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Identity Crisis; Rumsfeld Visit; TSA Plans to cut Airport Screeners

Aired April 12, 2005 - 14:01   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.


MILES O'BRIEN, CNN ANCHOR: Is your Social Security number in the hands of a would-be identity thief? A security problem at a large data company raises some big questions about your privacy.
KYRA PHILLIPS, CNN ANCHOR: CNN "Security Watch." A cutback of hundreds of screeners at one of the world's busiest airports. Will it affect safety in the skies?

O'BRIEN: And LIVE FROM viewers will remember the gator wrestler. We showed you his most recent brush with death. This hour, he tell us why he respects the reptile trying to rip him apart. Respect, hmm.

From the CNN Center in Atlanta, I'm Miles O'Brien.

PHILLIPS: And I'm Kyra Phillips. This hour of CNN's LIVE FROM starts right now.

O'BRIEN: Talk about an identity crisis. Upwards of 300,000 American consumers, maybe you, are potentially at risk of potentially devastating identity theft today after dozens of cyber security breaches at the vast databank LexisNexis. Now, if you weren't aware, LexisNexis, new year nitty-gritty, consider this, the services comprise more than 4.6 billion documents, all of which searchable online.

The company says it is investigating 59 incidents of hacking, which it initially believed affected only 30,000 people, whom the company notified by mail. Today, we learned data on another 280,000 may have been compromised.

LexisNexis says it knows of no cases so far, anyway, of hackers using their ill-gotten info for financial gain. The possibility exists, but so do some highly-effective defenses.

With those, we turn to CNN financial correspondent Valerie Morris in New York -- Valerie.

VALERIE MORRIS, CNN FINANCIAL CORRESPONDENT: Hi there, Miles. The first thing I need to let you know is that this is one of the fastest growing white collar crimes in the United States. It is a federal crime. And it happens very, very easily.

A lot of people don't understand the fact that you are just perhaps one stolen letter from your mailbox, your name, your address, your Social Security number. These people are very creative. And about 500,000 to 700,000 victims every year here in the United States -- Miles.

O'BRIEN: Valerie, how does it happen typically? I've heard about things getting stolen out of your mailbox.

MORRIS: Right.

O'BRIEN: What else can happen?

MORRIS: Well, sometimes you may receive a notice from a collection company saying that you're overdue for an account that you know you never opened. Obviously, someone has in your name, is using your good name and your credit. That's one of the ways it happens.

Another thing is that unfortunately those nine digits known as our Social Security number is used like a universal I.D. number. It's not a good idea.

Don't use your Social Security number unless you absolutely positively have to. Suggest a tax I.D. number, your driver's license number, anything. Because that Social Security number and your address leads people right to all of your information.

They can open accounts in your name, take out loans, do a lot of damage before you know it. And Miles, the real sad thing, the average victim of identity theft doesn't know it for one year.

O'BRIEN: Well, so, what is the single most important thing we should all do to try to guard against this?

MORRIS: I preach this -- almost as religiously as I preach the word "shred" all of your documents, that's one way to prevent it. But the most important thing is to get your credit reports every year from each of the credit reporting bureaus.

You see the contact information on the screen there, Equifax, Experian and TransUnion. Experian used to be known as TRW. And you get those, you read them.

If there's information that is not you, make sure you dispute it. Read it carefully. Check your accounts, notice what is there.

It is absolutely an epidemic proportion now, identity theft. And Miles, the states where it is most prevalent, Arizona, Nevada, California, Texas and Colorado. That is all according to the FTC.

O'BRIEN: Wonder why those states. All right. Valerie Morris, I got the shredder, and the kids love doing it. So it's actually a lot of fun for the whole family.

MORRIS: Well, it should be not only fun, but teaching them at a very early age. And Miles, another thing if I have just a quick second.

O'BRIEN: Yes.

MORRIS: Whenever you get your credit card, what's the first thing they tell you to do? Sign your name on the back. My suggestion is don't sign your name. Put "Photo I.D. required." And that way if Miles O'Brien is standing there and saying this is who I am, you have picture identity and, therefore, no one can just look at your name and try and copy it.

