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Let’s take a look at drug cartels and ransomware groups.
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Both of them are transnational criminal organizations.
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When 9/11 happened and the US government came to Microsoft and said, we need help, I got told, don’t come to work anymore.
00:00:13,950 –> 00:00:15,870
You go work at the government and you do what they say.
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Well, in the 1st place I went to go work was DEA Special Operations Division.
00:00:20,270 –> 00:00:24,590
And DEA SOD was being run by a guy named Steve Murphy.
00:00:24,670 –> 00:00:29,870
And so he and Javier Pena were my bosses as I was essentially a hacker on the loose
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thinking about breaking open encrypted sessions to do interesting things.
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Spent a lot of time basically breaking a lot of the stuff that I had built.
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From a defender perspective, as defenses improve and we learn from things like MFA bombing and we improve our defenses, they pivot their approach.
00:00:46,030 –> 00:00:48,270
And I think similarly you’ve got with the cartels, right?
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The supply of something gets cracked down on, pivot, supply something else, do something different, still achieve your goal.
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Identity isn’t just an operational problem, it’s a security one and most teams are figuring out in real time.
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This is the podcast where we reverse engineer the meaning of identity security, sharing candid conversations about the people building, fixing and rethinking identity security from the inside.
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I’m Roy Akerman.
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And I’m Rob Ainscough.
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Let’s dive in.
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Let’s do it.
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Before I joined Microsoft, I thought I was going to be a lawyer and I actually went to law school.
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I got involved in some kind of shady stuff in law school, and so I ended up dropping out because I knew people were in trouble.
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And the two of the partners that I worked with did federal jail time because they were essentially stealing money from people.
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So I was like, I didn’t want to do this.
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I think it’s going to be more ethical to be a hacker than an attorney.
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So I drop out of law school.
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Okay.
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So, but when I get to Microsoft, they find out that I have this legal background.
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So
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when the US government comes calling to say, hey, can you help us run wiretaps on MSN Messenger?
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Or can you help us, you know, read people’s Hotmail e-mail or anything that Microsoft would come to me and go, hey, Aaron, you know, you dropped out of law school, but you know how a lot of this stuff works.
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So can you help us get the interface?
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So it’s like lawful interception to, yeah, okay.
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lawful intercept, right?
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So that was the beginnings.
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And then also I had helped the FBI cart lab and the US Secret Service forensics lab get started.
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So I was helping them write forensics tools.
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And so I was sort of a good interface between Microsoft and those places.
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when 9-11 happened and the US government came to Microsoft and said, we need help, we need technical assistance to think about how we’re going to deal with this terror networks and everything.
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Basically, I got told in August of 2001, excuse me, September of 2001,
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don’t come to work anymore.
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You go work at the government and you do what they say.
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So I literally was seconded to the US Department of Justice and spent 18 months dealing with all sorts of interesting people.
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And the first place I went to go work was DEA Special Operations Division.
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And DEA SOD was being run by a guy named Steve Murphy, who is now famous because of his role in killing Pablo Escobar.
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And he’s now famous because of the Narcos Netflix series.
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And so he and Javier Pena were my bosses.
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as I was essentially a hacker on the loose for DEA answering questions like, well, if we think that the cartel is buying heroin from the Taliban, how do we get in the middle of that?
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And so thinking about breaking open encrypted sessions to do interesting things.
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And so spent a lot of time basically breaking a lot of the stuff that I had built.
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for my day job, for my previous job.
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And so did that for 18 months.
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And that’s great.
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So like I’m curious to see like what lessons can our followers like learn from A, the way that cartels use technology in order to run their like fluent operations and from the other side, how identity can be manipulated, like compromised, doubled when it comes to the law enforcement side.
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These will, it seems that we’re building like a very interesting
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Interesting episode over here.
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Interesting.
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Yeah.
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So let’s take a look at drug cartels and ransomware groups, right?
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Both of them are transnational criminal organizations, right?
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They operate above the law.
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They operate outside of the boundaries of jurisdictions.
