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American Morning

Identity Theft; Massive Manhunt; Rumsfeld Visits Iraq

Aired April 12, 2005 - 08:59   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.


SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome, everybody. Also ahead this morning, this mystery man who showed up in Washington, D.C. with suitcases.
Did you see this videotape? He was demanding to see the president. He had these big old suitcases with him. He was then tackled, taken into custody.

Why was he there? What did he really want? We're going to talk to the chief of the Capitol Police about that this morning.

BILL HEMMER, CNN ANCHOR: Also in a moment here, the Michael Jackson trial continues. The jury hearing that the singer once begged with tears in his voice to get a mother's permission to spend time with her little boy. And more testimony like that could be coming later today. We'll talk about it in a moment.

O'BRIEN: Mr. Cafferty's got a look at the "Question of the Day."

JACK CAFFERTY, CNN ANCHOR: He's a beauty, isn't he, Jackson?

O'BRIEN: The case is just weird, isn't it?

CAFFERTY: Oh, man.

Rising gasoline prices, are they changing the way you live your life? AM@CNN.com. Share with us.

HEMMER: Have they changed yours yet?

CAFFERTY: No. But I don't drive very much, actually.

HEMMER: That's right.

CAFFERTY: One of my kids is away at school, so her car is in the garage at home.

HEMMER: You've got that big limousine car. Thanks, Jack.

O'BRIEN: The entourage.

(LAUGHTER)

CAFFERTY: Thanks for your help.

HEMMER: Carol, good morning.

CAROL COSTELLO, CNN ANCHOR: Good morning. Good morning to all of you.

"Now in the News," a hostage situation in Germany. We told you about this a short time ago.

Police have surrounded a house north of Cologne, where a man is said to be holding several children hostage. Sources say the man had apparently abducted at least four children from a bus. We will keep you updated on this developing story. And keep in mind, this is in Germany.

President Bush is marking the political progress in Iraq since Saddam Hussein was removed from power two years ago. The president is set to address American troops in Ft. Hood in Texas. That's at just about two hours from now.

CNN will have live coverage of the president's address. That begins specifically at 11:20 a.m. Eastern.

The address comes one day after the president hosted Israeli Prime Minister Ariel Sharon at his Texas ranch. Prime Minister Sharon will be in Washington today to meet with U.S. lawmakers and Israeli leaders. Speaking to reporters before he left, the prime minister said the meeting with President Bush was a great success.

And in California, the mother of Michael Jackson's accuser may take the stand when the trial resumes in just a couple of hours. Prosecutors are trying to show Jackson has a history of inappropriate behavior with boys. They've already questioned the mother of a past Jackson accuser. The boy later got a multimillion-dollar settlement from the star.

Back to you.

HEMMER: All right, Carol. Thanks.

This morning, LexisNexis is reporting that its problem is much worse than first thought. Personal information about more than 300,000 Americans may have been stolen from the company's databases.

Technology correspondent Daniel Sieberg is at the CNN Center.

Daniel, good morning to you.

DANIEL SIEBERG, CNN TECHNOLOGY CORRESPONDENT: Good morning, Bill.

HEMMER: How does something like this happen?

SIEBERG: Well, the easy or simple answer is trickery. But really, it goes more beyond that into something called social engineering. And I'm going to get to that in just a second. But just because maybe people haven't heard of LexisNexis doesn't mean they're not watching you and know what you're doing.

The company that they're talking about here is actually a division of LexisNexis called Seisint. They're a database clearinghouse.

Now, what does what mean? Basically, they are looking for information about you to give to third parties. Approved third parties we're talking about here.

Say you're applying for a home loan, a mortgage, you're getting a job. They have all this personal information on you to verify who you are.

They are a legitimate company and a legitimate business. But you need to be a specific type of business to get this information. Not just anybody can get this information, this personal information.

But what LexisNexis is saying is that a group of individuals were able to get these passwords or IDs and basically get the information. They really didn't hack into any computers or steal the information that way, sort of in a technological way. They just fooled the company into giving over this information.

They're saying that last month they hurt about 30,000 people. Now it's another 280,000 people. And remember, recently it was ChoicePoint who had a similar example to all of this.

ChoicePoint, also a database clearinghouse or information broker, they store massive amounts of information. We're talking about millions and millions of records on virtually anybody.

If you are an American citizen, this is basically being stored there, Social Security numbers, driver's license numbers. And it's kept very secure. But if you can fool the company into thinking you're a legitimate business, that's how a lot of them are doing it.

Again, we talked about social engineering. Another example of that was the Paris Hilton cell phone debacle not too long ago. She was basically duped into giving out some of her information by somebody posing as a T-Mobile employee. That's what we're hearing.

And again, this is not hacking in or getting through any kind of secure means. This is just posing as somebody else. And she eventually gave over some of her information.

The company, LexisNexis, has come out. They're saying they're contacting people. They released a statement that says, "We are taking action to notify individuals where we have found some indication they may have some risk of identity theft or fraud."

Those letters with mailed out yesterday, this latest batch of letters. So, of course, a lot of people a little anxious waiting to see if they get one of these letters -- Bill.

