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Below is a rush transcript of this segment, it might contain errors.


Airing date: 04/24/2018


Real Example Of China Hacking Small Business – Clinton Email Scandal Similarities



Jim Polito: [00:00:00] Joining us now, Tech Talk guru, Craig Peterson. Good morning sir.


Craig Peterson: [00:00:05] Hey, good morning Jim. You just can’t trust some of those pizza guys. They’re a little shifty you know.


Jim: [00:00:09] They are. Let’s get to that. But you’ve got some. Wait a minute we get to do our breaking news. This just in to the Jim Polito Show newsroom. A hack of a company by China. Joining us now correspondent and Tech Talk guru Craig Peterson. Craig.


Craig: [00:00:31] Good morning. Alright. This is really, really big. You know you think about a business, you think about a small business and the most valuable thing you have is your intellectual property. So I have a client, this is a new client here for security services within the last week. And it’s kind of an interesting story because they’re a small business. They make widgets. A small manufacturer you know. They import some parts, they put them together and then they sell them. And the guys have the business now for 30 plus years who owns it, who founded it. And he was kind of worried because they were getting spam. And there were spam that was coming from their e-mail addresses. At least that’s what it looked like. And one of his clients complained so he had heard about me and called me in and then when we go. So we certainly have a little bit of a poke around. So this was on Friday. And then what happens is Monday he’s out of town and his assistant is back in who had been out Friday and she just goes absolutely crazy that he brought us in because you know not only does she know about computers but her husband is the I.T. director for the town. So he knows everything there is to know about computers. And he’s been keeping them safe now for years and years and years and years.


So she pulls out her software and does a scan on everything on their network and finds that we have placed a virus on her network. It’s there. You know. Yeah. 8 computers. All eight of them have a virus on it. So he comes back to town a few days later and we hop on and have a quick look and talk to him and say hey, listen. We have some of the best anti-virus and anti-everything software in the world. It has signatures of viruses in it because we’ve got to know what a virus looks like. Right. So he says OK I get that I understand and so we start doing some more deep dives into it. And Jim we found that the People’s Liberation Army of China hacker tools had installed three different back doors onto three of their machines including his assistant’s machine. Now remember his assistant had just a worm at deep scan on all of the machines to try and catch us right, trip us up and to see hey listen yeah there’s nothing else here I’ve been doing my job. My husband’s been doing his job. We’ve been taking care of this. These guys you know, Craig and his team, they’re the bad guys.


We found these hacker tools. We found 300 other viruses and pieces of malware on their machines that her, you know, just this is the stuff businesses normally use. It’s less than 50 percent effective. She was sure it was us. She’s trying to save, what did Mel Brooks call it? Save the phony baloney job. Right. And so we got on the horn with the FBI and we’ve been on the horn with them now a half a dozen times because this is happening all the time to businesses and they haven’t had anyone who is actually able to define it as we’ve been able to find because we captured everything. We captured the machine’s memory as they’re running. We captured all of their hard disk. All of that information so they can do forensic work. Because according to the FBI, and you and I have talked about this Jim, it’s a whole thing about the PLA is true. The People’s Liberation Army of China, they’re hacking our small businesses. Now in this case, he makes a widget. Now think about what that could mean to his business. All of his plans.


Jim: [00:04:35] Yeah exposed, right.


Craig: [00:04:38] Yeah exactly. So now he gets to compete with China for one tenth of the price of what he’s been selling his product for because they can make it so cheap. They didn’t have to do any of that research. None of that development.


Jim: [00:04:52] Right. It’s like stealing a recipe from somebody. I mean that’s it.


Craig: [00:04:57] Yeah. Yeah. Exactly. So this is absolutely nuts and I never suspected just stumbled across the People’s Liberation Army of China in an 8-computer small business. It was there


Jim [00:05:11] It’s just further proof that they would go anywhere, do anything. And I’m going to I’m going to make this even deeper. Hillary Clinton claims that her mom and pop store server was never hacked by any foreign governments. How can she say that when you’ve got an example here of just a regular company, small business, boom. Hacked by the Chinese, by the Chinese government and an arm of the Chinese government. And we’re supposed to think that e-mails going back and forth. Clintonmail.com isn’t going to be a target like that?


Craig: [00:06:01] Yeah it’s absolutely crazy. You know. A lot of people have criticized President Trump for what he’s been saying about China. And you look at what’s happened with the Clinton campaign. Look at the DNC servers. They wouldn’t even turn them over to the FBI. And I’m in a meeting with the FBI this Thursday, I’m still in Phoenix right now. This Thursday with you know, with the client and I had already talked to the clients through what has to happen here and what they’re trying to do because all the FBI wants to do is find out who it was? What were they doing? And how can we stop this in the future, right? So know the client isn’t in trouble. The poor clients sitting there. He doesn’t know anything. And when you’re talking about the mom and pop server remember here Jim, this company had his personal assistant was responsible for the computers and the networks. Her husband is an I.T. professional working for the town. That’s his job. That’s all he does. And they also brought in mom and pop company to do some of the security and to overlook it to put their active directory server together you know. Put their network together.


So there you go. We’ve got multiple “I.T. professionals” who completely blew it. Completely. If this is, I hope he doesn’t lose his business. He’s adamant that there’s no information on a couple of these machines that we know that there were back doors from the Chinese on. But in fact here’s what can happen that they can use some of these other machines and go through them. It’s all on a network in fact their server was even compromised. It is really happening Jim. This is for real. I’ve got proof of this happening and I’m working with the FBI on this.


Jim: [00:07:57] All right Craig if folks want to get the information because we have to take this breaking news about your privacy and your pizza delivery. They have to text my name Jim to this number


Craig: [00:08:08] 855-385-5553. That’s 855-385-5553. And by the way the bottom line on the pizza stuff is if you’re going to do it, use an iPhone.


Jim: [00:08:30] All right. Standard data and text rates apply. Craig, fantastic story. Just proves more of the points that you make every single week. And I look forward to talking with you next week.


Craig: [00:08:41] All right. Take care Jim. Bye-bye.


Jim: [00:08:42] Thanks. See you too. Bye bye.


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