Return to Transcripts main page

CNN Live At Daybreak

Terror Report to be Released Today; Seven Hostages From Three Countries Abducted in Iraq; Cyber-Theft

Aired July 22, 2004 - 06:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL LIN, CNN ANCHOR: Well, a newly-released airport surveillance video of some of the 9/11 hijackers has surfaced. It comes from Dulles Airport and shows the five hijackers of American Airlines Flight 77 taken the morning of September 11, 2001, and really capturing it on videotape. It shows all of them passing through metal detectors and getting searched. Some of the men set off those detectors, but detectors were actually allowed to continue to pass through.
Our Paul Zahn spoke with a White House adviser on homeland security about this videotape.

(BEGIN VIDEO CLIP)

FRAN TOWNSEND, PRESIDENTIAL ADVISER: I think the thing that's really important for those families and the victims to remember is how much we've done to make sure that if you went through that checkpoint today the way they did, it would be an entirely different process. It is from curb to cockpit, and it's got a whole variety of factors, including additional training for the screeners about what to look for and what to be suspicious of.

(END VIDEO CLIP)

LIN: The White House adviser added that security programs have been put in place, designed to prevent another similar attack from occurring.

Now, we want to get an idea about how the 9/11 Commission will be unveiling this report, and for that we're going to turn to Dick Uliano of CNN Radio in Washington. He joins us on the telephone.

Good morning, Dick. Is there going to be a ceremonial procedure, or is it going to be straight-forward?

DICK ULIANO, CNN RADIO: It will be pretty straight-forward. They'll publicly release this 9/11 Commission report this morning, Carol. More than a year in the making, it's 575 pages long. The work of the 10-member bipartisan commission that put it together, they interviewed some 900 people, explored two million documents. And by the way, the people they interviewed, of course, President Bush, Vice President Cheney and former President Clinton and Gore.

And, Carol, it's interesting. This report will actually come out printed not just by the government, but also in book form, privately- published, so Americans will be able to have access to it at bookstores everywhere at $10 a copy.

LIN: Ten dollars a copy. And I bet you can get it on the Internet, too. Dick, I'm just wondering, so a lot of work has gone into this report, a lot of reporting on the leaks out of the commission on what's in it.

ULIANO: Yes.

LIN: But what happens next? Who gets a hold of this thing? And how is it applied?

ULIANO: Well, you know, this report largely finds that there was, you know, a failure of imagination, but nobody inside government actually knew the attack was going to take place. But there were tantalizing clues, according to the commission leaders.

So, they fault the intelligence community, other government operation failures, and they make recommendations, Carol, to Congress and to the administration, to how to improve intelligence with the goal that doesn't happen again. Remember, it was the worst attack against the United States in history.

LIN: Dick Uliano, thanks very much this morning. We'll look forward to the unveiling of that report at a 9/11 Commission news conference at 11:30 Eastern this morning. CNN is going to bring that live to you, so you're going to want to stay tuned.

And also, this afternoon, later on "INSIDE POLITICS" with Judy Woodruff, the commission's chair and co-chair, Tom Kean -- or actually, Tom Kean and Lee Hamilton talk about the findings. That's at 3:30 Eastern, 12:30 Pacific.

Kidnappers are holding a half-dozen more hostages in Iraq and threatening to behead them. Well, the six men are from three countries, but they're all drivers for a Kuwaiti trucking firm.

CNN's Michael Holmes has a live report now from Baghdad.

Michael -- any idea of how they were captured or what is likely to happen next?

MICHAEL HOLMES, CNN CORRESPONDENT: Good morning, Carol.

Yes, the first thing I can do is update you. We have just received information, confirmation in fact, with a new video that's been released of these hostages. There aren't six of them. There are seven, one more than was previously announced.

As you said, initially we were told there were three Indians, two Kenyans and an Egyptian. Well, there were three Kenyans, as this video shows now. And diplomats in Baghdad are scurrying around, doing their best to try to negotiate some sort of solution to this problem, the release, of course, of the hostages.

The gunmen holding them is a group that calls themselves The Holders of the Black Banners. They say they're going to start executing those hostages, beheading them, one by one every 72 hours starting on Saturday, if the nationals of all of those countries -- India and Kenya and Egypt -- are not told to leave Iraq. And also if the company that employs these men who are all, as you point out, truck drivers, doesn't pull its business out of Iraq. So, there are the demands.

And this new video is showing that there is one more hostage than we thought.

This, of course, is exactly what the U.S. and Iraqi governments, among others, feared might happen. There is no indication that this is linked to the release of the Filipino hostage, Angelo de la Cruz, after the Philippine government pretty much caved in to the demands of the hostage-takers, but the U.S. and Iraqi administrations always feared this, that if they give in once, there is going to be more hostage-taking. And then almost immediately this happens -- Carol.

LIN: All right. So, Michael, any indication that either the countries of origin of these hostages or the trucking company might cave in to the demands?

HOLMES: No word as yet. Certainly what's interesting here is that none of those three countries are members of the coalition, per se. They're just countries that happen to have workers here and always have in many cases.