HEMMER: In a nutshell, if you do receive one of those letters, what do you do?

SIEBERG: In a nutshell, the best thing to do they say is to at least check your bank statements, check your credit reports and see if there's any unusual activity that you're not aware of. And then take the steps necessary. LexisNexis is saying they will at least try and help with that, but certainly a major problem for a lot of people.

HEMMER: It also is pretty apparent these companies have to do more due diligence before giving out this information no matter who is on the other end of the phone.

SIEBERG: You're right, absolutely. And whether the government should get more involved with regulating theses types of businesses.

HEMMER: Daniel, thanks. Talk later, OK?

SIEBERG: You bet.

HEMMER: Soledad.

O'BRIEN: A fugitive is still at large this morning in South Carolina, where federal authorities have now joined the manhunt for the suspect who's wanted in two murders and a sexual assault.

(BEGIN VIDEOTAPE)

LT. ANDY CHRISTENSON, HORRY COUNTY, SOUTH CAROLINA, POLICE: There's a massive search right now for Mr. Stephen Stanko.

O'BRIEN (voice-over): Police in South Carolina have alerted law enforcement agencies nationwide to be on the lookout for the 37-year- old ex-con who they say is armed and dangerous.

CHRISTENSON: He's already demonstrated on more than one occasion what he's capable of, allegedly. And we are very concerned for the safety of not only our law enforcement officers and the general public here in Horry County, but, you know, nationwide.

O'BRIEN: Stephen Stanko is wanted for a deadly crime spree in South Carolina this past weekend. Allegedly raping a teenage girl, then killing both the woman believed to be his ex-girlfriend and a 74- year-old friend. Police say Stanko preyed on senior citizens before.

CHRISTENSON: He's been described to us as being well-dressed, being clean cut, being a smooth talker, and being a very convincing individual.

O'BRIEN: Police think Stephen Stanko is driving a stolen black Mazda pickup truck with South Carolina tag 709 PYJ. He was released from prison last year after serving nearly nine years for kidnapping.

While in prison, Stanko co-authored a book on "Life Behind Bars." Authorities fear he'll do anything to avoid going back.

CHRISTENSON: You know, desperate people do desperate things. And we're just asking that people be vigilant and be cautious, be aware. And please do not try to take matters into your own hands.

(END VIDEOTAPE)

O'BRIEN: Gordon Crews has known Stephen Stanko since 2000 when they began working on that book together about life in prison. I spoke with Mr. Crews earlier on AMERICAN MORNING and asked him if he was surprised by the new allegations against Stanko.

(BEGIN VIDEO CLIP)

GORDON CREWS, CO-AUTHOR, "LIVING IN PRISON": What I knew of Steve, I'm surprised. I'm like everyone else, I'm learning more and more about his background than honestly I didn't know.

O'BRIEN: Do you think the allegations are true?

CREWS: It would fit a pattern. Some of the people that I've talked to since this happened over the weekend, that we're starting to see a pattern that's repeating itself from past events where he's been confronted with, you know, some truths against the lies that he's given to people.

O'BRIEN: Can you explain that more? What do you mean by a pattern?

CREWS: Well, what's been painted now is that basically he kind of puts on a facade, and to move forward and accomplish what he's wanting to accomplish, whether it's employment or job or relationships. And then once he's confronted with the lies, if that is a difficult enough confrontation, then apparently he resorts to violence. This one's surprising that it went to this extent with the deaths.

O'BRIEN: Considering that it went to this extent, what do you think are the chances that Stephen Stanko could turn himself in, give himself up?

CREWS: Not to, you know, be an alarmist, but when we -- the last time I talked to him was in the fall. He made it quite clear that he was not wanting to go back to prison -- things that happened to him when he was incarcerated.

And also, I think he's crossed a line that he obviously cannot step back across. So I'm fearful that, you know, we may not have a peaceful resolution.

(END VIDEO CLIP)

O'BRIEN: Crews says when he last spoke with Stanko, he seemed depressed because of the difficulty he felt trying to integrate back into society -- Bill.

HEMMER: From overseas, Soledad, Defense Secretary Donald Rumsfeld is back in Iraq today. And this visit, like those in the past, are surprise trips, and for obvious reasons. He's already met with the new Iraqi leaders there.

Our Aneesh Raman is live in Baghdad.

The purpose for this trip is what, Aneesh?

ANEESH RAMAN, CNN CORRESPONDENT: Bill, good morning. A twofold purpose as Rumsfeld arrives on this, his ninth visit since the war, really to talk politics and security. The former with members, as you say, of Iraq's transitional government, Prime Minister Designate Ibrahim Al-Jaafari and President Jalal Talabani.

Rumsfeld voicing some of the strongest rhetoric from the Bush administration that we've heard up to date, pushing this government to finalize its formation. One vote remains for the prime minister and his cabinet for the transitional government to be complete.

He also urged them to meet the deadline for the constitutional referendum which now has to be put to the Iraqi people in just about four months. He also said that corruption shouldn't exist in Iraqi politics and that there should be a diversity of ethnicities in the cabinet.

