Our future on Cybersecurity, Samsung’s failed Speed-First Policy, and VPN Tech in China



Now that President Trump starts on his day one, we’re going to talk about what his priorities are when it comes to tech and cybersecurity.

Samsung’s Speed-First Policy caused the exploding battery of the Galaxy Note 7, now what’s next for Samsung?

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


Airing date: 01/23/2017

What’s Trump Going To Do About Cybersecurity – Samsung’s Speed First Policy Fails – VPN Tech in China – Lavabit Encrypted Email


Craig Peterson: It’s time for a little bit of a TechSanity Check here with Craig Peterson. Today is the first day of Trump in the White House for a full schedule. Some of the stuff he has on his plate for today include security. Our national security. During the campaign he said that day one he would work on that. So we’re going to talk about what really is happening? Should be happening when it comes to our computer security. A very big deal we talked about last week. In fact a few different things there. We’re also going to talk about the in the news. First of all Samsung. It’s come out. I predicted it would, came out today. We’ll talked about what Samsung’s findings were here and what everybody’s saying. The reality is why were Note 7s catching on fire? We’ll talk a little bit of Beijing. They’ve got a new policy on VPNs. And we’ll hopefully get around to this a little bit. The encrypted email provider that Edward Snowden used to use was pretty much shut down by the federal government. You know, they were forced out of business let’s put it that way frankly, that’s what really happened. And now they’re coming back so we’ll try and talk a little bit about that today as well. So stick around, a whole lot to talk about.




Well you heard my predictions on Friday about what was going to happen with Samsung. Well it is Monday and yes indeed those Samsung announcements that were predicted that came true. So let’s talk about what that is, what did happen. Samsung, as you know, had this Galaxy 7 phone and they had some serious, serious problems with it. These things were catching fire. So their internal investigation as well as things other people have said about the phone showed that indeed it was faulty batteries. But why? Why the faulty batteries? Samsung’s been known to do a pretty darn good job with their smartphones. A good job with the batteries frankly. The company they were buying some of these batteries from was a spinoff of Samsung in fact. So why did this get messed up?


Well that’s the hard part but the investigation seems to show this point anyways that Samsung had a speed first policy. And in Korea, the name of the game is speed frankly. So these super-fast companies like Samsung, and there’s many others, really need to slow down a little bit. They’re mature tech companies. They’ve got to make sure their products are mature and what Samsung was trying to do is beat Apple to the punch. Release their 7 version of their phone, the Galaxy Note 7, before Apple released their version of the seven, of course, the iPhone 7. And they did that. They got the phone out in time. They beat Apple to the punch. But a very, very big problem here. Very big problem. Because they started catching fire. They still, if you’re in an airport and you’re getting on the plane they still ask you if you have a Samsung Galaxy 7 phone.


Now that’s a very, very big problem. But Samsung didn’t solve this problem. No, having the Galaxy Note 7 catch fire and then we get returned because people were concerned that they might catch fire, right? What did they do? They replace the phones. What did they replace the phones with? More Galaxy Note 7s. They went even faster. They had another vendor ramp up, in fact, it was the Samsung at Samsung, I think it’s still a division of theirs, but Samsung company, ramped up to produce more batteries so they could produce more Galaxy Note 7s to send out to people who are returning their Galaxy Note 7s.


So what happens? They sped the market with a Note 7. They had major problems with it. They sped up even more to try and get these phones, new phones out to people who wanted the phones and they messed up again which resulted to  them, of course, completely, completely discontinuing the whole line.


So be that a little bit of a message to all of us. Well, I got to say if you are in the startup position, things are a little bit different coz if you’re a startup. You have to be very… you have to be able to pivot, right? So you have to be very fast to market. And the wording that I love from all of my marketing titles over the years that I’ve studied under, and studied with, in some cases, has been… not that speed kills, but that if you don’t get your product out fast, you’re not going to make it in the marketplace. So little bit of a different message for startup companies and for companies that are established technology firms, right? You want to get it out. You want to get it there fast. You want it tested in the marketplace and see what happens. So anyhow, Samsung, major problems there. I haven’t seen any results on investigations into Samsung’s exploding washing machines, if that was the same problem. These, you know, was fast a market. The speed, speed, speed game.


Okay, Trump is in office. Of course, today is his first day. Full schedule. And we’ll see what happens here. But one of the things he’s going to have to address, because he brought it up when he was campaigning, and we need to pay more attention as a country, is cyber security. Now he’s doing something different than anybody else, at least that’s what it appears is going on that’s what he said is going on. But, you know, typically these presidents come in, and we look at Obama was the best example of, this it’s pontifications from on high. It’s the Valerie Jarrett’s of the world. They know better than everyone else, right? So, the White House and the heads of the FBI, CIA, NSA, military, all tell everybody, hey this is what you need to do. We know business. What’s better for you than you know, which, of course is a load just garbage that’s not true. So Donald Trump now has said what he’s going to do is get together people. He’s going to put them in a room, he’s going to put together a whole team for cybersecurity. And it’s going to include people, obviously from the government, from the military, from the policing arms like the FBI, as well as private sector members.