So, it's a bit of a big ask to expect them to pull everybody out when some of them have been here for some time working in Iraq and also the fact that they're not members of the coalition. They have no troops here, and aren't likely to have been sending any. So, it's a very odd choice.

But it has to be said, the truck drivers, as they bring goods in and out of the country, are the easiest of targets these days -- Carol.

LIN: Right. And it certainly seems like these kidnappers or insurgents just grabbed whoever they could get off the highways.

Let me ask you this, Michael. There was a big attack, a big raid it sounds like, in the city of Ramadi. What happened?

HOLMES: Yes, this is a place that there has been a lot of travel over the last months, in fact, year and a half or so, a very restive town about 70 miles west of Baghdad. What happened here was members of the 1st MEF, the Marine Expeditionary Force, were on a patrol when they were subjected to quite an ambush.

First of all, a roadside bomb went off, and then they were subjected to what military officials say was a barrage of small-arms fire, RPGs. Of course, the Marines engaged, and came out the better by the end of it, according to the military. They say that they killed 25 insurgents, wounded another 25 -- sorry -- wounded 17 and captured 25. On the Marine side, there were 14 U.S. servicemen wounded -- 13 Marines and one soldier, all of them non-life threatening injuries. It was a big battle. It went on for a long time -- Carol.

LIN: All right. Thanks much for the very latest out of Iraq. Michael Holmes in Baghdad.

So, is someone stealing your secrets? In this age of online banking, you have to protect yourself. I'm going to talk to an expert on cyber-fraud coming up.

And then, on the campaign trail we're going to hear what Senator John Edwards told CNN's Larry King about next week's Democratic Convention.

And later, rockers running for president. No joke.

(COMMERCIAL BREAK)

LIN: It's time for a little business buzz. You know, the whole rage about low-carb diets? Well, Krispy Kreme unveiled -- get this -- drinkable donuts.

Carrie Lee explains. She's at the Nasdaq Marketsite in Times Square.

Carrie -- that doesn't sound very fun.

CARRIE LEE, CNN FINANCIAL NEWS: Well...

LIN: But maybe there's more to it.

LEE: You know, we haven't had a chance to try them, Carol, these new drink lines coming out yesterday. The stories I've read, people do like it. A couple of different flavors here, raspberry, latte, double chocolate and frozen original Kreme, as you said, a drinkable version of the company's signature donut.

Now, bucking a recent trend, Krispy Kreme says it does not have plans to introduce low-carb versions of these new drinks. And if you take a look at the numbers, you'll see they're not exactly low-fat or low-sugar either. This is for a 12-ounce drink, which is the small, by the way. There's a small, medium, large, from about $3 to $4. Four-hundred, forty calories, 15 grams of total fat, carbs, 70 grams, sugars, 41 grams.

So, Carol, all I can say is with numbers like that, they'd better taste good, right?

LIN: Yes. That's like a third of your daily intake of fats and calories.

LEE: It really is. And if you compare the drink to the Krispy Kreme donut, well, the numbers here for these drinks are a lot higher. So, clearly they're not going for the low-carb-conscious consumer, but rather a different type of customer base. We'll see, as always, if it's successful. Kind of interesting, because KKD, remember a few months ago back in May, warned that diets like Atkins and South Beach were actually starting to hurt its business. The stock really fell off then and has to recover. So, interesting that they're rolling this out...

LIN: Yes.

LEE: ... even though they've acknowledged that low-carb is affecting their business.

LIN: But, you know, fat can be fun, and we all need a little fun in our life.

LEE: Oh, yes.

LIN: All right, thanks, Carrie.

LEE: OK.

LIN: A Florida man has been indicted for the massive cyber-theft of personal data from Acxiom Corporation. It's one of the world's largest companies managing personal, financial and corporate data. The company handles millions of bits of data for a wide range of major corporations, including IBM, General Electric, Microsoft and many major credit card companies. The government is taking this very seriously.

(BEGIN VIDEO CLIP)

CHRIS WRAY, ASSISTANT ATTORNEY GENERAL: The protection of personal information stored on our nation's computer systems is critical, both to the public trust in those systems and to the health of our economy. We will aggressively pursue anyone who steals private data from those computer networks, and we will make sure that they understand that those crimes carry serious consequences.

(END VIDEO CLIP)

LIN: Stealing personal information through the Internet is a growing problem in this age of e-commerce. So, how do you protect yourself?

For answers, we turn to attorney Rick Fischer, who specializes in privacy, e-commerce and technology issues. He joins us from Washington.

Rick, I just want to be clear, just in my own mind, that you're not talking about check fraud, per se, you know, the physical check that somebody may actually take out of the register and copy. You're talking about information on your checking account that is translated across computer networks through our daily transactions.

RICK FISCHER, ATTORNEY: That's absolutely right. In fact, check fraud has been dropping over the last several years, but the use of information to enter deposit accounts has been increasing. And, in fact, identity theft generally is increasing very rapidly. LIN: All right. So, when I sign up, let's say, to pay my bills through the Internet so that it's directly -- the transaction is directly taken out of my checking account to the gas company or the electric company, how does somebody access that information into my account?

FISCHER: Well, there are a number of ways. Actually, that's probably the least likely avenue to get that information. There are lots of other ways, high-tech ways, because criminals these days, like everyone else, have gone high-tech that they get that information.

