Latest / The Paul Barron Crypto Show / UK Bank Emergency!😨AI Attack Fears, NO ONE SAFE?

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UK Bank Emergency!😨AI Attack Fears, NO ONE SAFE? · The Paul Barron Crypto Show

• 0:00
  Speaker 1: All right, everyone, today is gonna be a big one
• 0:01
  Speaker 1: because we are talking about AI agents running rogue and
• 0:05
  Speaker 1: it really calls the question, is anyone safe?
• 0:08
  Speaker 2: Well, today we're gonna break it down for you.
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• 0:56
  Speaker 2: I want to start with this video clip that we did.
• 0:59
  Speaker 1: We just released this video yesterday, but we actually recorded
• 1:02
  Speaker 1: a few days before.
• 1:03
  Speaker 2: Watch this.
• 1:04
  Speaker 1: Do you foresee a major AI hack on a major
• 1:09
  Speaker 1: bank in the U.S.
• 1:10
  Speaker 2: Before the end of this year? I don't know the timing,
• 1:15
  Speaker 2: but it's going to happen.
• 1:16
  Speaker 1: This is the concern I have, and I think a
• 1:19
  Speaker 1: lot of experts out there have kind of voiced this,
• 1:21
  Speaker 1: is that the banking systems are not ready for this.
• 1:24
  Speaker 2: No, I think you're right.
• 1:26
  Speaker 3: I don't know the timing of it, I will admit.
• 1:27
  Speaker 2: I actually don't think that's not a quantum threat.
• 1:29
  Speaker 3: That's just a generic social engineering threat, the AI threat.
• 1:34
  Speaker 2: I think about that a lot.
• 1:35
  Speaker 1: And of course, now we're seeing it happen in real time.
• 1:39
  Speaker 1: And you've got it right here at Morgan Stanley, Bank
• 1:41
  Speaker 1: of America, JP Morgan, Wells Fargo, all detected unauthorized agents
• 1:45
  Speaker 1: accessing customer accounts. and using and acting without user instruction.
• 1:51
  Speaker 1: So this gets pretty significant because when you look at
• 1:55
  Speaker 1: that and then this right here, where hackers now are
• 1:59
  Speaker 1: reportedly using Claude and Grokbot and other models out there
• 2:03
  Speaker 1: to go out and create a vector attack against 400-plus
• 2:06
  Speaker 1: financial targets, and they're doing it with very little human input.
• 2:10
  Speaker 1: So this continues to concern me that the banking industry
• 2:14
  Speaker 1: is not ready for what is coming at them. And
• 2:17
  Speaker 1: it's accelerating literally by the day.
• 2:20
  Speaker 2: That's the advancement we're seeing.
• 2:22
  Speaker 1: As you guys know, we test a lot of these
• 2:24
  Speaker 1: AI models here in understanding what their capabilities are. And
• 2:29
  Speaker 1: I am surprised every week in the capacity of what
• 2:32
  Speaker 1: it can do. This is only going to get worse
• 2:35
  Speaker 1: unless the banks are starting to really move quickly. The
• 2:38
  Speaker 1: UK government is now urging its citizens to stockpile food
• 2:43
  Speaker 1: and water. And this is because of the cyber attack,
• 2:46
  Speaker 1: which are essentially AI-oriented for the most part. And you
• 2:50
  Speaker 1: look at that kind of issue, and then this right
• 2:52
  Speaker 1: here happening, you've got Brent Crude now skyrocketing again. This
• 2:57
  Speaker 1: is a seven-month high, holding at 117 right now a barrel.
• 3:01
  Speaker 1: If this thing hits 120, we are going to see
• 3:04
  Speaker 1: significant fuel costs hitting not only Europe, but what's going
• 3:07
  Speaker 1: to happen here in the United States. This starts to
• 3:10
  Speaker 1: worry me quite a bit because at the same time
• 3:13
  Speaker 1: of these kinds of interventions of what we're seeing with
• 3:17
  Speaker 1: both AI integrations and moving into the banking industry, where
• 3:21
  Speaker 1: else could we see that starting to attack? Could we
• 3:24
  Speaker 1: see grid attacks? Could we see other infrastructure attack? That's
• 3:27
  Speaker 1: the concern I have right now. Here is the UK
• 3:30
  Speaker 1: issuing the security notice.