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What are commonalities there?
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They are both super rich, right?
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If you think about who holds a ton of cryptocurrency today,
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the ransomware groups because that’s the way they get paid, right?
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They have direct access to massive amounts of cryptocurrency.
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The drug cartels, massive amounts of cash.
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So essentially, they have the economic resources to operate above the law through corruption of corrupting local law enforcement say, hey, don’t look here, don’t investigate me because in the Narcos Netflix series, there’s a line that Pablo Escobar says where you get to choose Plata or Plomo, right?
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Plata is silver, right, money, or plomo is lead, a bullet.
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So do you want money or a bullet, right?
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So both ransomware operators and drug cartels give local law enforcement that choice.
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And so if you think about the way that identity comes across this from the analog world to the, of cartels to the digital world of ransomware operators, really the way that cartels operate is that they assume human identities to do their smuggling, right?
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They get a badge to go into the airport a certain way.
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They do that.
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Well, how do ransomware operators work?
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Well, they assume a digital identity that gives them the privileges they need to basically deploy their ransomware tools.
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So that’s the beginning of the commonality is
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Both organizations have to use identities, sometimes stolen, oftentimes misused, to start their criminal enterprise.
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Yeah, speaking about ransomware gangs, like in Quillen, for example, like if you’re familiar with other ransomware gangs, like do you see any emerging patterns that are kind of like the same of the ones that you just described?
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Oh yeah.
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If you think about the way that cartels work and ransomware operators work,
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both diversify their economic opportunities.
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So for example, a cartel, they will diversify to go into human smuggling or other aspects of criminal enterprise.
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the same thing holds true for ransom operators.
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Like they won’t just hold you ransom, they’ll exfill your data, they’ll participate in industrial espionage, you know, they’ll participate in extortion as a service and DDoS and that sort of thing.
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And so that’s another aspect that you think about.
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These are both rational actors who are in it for the money and they’re going to opportunistically go after that.
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I think it’s an interesting parallel where you’ve got, you know, when you look at initial account compromise and the methods that are used to do that.
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And often that’s specialized away from the ransomware groups now, right?
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It’s about those initial compromise and initial access brokers.
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You know, from a defender perspective, as defenses improve and we learn from, you know, things like MFA bombing, right, or people getting got via SMS and we improve our defenses, they pivot their approach.
00:07:12,270 –> 00:07:14,510
And I think similarly, you’ve got with the cartels, right?
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Like the supply of something gets cracked down on.
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Pivot, supply something else, do something different, still achieve your goal.
00:07:21,390 –> 00:07:23,590
So I think there’s always this game of cat and mouse, right?
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This game of invention and chasing and the pivots that you see in approach is really interesting.
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Yeah, so like I guess this battle of attrition, like we have the pivoting or like the evasion techniques that we’re seeing.
00:07:37,750 –> 00:07:45,550
Any other interesting evasion techniques that you know are comparable when it comes to cartels, ransomware gangs?
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Let’s draw two more parallels real quick.
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The first one is both have to operate in low governance situations, right?
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They both only are successful where they can be physically and not have to worry about getting put in prison, right?
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So that’s the reason why so many live in Russia or Myanmar or some place where they don’t have to worry about the cops.
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And then also,
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These organizations are smart to where they want a franchise model.
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They want to scale through saying, hey, I built this core set.
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Oh, I can make more money if I build it into a franchise.
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And that’s the way the drug cartels work, right?
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The plazas, the Mexican plazas, the different Colombian cartels.
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And so I think you see those commonalities.
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Now, from an evasion perspective, how does that help them?
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Well, with more franchisees, now there’s a ton more traffic, attack traffic, and you just blend in, right?
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You can have the super noisy, stupid ones causing all the nuclear noise, and the super smart ones are going in with their sniper attack, and they’re hiding in the noise.
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And so
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It’s a very elegant way to increase the noise by their franchise model.
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Oh yeah, I remember that.