LIN: What do they do?

FISCHER: Well, for example, if you look at a notice online, it's just a tactic called fishing, not F-I-S-H, but rather P-F. And what happens is you get an e-mail message from something that looks like your bank, saying that if you don't update your information they'll have to close your account.

LIN: Oh.

FISCHER: And so, you respond in that particular context and are actually responding to a criminal, who uses that information to access your deposit account.

LIN: So, what are the don'ts? What are you telling people, don't do this, don't do that, to protect yourself?

FISCHER: Well, actually I turn it around, because there are really three things. One of them is care. The second one is choice. And then the third one is really common sense.

LIN: All right.

FISCHER: And you really have to be careful with your information in this context. You should choose wisely. For example, there are some types of payment where there is zero liability. If you use, for example, a Visa debit card to make exactly the same payments, there is no liability. The bank may suffer the loss, but the consumer does not.

And then common sense, because if it doesn't seem right, it's probably not. If you don't recognize this person you're talking to or the attempt to get information just doesn't feel comfortable, then you shouldn't respond.

LIN: And wasn't there a third one?

FISCHER: Well, that's it.

LIN: OK.

FISCHER: It's really care, choice and then common sense.

LIN: OK. So, I just want to make sure if I use a debit card at the gas station or if I bill pay online, it doesn't make me more vulnerable. It's only when I voluntarily give out information.

FISCHER: Correct. If you look at either a credit card or a debit card, a Visa credit card or a debit card, for example, and you use that in a transaction, even though the law may say that you've got some liability there, the credit card system puts it at zero.

LIN: Gotcha.

FISCHER: So, if there is unauthorized use in that transaction, then that loss, if you will, shifts to the financial institution. But that's where care comes in.

LIN: All right. OK, all right. Sounds good. Rick Fischer, 10 billion transactions, electronic transactions a year, it's going to be a growing problem. Let's hope these solutions work. Rick Fischer, thanks very much.

FISCHER: You're quite welcome.

LIN: Let's check in with Bill and Heidi up in New York for a look at what's coming up on "AMERICAN MORNING."

Good morning.

BILL HEMMER, CNN ANCHOR: Hey, Carol. Good morning to you.

HEIDI COLLINS, CNN ANCHOR: Good morning, Carol.

HEMMER: We have a loaded show this morning and a whole lot to talk about. You saw that videotape that was released yesterday at Dulles Airport the morning of 9/11. More on that tape.

We'll talk to the chairman of the Senate Intel Committee, Pat Roberts, also the majority whip in the Senate, Mitch McConnell, get their views on the report that's out later today on 9/11.

COLLINS: Also, this story in Utah of the missing jogger, a gal five weeks' pregnant. New details now surrounding her husband. We'll talk to the missing woman's mother as well as the woman's brother-in- law.

HEMMER: A lot of concern again today.

Security preps in Boston, it starts Monday. Controversy now for measures to control the protesters. We'll have a look at that as well. So, we'll have it all for you in about 13 minutes. And Jack has got a really good e-mail question today, too.

LIN: Oh. No hints there yet, huh?

HEMMER: No hints. No hints. Yes, that's right.

COLLINS: He always does, though, you know, Carol?

LIN: OK. We're going to tune in. Thanks so much. Good to see you, Heidi, Bill. HEMMER: See you later.

LIN: We want to wrap things up for you here. Your news, money, weather and sports. It's now 47 past the hour. And here's what's all new this morning.

The final report of the commission investigating 9/11 comes out today. The report is deeply critical of the nation's intelligence- gathering, but it does not blame President Bush or former President Clinton for those attacks.

Eleven workers at a chicken processing plant in West Virginia have lost their jobs. That's a day after an animal rights group released video of the workers stomping on the chickens and throwing them against the wall. This was happening at the Pilgrims Pride plant. The company says it's investigating.

In money, President Bush has rejected a congressional compromise to extend his tax cuts for two years. The president wanted Republican leaders to approve a five-year extension before Congress takes its summer break. Talks are now tabled until September.

And in culture, Grammy Award winner Wyclef Jean is planning a massive charity concert in his home nation of Haiti. Jean says he hopes to draw two million people to the December show. Proceeds are going to help stabilize that troubled country.

In sports, the lead keeps growing for Lance Armstrong. The five- time tour de champ is now holding a nearly four-minute lead in the Tour de France. There are just four stages left.

Four stages, Chad. And the next one is like 126 miles, a lot of it uphill.

CHAD MYERS, CNN METEOROLOGIST: Yes, a lot of it uphill. And yesterday, it only took him 40 minutes to complete this stage. And, man, he was just -- he was flying. That's how he got such a great lead, four minutes -- almost four minutes over the second place and then seven over the third place. So, here he goes.

(WEATHER BREAK)

LIN: Speaking of action, Bonnie Raitt sings a song to the president, and it's not so romantic.

A restaurant in Boston disses the DNC and supports Bush instead.

And, it's July. Why so many Santas in one place?

(COMMERCIAL BREAK)

LIN: The Bush re-election campaign heads for Chicago's suburbs today. Last night, the president addressed Republican donors in Washington. Today, the president talks about homeland security in Glenview at the Northeastern Illinois Public Safety Training Academy. And then he heads for Winnetka and a fund-raising dinner at a private home.