• 3:32
  Speaker 2: Take a look.
• 3:34
  Speaker 4: The main message for now is to think about what
• 3:37
  Speaker 4: you'd need to survive for three days in a crisis.
• 3:41
  Speaker 4: All the information is on this updated website that asks,
• 3:45
  Speaker 4: are you emergency ready? It includes having enough supplies of water,
• 3:50
  Speaker 4: of food, of medicine. While the focus of the advice
• 3:54
  Speaker 4: is on more familiar disasters such as severe weather or
• 3:58
  Speaker 4: cyber attacks, ministers have been warning about the possibility of war.
• 4:03
  Speaker 5: But we'll also need to take the country a step
• 4:06
  Speaker 5: further and ask them, are they prepared for increasingly sophisticated
• 4:11
  Speaker 5: cyber attacks on our businesses? Are they prepared for the
• 4:16
  Speaker 5: eventuality that there may be disruption to essential supply chains
• 4:21
  Speaker 5: caused by hostile state actors or terrorists? How would we
• 4:25
  Speaker 5: cope if the payment systems at the local supermarket went down?
• 4:30
  Speaker 5: Those are the sorts of everyday challenges and threats that
• 4:34
  Speaker 5: we could well face.
• 4:37
  Speaker 1: So you can see things are getting a little bit
• 4:39
  Speaker 1: heated here. And one of the things that I'm concerned
• 4:42
  Speaker 1: with is who's held liable? You know, when you have
• 4:45
  Speaker 1: something like a circumvention that happens within a banking system,
• 4:51
  Speaker 1: especially here in the United States, could you hold the
• 4:54
  Speaker 1: banks liable?
• 4:55
  Speaker 2: Well, here's someone talking about it.
• 4:57
  Speaker 6: Now, wait a minute. We've got these agents allegedly getting
• 5:00
  Speaker 6: inside anybody's bank account. Is this happening?
• 5:04
  Speaker 7: Well, let me tell you that the banks have been
• 5:06
  Speaker 7: all over this for months now.
• 5:08
  Speaker 6: Every one of our viewers wants to know, if some
• 5:10
  Speaker 6: guy gets inside my bank account and takes money, how
• 5:13
  Speaker 6: do I get my money back, and what are you
• 5:15
  Speaker 6: doing about it? Well, you've told us what you're doing
• 5:16
  Speaker 6: about it, but I'd like to know, how do I
• 5:18
  Speaker 6: get my money back?
• 5:19
  Speaker 7: Well, again, banks are very focused on their defending the frontier.
• 5:23
  Speaker 7: Banks are some of the most fortified parts of our system.
• 5:28
  Speaker 6: You, your office, I believe, you're accusing some of the
• 5:32
  Speaker 6: largest banks in the country of debanking customers because of
• 5:35
  Speaker 6: their political views. What are you going to do with them?
• 5:38
  Speaker 6: Take them for money or what?
• 5:40
  Speaker 7: So what we're going to do is we're very focused
• 5:41
  Speaker 7: on working with the CFPB and other law enforcement agencies
• 5:45
  Speaker 7: to hold banks to account that engage in these activities.
• 5:47
  Speaker 6: You're on the show today to reassure us all. That's
• 5:51
  Speaker 6: what you're doing.
• 5:53
  Speaker 1: Yeah, he's not reassuring me. And I think this is
• 5:55
  Speaker 1: the whole point is that we are seeing, and it's
• 5:58
  Speaker 1: something we've been watching for quite some time. I think
• 6:00
  Speaker 1: the tech advanced, you know, people that are watching this show,
• 6:03
  Speaker 1: you guys probably realize what's going on much more so
• 6:07
  Speaker 1: than I think.
• 6:07
  Speaker 2: A lot of people out there, and that is preparation.
• 6:10
  Speaker 2: So the issue is real. It is starting to hit,
• 6:13
  Speaker 2: and I think it's only going to accelerate going forward.
• 6:16
  Speaker 1: In fact, you've got OpenAI's autonomous AI systems now trying
• 6:20
  Speaker 1: to lock out the very employees who are monitoring these actions,
• 6:24
  Speaker 1: and the company, of course, doesn't know why. So this
• 6:29
  Speaker 1: is not a good look, guys, for not only AI,
• 6:32
  Speaker 1: but just for the tech industry in general, for us
• 6:35
  Speaker 1: to see these kinds of The real question is, is
• 6:38
  Speaker 1: what will happen as this goes forward?