Now, obviously, Bill, he's also here to talk about security, meeting with top American commanders. Among all the issues they will discuss is also the potential of troop reduction within a year.

Now, key to that will, of course, be how successful Iraqi forces can be in taking over the security situation on the ground. That's something that the secretary spoke to this morning.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, DEFENSE SECRETARY: The goal of the United States and the coalition is to work with the Iraqi security forces to help to build them, increase their size, increase their -- improve their equipment, and increase their capability and command and control. And increasingly, transfer responsibility to the Iraqi security forces.

(END VIDEO CLIP)

RAMAN: Now, Bill, the other key to when some of the 140,000 American forces on the ground could start leaving is, of course, Iraq's insurgency. They have shifted tactics in recent months to less frequent, much more sophisticated attacks.

All of that into the backdrop of a trip that, as you say, was also a surprise by Rumsfeld. Something he's always had to do and something that reiterates the volatile situation that remains here on the ground -- Bill.

HEMMER: Even as you speak of that, there was more violence today. What happened today in the northern part of the country, Aneesh?

RAMAN: North of the capital city in Mosul, two car bombs, Bill, going off today. The first was packed in a white van, apparently targeting a U.S. military convoy.

We understand it detonated early. No American casualties, but five Iraqi civilians were killed, three others were wounded. Another car bomb also in Mosul going off as U.S. soldiers were doing a patrol. Four American soldiers wounded in that incident -- Bill.

HEMMER: All right, Aneesh. Thanks, updating us from Baghdad today -- Soledad.

O'BRIEN: Well, working overnight, firefighters have controlled a four-alarm fire at a Baltimore warehouse. Firefighters are still at the scene. They're dousing the hot spots in the building.

The fire took over the entire warehouse, which is about the size of two square blocks. Parts of the roof collapsed. The cause of the fire not yet determined. One fire captain suffered an injury, but we're told it is not life-threatening. So some good news there.

Stormy weather creating some chaos in Louisiana. Rain moving across the state caused widespread flash flooding, prompting officials to shut down numerous roadways. Flooding also being blamed for the death of two people in separate car accidents.

That brings us to a closer look at the weather this morning. Chad Myers is watching all of that for us.

(WEATHER REPORT)

O'BRIEN: What a mess.

HEMMER: Get out of the way of the water.

O'BRIEN: Yes.

HEMMER: Because it's all running downhill.

Thank you, Chad.

In a moment here, the security scare on Capitol Hill yesterday. Police swooping in and taking down a mystery man who turned out to be unarmed. Did they overreact to that threat? We'll talk about it in a moment.

O'BRIEN: Also, thousands of American jobs headed overseas. One author tells us why technology and not just cheap labor is to blame.

HEMMER: Also, for Tiger Woods winning the Masters this weekend was a bit easier compared to talking about his father after that match. That's ahead this hour on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: No security changes are in the works after Monday's scare at the U.S. Capitol. Police have a 33-year-old man from China in custody now, tackled and dragged away from the Capitol's western terrace.

He had two suitcases with him. Said he wanted to see the president. Police feared he may have been a suicide bomber.

Workers in part of the building evacuating, including top members of Congress. One of the suitcases was literally blown up after X-rays showed suspicious materials inside. It turned out it was just a CD player.

Terrance Gainer is the chief of police at the Capitol building. He's my guest now in D.C.

And Chief, good morning to you.

TERRANCE GAINER, CAPITOL POLICE: Good morning, Bill.

HEMMER: Give me a grade. How did your guys do yesterday?

GAINER: I think A+. Congress was only minimally disrupted. Business went on as usual. Some tourists had to stop their tours. He was taken away safely and now is in custody.

HEMMER: So your guys creep up on him, on the suspect, you tackle him, you drag him away. That course of action was taken why, Chief?

GAINER: Well, it was about an hour and a half into this incident when our officers first saw him. He was not very cooperative or communicative. He stood there like a statue, said he wanted to speak to the president.

We initiated negotiations with him, didn't want to talk to us. And felt that he posed some threat.

HEMMER: Did he do anything illegal, Chief?

GAINER: Failure to obey the police when we told him to move away from the suitcases. So at that point he had committed a crime. But it was just the totality of the circumstances that made us want to take some action.

We used very, very little force on this. Our officers acted very bravely and smartly in removing him. And then when we examined the bags, there was certainly enough indication in there that there were wires. And it looked like a timing device and some very solid substance that was consistent with an explosive.

Also, we were interviewing him at the time and he said if we wanted to know what was in the bag, go ahead and open it. So it was kind of a threatening situation.

HEMMER: Yes. The pictures are dramatic. Did he speak English?

GAINER: He did. He communicated well enough for us to have several different conversations with him, both on the scene and then after back at our headquarters.

HEMMER: This lasted, what, about an hour and 20 minutes, I believe? GAINER: It was about an hour and 20 minutes until we took him from the scene. It took about three hours and 10 minutes to resolve the whole situation, to take X-rays and then do the things the bomb experts must do to render those suitcases safe.

HEMMER: Chief, had this taken place prior to 9/11, would you have responded differently?

