research facility to see how warships for the future are designed.

But first commodity you -- the "the new york times" web site is still down.

It has been 20 hours since it was still -- first disrupted in a cyber attack.

Twitter is back up.

The theory and electronic army is claiming responsibility.

It says it hacked into the company that registered the domain names for both companies.

Possible military -- this is a response to possible military action against syria oppose the government pick who exactly is this year in electronic army and what do they hope to gain?

Michael, i this is pretty amazing within the context of what is going on in syria.

Yes, it is.

It is not just a particularly -- it is not a particularly sophisticated hack, but a pretty clever one pitted we now live in it -- but a pretty clever one.

We now live in an era where cyber action before use of military action is an idea.

It leads you to wonder what else they have up their sleeve.

This is a business impact.

It is this the kind of thing we might expect in a new era where nation states are working on cyber attacks?

They took out one of the most popular news websites in the world and created quite a bit of chaos doing so.

They will not go after hardened military networks or target, but targets that are easier to hit, including commercial.

In this case, they did not even have to get into the "the new york times" networks or twitter networks, but go after the domain registrars instead.

What kinds of businesses are at risk in its new form of warfare?

Clearly, they are going after the big brand names that represent, at least to them, the face of the west.

The "the new york times" has been reporting on being a possible chemical attack and the retribution that is possible.

And twitter is a global brand, but associated with the u.s. commercial targets of all sorts are now targets, including a range of banks that have been hit by a pretty sophisticated attacks that have been attributed to the iranians.

All bets are off.

The possibility that this is only going to worsen, especially if tomahawk missiles strike syria, is a pretty good bet.

The focus of businesses in america becoming the target, even if the defense system is well defended from a cyber security standpoint.

Absolutely, because it is not as of the nsa or any other defense network is going to come to the aid of the "the new york times" or twitter.

Unless there is potential for severe economic demands -- damage or severe loss of life, these companies are on their own.

In some cases, you have state- sponsored hackers in going after these companies.

But the nsa capability to defend those companies by policy and by law, it cannot do so.

I'm sure they have stories that they do not want to see published some days, but thank you.

The ceo of a cyber security firm joins me now the -- now.

What were the techniques used?

It appears the techniques used were the attackers change the domain name for these sites.

That is basically the url.

They redirected it everywhere?

Explain how dns works.

It works similarly to the phone book.

And the phone book, just to be clear, were books with pages.

It's a long story.

Correct that is right.

-- that is right.

When you find someone on a page, that is how they reach them.

Similar to that, when you type in someone's domain name, the servers map that to a physical computer bank.

The cracks before you get to the actual raw registry of names, these are companies that sell registries and claim to manage them.

Is it significant that it was in mel bourne?

Correct know, i don't think so it is a very large -- no, i don't think so.

It's a very large company that registers domains for many companies.

Why does it take so long to fix this?

Because anyone who accesses the url need to make weary to drop the ip address.

And user.

Yes.

And not every request after all the way to the mother ship.

They store local copies.

They take a long time to turn over.

These companies distribute the stuff across the web.

It is a form of distributing it and i also storing a local copy.

Those can take hours or days to clear out, and that is the trade-off between being able to respond quickly versus the performance benefits.

Greg is it clear what the group wanted?

It is not.

From my personal knowledge, i don't know who was responsible.

We have seen this year.

Electronic army -- we have seen the syrian electronic army defaming or harassing a lot of companies, especially when they run stories that are negative about the regime of bashar assad.

The notion that businesses, particularly american businesses, are now targeted in waging war is a new era.

Absolutely.

You do not have to run faster than the bare.

Not to run faster than everyone else the bear is chasing.

-- you have to run faster than everyone else the bear is chasing.

This is a charter that is easier for the bad guys to go after as opposed to -- a target that is easier for the bad guys to go after as opposed to the military target.

Correct as we enter a new era, i don't know that anyone is quite to want to hack into my fit bid or my up band, but i wonder with google glass, or apple wearable device, either are hackers salivating for these things to get to the market?

Absolutely.

People always find a way to abuse any piece of technology.

Systems are so powerful that they proved too attractive to hackers.

On the defense side, we need to look at a continuum of risk.

The way that the bad guys got into the millboard i.t. is that they were able to -- the mel bourne i.t. is that they are able to sniff out the user password.

Companies need to take a risk- based approach to evaluating who is accessing this device, this computer, this system, is it the appropriate person?

And it's what they are trying to do a great in the context?

-- and is what they are trying to do appropriate in this context?

Correct i wonder if these devices -- i wonder if these devices open themselves up for more risk.

Absolutely.

Something like glass, which admittedly is very early stage, you have a very powerful video camera that is transmitting.

It also knows your location and even the orientation of your head.

If bad guys could gain control of that, they could monitor the person as well as anything they're looking at.

I have been trying to get control of my own had for decades now.

Thank you very much.

Fantasy football fans are gearing up for the draft this weekend.

Former san francisco hall of famer jerry rice will be joining as to talk about the explosion of fantasy sports.

? this is "bloomberg west" on bloomberg television, also streaming on your phone, tablet, and at bloomberg.com.

I'm cory johnson.

The sec is getting involved in a dispute between time warner cable and cbs as the nfl fall season approaches is engaged in the highest levels to get things resolved, but would not offer any other details.