• 6:41
  Speaker 2: Does the Trump administration take action or not?
• 6:44
  Speaker 1: Speaking of the Trump administration, well, this happened, and that
• 6:48
  Speaker 1: is the Dutch government now has hacked into Jared Kushner's
• 6:51
  Speaker 1: phone and monitored him as he accessed a Dubai-based bank account. Listen,
• 6:57
  Speaker 1: if the elites are not safe, no one is safe
• 7:01
  Speaker 1: in this particular situation.
• 7:03
  Speaker 2: It is brewing and getting real.
• 7:06
  Speaker 1: Other things you've got going on right now that people
• 7:08
  Speaker 1: are concerned around Bitcoin and the possibility of a post-quantum
• 7:13
  Speaker 1: issue around Bitcoin. And you have Chamath even coming in
• 7:16
  Speaker 1: and saying, not that I'm in agreement with him very often,
• 7:19
  Speaker 1: but I think he's saying that eventually this gets hacked and.
• 7:22
  Speaker 2: It goes to zero. He's talking about Bitcoin, guys. That's
• 7:25
  Speaker 2: what he's talking about.
• 7:26
  Speaker 1: Even David Sachs, presumably still bullish considering his former role
• 7:30
  Speaker 1: as US crypto czar and AI. And he also still
• 7:34
  Speaker 1: concerned around what the future of Bitcoin is based on
• 7:37
  Speaker 1: what we're seeing in terms of advancement. I will say this,
• 7:40
  Speaker 1: that when you listen to some of these kinds of
• 7:43
  Speaker 1: tech entrepreneurs and billionaires, they understand what's under the hood.
• 7:49
  Speaker 1: They probably are seeing more advancement than the average person
• 7:53
  Speaker 1: and probably even more so than most deep dive researchers.
• 7:56
  Speaker 2: So Pay attention out there, guys.
• 7:59
  Speaker 1: It's very possible we may get some indicators coming in
• 8:02
  Speaker 1: from these kind of people that a lot of people
• 8:05
  Speaker 1: have not been watching. All right, so let me kind
• 8:07
  Speaker 1: of connect this because you have AI hacks happening here
• 8:10
  Speaker 1: on the banking system, could leap into the grid system,
• 8:14
  Speaker 1: power systems, all sorts of things. And you've got this
• 8:17
  Speaker 1: right here where the U.S. is releasing 400,000 barrels of
• 8:19
  Speaker 1: emergency drugs. oil from its strategic petroleum reserve. That's a
• 8:25
  Speaker 1: big deal going forward. And the real question here now
• 8:28
  Speaker 1: is how does the market recover from this or does it?
• 8:31
  Speaker 2: Here's a clip.
• 8:33
  Speaker 3: But crude oil comes down and it feels like the
• 8:35
  Speaker 3: tech names and the market's reacting more even to oil
• 8:38
  Speaker 3: right now than to yields.
• 8:40
  Speaker 1: Of course.
• 8:41
  Speaker 6: Yeah.
• 8:41
  Speaker 3: Well, look, there's one thing investors and markets hate, and
• 8:44
  Speaker 3: that's uncertainty. And the Iran war has been a ton
• 8:48
  Speaker 3: of uncertainty. It really hasn't dissipated. It comes in waves
• 8:50
  Speaker 3: and it comes and goes. It So I think the
• 8:53
  Speaker 3: minute there's an indication that there's a sustainable drop in
• 8:56
  Speaker 3: oil prices coming, you're going to see the S &
• 8:58
  Speaker 3: P 500 push to 8,500 plus. Really? Pretty quick.
• 9:01
  Speaker 2: So you're talking like a bam, it's like a snap.
• 9:03
  Speaker 3: I think it'll be a very quick, aggressive rally, especially
• 9:06
  Speaker 3: as investors realize earnings growth is explosive right now. There's
• 9:11
  Speaker 3: a big discount price into this market right now.
• 9:13
  Speaker 2: What do you buy there? Do you buy across the board?
• 9:15
  Speaker 3: I think don't reinvent the wheel. I think big tech.