O'BRIEN: Great tip. All right. Valerie Morris, thank you very much. Appreciate it.

MORRIS: Sure.

O'BRIEN: For more tips on how to fight identity theft, check out cnnmoney.com. We have a special section on working with creditors, plus an online quiz to test your scam I.Q. It's all at cnnmoney.com/security.

PHILLIPS: Nothing says money like the New York Stock Exchange or the New York headquarters of Citigroup, or the World Bank in Washington, all of which allegedly were scouted in 2000 and 2001 by three men named in a terror indictment unsealed today in Washington. The three have been held in Britain since last August when the alleged surveillance first came to light, prompting code orange alerts in New York, D.C. and northern New Jersey. Britain plans to try the men next January, meaning it could take a long, long time to bring them to the states.

That and many other questions are sure to come up at a 3:00 p.m. news conference, noon Pacific, with Deputy U.S. Attorney General James Comey. CNN will bring that to you live just about an hour from now.

And don't forget, CNN provides the most reliable coverage of news affecting your security day and night. In just a few minutes, we're going to talk intelligence reform and airline security with the former inspector general of the Homeland Security Department, now a CNN security analyst, Clark Kent Ervin.

O'BRIEN: Safe and sound after five hours as hostages. Four German schoolgirls in the town of Ennepetal are freed. Their alleged kidnapper in custody.

Police say the man commandeered a public bus, took a group of schoolchildren at knifepoint, and then forced his way into a nearby home with four of them. Hostage negotiators say the man, identified as Iranian, made no demands during the long standoff.

PHILLIPS: News "Across America" now.

If he's cornered, he won't go peacefully. That's the assessment of a criminologist about the subject of a nationwide manhunt.

Police accuse this man, Stephen Stanko, of killing two people and raping a teen in South Carolina. Criminologists who wrote a book with Stanko say it's clear that he doesn't want to return to prison.

An emotional day for students returning to Red Lake High School. Red Lake, as you'll recall, was the scene of that deadly shooting spree in Minnesota just three weeks ago. Officials say that many of the school's 300 students were so traumatized by the bloodshed only half of them are expected back at school today.

Banged up by Bowflex. The maker of the popular fitness machines has agreed to pay almost $1 million in penalties to settle allegations about safety defects. The Consumer Product Safety Commission says the company failed to report safety problems that led to dozens of injuries, including chipped teeth. Back, disc and neck injuries also.

O'BRIEN: Back in Baghdad, Defense Secretary Donald Rumsfeld made another surprise trip to the Iraqi capital today, armed with messages for U.S. troops and for Iraq's new leader. Rumsfeld's no longer talking exit strategy. He's talking victory strategy now.

Our senior Pentagon correspondent Jamie McIntyre traveling with Rumsfeld. He brings us the latest from Baghdad.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice-over): The unannounced visit to Iraq was Defense Secretary Rumsfeld's ninth since the 2003 invasion. And it comes at a time of cautious optimism that Iraq may be at a tipping point, with the formation of the new transitional government. Rumsfeld met with Iraq's new president and prime minister and told both the U.S. wants no delay in plans for the next round of elections in December.

DONALD RUMSFELD, DEFENSE SECRETARY: Good progress is being made. I think anyone who watched the elections on January 30 has to recognize the significant contribution made by Iraqi security forces to the success of that election.

MCINTYRE: U.S. casualties have dropped off dramatically in the last six weeks as insurgents have focused increasingly on Iraq's military, police, civilians and government officials. There are now 137,000 U.S. troops in Iraq. And a mid-year review in June will determine how many, if any, will go home.

(on camera): While U.S. military commanders are busy making plans for possible troop reductions in the next year or year and a half, Defense Secretary Rumsfeld is carefully avoiding any predictions. Well aware that rosy scenarios often don't pan out, Rumsfeld is sticking to his mantra, that U.S. troops will be withdrawn as soon as they are no longer needed and not one day sooner.