It has been blacked out since august 2nd.

25 million people will draft players to fantasy football teams.

In the lead out to the draft, many will use analytics and crunched big data to show the best picks for their dream team.

We look to a lodge -- unlock the intelligence behind these picks.

Hall of famer jerry rice to my greatest player in the history of the game is here.

It is so daunting, but a huge, huge thing.

Correct back in the day when i played, that was a long time ago.

They would talk about fantasy football.

They would say, well, i have you on my fantasy team.

I did not know the background behind it at that time.

The the but now, fantasy football has gone to a whole different level could you have over 30 million people playing fantasy football and is a $1.1 billion industry.

And 75% of fantasy football players want a real stab at that moment.

-- the real stats at that moment.

It has to do with the way people's viewing has changed.

They're watching with their ipad and they've got a tv and is experienced all at once.

80 television, the sights and sounds, the crystal clear detail -- high-definition television, the sights and sounds, the crystal clear detail, you can watch it at home or at the local starbucks or on your laptop.

You can put that information on your smartphones and tablets.

There's a lot of technology and that is right partnered up with intel.

They're one of the leading brand.

I feel like football is one of the most intellectually challenging sports to understand what is happening, not just with the players, but with the place.

But also with the players, when the fans are in tennessee football, there -- in fantasy football, they are learning so much data.

And a breakdown to whether someone functioned well in cold weather, plays better in a dome, personal issues -- things like that might impact your decision on bringing this guy on to your team.

And it is all in that data.

As a player -- because you played for a long time, and i wonder if the data you would give as a player would change a lot during that time.

I think it changed a lot.

What was it like when you first came into the league?

When i first came into the league, it was just hard work and dedication.

I think players can be a little bit smarter now with all the data that is out there.

You are aware of all technology that can -- you have technology that you can wear that can monitor your heart.

There are all those things.

All those things factor into a fitness program to be beneficial to you.

First, hard work and dedication.

When i first came to the bay area in 1998 and i went to see this baseball player named barry bonds about working on -- working out.

He said it was during workouts with you.

He is famous for his time in the gym.

He just shook his head and said, jerry, the way that i worked.

He would give me a hard time and say, look, i'll have to be run to third base.

My conditioning, i had to take it to a whole different level because i wanted to be able to excel in the third quarter, the fourth quarter.

Correct -- i wonder if the data when you were with the raiders is the same quality of data.

Yes, it will give you an accurate analysis of a player's speed, the vertical leap, the potential for injury.

All of that is going on -- and then you've got the coaches using that technology . what are they looking for?

But they are looking for certain tendencies, let the the -- they're looking for certain tendencies.

Like the way a guy plays on the line?

Yes, and that will help them to prepare for the next team airplane.

What kind of information which you look for a on a wide receiver or something that you know about?

Correct probably how he comes -- probably how he comes off the line of scrimmage.

And i would try to make everything look the same.

Of the could not tell what was coming?

Yes.

And i was always working the defensive and on the backside just in case, to get a feel for -- last question, if you have to pick three wide receivers.

Come on, audrey johnson, kevin johnson, and fitzgerald.

Very nice.

Still to come, the place where every navy ship is on its design test.

? welcome back.

President obama has held his first panel after edward snowden sneak information about the program.

Megan hughes is in washington what is going on with this panel?

Let's talk about first who's on it.

The white house did can -- did confirm those names could we do with veteran and former white house officials.

Richard clarke is a former u.s. cyber security adviser under president bush.

Michael morrell, recent acting head of the cia where he worked for 30 years.

Jeffrey stone, a chicago law professor.

And you also have a harvard law professor, cass sunstein, and peter swire the the news served on the national economic council.

This group is part of a series of steps that he laid out this month.

The white house is facing a lot of criticism about these programs.

It the group is charged with providing the president with information within 60 days and following up with a report.

The point is to discuss how the government can conduct a national security while still respecting the privacy.

The president in early august said it is not enough for me to have confidence in these programs.

The american people need to have confidence in these programs.

That is what this group is about.

I wonder what can actually happen with all of this.

Greg is a good question.

First, let's talk about the programs.

We have two and as a programs collecting millions of phone records.

And also looking at cross border internet traffic.

It is monitored by a secret court.

It is all laid out by the page.

Act, which passed after september 11th.

-- the patriots act, which passed after september 11th.

The president said he would like to see the page.

Act amended, and he also said he would like to see an adversary appointed to the court.

To speak about privacy issues as far as the court goes.

And there was also funding in the house that goes to the nsa.

They had a vote on that late last month, but nothing so far, no changes.

Megan hughes, thank you very much.

The time for on the market from a look at what is moving at the markets every hour.

What is going on in maastricht?

-- on wall street?

We're looking at where stocks are climbing.

The dow trading up by about 72, the s&p up by nine after a two- month low yesterday.

And the nasdaq up by 26. in terms of sectors, it is energy stocks leading the markets.

Why?

Because of west texas intermediate crude is trading in a two-year high on concerns of what is happening in syria and that could disrupt supply out of the middle east.

Two that i want to highlight for you, the first is aztec pharmaceutical.

Promising results in a phase two trial.

And george global, -- joy global is off its lows for the day after an expected improvement for the year.

More "bloomberg west" coming up after the break.

?

This text has been automatically generated. It may not be 100% accurate.

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