• 9:18
  Speaker 3: I think the Mag 7. I think the top 15 stocks,
• 9:21
  Speaker 3: S & P 500 will be the best performers when
• 9:23
  Speaker 3: you look six to 12 months out. I don't think
• 9:26
  Speaker 3: it's the market you need to reinvent the wheel in
• 9:27
  Speaker 3: right now.
• 9:28
  Speaker 1: All right, a couple of things there. You could look
• 9:30
  Speaker 1: at Wall Street analysts. Many times you guys have probably said, hey,
• 9:33
  Speaker 1: half the time these guys are wrong, of course. The
• 9:36
  Speaker 1: real question here is how does this get addressed if
• 9:40
  Speaker 1: we do get a continuation of the wars? And that's
• 9:43
  Speaker 1: talking about everything from what's happening in Russia and Ukraine,
• 9:47
  Speaker 1: as well as what's going on within the Hormuz Strait
• 9:50
  Speaker 1: and what's happening with Iran. All of this could cool
• 9:53
  Speaker 1: down come post midterms. That's one option. The other issue is,
• 9:58
  Speaker 1: is that this rotation may never really happen coming off
• 10:01
  Speaker 1: the AI trade. If in fact an AI trade rotation
• 10:04
  Speaker 1: does occur, we may see it go elsewhere or go
• 10:07
  Speaker 1: to the sidelines. We just don't know. That's the concern
• 10:10
  Speaker 1: I have. So it's still very early going into this.
• 10:13
  Speaker 1: The key thing here is how do these wars get managed? Well,
• 10:18
  Speaker 1: There's one thing that's happening right now. You got Melania Trump.
• 10:20
  Speaker 2: That's right. That's not a misprint.
• 10:23
  Speaker 1: Trying to secure a ceasefire with what's happening in Russia.
• 10:27
  Speaker 1: And when you've got Melania pushing on this, I mean,
• 10:30
  Speaker 1: what's going on here, guys? Do we not have enough
• 10:32
  Speaker 1: people in the Trump administration to out here, go out
• 10:35
  Speaker 1: and negotiate these kind of things? All this is supposedly
• 10:37
  Speaker 1: happening October 29th. So all of this lining up right
• 10:42
  Speaker 1: before the midterms. And right now, with a very down
• 10:45
  Speaker 1: month in the market, so as the market's basically pinning
• 10:48
  Speaker 1: in on what's happening with Melania's ceasefire, that's the issue.
• 10:52
  Speaker 1: We've got Toli out there kind of poking a little
• 10:55
  Speaker 1: bit of lightheartedness to it. Is there anything a Solana
• 10:58
  Speaker 1: Dev can't do? All right, so I want to go
• 11:00
  Speaker 1: back to the banks for a second.
• 11:01
  Speaker 2: Because this surprised me.
• 11:03
  Speaker 1: And now it's even Netanyahu is not feeling safe in
• 11:06
  Speaker 1: the bank. And he's talking about a completely alternative to
• 11:11
  Speaker 1: what's happening in their own banking system because they're in
• 11:14
  Speaker 1: concern of banking sanctions.
• 11:16
  Speaker 2: This includes things like the blockchain.
• 11:18
  Speaker 1: And they're not camping on the military of the United
• 11:21
  Speaker 1: States being able to protect them as much anymore. They're
• 11:25
  Speaker 1: looking at all sorts of things, including this right here.
• 11:27
  Speaker 1: We need to understand that there could be a banking sanction.
• 11:30
  Speaker 1: You need to prepare alternative economic systems. And you know
• 11:34
  Speaker 1: what that is? And you know what kind of currencies
• 11:36
  Speaker 1: to bypass this, and he's working.
• 11:38
  Speaker 2: On that as well. So watch this if we're seeing
• 11:40
  Speaker 2: it at that level.
• 11:42
  Speaker 1: Elites are not safe. Countries like Israel may be not safe.
• 11:46
  Speaker 1: These are the issues that our time is facing right now. China, though,
• 11:50
  Speaker 1: has gone a different route. They are going toward gold
• 11:53
  Speaker 1: as they purchased 25 tons of gold in August alone.
• 11:58
  Speaker 1: This is all coming off the London OTC. and it
• 12:01
  Speaker 1: continues to push. China's been one of the biggest acquirers
• 12:03
  Speaker 1: of gold over the last year and continue to press
• 12:06
  Speaker 1: in this way. So be on the lookout for China.
