 Well, thank you very much. I have a luxurious period of time 30 minutes The usual way to start a presentation about cybercrime is to tell you the things gonna get worse and worse And you're gonna lose more and more money The bigger the number is that I'm throwing at you The bigger their hope of the people they're presenting is that you're gonna pay attention I'm gonna start completely different way. You're gonna you're not gonna hear that from me I'm gonna speak about the the risk that I want to make it more personal Let me start optimistic because I'm I really believe in in technology I believe that there are positive sides of technology and I'd like to take you back to 2014 Those of you who invested in stock markets in emerging countries had a pretty good year Take for example, India a plus 30 percent. That was a very very good investment those of you who attended conferences like this one and heard something about Bitcoin and decided in December 2013 that this is the time to invest into this currency had a pretty bad year by the end of the year you Lest 70% of your value So new technology does not necessarily mean They work the traditional way. I guess that some people who were not the greatest fan of central banks I guess there are not that many here in the room, but in general there are some people who don't believe in central banks They would have been particularly happy to have a central bank that would be able to influence this course development, but there was not So that was that was a development that a lot of people were following and it was interesting There were other developments. I don't want to touch upon the political part Isis declared the caliphate and this three year later is led to a president with small hands touching big topics like immigration in the United States, that's we'll leave this aside and just focus on the technology There is something that happened in 2014 that some people in this room might not have heard of The first time a machine passed the Turing test Turing test is an experimental environment That was created by a scientist to find out if a computer system is actually a smart machine if there is artificial intelligence Yeah, I mean you can you can put a label on it and just say it is there But in a more fact-driven environment And I'm not talking about US politics now I'm talking about in general in science there you want to have a test and this test is the Turing test You put a machine in one room close the door put a human being in front of a computer system That is not smart in another room and bring in a somebody who doesn't know in which room is the machine and in which room is the human and kind of referee and He needs to ask them questions and find out where is the machine you can ask any question in the past That was rather easy if you ask a machine. What's your favorite song? It would probably say something like with ninety nine point seven two point likelihood It is ABC and then you would know that's not a human But in 2014 for the first time a machine was able to answer in a way That the person would not be able to say who is the human and where is the machine that shows you that these machines are learning As a site remark This is talking about one supposed to talk about cyber crime and cybersecurity And and I'm gonna talk about this bit and as a reference we can speak about one of the big incidents This is Ashley medicine where the database of this dating portal leaked and a lot of people were pretty embarrassed because they were married didn't tell their wife that they were on this platform looking for Affairs so you could say the data breach is a big thing that that happened pretty recently But more interesting is some of the research that was going on There were people they were analyzing who is actually communicating because the anti-business model is if you're communicating you're paying So the more messengers sent the better for the company you need 50 percent male and 50 percent female participants Around and that's what they were communicating But when analyzing those leaked files it looked more like there were very few females and significantly more Guys a question is do these females communicate with multiple guys and just send out hundreds and thousands of messages No, most likely those guys were talking to bots that we're talking to machines. That is actually a real-world Implementation of that technology you can as a as a guy on 140 characters sending short messages you can speak to somebody and believe that's the most beautiful girl and she wants to Meet you and date you and do whatever kind of things with you and she can continue to Motivate you to text so we we can say that there is a reality proof that with regard to average 40 50 year old guys That already works so we can we can a machine can can pretend it's a human so so these are Amazing amazing developments now you might say that's far away from me and actually I Agree, that's very far away from me Most of my work is advising governments and see you're also fortune 500 companies and in one part of that is Negotiating international agreements, so I'm not working for the US government I'm not gonna renegotiate NAFTA and all these other things But this kind of things bilateral agreements and I always thought you know what I'm pretty safe in my job because There are just very few experts in this field and basically the people always hire the people with experience So if you have experience, there is basically no way to get out of the system unless until a Company is startup hire 12 of us 12 negotiators from different places in the world most of we know each other There are not that many out there, so they put us in a room and put a lot of cameras up and all kind of things and they said Okay, you're supposed to negotiate now an international trade agreement In that we signed agreements said maximum 12 hours, so they said you can finish in one hour But we won't pay you more than 12 hours. We were paid by ours And we wanted to negotiate six people on the one side six on the other side an international trade agreement We were interested we had to come up with a wording and with a fixed price and we did this and we were wondering What are they doing? There were sometimes coming in checking if we were still there But that was all there was no big interaction and at the end of I mean guess how long it took if they pay you by hour 12 hours so after 12 hours of tough negotiations We were there and done and we came up to this agreement and we handed it over and basically they wanted to leave the room So we said wait a moment come back. What is this all about? We would like to know this and they said well fair point. We're gonna show you something We developed an artificial intelligence that does negotiations So you can say