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Stroz Friedberg's Software Analyzes Email for Threats (Audio) · Bloomberg Intelligence

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  Speaker 1: Broadcasting live to New York, Bloomberg to Washington, d C.
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  Speaker 1: Bloomber to Boston, Bloomberg twelve hundred to San Francisco, Bloomberg
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  Speaker 1: ninety to the country's US exam General one nine and
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  Speaker 1: around the globe, the Bloomberg Radio plus Bloomberg dot Com
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  Speaker 1: is taking stock, according to the latest annual cyber crime
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  Speaker 1: survey that was jointly conducted by CSO Magazine, the U. S.
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  Speaker 1: Secret Service, as well as Price Waterhouse Coopers, and Software
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  Speaker 1: Engineering Institute Search program. Do you know that a third
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  Speaker 1: of the electronic attacks Kathleen on organization's public and private?
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  Speaker 1: You know where they come from? Yes, you tell me though,
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  Speaker 1: they come from inside the organization. So you want to
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  Speaker 1: know what is happening inside your technology network, You're gonna
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  Speaker 1: have to listen to our next day. Yes. Ed Straw's
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  Speaker 1: co founder and chairman of Straw's Feed Freeber based right
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  Speaker 1: here in New York City. Career law enforcement specializing on
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  Speaker 1: cyber risks and technology led him to this very fascinating company. Him,
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  Speaker 1: I don't want him to put the software on me
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  Speaker 1: and never know. Well, let's put the software on Katherine Conry.
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  Speaker 1: Thank you, Kathleen wall Street. Starting off this holiday shortened
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  Speaker 1: Express is moving into some new territory. A planet debut
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  Speaker 1: an online loan platform for small business clients this year.
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  Speaker 1: Here's Bloomberg's Jenny Seraine. It's actually kind of on both sides.
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  Speaker 1: There's a lot of these smaller fintech players that offer
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  Speaker 1: Spargo that offer really similar products um that offer kind
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  Speaker 1: I think AMEX is trying to slide in right in
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  Speaker 1: the middle there. And and now look at some of
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  Speaker 1: the other stories. Thank you, Gatherine from the Bloomberg news room.
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  Speaker 1: and lead because business is everywhere, prepare here. The FBI
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  Speaker 1: This is Bloomberg, Catherine, thank you. And now let's get
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  Speaker 1: a quick check of the equity benchmarks. Down Industrial Hovergetown
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  Speaker 1: at nine eight points, trimming earlier losses. Currently trading at
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  Speaker 1: seventeen thousand, eight hundred fifty smp F I founded down
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  Speaker 1: fourteen points at two thousand eighty eight. Nastakis down forty
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  Speaker 1: two points at And that's a Bloomberg business flash. You're
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  Speaker 1: listening to taking stock with pim Box and Kathleen Hayes
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  Speaker 1: on Bloomberg Radio. Of US organizations believe that they are
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  Speaker 1: vulnerable to insider threats. That's according to the data security
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  Speaker 1: firm war Metric. Here to tell us more about security
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  Speaker 1: threats and how to protect against them is Ed Straws.
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  Speaker 1: He is the co founder and the chairman of Straws Freeburg.
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  Speaker 1: You're based in New York City and Mr Straws is
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  Speaker 1: a former FBI agent. He spent sixteen years with the
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  Speaker 1: Federal Viewer of Investigation. He was then appointed to form
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  Speaker 1: a computer crime squad in New York City at the time,
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  Speaker 1: it was only the third in the country at Straws.
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  Speaker 1: Thanks very much for being here. Happy to be here.
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  Speaker 1: This idea of internal threats versus external threats, you know,
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  Speaker 1: hold your friends close, hold your enemies closer. Uh. Tell
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  Speaker 1: us how this relates to people in the workforce. It
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  Speaker 1: relates to people in the workforce two ways. The first
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  Speaker 1: is you could have an insider that represents a threat,
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  Speaker 1: and by threat I would say somebody who intends to
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  Speaker 1: do something that they know they shouldn't do. Maybe they're disgruntled, um,
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  Speaker 1: maybe they've been paid to do something. But then there's
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  Speaker 1: another side to it where you're just talking about good
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  Speaker 1: people who represent one of the biggest risks to your organization.
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  Speaker 1: That is, they're either careless or in some ways are
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  Speaker 1: responsible for clicking on an action uh in an email
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  Speaker 1: that infects the system. And those both those situations malintent
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  Speaker 1: and maybe carelessness come down to the human factor. And
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  Speaker 1: so what we've tried to do is say, if the
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  Speaker 1: human being is the ground zero for the action that
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  Speaker 1: we're talking about, shouldn't we be analyzing the human being
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  Speaker 1: as a human being. So and in fact, electronic attacks
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  Speaker 1: on organizations, public and private come within according to many services.
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  Speaker 1: You know, that is just noting some of these statistics.