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as like former government like that, one, well, as I said, even if there’s not a very big level of sophistication from a specific attacker, he can win by points, meaning they will destruct the, you know, the list of resources that we have by bombarding us with falsely weak attacks that will probably will not succeed.
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We will get the full sense that we are succeeding
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95% of the times, but it takes only one right to be compromised.
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And then exactly like Aaron said, like in a sniper gun, you will just get hit and you’ll still feel fine, but you’ll get compromised.
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This is like- On that point, on that point, so in 2006, I left Microsoft and joined a US government laboratory at the Idaho National Lab.
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And we were tasked- You’ve been in INL?
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I helped found that in 2006, 2008.
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I was in the simulator in 2009.
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Wow.
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So that was what I built.
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And I don’t know what you guys are talking about.
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Yeah, like it’s like, yeah, you know that’s better than me, but DOE and then like found Idaho.
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And I know that they have a lot of simulators like nuclear, like power plant and other things.
00:10:04,510 –> 00:10:13,150
And they actually build simulations in order to help, probably not just defenders, but defenders to practice with detection, response, IR and others.
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So think about SCADA systems, but in the days that nobody spoke about that, pre-Stuxnet or whatever.
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So you would come there and like have a simulation of a power plant or like what was it like a water purifying like factory or whatever.
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Water, we had cell towers, we had nuclear power plants.
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You’re stuck in Idaho, all you have to do is security, right?
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and eating by the Snake River.
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And then you’re playing blue team, red teams, and white teams.
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When the government topping and see what exploits are you using, like gathering 0 days and things like that.
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So sorry, go ahead.
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That was really exciting.
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We probably crossed pathways for sure.
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Yeah.
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So I.
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Double mirrors.
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Oddly enough, in a weird circle of the universe, I was born in Idaho and graduated from high school there in town.
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Right?
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And so they didn’t know I was from there when they offered me to come back.
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And so I played, I was like, oh, I don’t want to go to Idaho.
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You’re going to have potatoes.
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And so I ended up back in Idaho.
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And when I was there, it really was an opportunity for me to go, okay, how can I think about blowing up a lot of the stuff that I had built at Microsoft?
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How do I actually take advantage of a lot of the holes that I knew about?
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And it was this really great opportunity to let ourselves loose and go, okay, here’s the new territory.
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And our goal was to cross the boundary between cyber and OT, right?
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So like, how do you take a cyber exploit and blow up a power plant?
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How do you do physical damage and destruction from a simple,
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zero day, a simple software exploit.
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And I think that taught me a lot about the importance of segmenting identities.
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You want to have really clean cuts between an identity that logs into a nuclear power plant’s water processing system and the pumps that are involved there and what you’re using to read e-mail or do whatever you’re doing in your day job.
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And I think that was an opportunity for me then to take a look and say, okay, how do criminal organizations play into that?
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And what’s been interesting over the last 20 years is to watch how the Chinese and the Russians and others have essentially
00:12:24,030 –> 00:12:27,950
motivated through economic means of people crossing those boundaries, right?
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Of paying people to say, hey, I want you to think about taking out this water system, or I want you to take down the cell network or whatever.
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And so I think that’s something we’ve got to think about is you’ve got now this almost bounty program that’s being paid to get identities that cross those boundaries.
00:12:46,430 –> 00:12:47,510
Yeah, that’s interesting.
00:12:47,510 –> 00:12:59,150
And I mean, again, we’re, I’m going back in my mind, like to the cartels, like by the end of the day, they’re forming a lot of like layers of trust or like, nodes of trust, right?
00:12:59,230 –> 00:13:03,790
I believe that Escobar did not really operate everyone around, right?
00:13:03,790 –> 00:13:10,670
Like he held a very small circle around him, you know, with a very small, like strong form of trust, monitoring, whatever.
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But then there were like the execution layers, the strategic layers, like the partners and everyone.
00:13:15,630 –> 00:13:23,230
And I think that breaking that chain is exactly as we’re pivoting across, as we’re thinking defenders should think, right?
