Malware being sophisticated and customized to specifically invade those technologies. This particular malware was able to inject itself into known programs so it could disguise itself and continue to operate as if it was a normal program, delete itself and cleanup its tracks. Very complex. You emphasize the sophistication of the attack tom a even customizing it so that it by todayse detected current antivirus programs. It can criminals always stay one step ahead of us like they appear to be doing in this case . Is that a battle we are going to face . Be difficultg to in the public and private sector. I hope we get to a point where we can be on par if not ahead of criminals. Experience arecent clip you to try some different techniques . Checking have you started checking that they cant get through and once they get through, that we can detect them . The thingsdly with were learning with this investigation and help of the forensic teams and Law Enforcement, there will be things that we can consider to help further strengthen the security in place today. I dont think that you are going to give me the time to ask my gazillion questions. We will let you have one more if you want to stay. You are now recognized for five minutes. I appreciate the panels testimony today. Ask for your patience. Thank you for testifying. In your testimony, you know december 16 and 17, you began notifying the payment processors and made a public regarding the breach. Is that true . That is accurate. Given 47 states and the territories have developed data ,reach notification laws definitions of personally identifiable information, did you find it difficult to navigate through these standard . Track ad to we had two tracks. We wanted to notify the processors and the brand so that fire up their fraud the secondolicies was providing Public Notice as soon as we had the scope. We build the resources to respond with what we knew invariably would be significant call volume. Was it difficult to navigate this process . 47 different states and laws. You are everywhere around the u. S. Majority provide for broad public disclosure. We provided them on the 19th. We were on the front page of every newspaper. To 17 milliontice by email. Should there be a National Standard in regards to notification . One standard would be easier to follow than 47 . Should there be a national stance . Opinion but ie an would say that it is important that there be flexibility with whatever standard we have. These investigations, these events are different. And they need to be handled differently. Should there be a National Standard . In 2015, liability to fraud losses would shift. You said that you are accelerating Chip Technology for targets cars. Red cards. Will it save money in the long run . Advocates over a long time. It doesnt resolve all the issues but it is a significant step forward for our industry ensuring that the data is safe. We are in the middle of rolling it out with 300 stores already deployed. We will finish that by the Fourth Quarter of this year. All our credit products will also have chips embedded. Will it save money in the long run . We believe so. We are actively evaluating pin Chip Technology and Neiman Marcus and we will certainly, if consumers are issued cards with to be readythem, and able to support those transactions. We are also looking at other technologies that can also protect online business. Chip doesnt necessarily address that as well as the growing trend for mobile amen transactions. Payment transactions. There are other solutions out there that we will also evaluate. You believe ito will save money in the long run to switch to chip and pin . I cant comment on the savings but any Security Technology we would be supportive of. I agree with mr. Smith. It will be yet another layer of security that is important. Thank you for your questions, i yield back. You are only going to get two extra questions. My question will be for mr. Mulligan on specifics about and when you last did them before the breaches were discovered. Notnt you to answer it Neiman Marcus or target specific, but what is. Ppropriate for audits with that, as i understand the process, the norms that you do audits throughout the year on , how oftenty systems do you do those . When was the last time an audit was done on your security before you discovered the current hacks that include password integrity and possible procedural it certainly starts with the pci assessment. We had that performed by a thirdparty. We had an assessment against it is an00 retailers of our security program. When was the last one done and does it also include password integrity . Cant give you the exact date of the last one. It would include passport protection. I would be happy to give you a date. Our audits do address password integrity but we have several different forms. I will start with periodic audits of i. T. And general that include password strength and controls. We also do a penetration scan of the perimeter to see what potential vulnerabilities or risks are. Part of the assessment that i point out is under pci. We assess this with our clients all the time. We do active penetration testing. All the time, depending on if there is an incident or security issue. I think it is going to depend on compliance as an annual testing. That, we do frequent vulnerability scanning. These are all the applications. I really do want to thank the gentleman representing target and Neiman Marcus for your patience and coming here as the chairman said. Through asitting long hearing. I think that should be noted. Openness