(voice-over): At a town hall meeting with U.S. soldiers in Baghdad, Rumsfeld handed out medals for valor and answered questions from troops anxious to know when their tours might end.

RUMSFELD: We don't really have an exit strategy; we have a victory strategy. The reason we're here is not because the American people or the United States government covets anyone's land or anyone's oil or anyone's people. We don't.

MCINTYRE: This time there were no pointed questions about lack of armor, unlike a similar Q&A session in Kuwait in December. In fact, one soldier thanked Rumsfeld and presented him with an armor plate that saved his life by stopping a sniper's bullet. And while recruiting and retention remain a problem for the Army in general, more than 100 soldiers took the opportunity of Rumsfeld's visit to reenlist on the spot.

Jamie McIntyre, CNN, Baghdad.

(END VIDEOTAPE)

O'BRIEN: Netting another big fish, Iraqi forces have captured an insider from Saddam Hussein's former regime. While not one of Iraq's 55 most wanted, Fadhil Ibrahim Mahmoud al-Mashadani (ph) used to be in charge of Baghdad's military bureau, picked up at a farm northeast of Baghdad. He's believed to have been aiding insurgents in Iraq.

PHILLIPS: Commander in chief boosting morale. President Bush praised U.S. troops at Fort Hood, Texas, today. He said due to their efforts and sacrifices they're laying down the foundation of a free society in Iraq. They president's visit was to mark the two-year anniversary of the end of the Saddam Hussein regime.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Soldiers and police of a free Iraq learned on election day they can face down the insurgents. And they learned they can prevail. The Iraqi people now have confidence that the soldiers and police of a free Iraq have the courage and resolve to defend them.

(END VIDEO CLIP)

PHILLIPS: While President Bush noted much has been accomplished in Iraq, he said it isn't time to bring U.S. forces home just yet.

O'BRIEN: A shakeup at the top of the Transportation Security Authority.

PHILLIPS: Now there's word of hundreds of cutbacks of airport screeners. Are America's skies secure? We're going to talk about it with the former inspector general for the Department of Homeland Security.

O'BRIEN: Also ahead, if you were watching CNN at this time yesterday, you saw this hostage drama unfold. Today, we take you inside the keys to getting an armed man to give himself up.

PHILLIPS: And a little later on LIVE FROM, who will lead the next generation of movers and shakers in Washington? Carlos Watson in the house to tell us about those faces to watch for.

(COMMERCIAL BREAK)

O'BRIEN: President Bush's choice to oversee 15 U.S. spy agencies promises to be his main focus. It will be to reform them. But he isn't yet saying how.

The Senate Intelligence Committee today took up the nomination of veteran diplomat John Negroponte to be the director of national intelligence. Negroponte told the panel he is still studying recommendations of recent commissions that have criticized U.S. intelligence gathering.

Intelligence gathering is just one national security concern. Another is what's happening and what could happen at the nation's airports.

Let's turn over now to CNN security analyst Clark Kent Ervin, former inspector general for the Office of Homeland Security.

Clark, good to have you back with us.

CLARK KENT ERVIN, FMR. INSPECTOR GENERAL FOR DEPT. OF HOMELAND SECURITY: Thank you very much, Miles.

O'BRIEN: All right. The news today is Hartsfield Airport, busiest in the nation, facing a big cutback. Four hundred TSA officers to be cut from the ranks there. All kinds of potential delays as a result of that.

What does that say about the commitment to security of the TSA?

ERVIN: Well, it's troubling. Needless to say, the Atlanta airport is, as you say, the busiest in the nation. There is this cap on the total number of screeners. Forty-five thousand is the cap. This are 47,000 in the country today.

So I understand the need for lowering screeners across the country. But certainly there are remote airports that have more screeners than they need. I would not take screeners from the busiest airport in the country.

O'BRIEN: I think a lot of frequent traveling would attest to the fact of going through places -- I was at an airport in Wyoming where every passenger had their own personal TSA person. So, clearly, there could be a redistribution here. But I assume there's a lot of politics involved in that.