Ohio Congressman Dennis Kucinich will endorse Senator John Kerry for president today. Now, you may not believe this, but he's actually still officially running for president. But he's going to -- or he actually hasn't officially withdrawn, but he's actually going to officially endorse John Kerry for the presidential nomination.

Now, the Kerry-Edwards campaign is preparing for their center stage appearance in Boston. And as Senator Edwards told our Larry King, he has a specific task at hand for the Democratic Convention.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: My purpose will be to accomplish three things. One is to make sure the country knows more about me as their vice presidential candidate for the Democratic Party. Second, that they know more about John Kerry and the way I view him. And third, some pretty clear ideas about our vision for the country. And I think that's -- those things will be built around a common theme, which I'll save for now.

(END VIDEO CLIP)

LIN: The candidates aren't the only ones preparing for the convention to begin. Protesters are getting ready to take up their positions in the so-called free speech area. At least one local businessman is upset that his business will be blocked off by protectors and a security barrier. So, he's decided to take some time off.

(BEGIN VIDEO CLIP)

MARK PASQUALE, OWNER, HALFTIME PIZZA: I don't need the aggravation for the four days that they're here. I thought this was going to be a plus, and it doesn't seem it's going to turn out that way for us. So, I'm just going to take it on the chin and just walk away and wait for them to leave and come back in afterwards.

(END VIDEO CLIP)

LIN: The ACLU and National Lawyers Guild have sued to have the protest area turned down.

You can follow the CNN election express online. All you have to do is go to CNN.com/bus. That's the bus that the "CROSSFIRE" folks and the "INSIDE POLITICS" folks are riding on. Find out what stories they're covering on the campaign trail all the way to the road to the DNC.

You know that protest area?

MYERS: Yes.

LIN: Apparently it's like fenced off and it's got a fence over, so it's basically a cage.

MYERS: Is that right? There's a cage match going on, right?

LIN: One of your producers said it would save the police the trouble of arresting them and putting them in jail. They're just already confined.

MYERS: Because they're already in there.

LIN: Yes.

MYERS: All right, open it and let them in. OK, anyway.

LIN: Crazy stuff.

MYERS: Bonnie Raitt, did you hear about this?

LIN: Yes.

MYERS: Yes, a concert in Sweden, she kind of got a little political. Hey, like everybody else isn't. And she did an anti-Bush song, and the whole crowd cheered. But, you know, whatever. They didn't go with us to Iraq either, so...

LIN: Yes, there you go.

MYERS: ... with the U.S. to Iraq.

LIN: A lot of entertainers are becoming very political.

MYERS: Yes.

LIN: Whoopi Goldberg and Bonnie Raitt.

MYERS: Yes. And not afraid, you know, free speech.

LIN: Right, yes.

MYERS: There you go.

LIN: There you go. And Linda Ronstadt got booted out of the Vegas hotel for siding with Michael Moore on 9/11.

MYERS: And then Planet Hollywood is buying the casino, like next month. And the first thing they want to do is invite her back.

LIN: All right. So, if you want to see Linda Ronstadt at the Aladdin...

MYERS: She may still be there.

LIN: ... she'll still be there in about a month.

MYERS: She'll be back.

LIN: All right, we've got a mug winner.

MYERS: We do actually. You know, I had probably 600 correct answers for this yesterday, so congratulations. I only can give one away a day, but keep getting those answers correct.

Barbara Starr had a story about the U.S. Air Force plans for a new convention bomb called Big Blue. How much will that bomb weigh? Thirty thousand pounds. And Microsoft announced a major dividend payout for investors. How much will stockholders receive per share? It was $3 per share, $75 billion in total.

Tom McGreal of Waynesville, Missouri, you get the mug this morning. Congratulations.

And now the questions for today, to win today's mug. Keep going. Keep trying.

LIN: Yes.

MYERS: And what performer just achieved his first-ever No. 1 album? It's kind of surprising considering he's been playing for a really long time.

LIN: I know.

MYERS: And according to a recent survey, what country consumes the most beer in Europe? We just had that story on as well.

LIN: Yes. See, all you have to do is watch the show.

MYERS: That's right.

LIN: Just watch the show and you can win a mug.

MYERS: All right.

LIN: All right. "The Lightning Round" is coming up, Chad.

MYERS: All right.

LIN: So stay right there.

(COMMERCIAL BREAK)

LIN: All right, it's time for "The Lightning Round."

Move over, Bush, Cheney, Kerry, Edwards. How about Crosby-Nash in 2004?

MYERS: Great.

LIN: That's David Crosby and Graham Nash of Crosby, Stills, Nash and Young fame. They're ageless, and they're running on the party- party ticket. They say if they're elected, there won't be a vice president. They promise to overhaul what they call social insecurity and Medicare-less.

And look at July and it's Christmas, at least that's what it looks like in Denmark at the 41 Saint World Santa Claus Congress. There you go. That's a meeting I'd like to attend. MYERS: They even have snow.

LIN: All right, we're going to see you tomorrow.

MYERS: Yes.