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  Speaker 1: But so, so what does scout scout do? What is
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  Speaker 1: what is the program? Like the software the algorithm. So
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  Speaker 1: Scout is the name of the tool that Strasfreeberg developed
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  Speaker 1: to try to unders damn people better. And the tool
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  Speaker 1: analyzes the language that appears in your emails and other
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  Speaker 1: forms of communication that are written. It does not work
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  Speaker 1: on voice, and it analyzes the language and the way
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  Speaker 1: you normally speak and looks to see does it change
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  Speaker 1: in a meaningful way over time and if it does change,
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  Speaker 1: in what ways does it change? And we have about
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  Speaker 1: sixty different attributes that we can analyze about people just
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  Speaker 1: through their language. Can you give us an example, just
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  Speaker 1: share with us how this might work? Sure? Um, So
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  Speaker 1: we drew from psychology, and in fact, the software has
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  Speaker 1: ten patents on it based not on computer science but
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  Speaker 1: on psychological science. So we analyze words and relationships two
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  Speaker 1: of words to each other, the way you normally speak. So,
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  Speaker 1: for example, if you are normally somebody whom communicates in
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  Speaker 1: shades of gray talks about well, you know, this could
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  Speaker 1: work out this way, it could work out that way.
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  Speaker 1: A kind of it of sense that this might be
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  Speaker 1: a good idea. You're showing sort of subtle, nuanced communication patterns.
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  Speaker 1: If you suddenly change from that and to start saying
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  Speaker 1: this will never work or this is always going to
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  Speaker 1: go this way, Um, you're now going into a more
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  Speaker 1: black and white zone. Also, if you refer to the
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  Speaker 1: organization that you work for in the normal course to
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  Speaker 1: say this is my company, our business, and then over
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  Speaker 1: time you start talking about this place the organization, that
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  Speaker 1: is psychological distance, and there's a reason why your language
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  Speaker 1: is changing from first referring to it as our firm,
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  Speaker 1: our company, my company, into one where you put distance.
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  Speaker 1: So analyzing the sixty different attributes, there's too many to
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  Speaker 1: go into here, but these are examples of the kinds
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  Speaker 1: of things that people indicate through their language that psychologists
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  Speaker 1: understand very well. But nobody had really brought that insight
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  Speaker 1: into the insider. How accurate is it? Accurate is it?
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  Speaker 1: How have you tested it? It seems to me a
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  Speaker 1: lot of people can turn that like get mad your company,
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  Speaker 1: But doesn't mean you're going to hit it with some
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  Speaker 1: kind of cyber attack. How do you know this works?
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  Speaker 1: Now that's true? I think, well, for one thing, if
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  Speaker 1: you do see this kind of language, it raises a
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  Speaker 1: question for inquiry, it does not provide the answer, and
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  Speaker 1: you have to look to see how often is this occurring,
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  Speaker 1: and we typically flag less than one one persentable communications
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  Speaker 1: is even deserving any additional analysis. And then you really
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  Speaker 1: have to look to see, well if it does flag,
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  Speaker 1: if it does indicate a significant variation and deviation on
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  Speaker 1: one attribute, do we see other attributes that are moving
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  Speaker 1: at the same time, And that is what I think
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  Speaker 1: you need to have. The seltware is designed to make
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  Speaker 1: sure that you do protect privacy, but you're not left
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  Speaker 1: in the dark so that you're blindsided. Is it also
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  Speaker 1: designed to protect intellectual property and also flag compliance issues.
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  Speaker 1: Intellectual property is one of the most important things to
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  Speaker 1: guard against because when it is stolen, it tips it
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  Speaker 1: is not um stolen in a way that deprives the owner.
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  Speaker 1: Everything that is stolen is still there. So to indicate
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  Speaker 1: whether or not an individual who had the authority to
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  Speaker 1: access and copy files is actually um in a state
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  Speaker 1: of mind where maybe they're going to do something they
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  Speaker 1: shouldn't do becomes very very key. So the intellectual property
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  Speaker 1: is quite important. So what's the next step for the company.
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  Speaker 1: Tell me in a nutshell, Well, we've always been a
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  Speaker 1: services company at Straws Freeburg, but there are certain areas
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  Speaker 1: where we cannot find the tools that we're looking for
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  Speaker 1: and so we had to build them. So the next
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  Speaker 1: stage for us is really to continue growing the company
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  Speaker 1: and work with investors to make sure the values there well.
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  Speaker 1: Fascinating company and obviously the need for it seems to
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  Speaker 1: be growing, or maybe we've just become aware of how
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  Speaker 1: great that need has been all along. Ed Straws, thank
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  Speaker 1: you so much. Co founder and chairman of Straw's Free Work.
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  Speaker 1: Here in New York City, I'm Kathleen Hayes along with
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  Speaker 1: pim Fox. This is Bloomberg. Coming up on taking stock,
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  Speaker 1: will be speaking with Rob Hayworth. He is the senior
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  Speaker 1: investment strategist for U S Bank Wealth Management, helping to
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  Speaker 1: manage a hundred and thirty three billion dollars. What is
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  Speaker 1: he telling his customers to do that's next