ERVIN: Surely that's the case. I'm sure that the local officials are lobbying for having maximum protection at their airports. And that's understandable.

But we need to think strategically in this country. And the hope is that TSA will allocate these cuts in a way that those airports that are the busiest are the ones that have the most screeners. So I hope that if this is, in fact, true, TSA's thinking about this, that it will be rethought.

O'BRIEN: Now, we were talking yesterday about giving a grade to the TSA. What is the report card right now? It really is a mixed bag, isn't it?

ERVIN: It is a mixed bag. Needless to say, a lot has been done since 9/11. And I think it's fair to say that we're safer than we were on 9/11. But there's much, much more to be done, even in the area of aviation security, which is TSA's principal responsibility.

It's still possible to sneak deadly weapons onto airplanes, as we learned when I was in the Office of Inspector General. In terms of other modes of transportation, mass transit, port security, other things, there are still things to be done. So there is a ways to go before we're as safe as we can be and need to be.

O'BRIEN: Well, and it occurs to me as I travel through the system, that the TSA puts its focus where people would have the perception there is security. And yet, the back door of the airport, where the caters come in, and all those sorts of things which might allow contraband, weapons, explosives, to get into airplanes, little attention is paid there.

ERVIN: That's right. Hundreds, and depending on the size of the airport perhaps more than hundreds of people have access to secure, sterile parts of the airport. Those people should have background checks, very intensive criminal background checks.

But we saw in the reports that we did when I was with the Office of Inspector General that background checks weren't always done on the screeners themselves. So that raises a question as to how intensive the check process is. This is something TSA needs to pay attention to.

O'BRIEN: And as you are drawing concentric circles there from the plane, we talk about the people that have access, the caterers, the perimeter itself, and then, of course, the issue comes up time and again, shoulder-fired missile. And so many experts I talk to say it really is probably just a matter of time before somebody tries to do this and perhaps succeeds.

ERVIN: It certainly has been tried, of course, elsewhere in the world. Aircraft are vulnerable to it.

The cost of equipping each aircraft with the technology that could prevent this is very, very high, indeed. But you're right, Miles, that this is an area of vulnerability. And I'm hopeful that the new secretary will focus some attention on that and see if there is technology that over time can be cost-effective enough to provide some deterrents in this regard.

O'BRIEN: Yes. Not an easy thing to stop, though, is it?

ERVIN: Not at all.

O'BRIEN: Clark Kent Ervin, our security analyst. Thank you very much for your time. Appreciate it.

ERVIN: Thanks for having me.

O'BRIEN: All right -- Kyra.

PHILLIPS: Stay tuned to CNN day and night about all issues concerning your security. Well, straight ahead, which would you rather do, get a root canal or fill out your taxes? A new survey -- we all have a choice on that, don't we? We got you...

O'BRIEN: Root canal. I want the root canal.

PHILLIPS: You want the root canal?

O'BRIEN: Yes, I do.

PHILLIPS: I think I'd rather do my taxes.

All right. And a new resident moves on to Wisteria Lane. Find out who is becoming the newest -- I guess we just gave it away, maybe -- "Desperate Housewife" later on LIVE FROM -- Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: I'm Susan Lisovicz at the New York Stock Exchange. A big payback could be in store for some burned investors. I'll have that story next on LIVE FROM. So stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

VERONICA DE LA CRUZ, CNN ANCHOR: Even as we race to understand the Earth, environmental warnings are sounding for the planet. At CNN.com, a closer look at how the Earth is changing.

Is global warming really a threat? Most scientist s do believe it is but have yet to approach a basic agreement on how it's happening.

Scientists do agree that the Earth has gotten warmer. Since 1850, average global temperatures have risen more than half-degree Celsius. And the concentration of greenhouse gases in the atmosphere is near its highest point in recorded history. This interactive explainer breaks down the global warming process.

Also, a look at some of the discoveries and milestones of climate change from the modern age from 1896, when a Swedish scientist first described what is now known as the greenhouse effect, to 2005, when more than 140 countries ratified the Kyoto Protocol. Scientists are saying climate change could have drastic consequences.