LIN: We'll see you guys later. "AMERICAN MORNING" is up next.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.


Aired July 22, 2004 - 06:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL LIN, CNN ANCHOR: Well, a newly-released airport surveillance video of some of the 9/11 hijackers has surfaced. It comes from Dulles Airport and shows the five hijackers of American Airlines Flight 77 taken the morning of September 11, 2001, and really capturing it on videotape. It shows all of them passing through metal detectors and getting searched. Some of the men set off those detectors, but detectors were actually allowed to continue to pass through.
Our Paul Zahn spoke with a White House adviser on homeland security about this videotape.

(BEGIN VIDEO CLIP)

FRAN TOWNSEND, PRESIDENTIAL ADVISER: I think the thing that's really important for those families and the victims to remember is how much we've done to make sure that if you went through that checkpoint today the way they did, it would be an entirely different process. It is from curb to cockpit, and it's got a whole variety of factors, including additional training for the screeners about what to look for and what to be suspicious of.

(END VIDEO CLIP)

LIN: The White House adviser added that security programs have been put in place, designed to prevent another similar attack from occurring.

Now, we want to get an idea about how the 9/11 Commission will be unveiling this report, and for that we're going to turn to Dick Uliano of CNN Radio in Washington. He joins us on the telephone.

Good morning, Dick. Is there going to be a ceremonial procedure, or is it going to be straight-forward?

DICK ULIANO, CNN RADIO: It will be pretty straight-forward. They'll publicly release this 9/11 Commission report this morning, Carol. More than a year in the making, it's 575 pages long. The work of the 10-member bipartisan commission that put it together, they interviewed some 900 people, explored two million documents. And by the way, the people they interviewed, of course, President Bush, Vice President Cheney and former President Clinton and Gore.

And, Carol, it's interesting. This report will actually come out printed not just by the government, but also in book form, privately- published, so Americans will be able to have access to it at bookstores everywhere at $10 a copy.

LIN: Ten dollars a copy. And I bet you can get it on the Internet, too. Dick, I'm just wondering, so a lot of work has gone into this report, a lot of reporting on the leaks out of the commission on what's in it.

ULIANO: Yes.

LIN: But what happens next? Who gets a hold of this thing? And how is it applied?

ULIANO: Well, you know, this report largely finds that there was, you know, a failure of imagination, but nobody inside government actually knew the attack was going to take place. But there were tantalizing clues, according to the commission leaders.

So, they fault the intelligence community, other government operation failures, and they make recommendations, Carol, to Congress and to the administration, to how to improve intelligence with the goal that doesn't happen again. Remember, it was the worst attack against the United States in history.

LIN: Dick Uliano, thanks very much this morning. We'll look forward to the unveiling of that report at a 9/11 Commission news conference at 11:30 Eastern this morning. CNN is going to bring that live to you, so you're going to want to stay tuned.

And also, this afternoon, later on "INSIDE POLITICS" with Judy Woodruff, the commission's chair and co-chair, Tom Kean -- or actually, Tom Kean and Lee Hamilton talk about the findings. That's at 3:30 Eastern, 12:30 Pacific.

Kidnappers are holding a half-dozen more hostages in Iraq and threatening to behead them. Well, the six men are from three countries, but they're all drivers for a Kuwaiti trucking firm.

CNN's Michael Holmes has a live report now from Baghdad.

Michael -- any idea of how they were captured or what is likely to happen next?

MICHAEL HOLMES, CNN CORRESPONDENT: Good morning, Carol.

Yes, the first thing I can do is update you. We have just received information, confirmation in fact, with a new video that's been released of these hostages. There aren't six of them. There are seven, one more than was previously announced.

As you said, initially we were told there were three Indians, two Kenyans and an Egyptian. Well, there were three Kenyans, as this video shows now. And diplomats in Baghdad are scurrying around, doing their best to try to negotiate some sort of solution to this problem, the release, of course, of the hostages.

The gunmen holding them is a group that calls themselves The Holders of the Black Banners. They say they're going to start executing those hostages, beheading them, one by one every 72 hours starting on Saturday, if the nationals of all of those countries -- India and Kenya and Egypt -- are not told to leave Iraq. And also if the company that employs these men who are all, as you point out, truck drivers, doesn't pull its business out of Iraq. So, there are the demands.

And this new video is showing that there is one more hostage than we thought.

This, of course, is exactly what the U.S. and Iraqi governments, among others, feared might happen. There is no indication that this is linked to the release of the Filipino hostage, Angelo de la Cruz, after the Philippine government pretty much caved in to the demands of the hostage-takers, but the U.S. and Iraqi administrations always feared this, that if they give in once, there is going to be more hostage-taking. And then almost immediately this happens -- Carol.

LIN: All right. So, Michael, any indication that either the countries of origin of these hostages or the trucking company might cave in to the demands?

HOLMES: No word as yet. Certainly what's interesting here is that none of those three countries are members of the coalition, per se. They're just countries that happen to have workers here and always have in many cases.

So, it's a bit of a big ask to expect them to pull everybody out when some of them have been here for some time working in Iraq and also the fact that they're not members of the coalition. They have no troops here, and aren't likely to have been sending any. So, it's a very odd choice.