00:13:23,230 –> 00:13:26,270
Or attackers should think about pivoting across levels of trust.
00:13:26,710 –> 00:13:27,430
And how can you keep that?
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And they did this very well.
00:13:28,590 –> 00:13:30,190
I mean, it was very hard to break.
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You’re such a security guy.
00:13:33,150 –> 00:13:33,510
Oh my God.
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Escobar is a set of nodes.
00:13:35,870 –> 00:13:36,470
But what would you?
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It’s a graph.
00:13:37,150 –> 00:13:38,510
It’s a graph for sure.
00:13:39,990 –> 00:13:43,390
And you gave him the identity as like the IAM person, right?
00:13:45,070 –> 00:13:58,430
But if you take that example of, if Escobar was sort of an initial point on the graph, what he did is he built a model by which people could clone that operating environment, right?
00:13:58,670 –> 00:14:07,310
And so, and that’s the reason why the Mexicans really took over, is the Mexicans were much more ruthless, and they knew that the last mile mattered.
00:14:07,630 –> 00:14:13,910
Escobar thought that he could always be sort of separate, and in fact, Escobar wanted to be president of Colombia, like he thought.
00:14:14,030 –> 00:14:21,830
He had these delusions where he was going to be like president of Columbia and he could somehow wash himself of all this crime that he’d been involved in.
00:14:22,030 –> 00:14:24,750
But it was the Mexicans who really took it to the next level.
00:14:24,830 –> 00:14:30,350
Mexicans said, Hey, if we own the last mile and do that work, then that’s what matters.
00:14:30,350 –> 00:14:38,910
And to your previous point about whoever holds the cryptocurrency, they have the most upside in a ransomware event.
00:14:39,310 –> 00:14:40,670
And so if you take a look,
00:14:42,510 –> 00:14:55,430
We now see these massive funnels around ransomware of info stealers, identity brokers, access brokers, but it all ends up the people who make the most money are the ones who do the last mile, who actually control the switch to go, oh, you’re going to pay me.
00:14:55,430 –> 00:14:56,910
I’m going to give your files back.
00:14:57,230 –> 00:14:59,070
They’re the ones who make the most money right now.
00:14:59,110 –> 00:15:05,790
And they are the Mexicans of, so if you were to compare the Colombians versus the Mexicans from the cartel world,
00:15:06,390 –> 00:15:10,070
Those people who own the switches to turn the files back on, they’re the Mexicans.
00:15:10,230 –> 00:15:10,950
They own last file.
00:15:12,750 –> 00:15:12,870
Wow.
00:15:13,310 –> 00:15:14,550
Any additional thoughts about this?
00:15:14,550 –> 00:15:21,790
Well, I was just thinking that I took the, you know, I have a very traditional background for being in identity.
00:15:22,510 –> 00:15:24,590
I did a degree in economics and politics.
00:15:26,030 –> 00:15:32,750
That was where I started and then worked in kind of operations and things like that before I went into identity.
00:15:33,230 –> 00:15:35,550
But economics was always my thing.
00:15:35,950 –> 00:15:48,350
And so much of this is driven by humans being just rational economic beings taking the path of least resistance to the most gain that they can and just…
00:15:48,750 –> 00:15:50,190
completely rational.
00:15:50,390 –> 00:15:57,710
And you can explain, whether it’s cartels or whether it’s cyber criminals, you can kind of explain them all through that one thing.
00:15:58,190 –> 00:16:00,590
It just comes back to those really simple premises.
00:16:01,870 –> 00:16:05,630
And I was thinking it’s no different to how a big company operates, right?
00:16:05,630 –> 00:16:07,790
Over time, roles get more specialized.
00:16:07,790 –> 00:16:09,950
So this is what we see in identity.
00:16:09,950 –> 00:16:15,510
We see, you know, credential brokers going into ransomware specific groups, right?
00:16:15,670 –> 00:16:18,590
All of those different specializations that they’re building up
00:16:18,910 –> 00:16:20,870
It’s just like a company as it grows, right?