well, that's pretty basic. It's not because you have to be able to lie at the right time And that's that can be pretty difficult if you got the wrong time, but that's not good So you need to you need to do it right you can Observe how the best negotiator his own characterization Donald Trump did it with the Mexican government That did not work out the way you want it So if you sell a software that would do this kind of things probably they want to have their money back But you they said they have developed the software and they said okay, we're gonna show you they're gonna do negotiate the same agreement Well, it took less than a second For this agreement to reach for this machines to reach an agreement and a price The price was almost identical You have to look pretty far behind the comma to find the difference the wording was almost identical Apart from one clause Now you can say how can it be identical? They can't look in your brain. Well, but we all copy and paste I mean, I don't reinvent the wheel every time I'm doing something you would learn you would see okay This clause worked very well, so we take this and here we take this one Okay, after two weeks, I got a call and they wanted to speak about this one clause where we were different and We had agreed on our contract that they would be able to call us and they had a couple of questions about this And I didn't really understand what was going on But what turned out is that this clause that we came up with is Weaker than the one that the artificial intelligence came up with but it took them two weeks to find out because this clause was was Contested in courts But nobody in the room knew that so it took them two weeks They were trying to find out that after after two weeks They realized damn this machine in less than one second was better than actually the 12 well-paid humans in this room That isn't an interesting development. It shows you a little bit You know, we can even substitute very complex work by machines and in many areas. They're better And I have to I have to give the machine credit and I can see that in in various areas of my work I can be substituted. I'm drafting laws for governments And I know maybe I drafted 50 in a particular field and I know maybe 200 But I can't compete with the machine and there was every of them So we have to be prepared for a development where a lot of things can be substituted And and things like are you gonna trust your artificial intelligence? It's gonna be really interesting because one of the The the questions I'm always running into When I'm talking to CEOs and and ministers so see you're over the really big companies They're trying to think about digitalization and future trends. The main question is is there gonna be a fight man against machine? This terminator thing that is deep in their head and where they're just completely influenced by this So they're taking decisions about the future of the company based on a movie a series of a couple of movies that they saw and say Oh my god, the machines are gonna take over That is very difficult if you if you if you argue like this with those people because I don't think that this is the biggest problem I'm trying to tell them you're you're taking yourself way too important Because if this planet is too small for humans and machines, the good thing for the machine is they can live on any other planet You can send them to Mars. You sent them up with a 3d printer You're gonna print machines. They can you can print a new one every second day and you set up a relay station You can send up the latest artificial intelligence with light speed and they can live there They they don't need to breathe air they can live on the entire planet while we are stuck to this planet So it's I don't see this as the biggest challenge But one of the biggest challenges and this is why this topic was mentioned before cyber security is so important is That we are relying on decisions made by machines in this experiment that I told you About it took them two weeks to find out that one clause from the machine is better Than actually what we came up with But imagine in the future the machines are getting smarter and smarter and one day the machine will say hey You know what we ran into the ultimate solution to stop global warming And you can live your lifestyle you can continue, but we can still stop global warming It is a very very simple thing Well, it's a very complex formula and I took me a long time to calculate it But actually ultimately you just have to release certain gaseous gas into the atmosphere in a very high concentration Yes, it might look like you're poisoning yourself, but you're wrong because this is so complex this entire thing that ultimately will bring out something really good Well the question is what happens if all scientists in the world will need 1,000 years to go through that formula because it's so complex Will we trust the machine and say hey, let's release the gas or will we say no I don't trust the machine and because I don't trust the machine. I'm not going to take this decision That's going to be an important thing if we trust the machines when they're smarter than we are And this will happen more and more frequently and this is why we need to discuss the downsides of it. Okay That was the positive development now about the negative development Well in and maybe speaking for one second about Europe. I'm I was born in Europe. I believe in Europe I'm even teaching European law. So so I am And through the Aztec about the idea of the European Union despite the criticism But when you're comparing The approach that other countries are attacking with regard to this new technology and you compare to Europe We are having a major problem because we're criticizing everything that is happening out there I'm not again, I'm very happy to to be critical about things, but it is breathtaking how critical we are When we talked about developments like big data, that was a big topic a couple of years ago We always said oh data protection don't don't collect my data. That's that's not good I don't want you to collect my data when we talked about the Internet of things connecting things to the Internet The majority of politicians in Europe. I was speaking with we're asking me the question Why precisely do I need to connect the fridge to the Internet? well if the vision if your Ideas what you could do with this technology is limited to connecting a fridge to the Internet and you did not come with more ideas We have a problem because there is so much more you can do and I can see it here again Artificial intelligence a lot of people see this very negatively and I understand it I have full there is full respect for a critical debate But I see the difficulties 20 years ago more than 20 years ago by now. I Founded