0 gadgets, manufacturers are leaving security holes where hackers can attack you and your family, and you don't pay for facebook or gmail, and those companies are selling something, selling you, and they scan your data to build a profile and they target their ads and the more they know about you, the more they pay. consumer groups were outraged this week after google filed a legal motion earlier this summer and in it google's lawyers referenced a ruling that says, quote, a person has no legitimate expectation of private in information he voluntarily turns over to third parties. >> you can choose not to give us this information, but if you give it to us, we can do a better job of getting services to you. >> why is the u.s. government looking over your shoulder? >> america is not interested in spying on regular people, and our focus is finding information necessary to protect our people and protect our allies. >> i want to bring in the former directeder of the national cyber security center. rod, is the message here that we shouldn't put anything sensitive in e-mail or online that there is no expectation for privacy in what we do in a very technology-driven world? >> anything you put online is definitely at risk. i will say that. you can make some choices better than others to protect your privacy, but if you are e-mailing online, you are taking the risk that can be disclosed. >> we are clicking accept, and that is what happened to kyle in an episode of "south park." listen. >> what are you going to do to us? >> everything that you agreed to in the itunes conditions. >> we didn't read them. >> right, who just agrees to something they don't read? >> we get the point. a lot of people do that. we hear a lot of buzz every time they change their terms of service, but so far there is no mass user revolt. they do it for convenience and don't have a lot of other choices? >> yeah, i don't know what is going to push it over the edge. there are three cat goes, those that don't know what is going on, and those that do and are comfortable with all the gathering on them, and there is a minority of what they sense is a violation of their privacy. >> i have to tell you, this is what the google statement to us, we take our users' privacy and security very serious, and recent reports claiming otherwise are simply untrue, and we have built industry-leading security and privacy features into gmail. do you think those criticisms were overstated this week? >> i think, you know, people need to understand what companies are doing and make their own decisions. for some people, it's a problem and they don't feel comfortable with that and other people may feel comfortable sharing everything with a company, so it really depends on the perspective. >> depends on the perspective, and there is always that phrase, if something is free, somebody is trying to make money. there is always a business model. if our online lives are being tracked they are at risk of being hacked, that's no surprise, but what is going on in your home is vulnerable too. >> it almost reads like a movie script. it happened this week to a family in texas. are you freaked out yet? it's not just baby monitors at risk, and your home can be hacked too, if you are not careful. imagine your 2-year-old daughter sleeping and an outsider watching her through the baby monitor. that's what happened to a family in texas this weekend. they discovered the problem when they heard a man yelling at their toddler, reading her name off her bedroom wall. >> he said wake up, alison, you little [ bleep ]. >> the gilberts believed their house was hacked. and somebody kind of did. and there are more and more ways to hack your house, and many devices that are vulnerable. >> i can tell the light to please unlock the door. >> that's a hacker, literally unlocking your door. the smart lock is connected to a device that enables you to control your appliances from your home, and a researchers found a flaw in that device. >> i ran code on the light and compromised it, just setting up a backdoor, or i can control any device hooked up to it. >> in a world full of these devices that let you do anything from flush your toilet to turn on your lights through a smart phone, a hacker can make your house feel haunted. >> basically, i can open up these rooms associated with the device, and control them, either turning them on or turning them off. >> sound like something casper would do? these security researchers found an issue with this hub that enabled somebody to take control of the devices took to it, and this toy rabbit has a camera designed for keeping an eye on your kids, but somebody else could, too. >> that traffic, i was able to capture and pull from it a url, which is was the direct video feed, and as long as the access token was still valid and had not been expired yet, i could watch that video feed indefinitely. >> they fixed the issue identified by the researchers, and they stress that a hacker requires an insecure wi-fi connection, and a majority of their users have internet connections. as for ways to stay safe, always put a strong password on your internet connection, and keep your software up-to-date, and never click on links from strangers. and had the family updated their family with the baby monitor, this would not have been an issue. and how many times do you look at a baby monitor and think i have to update the software? this is a whole new reality we need to look at. we all know steve jobs was a brilliant tech intrapreneur, but the man playing him on the big screen is no dummy himself. >> the sexiest thing in the entire world is being really smart. >> no, you are not getting punked. more on the business of ashton kutcher, next. with diabetes, it's tough to keep life balanced. i don't always have time to eat like i should. that's why i like glucerna shakes. they have slowly digestible carbs to help minimize blood sugar spikes. 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