00:16:20,870 –> 00:16:22,430
To get more specialized.
00:16:22,830 –> 00:16:23,390
Interesting.
00:16:23,390 –> 00:16:25,950
I think like, so we’re different people for sure.
00:16:26,390 –> 00:16:37,630
So like for me, if something is like too much of a good, like have too much of a good of economics behind it, if something goes pretty smooth and well, I feel that I live in simulation, right?
00:16:37,870 –> 00:16:39,910
Like it’s like something really bad is happening.
00:16:39,910 –> 00:16:41,790
And like, you know, I came to a restaurant.
00:16:41,790 –> 00:16:43,870
I’m not the person who eats on the dish.
00:16:45,950 –> 00:16:53,630
But I think that by the end of the day, you’re probably right, identity and economics are like speaks together.
00:16:53,790 –> 00:16:58,910
But I think there is a very good way to look at culturally about your two perceptions, right?
00:17:00,190 –> 00:17:08,589
So having lived and worked in Latin America, right, in some very tough places, you have a different view of the world, right?
00:17:08,589 –> 00:17:12,150
So you having grown up in Israel, right, you have a different view of the world.
00:17:12,349 –> 00:17:14,470
If things are going smoothly, something’s wrong.
00:17:14,990 –> 00:17:15,310
right?
00:17:15,550 –> 00:17:18,710
But that’s your perception is because you grew up in that environment.
00:17:18,869 –> 00:17:23,950
When I lived in Mexico, if things were going smoothly, I was looking over my shoulder like, who’s messing with me?
00:17:24,109 –> 00:17:25,390
Like, who is messing with me?
00:17:25,670 –> 00:17:26,030
Exactly.
00:17:26,030 –> 00:17:43,310
And whereas folks who grew up and did not have that experience in a hostile environment, this is one of the reasons why fishing is so successful is because most Americans, Canadians, Brits, Western Europeans have never had to live in a bad place.
00:17:43,950 –> 00:17:48,430
They’ve been in a nice, soft, cozy, everything’s okay, the police are going to protect me.
00:17:48,670 –> 00:17:50,110
Why would someone ever lie to me?
00:17:50,390 –> 00:18:00,830
And that’s why phishing works, is because people are, most people in high economic value countries have never had to worry about looking over their shoulder.
00:18:01,310 –> 00:18:09,070
Another good topic about the cultural aspects of different mindsets of identity or identity management or
00:18:10,030 –> 00:18:10,990
reality perception.
00:18:10,990 –> 00:18:14,350
But let’s leave it for like the, for another episode.
00:18:14,750 –> 00:18:29,430
So I’m actually surprised about like the lessons that we can learn from, not just like from the cartels, but from the way that they’re being taken down, taken down like the weak spots over there and the lessons that could be learned from for like identity protection in general.
00:18:29,430 –> 00:18:30,110
That’s interesting.
00:18:30,510 –> 00:18:37,470
I mean, probably top of the list of things I didn’t think I’d be talking about today was cartels.
00:18:38,110 –> 00:18:43,830
economics and the link to identity theft and ransomware groups and things like that.
00:18:43,830 –> 00:18:45,350
But it’s been super interesting.
00:18:45,350 –> 00:18:48,550
Yeah, so now you have something to watch on your way back to London, right?
00:18:48,550 –> 00:18:52,430
Like I’ve downloaded a lot on Netflix already.
00:18:52,430 –> 00:18:53,470
I’m full, I’m full.
00:18:54,790 –> 00:18:55,710
Thanks so much, Aaron.
00:18:55,950 –> 00:18:56,750
Yeah, same here.
00:18:57,070 –> 00:18:59,470
That’s it for this episode of Identity Decoded.
00:18:59,710 –> 00:19:05,830
If this conversation changed anything that you thought about identity security, share it with someone who’s working through the same challenges.
00:19:05,830 –> 00:19:09,550
And don’t forget to follow the show so you don’t miss what’s next.