Protecting Data: Why Corporate America is Terrified

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Dec. 26 (Bloomberg) -- Bloomberg Contributing Editor Richard Falkenrath and Bloomberg’s Paul Sweeney discuss Edward Snowden and security themes for 2014 on Bloomberg Television's "Bloomberg Surveillance." (Source: Bloomberg)

Contributing editor.

He is also a fellow at the council for -- i think he is a criminal and violated the contract he signed for the u.s. government.

If he is ever found -- captured, he will spend the rest of his life in prison.

Major companies and enterprises have been spending billions of dollars on cybersecurity.

What snowden showed more graphically than anything else is that how a highly expert motivated insider can get sensitive data out into the open.

That is what he did and that is what corporate america is terrified of.

How ironic.

For all of the billions spent on security, one guy can take down the system.

That is the essence of it.

A highly motivated insider can hurt you now in ways that are beyond any set of outsiders can imagine doing.

The question snowden is trying to put forward -- does anybody need this amount of data on individuals?

Does anybody need it?

There are a number of companies that have masses of information on you.

Social media is based on you and users dividing data in exchange for a service.

The basic deal is that you give them your data and you benefit from an interested -- interesting experience online.

It is something you can send it to.

We talked about this on tuesday.

Amazon is not going to show up at my door with a warrant or break down my door or come in and arrest me because i gave them my shopping data.

The people who do show up at your door have the power to serve warrants on amazon and everyone else.

They get all of that data in a compulsory way.

When amazon is served with a warrant, they must turn all of that data over.

While they are benefiting from it in a financial sense, the government has the power to go get it if you have done something wrong and they have cause to come and get you.

This is right in your wheelhouse, the idea that technology companies benefit from the data that they gather from us and are not the holden from the government.

-- beholden to the government and they can see their hand was forced.

Even for the googles of the world, it is a fine line.

They have to be compliant with regulatory agencies around the world.

They have to represent the interests of their users and project the image that they are looking out for the benefit of their users in terms of protecting their dent -- their data and their identity.

Is that why they went to the white house to say to the president, this is too far.

They wanted to say this has gone too far and we need to think of a new model, a new relationship in terms of how you get this data from us, how you access this data.

What are our responsibilities?

The interesting thing snowden went on to say is that there is an entire generation growing up that will not know the concept of privacy.

Everything about their lives, by their own choice and by the government's choice will be known by anybody who wants to get that data.

It is overstated.

Social norms are shifting about what is private.

People are more educated about it.

The younger generation is willing to tolerate having more out there.

It is too far to say they will know no privacy at all.

It will be different than it was for the older generation.

Security threats, especially as sporting events.

There will be high-profile sporting events at -- events in 2014. we have not seen a security breach in a big security of a -- a big sporting events yet.

They are making sure it does not happen.

There have been some worldwide, but then -- but they have not been reported in the west.

A mass riot that the local government had trouble getting under control.

A referee was beheaded i the opposing fans when they did not like the call.

-- by the opposing fans when they did not like the call.

Three big sporting events are coming up in the near future.

The super bowl coming up in new york city.

The sochi olympics and the world cup in brazil.

These are big challenges and they are totally different challenges.

From a security standpoint, it one presents -- each one presents security challenges.

Resilience the biggest.

Mozilla has invested lavishly and certain forms -- brazil is the biggest.

It has invested lavishly.

There is a crack epidemic going on.

They will do their best to secure the immediate environs of the stadium.

You talk about those protests.

People were protesting in brazil six or seven months ago because money was being put into stadiums and not health services.

Exactly right.

Here's his government that has invested in sporting venues and not in infrastructure.

Sochi will be interesting because there are a number of serious separatists disputes in the caucuses region.

Very high-profile attacks elsewhere.

The moscow theater rate of 2002 and the school rate of 2004. on the other hand, an aggressive russian security service that will lock that place down tightly.

That is something we will monitor as we head into the sochi olympics.

Explain splinter head.

The united states is the epicenter of the internet.

Many of the services are based here.

It is not a strictly hub and spoke internet.

Competitive and international pressure.

An interest in breaking it up and having different cables underwater.

Shifting control over some forms of government.

The itu is more like a u.n. organization.

The leader is the president of brazil, who has called a meeting to reduce u.s. dominance of the internet.

It will take a long time to play out.

Thing about this conversation.

Two years ago we would not have been having it.

We're fortunate to have you here, richard, to lead us through it.

436%. that is how much time warner cable shares have appreciated

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

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change