with Auren
Hoffman
Month of August,
2002
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Summation Push Auren Hoffman's Summation Push for August, 2002 This issue: * Cyber-terrorism is a Real Threat * Corporate Greed -- They are Losing My Trust * Book Review: Attaturk -- by Andrew Mango * Movie of the Month: Field of Dreams * Reader Responses (Karen Yan, Ashley D'Cruz, Dom Ibelli, Doug Kilponen, John Lusk) * Friend of Auren: Laurence Toney * Summation Push Pick Links * Hoffman Reading List -------------------------------- CYBER-TERRORISM IS A REAL THREAT By Auren Hoffman The next attack on U.S. soil might not come from a suicide bomber -- but it could prove to be more deadly and more costly to the economy than your ordinary suicide bomber. Our entire infrastructure -- our power, air traffic, telecommunications, financial systems, etc. -- are vulnerable to cyber-attack. Since 75% of the world's computing power lies in the United States, cyber attacks will likely hit us.
Recruiting for terrorist activities is very difficult. A conventional terrorist needs to be a true believer in their cause and actually want to kill other people, knowing that he himself may end up being a casualty. Additionally, if the terrorist is going to operate against the U.S., he probably needs to know English and needs to be discreet. But recruiting cyber-crackers might be easier. Though crackers don't want to kill people, they may unwittingly transfer info or access that can cause great damage. The common cracker fits the terrorist profile -- social loner and misunderstood. Terrorists are now recruiting Japanese crackers using good looking women -- which is a particularly effective strategy.
Cyber terrorism could be carried out by an organized and well-funded hacker gang -- or it could be carried out by a disparate group of hackers from around the world with a common goal -- to bring down the United States and the values for which it stands.
Long before Matthew Broderick and the movie War Games (http://www.rottentomatoes.com/m/WarGames-1023165/preview.php), the U.S. government organized itself to protect against hacker intrusion:
* Office of Cyber Security headed by Dick Clarke (see: http://www.whitehouse.gov/news/releases/2001/10/20011009.html). Clarke is located at the White House and reports both to Tom Ridge and Condi Rice.
* National Threat Assessment Center (NTAC) run by the U.S. Secret Service out of New York (see: http://www.treas.gov/usss/ntac.shtml).
* National Infrastructure Protection Center (NIPC) -- a division of the FBI (see http://www.nipc.gov/about/about.htm) created in 1998.
* NSA's Information Assurance Directorate (INFOSEC) -- highly classified "Red Teams" hack into government computer systems to test vulnerabilities (see http://www.nsa.gov/isso/).
* Many other government protection organization including those inside the military, the CIA, the Fed, and other entities.
Spending money to protect our computer systems is not a bad idea -- the threat is very real. Cyber-terrorism is very easy to carry out and even easier to propagate -- and one does not have to convince someone to commit suicide to carry it out.
Until recently, most government cyber-protection centered around protecting federal government computer systems. This meant the systems running our critical infrastructure -- especially telecommunications -- were open to attack. Now the government is doing more to protect our critical infrastructure.
Though companies like Verizon and Goldman Sachs have incredibly good cyber-security, their human-security is lacking. System administrators at these companies do not have to go through the same background checks and scrutiny as those in the federal government, and thus are more susceptible to blackmail or bribes. We need to increase the level of security where our critical infrastructure lies.
For instance, if a hacker wants to read White House private email, it would be very difficult to go the direct route (hacking into the White House email servers). However, it would be potentially easier to hack into Research in Motion (parent company of Blackberry) and view outgoing and incoming emails to White House staffers (many use Blackberries extensively).
The top three countries germinating hacker attacks against the U.S. are: These countries have plenty of young men making less than $400/month who could be cajoled into attacking the U.S. If they pooled their resources to fight against our vulnerabilities, they could be very effective.
Another vulnerability is the computer itself (or, more specifically, the chip set in a computer). There is certainly the possibility that a Trojan horse could be built into the chips (this has been done before) that could monitor or disrupt a computer's activities. And getting these chips into computers in sensitive areas might just be just the law of large numbers. A few years ago, counterfeit chips were so prevalent that they flooded the market -- owning 30% of the market. A few of these chips found their way into computers at a key U.S. intelligence agency -- only to be discovered because the chips failed (yielding the infamous Blue Screen of Death).