In this interactive map, fine out where in the world landscapes are changing as temperatures rise. As the Earth's population grows, we know that human impact on the planet's resources are coming under closer scrutiny. A host of problems dominate the environmental agenda, with many issues overlapping and influencing one another.

What do you think are some of the biggest issues? How do you feel about the current state of the environment?

You can participate in our "Quick Vote" or send us an e-mail with your thoughts. Log on to cnn.com/changingearth.

From the dot-com news desk in Atlanta, I'm Veronica De La Cruz.

(END VIDEOTAPE)

PHILLIPS: Well, burned investors could finally be getting a payback for buying stocks based on tainted Wall Street research.

O'BRIEN: Susan Lisovicz joining us from the New York Stock Exchange. Maybe there is justice in this world -- maybe.

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

PHILLIPS: "Now in the News," a former high-level government official calls President Bush's nominee for U.N. ambassador a "serial abuser." The Senate Foreign Relations Committee is in a second day of hearings on John Bolton. The former State Department bureau chief charged that Bolton harassed analysts who disagreed with him on Cuba's weapons capabilities.

A federal indictment unsealed today links three men to a suspected terrorist plot against several U.S. financial centers. The three are already in British custody. The Justice Department does plan a news conference for 3:00 p.m. Eastern. We'll cover it for you live.

LexisNexis now says personal information on 310,000 Americans may have been stolen from its databases. That's nearly 10 times the number that the firm disclosed last month. "NEWSNIGHT WITH AARON BROWN" will take an in-depth look at cyber security and how you can protect yourself from identity theft. That's tonight at 10:00 Eastern on CNN.

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 April 12, 2005 - 14:01   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: Is your Social Security number in the hands of a would-be identity thief? A security problem at a large data company raises some big questions about your privacy.
KYRA PHILLIPS, CNN ANCHOR: CNN "Security Watch." A cutback of hundreds of screeners at one of the world's busiest airports. Will it affect safety in the skies?

O'BRIEN: And LIVE FROM viewers will remember the gator wrestler. We showed you his most recent brush with death. This hour, he tell us why he respects the reptile trying to rip him apart. Respect, hmm.

From the CNN Center in Atlanta, I'm Miles O'Brien.

PHILLIPS: And I'm Kyra Phillips. This hour of CNN's LIVE FROM starts right now.

O'BRIEN: Talk about an identity crisis. Upwards of 300,000 American consumers, maybe you, are potentially at risk of potentially devastating identity theft today after dozens of cyber security breaches at the vast databank LexisNexis. Now, if you weren't aware, LexisNexis, new year nitty-gritty, consider this, the services comprise more than 4.6 billion documents, all of which searchable online.

The company says it is investigating 59 incidents of hacking, which it initially believed affected only 30,000 people, whom the company notified by mail. Today, we learned data on another 280,000 may have been compromised.

LexisNexis says it knows of no cases so far, anyway, of hackers using their ill-gotten info for financial gain. The possibility exists, but so do some highly-effective defenses.

With those, we turn to CNN financial correspondent Valerie Morris in New York -- Valerie.

VALERIE MORRIS, CNN FINANCIAL CORRESPONDENT: Hi there, Miles. The first thing I need to let you know is that this is one of the fastest growing white collar crimes in the United States. It is a federal crime. And it happens very, very easily.

A lot of people don't understand the fact that you are just perhaps one stolen letter from your mailbox, your name, your address, your Social Security number. These people are very creative. And about 500,000 to 700,000 victims every year here in the United States -- Miles.

O'BRIEN: Valerie, how does it happen typically? I've heard about things getting stolen out of your mailbox.

MORRIS: Right.

O'BRIEN: What else can happen?

MORRIS: Well, sometimes you may receive a notice from a collection company saying that you're overdue for an account that you know you never opened. Obviously, someone has in your name, is using your good name and your credit. That's one of the ways it happens.

Another thing is that unfortunately those nine digits known as our Social Security number is used like a universal I.D. number. It's not a good idea.