and willingness to cooperate. Disturbed, there are efforts in the courts to undermine government and actually act in the area of Data Security. The federal trade commission has applied its authority to the area of Data Security by bringing legal actions protecting customer data. There is a case currently pending in the District Court for the district of new jersey. The use are challenging of its Unfairness Authority to assist insist companies have minimum data standard in place the American Hotel and lodging association and the National Federation of independent businesses. Part of this brief to the association and whether your Company Agrees with the petition taken by wyndham and that the ftc lacks authority to enforce reasonable Data Security measures. To your question, i am not familiar with that. What i can tell you is that we are committed to making this right. I am not intimately familiar with this legislation this is the court case. I can thought you Neiman Marcus supports having standards in place for Data Security and why we are actively participants in the standards and assessment process. I hope that both of you will track with your companys and if you are part of something that would undermine the ability of the ftc to protect consumers in cases of Data Security breaches. It does conclude all of our questions. You can start wrapping up. We have the right to send you questions and we will try to get any ofo you if there are them individually and ask the same amount of time to return an answer. Here, i askusiness unanimous consent to include the hearing record statements from the following four organizations. The Union National association, independent Community Bankers of america. National retail federation. Retail Industry Leaders association. All of these have been shared with the minority. So ordered. Now we are adjourned. Thank you, gentlemen. [captions Copyright National cable satellite corp. 2014] [captioning performed by national captioning institute] coming up on cspan, the House Foreign Affairs committee on the response to al qaeda in iraq. A discussion on the role of the Surgeon General and First Responder training. That is followed by Data Security breaches at target and Neiman Marcus. Coming up on the next washington journal, a discussion on pending u. S. Trade agreements from pacific and european countries. Later, university of oklahoma president and former senator david boren discusses proposed budget cuts. You can join the conversation on facebook and twitter. Senators had the day off for their policy retreat. Being a congressional reporter means covering these retreats. Hearing from president obama and former president bill clinton, what is the significance of the timing . In some ways, Senate Democrats have been breaking with the president on certain issues and some of it is related to the 2014 elections. This is where the president isnt particularly popular. It is kind of a big moment for legislation in the senate. Unemployment insurance still not had been revived. They are trying to just kind of strategize as a party whereas in the past, congressional aides have been a little bit critical. Of Media Coverage coming out of these retreats. Is he a cheerleader . I have been told by some sources that they dont expect any big policy news or political news. Riled up, we a get will hold the senate. We will all be on the same page. I look at it more as a teambuilding exercise right now. What was the focus of their meeting . They will get on the same page in terms of getting their agenda out there rather than just be opposing the democrats agenda. I think there is recognition that they are seen as the Opposition Party more than the party of ideas. They will look at how we can offer alternatives like raising the minimum wage or offer alternatives to extending Unemployment Benefits in definitely. The house is holding down the legislative fort. The hearing from the Congressional Budget Office eted about it saying that fallout, thatthe messaging coming out today. The member did not give it to me but said the primary one was the 2. 5 million jobs lost due to the effect of obamacare and the administration and democrats saying low income americans wont feel obligated to the lifestyle. That issue coming back to the senate floor thursday, what is proposed. There are changes called smoothing. In may sort of be a wink and a nod agreement with republicans to appeal cost of living adjustments as part of a budget deal that negatively impacted veterans. There may be some interplay between some two things those two things. To haveans want proposals. You can read more at politico. Com and follow his reporting on twitter. Thanks for the update. Thank you very much. It is really an instrument of the president. The president is always the master. It is their personal pop stand. They can do things in secret. That amount of worry about the congressional appropriations process. It is convenient and attractive and sometimes overly seductive tool in the Foreign Policy article articles. You can see it online, comment on the guest. Click on book club to enter the chat room. President obama on cspan2. Taking questions about the link between the Health Care Law and the job market. You can see his entire testimony at 4 25 a. M. Eastern or any time at cspan. Org. I have a few questions about the Health Care Law and the labor market. What is your best estimate of the effect that obamacare will have on the total hour of numbers work . I want to make sure we accurately understand what it is you are saying. Think the Affordable Care act will reduce the number of hours worked in the economy between 1. 