• 12:09
  Speaker 1: That's another factor to watch. Last up, you've got Ethereum
• 12:13
  Speaker 1: postponing Glamsterdam, which affects the potential for a QDA research
• 12:20
  Speaker 1: that starts to put ETH ahead. This is not good
• 12:22
  Speaker 1: for the industry. And I say this from the crypto industry,
• 12:25
  Speaker 1: definitely not good for ETH. This was something that they
• 12:27
  Speaker 1: were doing to basically prepare for what might be happening
• 12:32
  Speaker 1: around some of these hacks that were occurring within.
• 12:34
  Speaker 2: The AI ecosystem. So there's a lot of.
• 12:37
  Speaker 1: Things hitting all at once, guys, and it boils down
• 12:40
  Speaker 1: to this. Does the market continue down or do we
• 12:45
  Speaker 1: see this sell-off subside?
• 12:47
  Speaker 2: Well, here's Tom Lee. Would you buy the sell-off yet?
• 12:52
  Speaker 7: Yes.
• 12:52
  Speaker 8: I think we're near the end stages of the sell-off
• 12:55
  Speaker 8: because it's become a consensus short to be shorting tech.
• 13:00
  Speaker 8: And I think yields, which was really worrying markets, as
• 13:03
  Speaker 8: you know, they've backed away. So I mean, you've got
• 13:06
  Speaker 8: two things that were headwinds before. The Fed, quite hawkish,
• 13:09
  Speaker 8: now it's flipping potentially dovish. And interest rates, which were
• 13:13
  Speaker 8: touching 5%, people fearing 6%, are now back below 5%.
• 13:16
  Speaker 8: I think the only things you have now is debt
• 13:19
  Speaker 8: markets are kind of closed at the moment.
• 13:21
  Speaker 2: And of course, the uncertainty about the war. I mean,
• 13:24
  Speaker 2: would you if you say, yes, I'd buy it, where
• 13:26
  Speaker 2: would you buy it?
• 13:27
  Speaker 1: Would you stay just with these largest AI related stocks
• 13:31
  Speaker 1: in the market?
• 13:32
  Speaker 8: Yeah, I think they're bottoming. But I also like the
• 13:35
  Speaker 8: software and I like the crypto here. I think kind
• 13:39
  Speaker 8: of the whole broad cyclical trade, I'd be pretty bullish on.
• 13:42
  Speaker 8: And as you know, financials haven't been rallying, but rates
• 13:45
  Speaker 8: are coming down. So I think there's a lot of opportunity.
• 13:47
  Speaker 8: This is what I view as a coiled spring because
• 13:51
  Speaker 8: the fundamentals have been holding in.
• 13:54
  Speaker 1: I don't know that I agree with Tom on this one.
• 13:57
  Speaker 1: And the point is, if you look at the S
• 13:59
  Speaker 1: & P, this is coming in from the daily, even
• 14:01
  Speaker 1: if you go back here to October 6th. And you
• 14:05
  Speaker 1: look at that high, which was setting at around 7,800.
• 14:08
  Speaker 1: You're holding at 7,634 right now. That is almost a
• 14:12
  Speaker 1: 3% variation on a very short timeline.
• 14:15
  Speaker 2: For the S & P.
• 14:16
  Speaker 1: That's a big deal for the S & P 500.
• 14:19
  Speaker 1: You compare what's happening right now, and I don't know
• 14:22
  Speaker 1: that we are out of the woods yet, My concern
• 14:24
  Speaker 1: is there is going to be a critical attack, one
• 14:27
  Speaker 1: that maybe even brings in the administration to do something.
• 14:32
  Speaker 1: That's a concern because this is getting very close.
• 14:35
  Speaker 2: Guys, to the midterms.
• 14:37
  Speaker 1: Put that in your bank and think about that for
• 14:39
  Speaker 1: a second. What could happen between now and November 4th
• 14:44
  Speaker 1: that could possibly cause disruption?
• 14:47
  Speaker 2: I'll leave it with that.
• 14:55
  Speaker 1: If you like this video, hit like and subscribe, drop
• 14:57
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• 15:00
  Speaker 1: member group.
• 15:01
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