This past history shows us that tighter controls need to be placed on procurement functions (in both government and the private sector) in order purchase items from trusted sources (especially considering that all DRAM is manufactured overseas).
Summation food for thought: what types of global laws and global treaties do we need to prosecute and/or track perpetrators of these attacks?
Summation thought: Someone should make cyber-security a big election issue in 2002.
(How should we prevent cyber-terrorism? Write auren@summation.net) -------------------------------- Send Summation Push to a colleague. -------------------------------- CORPORATE GREED When Enron blew up, I was mad. I was mad at irresponsible executives playing games with the public's confidence. But I was still confident -- thinking Enron was just an aberration.
But over the last six months, there seems to be a new company in trouble every day. The recent news about MCI Worldcom takes the cake.
Other major companies, like Adelphia, Enron, Tyco, ImClone, Worldcom, Arthur Andersen, CMS Energy, Dynergy have cratered -- generally due to corporate greed and cover-ups.
It is really scary to see our corporate leaders, even if it just a small minority of them, actively deceiving the public.
It is a real shame.
(Thoughts on Corporate Greed? Write auren@summation.net)
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Useless Fact:
Did you know that David Rice Atchinson was President of the United States for exactly one day?
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BOOK REVIEW: Attaturk
by Andrew Mango Mustafa Kemal Attaturk was the undisputed ruler of Turkey from the 1920's until his death in 1938. He was the first president of the new Turkish republican -- leading his national movement from the end of World War I until 1923 when he consolidated power.
I first came to hear about Attaturk when Time Magazine put together it's list of the most influential people in the Twentieth Century. Attaturk was on the list -- moreover, he won the popular vote online (beating FDR, Churchill, Einstein, MLK, and many others). Attaturk was one of the few true enlightened despots and a man who essentially built Turkey into what it is today.
This book gave me a real perspective on Turkey -- a country of tremendous strategic importance -- and an understanding of European geopolitics in the early twentieth century.
(To see more book reviews, check out the Hoffman Reading List at http://www.summation.net/reading.html) (What are you reading? Write auren@summation.net) ----------------------------------------------------
MOVIE OF THE MONTH:
Field of Dreams--(in German)
OK -- so many of you know Field of Dreams is my favorite movie and it was made in 1989 -- so why am I reviewing it now? The real answer is because I did not actually watch any good movies this month.
So this is a good time to take stock and watch one of the best movies of all time ... "if you build it, he will come" ... More info at: http://www.rottentomatoes.com/m/FieldofDreams-1007241/
-------------------------------- The objective of Summation is to READER RESPONSES AND OPINIONS Regarding last month's article on Europe's Turn to the Right (... and to growth) My read of the "boom" from my brief trip to Ireland is a little different [than yours] - the new plants multinationals established just a couple years ago were the first to close during the onset of the recession in the States. The radio blasted non-stop sound-bites voicing ambivalence towards linking so closely their economy to that of the States. The decision on whether to take on a European identity or an American-influenced identity may seem like a non-decision at all - why can't they benefit from both? It is, however, real in the sense that, since the EU monetary policies are made collectively, the usual monetary tools will not be at the disposal of each individual EU member and the growth rate will be locked. It will be an interesting study on governance to see whether the decisions of EU will come out conforming to the more growth-oriented economies, taking the middle-road or looking to the lowest denominator.
... and Ashley D'Cruz opines:
To borrow a phrase from Mr. Blair, Europe has a viable alternative which it may choose. The European Union is liberalizing labor laws which allow any laborer to move freely within the union to command a wage commensurate with skill. No longer tied to geography or a localized labor union, the worker can go where the work is. But, if there is no work, there needs to be the safety net of social support, medical care and re-education (all programs which exist in some shape or form in most EU nations). There must be an embracing of democratic multi-lateralism and racial plurality as Europe clearly needs an influx of workers, on the two ends of the spectrum, the highly skilled and the woefully unskilled ... It will also function as a singular political block this way, allowing citizenry freedom of movement and a broad social infrastructure, not simply goods the freedom of movement and the benefit of an economic infrastructure. While the growth of such an entity may not be as great in immediate economic terms in relation to the United States economy, it will be slightly more sustainable and stable than the pendulum swings we have seen in Japan and the United States over the past 20 years. In short, if the center-right does not provide incentive to their constituents to engage in the economic changes of European Unification - these incentives are the democratization of the economics of European Unification, freedom of movement, broad social services, economic regulation, a balance between centralized and localized power, and the imagined community of the European while still allowing for the localized communities of the Italian, the French - they will find that the system will collapse.