But it has to be said, the truck drivers, as they bring goods in and out of the country, are the easiest of targets these days -- Carol.

LIN: Right. And it certainly seems like these kidnappers or insurgents just grabbed whoever they could get off the highways.

Let me ask you this, Michael. There was a big attack, a big raid it sounds like, in the city of Ramadi. What happened?

HOLMES: Yes, this is a place that there has been a lot of travel over the last months, in fact, year and a half or so, a very restive town about 70 miles west of Baghdad. What happened here was members of the 1st MEF, the Marine Expeditionary Force, were on a patrol when they were subjected to quite an ambush.

First of all, a roadside bomb went off, and then they were subjected to what military officials say was a barrage of small-arms fire, RPGs. Of course, the Marines engaged, and came out the better by the end of it, according to the military. They say that they killed 25 insurgents, wounded another 25 -- sorry -- wounded 17 and captured 25. On the Marine side, there were 14 U.S. servicemen wounded -- 13 Marines and one soldier, all of them non-life threatening injuries. It was a big battle. It went on for a long time -- Carol.

LIN: All right. Thanks much for the very latest out of Iraq. Michael Holmes in Baghdad.

So, is someone stealing your secrets? In this age of online banking, you have to protect yourself. I'm going to talk to an expert on cyber-fraud coming up.

And then, on the campaign trail we're going to hear what Senator John Edwards told CNN's Larry King about next week's Democratic Convention.

And later, rockers running for president. No joke.

(COMMERCIAL BREAK)

LIN: It's time for a little business buzz. You know, the whole rage about low-carb diets? Well, Krispy Kreme unveiled -- get this -- drinkable donuts.

Carrie Lee explains. She's at the Nasdaq Marketsite in Times Square.

Carrie -- that doesn't sound very fun.

CARRIE LEE, CNN FINANCIAL NEWS: Well...

LIN: But maybe there's more to it.

LEE: You know, we haven't had a chance to try them, Carol, these new drink lines coming out yesterday. The stories I've read, people do like it. A couple of different flavors here, raspberry, latte, double chocolate and frozen original Kreme, as you said, a drinkable version of the company's signature donut.

Now, bucking a recent trend, Krispy Kreme says it does not have plans to introduce low-carb versions of these new drinks. And if you take a look at the numbers, you'll see they're not exactly low-fat or low-sugar either. This is for a 12-ounce drink, which is the small, by the way. There's a small, medium, large, from about $3 to $4. Four-hundred, forty calories, 15 grams of total fat, carbs, 70 grams, sugars, 41 grams.

So, Carol, all I can say is with numbers like that, they'd better taste good, right?

LIN: Yes. That's like a third of your daily intake of fats and calories.

LEE: It really is. And if you compare the drink to the Krispy Kreme donut, well, the numbers here for these drinks are a lot higher. So, clearly they're not going for the low-carb-conscious consumer, but rather a different type of customer base. We'll see, as always, if it's successful. Kind of interesting, because KKD, remember a few months ago back in May, warned that diets like Atkins and South Beach were actually starting to hurt its business. The stock really fell off then and has to recover. So, interesting that they're rolling this out...

LIN: Yes.

LEE: ... even though they've acknowledged that low-carb is affecting their business.

LIN: But, you know, fat can be fun, and we all need a little fun in our life.

LEE: Oh, yes.

LIN: All right, thanks, Carrie.

LEE: OK.

LIN: A Florida man has been indicted for the massive cyber-theft of personal data from Acxiom Corporation. It's one of the world's largest companies managing personal, financial and corporate data. The company handles millions of bits of data for a wide range of major corporations, including IBM, General Electric, Microsoft and many major credit card companies. The government is taking this very seriously.

(BEGIN VIDEO CLIP)

CHRIS WRAY, ASSISTANT ATTORNEY GENERAL: The protection of personal information stored on our nation's computer systems is critical, both to the public trust in those systems and to the health of our economy. We will aggressively pursue anyone who steals private data from those computer networks, and we will make sure that they understand that those crimes carry serious consequences.

(END VIDEO CLIP)

LIN: Stealing personal information through the Internet is a growing problem in this age of e-commerce. So, how do you protect yourself?

For answers, we turn to attorney Rick Fischer, who specializes in privacy, e-commerce and technology issues. He joins us from Washington.

Rick, I just want to be clear, just in my own mind, that you're not talking about check fraud, per se, you know, the physical check that somebody may actually take out of the register and copy. You're talking about information on your checking account that is translated across computer networks through our daily transactions.

RICK FISCHER, ATTORNEY: That's absolutely right. In fact, check fraud has been dropping over the last several years, but the use of information to enter deposit accounts has been increasing. And, in fact, identity theft generally is increasing very rapidly. LIN: All right. So, when I sign up, let's say, to pay my bills through the Internet so that it's directly -- the transaction is directly taken out of my checking account to the gas company or the electric company, how does somebody access that information into my account?

FISCHER: Well, there are a number of ways. Actually, that's probably the least likely avenue to get that information. There are lots of other ways, high-tech ways, because criminals these days, like everyone else, have gone high-tech that they get that information.

LIN: What do they do?