GAINER: Listen, I've been at this about 37 years. And in the old days you would have walked up to the guy, grabbed him and tried to figure out what's going on. But post-9/11, and the suicide attacks that we see in Israel and northern Ireland and Iraq, make us all take a different approach to this.

HEMMER: So you treated him as if he could be a suicide bomber.

GAINER: Very much so.

HEMMER: Why was that approach taken?

GAINER: Well, because we just didn't know quite what we had. I mean, he was -- he was guarding those suitcases in a strange way. He had a distant look when our officer talked to him.

He was not responsive to many directions. And he was muttering he wanted to talk to the president. So the whole totality of it just seemed off kilter to us in our presence and then physically touching him, took command of the situation.

HEMMER: I mentioned he's 33 years old, a man from China. What more do you know about him today, Chief?

GAINER: Well, we do know his name is Mr. Win Hao (ph). He came from China through Australia. He got a citizenship in Australia in 2004.

We took him to the hospital last night and tried to get a voluntary commitment. The hospital ultimately released him back to us. We worked with federal authorities, and he's in the custody of Immigration and Customs and I hope he will be deported.

HEMMER: One more thing here, then. Ultimately, was he a threat or not?

GAINER: As it turns out he wasn't, but we didn't know it at the time.

HEMMER: Thanks, Chief. Terrance Gainer down there in D.C. Thanks again.

Here's Soledad.

O'BRIEN: Ahead this morning, a witness in the Michael Jackson trial breaks down on the stand. The mother of an alleged victim tells jurors what she regrets the most. That's ahead on AMERICAN MORNING.

Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: More details on this terrible story out of Germany to tell you about just into CNN. We are being told that this man armed with what is believed to be a kitchen knife who forced his way on to a bus, there's some more information about that.

Let's get right to Donata Troege. She's a reporter on the scene this morning.

Donata, good morning to you. What can you tell us about this story?

DONATA TROEGE, NTV REPORTER: Yes, the thing is that this hostage has -- seems to have taken place at about 1:00 German time in the morning, which is like two hours ago. And the man has taken four to seven children, schoolchildren aged about 11 or 12 years.

They were on the bus on their way from the school to their home. And this man, whose identity we don't know so far, has taken them to a house in a residential area in (UNINTELLIGIBLE), which is in the Rhine rural area of Germany, of western Germany.

And so far, there's a lot of police at that spot. They're trying to secure the area. And so far, we don't know yet what this man wants, why he took these children, and what he wants from anybody. I mean, this is all not clear so far to us.

O'BRIEN: Donata, a couple quick questions for you. Outside of the motive, which you say we do not know yet, has there been any communication that you know of with the hostage-taker?

TROEGE: No. Well, the thing is, as far as we know from the police, they don't have contact so far.

They are just -- this man is in a house with this children -- these children. And, as far as we know, there hasn't been any contact so far. But this is something that might be that there is contact and we just don't know it so far. So we hope that we will have more details in some moment.

O'BRIEN: Can you give us a sense of how many police officers and how many special forces have now surrounded that house in the rural area, as you describe it?

TROEGE: Well, no exact numbers I don't have so far. But I know that some -- like two hours ago there has been lots of police officers sent there. And as I see, there are more coming up. So I don't know, like a couple of dozen, I would say. But I have no exact numbers, unfortunately.

O'BRIEN: Donata Troege is a reporter with NTV, joining us with an update on this story, a hostage-taker taking somewhere between four and seven children in (UNINTELLIGIBLE) north of Cologne in Germany. We're going to, of course, continue to follow that story this morning. HEMMER: In the meantime, back to Jack. Talking about gas and the "Question of the Day."

CAFFERTY: The peak summer driving season is not here yet, but gas prices already hitting all-time highs. AAA is listing today's average for unleaded regular at $2.26 a gallon. But the Department of Energy predicts it's will hit $2.35 before it goes down for good sometime next month.

California has seen prices above three buck as gallon. A Gallup poll last month found concerns about the cost of gasoline now rival worries about unemployment, jobs and wages.

So the question this morning is, have gasoline prices changed your lifestyle?

Don in South Brunswick, New Jersey, writes, "No, after pushing my mother's car for four blocks to save gas while waiting on those gas lines in 1973, I became determined that small is not only better, it's the only way. And now with four cars in my family we all drive cars with smaller hybrid engines."

Chad writes, "The price of gas has affected my lifestyle. My paycheck lasts four days, and I get paid every other week."

Doug, in Bloomfield, New Jersey, "With four drivers and three cars in the family, 50 gallons each week is getting budget attention, fuel conservation. And getting rid of one SUV is now a dinnertime topic of conversation."

And somewhere Henny Youngman is watching. Johnnie in South Carolina writes, "My wife asked me to take her out somewhere expensive, so I took her to a gas station."

(LAUGHTER)

O'BRIEN: Maybe he's not kidding. It could be. All right, Jack. Thanks.