a computer company and I developed we developed early artificial intelligence machine learning In a field wait was about medicine and you know, we realized doctors I was studying medicine at this time I realized doctors are not really that good certain things They're just messing up and a machine could do it much better That was our belief and we developed an artificial intelligence very very early form of machine learning That was able to do it better than the doctors Well, I sought this company and that was another company that was really really happy about taking this forward and they banged against the wall because the doctors criticized that Their work would actually be evaluated the moment an artificial intelligence would be used because it would show their weaknesses And that is not possible Even if you save a patient's life if you at the same time does close that a doctor didn't do his job properly No, sorry, we don't want this technology. So they refuse to implement this technology I'm not sure if if this is the approach we should undertake I think we should be very critical with regard to the development, but we shouldn't be over a critical Okay, 15 minutes left The and I want to integrate you so it's close to the end of this conference There's gonna be an exciting panel I have to do something to keep you to keep you busy and you're gonna be integrated in a few seconds Just one thing the attacks that we see right now are more and more complex It does not help you if I'm telling you well the the losses increase There is a single company that I was advising in Europe that lost more money Then the statistic of the federal police here in Germany is indicating as overall loss of all companies for the last year Single company losing more money through cyber attacks. That doesn't help you because it doesn't tell you am I affected? If you're a decision-maker, yes, you are and this is one of the focus areas I would like to point out we see an increase in quality of attacks against decision-makers People CEOs of companies ministers and so on and I would like to present to you one one case that maybe explains to you that you should not look Into the press to to get this kind of information this intelligence because you won't find it there They're speaking about things that matter to the majority of the readers, but not necessary focused on decision-makers There was a CFO of a company and he was responsible for merchant acquisition He was responsible for a major deal and a competitor really wanted to find out. What is he doing? What's the status? What's the whole development? But this guy was I was very careful He did not talk to his assistant to his employees. He was really very isolated and he did everything with his mobile phone Now you might say that's not a good idea, but they're trying to break into his phone And they did not succeed. They tried everything. It was a pretty well protected phone They had all kind of software tools on it to protect that phone and they were unable to do it They did even find out through the yellow press where is he spending his weekend is his vacation with his family And it was always in the same hotel They booked a suite in that hotel and I mean you all know this when you're in a hotel you're logging on to the Wi-Fi Because you want to avoid roaming cost and they set up a Wi-Fi with the same name as the hotel And they wanted to infect its machine and all of this but it didn't work the hotel found out that didn't work Then they this comparator. Okay got rid of them We need different people more professional people and I found a couple there are professional services sold on the internet There's you can you can follow this your poll is publishing a lot about this About the development this field crime as a service You can hire people and they do the job for you and actually they found a group and they said okay First of all what budget do we have and they said oh well if you if you get this you get your honorarium But in additional we give you a budget for expenses of fifty thousand and they said good they sent they found it they just a kind of background research about this guy and They saw he's giving speeches from time to time and what's his favorite topic that he doesn't need to prepare and they found one topic And then through a speaker agency they sent him a request saying we would like to invite you to speak in front of Chinese investors You get twenty five thousand for a one-hour keynote You get a five-star hotel first-class flight for you and your wife four days perfect beautiful vacation And guess what he said he said yes, I agree so he flew over he was picked up by a limousine taken to the hotel all fancy All wonderful he was taken to an amazing conference venue he went through a security check just like the ones you have here linman smaller and Then he went give a gave a keynote in front of 20 Chinese locking people that didn't ask any questions He went to the hotel was very happy no questions wonderful six months later. He dropped his phone and They saw he took it to take to the tech people and they saw and so there is a chip in there They should not be there. That's not an original chip and they discovered what happened is that this form was manipulated They had the best software but it there was an hardware manipulation that would actually send out information from that phone and They wondered where was where did this happen and it happened when this guy went through the security check It takes less than 30 seconds. I have a short video I'm gonna play it without sound just to the people in the back. I'm gonna play this without song because it has this So this shows you how long it takes to manipulate a phone and you have to imagine you're going through an x-ray They're gonna say stop for a second Then they're checking your your legs first of all your shoulders It takes time and it during this time you're not paying attention to what happens to your phone And 30 seconds is really nothing if you remember just your experiences at the airport This is my stuff doing it. I mean they're doing it by hand This is this is a joke. You can you can do it much more professionally, but it shows you what you can do in 30 seconds and That's scary if you if you think about it the degree of Time they're investigating in this so so we in investing in this So we need to we need to make sure that we are aware of what is happening now I have 10 more minutes and what I would like to do right now is I think it's very comfortable to sit there and listen to me And say okay, yeah, it's an important topic absolutely, but I would like to put you in the driver's seat So I would like to say let's assume for a second. We're gonna take a private bank This is called Hartman banking group. It's a private bank operating in