Don't use your Social Security number unless you absolutely positively have to. Suggest a tax I.D. number, your driver's license number, anything. Because that Social Security number and your address leads people right to all of your information.

They can open accounts in your name, take out loans, do a lot of damage before you know it. And Miles, the real sad thing, the average victim of identity theft doesn't know it for one year.

O'BRIEN: Well, so, what is the single most important thing we should all do to try to guard against this?

MORRIS: I preach this -- almost as religiously as I preach the word "shred" all of your documents, that's one way to prevent it. But the most important thing is to get your credit reports every year from each of the credit reporting bureaus.

You see the contact information on the screen there, Equifax, Experian and TransUnion. Experian used to be known as TRW. And you get those, you read them.

If there's information that is not you, make sure you dispute it. Read it carefully. Check your accounts, notice what is there.

It is absolutely an epidemic proportion now, identity theft. And Miles, the states where it is most prevalent, Arizona, Nevada, California, Texas and Colorado. That is all according to the FTC.

O'BRIEN: Wonder why those states. All right. Valerie Morris, I got the shredder, and the kids love doing it. So it's actually a lot of fun for the whole family.

MORRIS: Well, it should be not only fun, but teaching them at a very early age. And Miles, another thing if I have just a quick second.

O'BRIEN: Yes.

MORRIS: Whenever you get your credit card, what's the first thing they tell you to do? Sign your name on the back. My suggestion is don't sign your name. Put "Photo I.D. required." And that way if Miles O'Brien is standing there and saying this is who I am, you have picture identity and, therefore, no one can just look at your name and try and copy it.

O'BRIEN: Great tip. All right. Valerie Morris, thank you very much. Appreciate it.

MORRIS: Sure.

O'BRIEN: For more tips on how to fight identity theft, check out cnnmoney.com. We have a special section on working with creditors, plus an online quiz to test your scam I.Q. It's all at cnnmoney.com/security.

PHILLIPS: Nothing says money like the New York Stock Exchange or the New York headquarters of Citigroup, or the World Bank in Washington, all of which allegedly were scouted in 2000 and 2001 by three men named in a terror indictment unsealed today in Washington. The three have been held in Britain since last August when the alleged surveillance first came to light, prompting code orange alerts in New York, D.C. and northern New Jersey. Britain plans to try the men next January, meaning it could take a long, long time to bring them to the states.

That and many other questions are sure to come up at a 3:00 p.m. news conference, noon Pacific, with Deputy U.S. Attorney General James Comey. CNN will bring that to you live just about an hour from now.

And don't forget, CNN provides the most reliable coverage of news affecting your security day and night. In just a few minutes, we're going to talk intelligence reform and airline security with the former inspector general of the Homeland Security Department, now a CNN security analyst, Clark Kent Ervin.

O'BRIEN: Safe and sound after five hours as hostages. Four German schoolgirls in the town of Ennepetal are freed. Their alleged kidnapper in custody.

Police say the man commandeered a public bus, took a group of schoolchildren at knifepoint, and then forced his way into a nearby home with four of them. Hostage negotiators say the man, identified as Iranian, made no demands during the long standoff.

PHILLIPS: News "Across America" now.

If he's cornered, he won't go peacefully. That's the assessment of a criminologist about the subject of a nationwide manhunt.

Police accuse this man, Stephen Stanko, of killing two people and raping a teen in South Carolina. Criminologists who wrote a book with Stanko say it's clear that he doesn't want to return to prison.

An emotional day for students returning to Red Lake High School. Red Lake, as you'll recall, was the scene of that deadly shooting spree in Minnesota just three weeks ago. Officials say that many of the school's 300 students were so traumatized by the bloodshed only half of them are expected back at school today.

Banged up by Bowflex. The maker of the popular fitness machines has agreed to pay almost $1 million in penalties to settle allegations about safety defects. The Consumer Product Safety Commission says the company failed to report safety problems that led to dozens of injuries, including chipped teeth. Back, disc and neck injuries also.