So he’s trying to get the people in place that know what they’re talking about. In fact those are almost the exact words that he used. So we’ll see what ends up happening. As you know I don’t think government can solve this problem. I don’t think suing businesses, fining them into oblivion is going to help this problem. I really think people need to wake up, take some responsibility here. You know, let the courts handle some of this stuff. We already have laws on the books about what happens when your personal information was stolen. We already have laws on the books about, you know, theft and everything else. We don’t need new laws here. We need to back up. We need to pay attention. We have to let all of this kind of run its course.


China, long known, of course, as a communist country they are, as some people seem to kind of forget that. But the means of production in China are absolutely owned by the state. And they keep real close handle on everything going on over there. But what China has done now is they’re saying now that they are going to be cracking down on unauthorized internet connections. Remember, they don’t allow their people to get onto websites like Facebook and find out what the news is in the world today. They’re blocking all kinds of websites. In fact, in one ranking that the http://greatfire.org did, showed that China blocked access to 135 out of 1000 of the world’s top websites. That’s a lot. That is a whole lot frankly. That’s what, 13% of all the world’s top websites. It blocks Google, Facebook, Twitter, YouTube, and many others. So what do a lot of the Chinese do, they use VPNs. And they’re using these VPNs to get around the firewall because China can’t monitor what’s going on on the VPN. And that’s the whole idea right behind VPNs. Now China is saying we’re going to block the VPNs so they can’t now get out. People can’t find out what’s happening. All they’re going to hear is the party line from the Communist Party of China through the, you know, the People’s Republic radio stations that are controlled by the government. It’s a bad, bad thing.


Now I’ve got to point out that when our government, it started remember, I think it was the Bush administration. When was that? No, Clinton administration I think, with the Clipper chip. Our government said Hey listen guys we got the answer to security. We’ve come up with the most secure way possible here all of putting a chip in to your cell phone to keep it secure. To put that chip into all of your computers to encrypt all of your data so no one can steal it. And you know, it’s important to know and be able to steal it. It’s going to help our economy. It’s going to preserve our competitive advantage. And then it turned out that the Clipper chip had major back doors in it that allowed the government to monitor anything that was going on. So it got blown out of the water. People just didn’t want to use it. They didn’t want to get close to it. Nothing. Well if we allow the government to put back doors and we talked about this last week on The Daily podcast, http://CraigPeterson.com/iTunes. We talked about this last week. The big problem you’re going to have is if government has access to it. If it has a back door, that back door information’s going to get out. The bad guys going to have it. The bad guys are going to use it and everything is going to fall apart.


So I am absolutely against these types of schemes where the government has access to things. And China realizes they can’t even get control of things inside their communist country. So what’s the ultimate result here are in the US?  I don’t think they could really impose this. The cat’s out of the bag. You know there’s so many great encryption schemes out there that they can’t control them all. They can’t control every manufacturer. So they could potentially block VPNs and I don’t know that they will or not but we got to keep close attention. Pay close attention to this. We know that President Obama increased surveillance more than anyone in history. He took what Bush had done and multiply that multiple times. A full order of magnitude and in some areas just went crazy with the surveillance. Hopefully president Trump is going to back off on some of this. We’ll see here. We will see. But we know China is increasing their surveillance on their citizens over their iron hold.


And one last quick one today, and this again is a security thing. NSA contractor Edward Snowden, remember him, he had a whole ton of information about the US spying operations? Well he was using an email service that was known to be secure called Lavabit. L-A-V-A-B-I-T. And the federal government here, according to all kinds of reports came after him and said you must hand over your private encryption keys. And that would have allowed the federal government investigators to read 410,000 users’ private messages. That is pretty bad. So rather than comply with court orders, the guy that owned it shut the company down completely. Lavabit has now been resurrected. It’s got a range of security features. You can go ahead and decide how much security you have. If you just want some basic security or if you want the paranoid level, Lavabit itself and the government cannot access anything. You cannot sign up by the way right now for Lavabit. But you will be able to in the future here, but right now only people who have previously had Lavabit email accounts will be able to access it. So we’ll see the re-launch took place and they are in place and we’ll see what happens here. I think security’s important. We have a constitutional right to be secure in our papers. We have a right to privacy that has been violated by our government again and again.


And, hey, I’d love to hear from you. If you think Edward Snowden is a hero, let me know. Or if you think he’s a zero, if he should be prosecuted, if we should continue to go after him, I’d love to hear from you, http://CraigPeterson.com. There’s a little feedback form there or you can just text me your opinion too, 855-385-5553 and I would love to hear from you. Engage in a conversation. We had a lot of people this week reach out to me, answered their questions as well. So, got to go. Have a great day and we will be back tomorrow with another TechSanity Check. Craig Peterson here. Take care.



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