FISCHER: Well, for example, if you look at a notice online, it's just a tactic called fishing, not F-I-S-H, but rather P-F. And what happens is you get an e-mail message from something that looks like your bank, saying that if you don't update your information they'll have to close your account.

LIN: Oh.

FISCHER: And so, you respond in that particular context and are actually responding to a criminal, who uses that information to access your deposit account.

LIN: So, what are the don'ts? What are you telling people, don't do this, don't do that, to protect yourself?

FISCHER: Well, actually I turn it around, because there are really three things. One of them is care. The second one is choice. And then the third one is really common sense.

LIN: All right.

FISCHER: And you really have to be careful with your information in this context. You should choose wisely. For example, there are some types of payment where there is zero liability. If you use, for example, a Visa debit card to make exactly the same payments, there is no liability. The bank may suffer the loss, but the consumer does not.

And then common sense, because if it doesn't seem right, it's probably not. If you don't recognize this person you're talking to or the attempt to get information just doesn't feel comfortable, then you shouldn't respond.

LIN: And wasn't there a third one?

FISCHER: Well, that's it.

LIN: OK.

FISCHER: It's really care, choice and then common sense.

LIN: OK. So, I just want to make sure if I use a debit card at the gas station or if I bill pay online, it doesn't make me more vulnerable. It's only when I voluntarily give out information.

FISCHER: Correct. If you look at either a credit card or a debit card, a Visa credit card or a debit card, for example, and you use that in a transaction, even though the law may say that you've got some liability there, the credit card system puts it at zero.

LIN: Gotcha.

FISCHER: So, if there is unauthorized use in that transaction, then that loss, if you will, shifts to the financial institution. But that's where care comes in.

LIN: All right. OK, all right. Sounds good. Rick Fischer, 10 billion transactions, electronic transactions a year, it's going to be a growing problem. Let's hope these solutions work. Rick Fischer, thanks very much.

FISCHER: You're quite welcome.

LIN: Let's check in with Bill and Heidi up in New York for a look at what's coming up on "AMERICAN MORNING."

Good morning.

BILL HEMMER, CNN ANCHOR: Hey, Carol. Good morning to you.

HEIDI COLLINS, CNN ANCHOR: Good morning, Carol.

HEMMER: We have a loaded show this morning and a whole lot to talk about. You saw that videotape that was released yesterday at Dulles Airport the morning of 9/11. More on that tape.

We'll talk to the chairman of the Senate Intel Committee, Pat Roberts, also the majority whip in the Senate, Mitch McConnell, get their views on the report that's out later today on 9/11.

COLLINS: Also, this story in Utah of the missing jogger, a gal five weeks' pregnant. New details now surrounding her husband. We'll talk to the missing woman's mother as well as the woman's brother-in- law.

HEMMER: A lot of concern again today.

Security preps in Boston, it starts Monday. Controversy now for measures to control the protesters. We'll have a look at that as well. So, we'll have it all for you in about 13 minutes. And Jack has got a really good e-mail question today, too.

LIN: Oh. No hints there yet, huh?

HEMMER: No hints. No hints. Yes, that's right.

COLLINS: He always does, though, you know, Carol?

LIN: OK. We're going to tune in. Thanks so much. Good to see you, Heidi, Bill. HEMMER: See you later.

LIN: We want to wrap things up for you here. Your news, money, weather and sports. It's now 47 past the hour. And here's what's all new this morning.

The final report of the commission investigating 9/11 comes out today. The report is deeply critical of the nation's intelligence- gathering, but it does not blame President Bush or former President Clinton for those attacks.

Eleven workers at a chicken processing plant in West Virginia have lost their jobs. That's a day after an animal rights group released video of the workers stomping on the chickens and throwing them against the wall. This was happening at the Pilgrims Pride plant. The company says it's investigating.

In money, President Bush has rejected a congressional compromise to extend his tax cuts for two years. The president wanted Republican leaders to approve a five-year extension before Congress takes its summer break. Talks are now tabled until September.

And in culture, Grammy Award winner Wyclef Jean is planning a massive charity concert in his home nation of Haiti. Jean says he hopes to draw two million people to the December show. Proceeds are going to help stabilize that troubled country.

In sports, the lead keeps growing for Lance Armstrong. The five- time tour de champ is now holding a nearly four-minute lead in the Tour de France. There are just four stages left.

Four stages, Chad. And the next one is like 126 miles, a lot of it uphill.

CHAD MYERS, CNN METEOROLOGIST: Yes, a lot of it uphill. And yesterday, it only took him 40 minutes to complete this stage. And, man, he was just -- he was flying. That's how he got such a great lead, four minutes -- almost four minutes over the second place and then seven over the third place. So, here he goes.

(WEATHER BREAK)

LIN: Speaking of action, Bonnie Raitt sings a song to the president, and it's not so romantic.

A restaurant in Boston disses the DNC and supports Bush instead.

And, it's July. Why so many Santas in one place?

(COMMERCIAL BREAK)

LIN: The Bush re-election campaign heads for Chicago's suburbs today. Last night, the president addressed Republican donors in Washington. Today, the president talks about homeland security in Glenview at the Northeastern Illinois Public Safety Training Academy. And then he heads for Winnetka and a fund-raising dinner at a private home.