O'BRIEN: Back in Baghdad, Defense Secretary Donald Rumsfeld made another surprise trip to the Iraqi capital today, armed with messages for U.S. troops and for Iraq's new leader. Rumsfeld's no longer talking exit strategy. He's talking victory strategy now.

Our senior Pentagon correspondent Jamie McIntyre traveling with Rumsfeld. He brings us the latest from Baghdad.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice-over): The unannounced visit to Iraq was Defense Secretary Rumsfeld's ninth since the 2003 invasion. And it comes at a time of cautious optimism that Iraq may be at a tipping point, with the formation of the new transitional government. Rumsfeld met with Iraq's new president and prime minister and told both the U.S. wants no delay in plans for the next round of elections in December.

DONALD RUMSFELD, DEFENSE SECRETARY: Good progress is being made. I think anyone who watched the elections on January 30 has to recognize the significant contribution made by Iraqi security forces to the success of that election.

MCINTYRE: U.S. casualties have dropped off dramatically in the last six weeks as insurgents have focused increasingly on Iraq's military, police, civilians and government officials. There are now 137,000 U.S. troops in Iraq. And a mid-year review in June will determine how many, if any, will go home.

(on camera): While U.S. military commanders are busy making plans for possible troop reductions in the next year or year and a half, Defense Secretary Rumsfeld is carefully avoiding any predictions. Well aware that rosy scenarios often don't pan out, Rumsfeld is sticking to his mantra, that U.S. troops will be withdrawn as soon as they are no longer needed and not one day sooner.

(voice-over): At a town hall meeting with U.S. soldiers in Baghdad, Rumsfeld handed out medals for valor and answered questions from troops anxious to know when their tours might end.

RUMSFELD: We don't really have an exit strategy; we have a victory strategy. The reason we're here is not because the American people or the United States government covets anyone's land or anyone's oil or anyone's people. We don't.

MCINTYRE: This time there were no pointed questions about lack of armor, unlike a similar Q&A session in Kuwait in December. In fact, one soldier thanked Rumsfeld and presented him with an armor plate that saved his life by stopping a sniper's bullet. And while recruiting and retention remain a problem for the Army in general, more than 100 soldiers took the opportunity of Rumsfeld's visit to reenlist on the spot.

Jamie McIntyre, CNN, Baghdad.

(END VIDEOTAPE)

O'BRIEN: Netting another big fish, Iraqi forces have captured an insider from Saddam Hussein's former regime. While not one of Iraq's 55 most wanted, Fadhil Ibrahim Mahmoud al-Mashadani (ph) used to be in charge of Baghdad's military bureau, picked up at a farm northeast of Baghdad. He's believed to have been aiding insurgents in Iraq.

PHILLIPS: Commander in chief boosting morale. President Bush praised U.S. troops at Fort Hood, Texas, today. He said due to their efforts and sacrifices they're laying down the foundation of a free society in Iraq. They president's visit was to mark the two-year anniversary of the end of the Saddam Hussein regime.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Soldiers and police of a free Iraq learned on election day they can face down the insurgents. And they learned they can prevail. The Iraqi people now have confidence that the soldiers and police of a free Iraq have the courage and resolve to defend them.

(END VIDEO CLIP)

PHILLIPS: While President Bush noted much has been accomplished in Iraq, he said it isn't time to bring U.S. forces home just yet.

O'BRIEN: A shakeup at the top of the Transportation Security Authority.

PHILLIPS: Now there's word of hundreds of cutbacks of airport screeners. Are America's skies secure? We're going to talk about it with the former inspector general for the Department of Homeland Security.

O'BRIEN: Also ahead, if you were watching CNN at this time yesterday, you saw this hostage drama unfold. Today, we take you inside the keys to getting an armed man to give himself up.

PHILLIPS: And a little later on LIVE FROM, who will lead the next generation of movers and shakers in Washington? Carlos Watson in the house to tell us about those faces to watch for.

(COMMERCIAL BREAK)

O'BRIEN: President Bush's choice to oversee 15 U.S. spy agencies promises to be his main focus. It will be to reform them. But he isn't yet saying how.