On the Tipping Point, Dom Ibelli writes:
The Tipping Pointis in my opinion a fantastic read (and not just because it mentions the term social circles), mainly because it fleshes out solutions to large issues by pointing to theories which a country who's consciousness normally seeks or is subjected to over-hyped, one-dimensional, motive-oriented reasons for everything.
On good books to read, Doug Kilponen suggests:
Given your interest in history and mathematics, and given that you've read two of what I consider the most influential books for me in the past 5 years - Guns, Germs and Steel and Clash of Civilizations - I thought I'd recommend three other big books for me. Together, they represent the five most influential books for me in terms of how I view the world.
1. Generations; William Strauss and Neil Howe. If you read no other book, read this. As a history major, I was fascinated by the premise. It changed the way I view history and has been highly predictive in determining and understanding recent events. No one whom I've recommended this book to has walked away quite the same.
2. Against the Gods; Peter Bernstein. Remarkable book about the history of risk. For me to find a book about mathematics fascinating and influential says a lot about how well it was written and how relevant it is.
3. History of Knowledge; Charles Van Doren. Read this back in college, so it may not be as impactful today. But, it is a great history of the relevance of world events and ties together some universal truths in interesting ways. Interestingly, it was written by Charlie Van Doren, the guy who cheated on the 50's game show and was played by Ralph Fiennes on Quiz Show.
John Lusk just discovered Summation and writes:
Fortunately, I've just spent the last hour on your site browsing through past editions of your newsletter and want to let you know how much I appreciate the info. Great topics, great dialogue and a no BS, straight-up way of saying things. Very cool.
(Write Auren your thoughts. Write auren@summation.net) -------------------------------- Send Summation Push to a colleague. -------------------------------- FRIEND OF AUREN (FOA)
[This section updates you an interesting person that is a member of Auren, Inc.]
Laurence Toney
I met Laurence Toney back when I was an undergrad at UC Berkeley as he was getting his MBA at Haas Business School and completing the Management of Technology program there-- which is a joint curriculum program with the College of Engineering. We were introduced by Jenny Redo -- one of his classmates.
After receiving his MBA, Laurence headed off to work for PricewaterhouseCoopers' Emerging Companies Services practice. While he was helping many young companies raise money and hone their business model, Laurence got the entrepreneur bug himself and co-founded NetAbacus and served as its VP of Business Development. He later worked for Rivio Corporation (which acquired NetAbacus).
Today Laurence is the EIR (Entrepreneur in Residence) with Opportunity Capital Partners (http://www.ocpcapital.com/) -- a $100 MM venture fund.
Laurence received his B.S. from Hampton University in Virginia.
See past profiled Friends of Auren at: http://www.summation.net/friends.html
-------------------------------- Send Summation Push to a colleague. -------------------------------- THIS WEEK'S SUMMATION PUSH PICK LINKS TO MAKE YOU THINK: * Terrorism Answers (http://www.terrorismanswers.com) -- a very helpful site put on by the Council on Foreign Relations.
* Mousedriver Newsletter (http://www.mousedriver.com/newsletter/newsletter.htm) -- fun entrepreneurial newsletter written by John Lusk and Kyle Harrison.
* RSVP for the Party of the Decade (http://evite.citysearch.com/GGParty@eudoramail.com/2011Party) -- taking place on Nov 11, 2011.
*How to sell via e-mail (from the book "21st Century Selling") (http://www.summation.net/emailselling.html)
*What am I reading? The Hoffman Reading List (http://www.summation.net/reading.html)
NOTE: Auren Hoffman works for BridgePath.com but the opinions expressed
herein are solely those of Mr. Hoffman. NOTE: You may reprint in full or in part (for
free) with permission from author. Auren Hoffman's bio can be found at:
(http://www.summation.net/hoffman.html)
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