5 and two percent relative to what wouldve happened in the absence. What is the fulltime equivalent of workers . This is a calculation that we have done to translate that. It suggests an equivalent between two and a half million. So just to understand this, it is not that employers are laying people off, it is that people arent working in the workforce, supplying labor to the equivalent of 2. 5 million jobs in 2024. And as a result, that rate lowers Economic Growth . Thats right. Who are these workers . Is principally a labor supply of wage workers. We focus on lower middle income people to buy health insurance. And in order to encourage a sufficient number, the subsidies are fairly large. As their income rises. And withdrawing those subsidies thomas income rises. Back act creates an incentive for people to work. We make those lower income People Better off, it is an implicit tax. And face theoff disincentive to work more. Providing subsidies, they have they are better off. Inducing a person not to work who is on the low income scale to not get on the ladder of life and begin the dignity of work and get more opportunities, enjoying the middle class, this means fewer people will do that. That is why i am troubled by this. What they may have done according to the constitution of this country. It will not be americanism, it will be converted. While Father Divine was ,lowly rip retiring to life another religious leader in indiana was beginning to borrow from his teachings and his model to create an interracial collective community modeled on the Peace Mission. The revivalist and utopian James Earl Jones including claims to divinity, critique of racial inequality, and a desire to economically empower his children. From the Peace Mission movement to peoples temple, a look at modern religious utopias that are denied at 8 00 eastern and sunday at 1 00, part of American History tv this weekend on cspan three. The state Department Official testified in front of the House Foreign Affairs committee on the rising threat of al qaeda in iraq. This hearing from wednesdays two hours. This hearing will come to order. This morning, we consider al qaedas resurgence in iraq. An unfortunate reality is that out qaeda in iraq, now known as or Islamic State of iraq isis as you see it in the papers is growing steadily in size and in power and influence. Its militant ranks have blossomed. Isis carried out attacks on two anderent prisons in iraq freed hundreds of experienced al qaeda fighters and leaders. Group is now able to carry out approximately 40 mass casualty attacks every month. Multiple car bombs struck the capital this morning. The nearly 9000 deaths last year made it the bloodiest since u. S. Forces departed in 2011. In syria further strengthens this group. Militants are able to flow syria,between iraq and providing isis an advantage as it works to advance the regional vision of the radical Islamic State. The gains have been dramatic. It took advantage of a security vacuum, entering the cities of in columns of trucks mounted with heavy machine guns. Of course, and bar province is where marines pushed so hard to. Fight al qaeda i should note that this committee benefits from the firsthand experiences of mr. Perry, mr. Mr. Collins, and ms. Gabbert, all of whom served with distinction in iraq. This threat is evolving. Earlier this week, the central leadership declared that those operating in western iraq and syria were no longer an affiliated group. We will see how this power struggle develops. The independence is a reflection of its unprecedented resources including weapons, personnel, cash, and the resulting operational strength. This is a threat to iraq and also us. They have been actively recruiting individuals capable of traveling to the u. S. To carry out attacks here. Al qaeda and iraq has been empowered by prison breaks and by the syrian civil war, it has been fueled by the alienation of much of the sunni population from the shia dominated government in baghdad. Skilled atecome very exploring this sect. Rest. The power grab has given them much ammunition. This is a point that elliott and underscoredd and with president maliki when he visit last fall. The u. S. Moves to send military equipment to help the iraqis fight these terrorists. Appropriate intelligence can be shared as well. Iraqis should know that their relations with iran and the slow pace of political reconciliation raised serious congressional concerns. While he may not be up to it, he tot take steps to lead iraq a postsectarian era. Only a iraqis can control their future. But if we dont want to see in a rack with large swaths of , we must be willing to lend an appropriate hand. And now we will go to opening comments. Mr. Angle from new york. Enqueue for holding this important hearing on iraq and the threat this poses to u. S. Security interests. In the city of falluja and the dominated province, to make sure it also has a deeper and symbolic meaning for americans. U. S. Marines fought bloody battles to secure falluja during the iraq war. Acknowledge our brave men and women in uniform that lost their lives as well as the families that continue to grieve their loss is everyday. Iraq continues to be ravaged by sectarian violence. The sick situation is getting worse. It is the most since 2000 eight. On monday of this week, the Senior Leadership of al qaeda ask communicated and disowned their affiliate Islamic State of a rack. As a result of that groups tactics in syria. Isis remains a th