In just a moment, the exodus of thousands of U.S. jobs to overseas markets. One author says the shift has as much to do with the Web sites like Google and Yahoo! as it does with cheap labor. He's going to join us ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

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Aired April 12, 2005 - 08:59   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome, everybody. Also ahead this morning, this mystery man who showed up in Washington, D.C. with suitcases.
Did you see this videotape? He was demanding to see the president. He had these big old suitcases with him. He was then tackled, taken into custody.

Why was he there? What did he really want? We're going to talk to the chief of the Capitol Police about that this morning.

BILL HEMMER, CNN ANCHOR: Also in a moment here, the Michael Jackson trial continues. The jury hearing that the singer once begged with tears in his voice to get a mother's permission to spend time with her little boy. And more testimony like that could be coming later today. We'll talk about it in a moment.

O'BRIEN: Mr. Cafferty's got a look at the "Question of the Day."

JACK CAFFERTY, CNN ANCHOR: He's a beauty, isn't he, Jackson?

O'BRIEN: The case is just weird, isn't it?

CAFFERTY: Oh, man.

Rising gasoline prices, are they changing the way you live your life? AM@CNN.com. Share with us.

HEMMER: Have they changed yours yet?

CAFFERTY: No. But I don't drive very much, actually.

HEMMER: That's right.

CAFFERTY: One of my kids is away at school, so her car is in the garage at home.

HEMMER: You've got that big limousine car. Thanks, Jack.

O'BRIEN: The entourage.

(LAUGHTER)

CAFFERTY: Thanks for your help.

HEMMER: Carol, good morning.

CAROL COSTELLO, CNN ANCHOR: Good morning. Good morning to all of you.

"Now in the News," a hostage situation in Germany. We told you about this a short time ago.

Police have surrounded a house north of Cologne, where a man is said to be holding several children hostage. Sources say the man had apparently abducted at least four children from a bus. We will keep you updated on this developing story. And keep in mind, this is in Germany.

President Bush is marking the political progress in Iraq since Saddam Hussein was removed from power two years ago. The president is set to address American troops in Ft. Hood in Texas. That's at just about two hours from now.

CNN will have live coverage of the president's address. That begins specifically at 11:20 a.m. Eastern.

The address comes one day after the president hosted Israeli Prime Minister Ariel Sharon at his Texas ranch. Prime Minister Sharon will be in Washington today to meet with U.S. lawmakers and Israeli leaders. Speaking to reporters before he left, the prime minister said the meeting with President Bush was a great success.

And in California, the mother of Michael Jackson's accuser may take the stand when the trial resumes in just a couple of hours. Prosecutors are trying to show Jackson has a history of inappropriate behavior with boys. They've already questioned the mother of a past Jackson accuser. The boy later got a multimillion-dollar settlement from the star.

Back to you.

HEMMER: All right, Carol. Thanks.

This morning, LexisNexis is reporting that its problem is much worse than first thought. Personal information about more than 300,000 Americans may have been stolen from the company's databases.

Technology correspondent Daniel Sieberg is at the CNN Center.

Daniel, good morning to you.

DANIEL SIEBERG, CNN TECHNOLOGY CORRESPONDENT: Good morning, Bill.

HEMMER: How does something like this happen?

SIEBERG: Well, the easy or simple answer is trickery. But really, it goes more beyond that into something called social engineering. And I'm going to get to that in just a second. But just because maybe people haven't heard of LexisNexis doesn't mean they're not watching you and know what you're doing.

The company that they're talking about here is actually a division of LexisNexis called Seisint. They're a database clearinghouse.

Now, what does what mean? Basically, they are looking for information about you to give to third parties. Approved third parties we're talking about here.

Say you're applying for a home loan, a mortgage, you're getting a job. They have all this personal information on you to verify who you are.

They are a legitimate company and a legitimate business. But you need to be a specific type of business to get this information. Not just anybody can get this information, this personal information.

But what LexisNexis is saying is that a group of individuals were able to get these passwords or IDs and basically get the information. They really didn't hack into any computers or steal the information that way, sort of in a technological way. They just fooled the company into giving over this information.

They're saying that last month they hurt about 30,000 people. Now it's another 280,000 people. And remember, recently it was ChoicePoint who had a similar example to all of this.

ChoicePoint, also a database clearinghouse or information broker, they store massive amounts of information. We're talking about millions and millions of records on virtually anybody.

If you are an American citizen, this is basically being stored there, Social Security numbers, driver's license numbers. And it's kept very secure. But if you can fool the company into thinking you're a legitimate business, that's how a lot of them are doing it.

Again, we talked about social engineering. Another example of that was the Paris Hilton cell phone debacle not too long ago. She was basically duped into giving out some of her information by somebody posing as a T-Mobile employee. That's what we're hearing.

And again, this is not hacking in or getting through any kind of secure means. This is just posing as somebody else. And she eventually gave over some of her information.

The company, LexisNexis, has come out. They're saying they're contacting people. They released a statement that says, "We are taking action to notify individuals where we have found some indication they may have some risk of identity theft or fraud."

Those letters with mailed out yesterday, this latest batch of letters. So, of course, a lot of people a little anxious waiting to see if they get one of these letters -- Bill.