Ohio Congressman Dennis Kucinich will endorse Senator John Kerry for president today. Now, you may not believe this, but he's actually still officially running for president. But he's going to -- or he actually hasn't officially withdrawn, but he's actually going to officially endorse John Kerry for the presidential nomination.

Now, the Kerry-Edwards campaign is preparing for their center stage appearance in Boston. And as Senator Edwards told our Larry King, he has a specific task at hand for the Democratic Convention.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: My purpose will be to accomplish three things. One is to make sure the country knows more about me as their vice presidential candidate for the Democratic Party. Second, that they know more about John Kerry and the way I view him. And third, some pretty clear ideas about our vision for the country. And I think that's -- those things will be built around a common theme, which I'll save for now.

(END VIDEO CLIP)

LIN: The candidates aren't the only ones preparing for the convention to begin. Protesters are getting ready to take up their positions in the so-called free speech area. At least one local businessman is upset that his business will be blocked off by protectors and a security barrier. So, he's decided to take some time off.

(BEGIN VIDEO CLIP)

MARK PASQUALE, OWNER, HALFTIME PIZZA: I don't need the aggravation for the four days that they're here. I thought this was going to be a plus, and it doesn't seem it's going to turn out that way for us. So, I'm just going to take it on the chin and just walk away and wait for them to leave and come back in afterwards.

(END VIDEO CLIP)

LIN: The ACLU and National Lawyers Guild have sued to have the protest area turned down.

You can follow the CNN election express online. All you have to do is go to CNN.com/bus. That's the bus that the "CROSSFIRE" folks and the "INSIDE POLITICS" folks are riding on. Find out what stories they're covering on the campaign trail all the way to the road to the DNC.

You know that protest area?

MYERS: Yes.

LIN: Apparently it's like fenced off and it's got a fence over, so it's basically a cage.

MYERS: Is that right? There's a cage match going on, right?

LIN: One of your producers said it would save the police the trouble of arresting them and putting them in jail. They're just already confined.

MYERS: Because they're already in there.

LIN: Yes.

MYERS: All right, open it and let them in. OK, anyway.

LIN: Crazy stuff.

MYERS: Bonnie Raitt, did you hear about this?

LIN: Yes.

MYERS: Yes, a concert in Sweden, she kind of got a little political. Hey, like everybody else isn't. And she did an anti-Bush song, and the whole crowd cheered. But, you know, whatever. They didn't go with us to Iraq either, so...

LIN: Yes, there you go.

MYERS: ... with the U.S. to Iraq.

LIN: A lot of entertainers are becoming very political.

MYERS: Yes.

LIN: Whoopi Goldberg and Bonnie Raitt.

MYERS: Yes. And not afraid, you know, free speech.

LIN: Right, yes.

MYERS: There you go.

LIN: There you go. And Linda Ronstadt got booted out of the Vegas hotel for siding with Michael Moore on 9/11.

MYERS: And then Planet Hollywood is buying the casino, like next month. And the first thing they want to do is invite her back.

LIN: All right. So, if you want to see Linda Ronstadt at the Aladdin...

MYERS: She may still be there.

LIN: ... she'll still be there in about a month.

MYERS: She'll be back.

LIN: All right, we've got a mug winner.

MYERS: We do actually. You know, I had probably 600 correct answers for this yesterday, so congratulations. I only can give one away a day, but keep getting those answers correct.

Barbara Starr had a story about the U.S. Air Force plans for a new convention bomb called Big Blue. How much will that bomb weigh? Thirty thousand pounds. And Microsoft announced a major dividend payout for investors. How much will stockholders receive per share? It was $3 per share, $75 billion in total.

Tom McGreal of Waynesville, Missouri, you get the mug this morning. Congratulations.

And now the questions for today, to win today's mug. Keep going. Keep trying.

LIN: Yes.

MYERS: And what performer just achieved his first-ever No. 1 album? It's kind of surprising considering he's been playing for a really long time.

LIN: I know.

MYERS: And according to a recent survey, what country consumes the most beer in Europe? We just had that story on as well.

LIN: Yes. See, all you have to do is watch the show.

MYERS: That's right.

LIN: Just watch the show and you can win a mug.

MYERS: All right.

LIN: All right. "The Lightning Round" is coming up, Chad.

MYERS: All right.

LIN: So stay right there.

(COMMERCIAL BREAK)

LIN: All right, it's time for "The Lightning Round."

Move over, Bush, Cheney, Kerry, Edwards. How about Crosby-Nash in 2004?

MYERS: Great.

LIN: That's David Crosby and Graham Nash of Crosby, Stills, Nash and Young fame. They're ageless, and they're running on the party- party ticket. They say if they're elected, there won't be a vice president. They promise to overhaul what they call social insecurity and Medicare-less.

And look at July and it's Christmas, at least that's what it looks like in Denmark at the 41 Saint World Santa Claus Congress. There you go. That's a meeting I'd like to attend. MYERS: They even have snow.

LIN: All right, we're going to see you tomorrow.

MYERS: Yes.

LIN: We'll see you guys later. "AMERICAN MORNING" is up next.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.