HEMMER: In a nutshell, if you do receive one of those letters, what do you do?

SIEBERG: In a nutshell, the best thing to do they say is to at least check your bank statements, check your credit reports and see if there's any unusual activity that you're not aware of. And then take the steps necessary. LexisNexis is saying they will at least try and help with that, but certainly a major problem for a lot of people.

HEMMER: It also is pretty apparent these companies have to do more due diligence before giving out this information no matter who is on the other end of the phone.

SIEBERG: You're right, absolutely. And whether the government should get more involved with regulating theses types of businesses.

HEMMER: Daniel, thanks. Talk later, OK?

SIEBERG: You bet.

HEMMER: Soledad.

O'BRIEN: A fugitive is still at large this morning in South Carolina, where federal authorities have now joined the manhunt for the suspect who's wanted in two murders and a sexual assault.

(BEGIN VIDEOTAPE)

LT. ANDY CHRISTENSON, HORRY COUNTY, SOUTH CAROLINA, POLICE: There's a massive search right now for Mr. Stephen Stanko.

O'BRIEN (voice-over): Police in South Carolina have alerted law enforcement agencies nationwide to be on the lookout for the 37-year- old ex-con who they say is armed and dangerous.

CHRISTENSON: He's already demonstrated on more than one occasion what he's capable of, allegedly. And we are very concerned for the safety of not only our law enforcement officers and the general public here in Horry County, but, you know, nationwide.

O'BRIEN: Stephen Stanko is wanted for a deadly crime spree in South Carolina this past weekend. Allegedly raping a teenage girl, then killing both the woman believed to be his ex-girlfriend and a 74- year-old friend. Police say Stanko preyed on senior citizens before.

CHRISTENSON: He's been described to us as being well-dressed, being clean cut, being a smooth talker, and being a very convincing individual.

O'BRIEN: Police think Stephen Stanko is driving a stolen black Mazda pickup truck with South Carolina tag 709 PYJ. He was released from prison last year after serving nearly nine years for kidnapping.

While in prison, Stanko co-authored a book on "Life Behind Bars." Authorities fear he'll do anything to avoid going back.

CHRISTENSON: You know, desperate people do desperate things. And we're just asking that people be vigilant and be cautious, be aware. And please do not try to take matters into your own hands.

(END VIDEOTAPE)

O'BRIEN: Gordon Crews has known Stephen Stanko since 2000 when they began working on that book together about life in prison. I spoke with Mr. Crews earlier on AMERICAN MORNING and asked him if he was surprised by the new allegations against Stanko.

(BEGIN VIDEO CLIP)

GORDON CREWS, CO-AUTHOR, "LIVING IN PRISON": What I knew of Steve, I'm surprised. I'm like everyone else, I'm learning more and more about his background than honestly I didn't know.

O'BRIEN: Do you think the allegations are true?

CREWS: It would fit a pattern. Some of the people that I've talked to since this happened over the weekend, that we're starting to see a pattern that's repeating itself from past events where he's been confronted with, you know, some truths against the lies that he's given to people.

O'BRIEN: Can you explain that more? What do you mean by a pattern?

CREWS: Well, what's been painted now is that basically he kind of puts on a facade, and to move forward and accomplish what he's wanting to accomplish, whether it's employment or job or relationships. And then once he's confronted with the lies, if that is a difficult enough confrontation, then apparently he resorts to violence. This one's surprising that it went to this extent with the deaths.

O'BRIEN: Considering that it went to this extent, what do you think are the chances that Stephen Stanko could turn himself in, give himself up?

CREWS: Not to, you know, be an alarmist, but when we -- the last time I talked to him was in the fall. He made it quite clear that he was not wanting to go back to prison -- things that happened to him when he was incarcerated.

And also, I think he's crossed a line that he obviously cannot step back across. So I'm fearful that, you know, we may not have a peaceful resolution.

(END VIDEO CLIP)

O'BRIEN: Crews says when he last spoke with Stanko, he seemed depressed because of the difficulty he felt trying to integrate back into society -- Bill.

HEMMER: From overseas, Soledad, Defense Secretary Donald Rumsfeld is back in Iraq today. And this visit, like those in the past, are surprise trips, and for obvious reasons. He's already met with the new Iraqi leaders there.

Our Aneesh Raman is live in Baghdad.

The purpose for this trip is what, Aneesh?

ANEESH RAMAN, CNN CORRESPONDENT: Bill, good morning. A twofold purpose as Rumsfeld arrives on this, his ninth visit since the war, really to talk politics and security. The former with members, as you say, of Iraq's transitional government, Prime Minister Designate Ibrahim Al-Jaafari and President Jalal Talabani.

Rumsfeld voicing some of the strongest rhetoric from the Bush administration that we've heard up to date, pushing this government to finalize its formation. One vote remains for the prime minister and his cabinet for the transitional government to be complete.

He also urged them to meet the deadline for the constitutional referendum which now has to be put to the Iraqi people in just about four months. He also said that corruption shouldn't exist in Iraqi politics and that there should be a diversity of ethnicities in the cabinet.

Now, obviously, Bill, he's also here to talk about security, meeting with top American commanders. Among all the issues they will discuss is also the potential of troop reduction within a year.

Now, key to that will, of course, be how successful Iraqi forces can be in taking over the security situation on the ground. That's something that the secretary spoke to this morning.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, DEFENSE SECRETARY: The goal of the United States and the coalition is to work with the Iraqi security forces to help to build them, increase their size, increase their -- improve their equipment, and increase their capability and command and control. And increasingly, transfer responsibility to the Iraqi security forces.

(END VIDEO CLIP)

RAMAN: Now, Bill, the other key to when some of the 140,000 American forces on the ground could start leaving is, of course, Iraq's insurgency. They have shifted tactics in recent months to less frequent, much more sophisticated attacks.

All of that into the backdrop of a trip that, as you say, was also a surprise by Rumsfeld. Something he's always had to do and something that reiterates the volatile situation that remains here on the ground -- Bill.

HEMMER: Even as you speak of that, there was more violence today. What happened today in the northern part of the country, Aneesh?

RAMAN: North of the capital city in Mosul, two car bombs, Bill, going off today. The first was packed in a white van, apparently targeting a U.S. military convoy.

We understand it detonated early. No American casualties, but five Iraqi civilians were killed, three others were wounded. Another car bomb also in Mosul going off as U.S. soldiers were doing a patrol. Four American soldiers wounded in that incident -- Bill.

HEMMER: All right, Aneesh. Thanks, updating us from Baghdad today -- Soledad.

O'BRIEN: Well, working overnight, firefighters have controlled a four-alarm fire at a Baltimore warehouse. Firefighters are still at the scene. They're dousing the hot spots in the building.

The fire took over the entire warehouse, which is about the size of two square blocks. Parts of the roof collapsed. The cause of the fire not yet determined. One fire captain suffered an injury, but we're told it is not life-threatening. So some good news there.

Stormy weather creating some chaos in Louisiana. Rain moving across the state caused widespread flash flooding, prompting officials to shut down numerous roadways. Flooding also being blamed for the death of two people in separate car accidents.

That brings us to a closer look at the weather this morning. Chad Myers is watching all of that for us.

(WEATHER REPORT)

O'BRIEN: What a mess.

HEMMER: Get out of the way of the water.

O'BRIEN: Yes.

HEMMER: Because it's all running downhill.

Thank you, Chad.

In a moment here, the security scare on Capitol Hill yesterday. Police swooping in and taking down a mystery man who turned out to be unarmed. Did they overreact to that threat? We'll talk about it in a moment.

O'BRIEN: Also, thousands of American jobs headed overseas. One author tells us why technology and not just cheap labor is to blame.

HEMMER: Also, for Tiger Woods winning the Masters this weekend was a bit easier compared to talking about his father after that match. That's ahead this hour on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: No security changes are in the works after Monday's scare at the U.S. Capitol. Police have a 33-year-old man from China in custody now, tackled and dragged away from the Capitol's western terrace.

He had two suitcases with him. Said he wanted to see the president. Police feared he may have been a suicide bomber.

Workers in part of the building evacuating, including top members of Congress. One of the suitcases was literally blown up after X-rays showed suspicious materials inside. It turned out it was just a CD player.

Terrance Gainer is the chief of police at the Capitol building. He's my guest now in D.C.

And Chief, good morning to you.

TERRANCE GAINER, CAPITOL POLICE: Good morning, Bill.

HEMMER: Give me a grade. How did your guys do yesterday?

GAINER: I think A+. Congress was only minimally disrupted. Business went on as usual. Some tourists had to stop their tours. He was taken away safely and now is in custody.

HEMMER: So your guys creep up on him, on the suspect, you tackle him, you drag him away. That course of action was taken why, Chief?

GAINER: Well, it was about an hour and a half into this incident when our officers first saw him. He was not very cooperative or communicative. He stood there like a statue, said he wanted to speak to the president.

We initiated negotiations with him, didn't want to talk to us. And felt that he posed some threat.

HEMMER: Did he do anything illegal, Chief?

GAINER: Failure to obey the police when we told him to move away from the suitcases. So at that point he had committed a crime. But it was just the totality of the circumstances that made us want to take some action.

We used very, very little force on this. Our officers acted very bravely and smartly in removing him. And then when we examined the bags, there was certainly enough indication in there that there were wires. And it looked like a timing device and some very solid substance that was consistent with an explosive.

Also, we were interviewing him at the time and he said if we wanted to know what was in the bag, go ahead and open it. So it was kind of a threatening situation.

HEMMER: Yes. The pictures are dramatic. Did he speak English?

GAINER: He did. He communicated well enough for us to have several different conversations with him, both on the scene and then after back at our headquarters.

HEMMER: This lasted, what, about an hour and 20 minutes, I believe? GAINER: It was about an hour and 20 minutes until we took him from the scene. It took about three hours and 10 minutes to resolve the whole situation, to take X-rays and then do the things the bomb experts must do to render those suitcases safe.

HEMMER: Chief, had this taken place prior to 9/11, would you have responded differently?

GAINER: Listen, I've been at this about 37 years. And in the old days you would have walked up to the guy, grabbed him and tried to figure out what's going on. But post-9/11, and the suicide attacks that we see in Israel and northern Ireland and Iraq, make us all take a different approach to this.

HEMMER: So you treated him as if he could be a suicide bomber.

GAINER: Very much so.

HEMMER: Why was that approach taken?

GAINER: Well, because we just didn't know quite what we had. I mean, he was -- he was guarding those suitcases in a strange way. He had a distant look when our officer talked to him.

He was not responsive to many directions. And he was muttering he wanted to talk to the president. So the whole totality of it just seemed off kilter to us in our presence and then physically touching him, took command of the situation.

HEMMER: I mentioned he's 33 years old, a man from China. What more do you know about him today, Chief?

GAINER: Well, we do know his name is Mr. Win Hao (ph). He came from China through Australia. He got a citizenship in Australia in 2004.

We took him to the hospital last night and tried to get a voluntary commitment. The hospital ultimately released him back to us. We worked with federal authorities, and he's in the custody of Immigration and Customs and I hope he will be deported.

HEMMER: One more thing here, then. Ultimately, was he a threat or not?

GAINER: As it turns out he wasn't, but we didn't know it at the time.

HEMMER: Thanks, Chief. Terrance Gainer down there in D.C. Thanks again.

Here's Soledad.

O'BRIEN: Ahead this morning, a witness in the Michael Jackson trial breaks down on the stand. The mother of an alleged victim tells jurors what she regrets the most. That's ahead on AMERICAN MORNING.

Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: More details on this terrible story out of Germany to tell you about just into CNN. We are being told that this man armed with what is believed to be a kitchen knife who forced his way on to a bus, there's some more information about that.

Let's get right to Donata Troege. She's a reporter on the scene this morning.

Donata, good morning to you. What can you tell us about this story?

DONATA TROEGE, NTV REPORTER: Yes, the thing is that this hostage has -- seems to have taken place at about 1:00 German time in the morning, which is like two hours ago. And the man has taken four to seven children, schoolchildren aged about 11 or 12 years.

They were on the bus on their way from the school to their home. And this man, whose identity we don't know so far, has taken them to a house in a residential area in (UNINTELLIGIBLE), which is in the Rhine rural area of Germany, of western Germany.

And so far, there's a lot of police at that spot. They're trying to secure the area. And so far, we don't know yet what this man wants, why he took these children, and what he wants from anybody. I mean, this is all not clear so far to us.

O'BRIEN: Donata, a couple quick questions for you. Outside of the motive, which you say we do not know yet, has there been any communication that you know of with the hostage-taker?

TROEGE: No. Well, the thing is, as far as we know from the police, they don't have contact so far.

They are just -- this man is in a house with this children -- these children. And, as far as we know, there hasn't been any contact so far. But this is something that might be that there is contact and we just don't know it so far. So we hope that we will have more details in some moment.

O'BRIEN: Can you give us a sense of how many police officers and how many special forces have now surrounded that house in the rural area, as you describe it?

TROEGE: Well, no exact numbers I don't have so far. But I know that some -- like two hours ago there has been lots of police officers sent there. And as I see, there are more coming up. So I don't know, like a couple of dozen, I would say. But I have no exact numbers, unfortunately.

O'BRIEN: Donata Troege is a reporter with NTV, joining us with an update on this story, a hostage-taker taking somewhere between four and seven children in (UNINTELLIGIBLE) north of Cologne in Germany. We're going to, of course, continue to follow that story this morning. HEMMER: In the meantime, back to Jack. Talking about gas and the "Question of the Day."

CAFFERTY: The peak summer driving season is not here yet, but gas prices already hitting all-time highs. AAA is listing today's average for unleaded regular at $2.26 a gallon. But the Department of Energy predicts it's will hit $2.35 before it goes down for good sometime next month.

California has seen prices above three buck as gallon. A Gallup poll last month found concerns about the cost of gasoline now rival worries about unemployment, jobs and wages.

So the question this morning is, have gasoline prices changed your lifestyle?

Don in South Brunswick, New Jersey, writes, "No, after pushing my mother's car for four blocks to save gas while waiting on those gas lines in 1973, I became determined that small is not only better, it's the only way. And now with four cars in my family we all drive cars with smaller hybrid engines."

Chad writes, "The price of gas has affected my lifestyle. My paycheck lasts four days, and I get paid every other week."

Doug, in Bloomfield, New Jersey, "With four drivers and three cars in the family, 50 gallons each week is getting budget attention, fuel conservation. And getting rid of one SUV is now a dinnertime topic of conversation."

And somewhere Henny Youngman is watching. Johnnie in South Carolina writes, "My wife asked me to take her out somewhere expensive, so I took her to a gas station."

(LAUGHTER)

O'BRIEN: Maybe he's not kidding. It could be. All right, Jack. Thanks.

In just a moment, the exodus of thousands of U.S. jobs to overseas markets. One author says the shift has as much to do with the Web sites like Google and Yahoo! as it does with cheap labor. He's going to join us ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

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