The Senate Intelligence Committee today took up the nomination of veteran diplomat John Negroponte to be the director of national intelligence. Negroponte told the panel he is still studying recommendations of recent commissions that have criticized U.S. intelligence gathering.

Intelligence gathering is just one national security concern. Another is what's happening and what could happen at the nation's airports.

Let's turn over now to CNN security analyst Clark Kent Ervin, former inspector general for the Office of Homeland Security.

Clark, good to have you back with us.

CLARK KENT ERVIN, FMR. INSPECTOR GENERAL FOR DEPT. OF HOMELAND SECURITY: Thank you very much, Miles.

O'BRIEN: All right. The news today is Hartsfield Airport, busiest in the nation, facing a big cutback. Four hundred TSA officers to be cut from the ranks there. All kinds of potential delays as a result of that.

What does that say about the commitment to security of the TSA?

ERVIN: Well, it's troubling. Needless to say, the Atlanta airport is, as you say, the busiest in the nation. There is this cap on the total number of screeners. Forty-five thousand is the cap. This are 47,000 in the country today.

So I understand the need for lowering screeners across the country. But certainly there are remote airports that have more screeners than they need. I would not take screeners from the busiest airport in the country.

O'BRIEN: I think a lot of frequent traveling would attest to the fact of going through places -- I was at an airport in Wyoming where every passenger had their own personal TSA person. So, clearly, there could be a redistribution here. But I assume there's a lot of politics involved in that.

ERVIN: Surely that's the case. I'm sure that the local officials are lobbying for having maximum protection at their airports. And that's understandable.

But we need to think strategically in this country. And the hope is that TSA will allocate these cuts in a way that those airports that are the busiest are the ones that have the most screeners. So I hope that if this is, in fact, true, TSA's thinking about this, that it will be rethought.

O'BRIEN: Now, we were talking yesterday about giving a grade to the TSA. What is the report card right now? It really is a mixed bag, isn't it?

ERVIN: It is a mixed bag. Needless to say, a lot has been done since 9/11. And I think it's fair to say that we're safer than we were on 9/11. But there's much, much more to be done, even in the area of aviation security, which is TSA's principal responsibility.

It's still possible to sneak deadly weapons onto airplanes, as we learned when I was in the Office of Inspector General. In terms of other modes of transportation, mass transit, port security, other things, there are still things to be done. So there is a ways to go before we're as safe as we can be and need to be.

O'BRIEN: Well, and it occurs to me as I travel through the system, that the TSA puts its focus where people would have the perception there is security. And yet, the back door of the airport, where the caters come in, and all those sorts of things which might allow contraband, weapons, explosives, to get into airplanes, little attention is paid there.

ERVIN: That's right. Hundreds, and depending on the size of the airport perhaps more than hundreds of people have access to secure, sterile parts of the airport. Those people should have background checks, very intensive criminal background checks.

But we saw in the reports that we did when I was with the Office of Inspector General that background checks weren't always done on the screeners themselves. So that raises a question as to how intensive the check process is. This is something TSA needs to pay attention to.

O'BRIEN: And as you are drawing concentric circles there from the plane, we talk about the people that have access, the caterers, the perimeter itself, and then, of course, the issue comes up time and again, shoulder-fired missile. And so many experts I talk to say it really is probably just a matter of time before somebody tries to do this and perhaps succeeds.

ERVIN: It certainly has been tried, of course, elsewhere in the world. Aircraft are vulnerable to it.

The cost of equipping each aircraft with the technology that could prevent this is very, very high, indeed. But you're right, Miles, that this is an area of vulnerability. And I'm hopeful that the new secretary will focus some attention on that and see if there is technology that over time can be cost-effective enough to provide some deterrents in this regard.

O'BRIEN: Yes. Not an easy thing to stop, though, is it?

ERVIN: Not at all.

O'BRIEN: Clark Kent Ervin, our security analyst. Thank you very much for your time. Appreciate it.

ERVIN: Thanks for having me.

O'BRIEN: All right -- Kyra.

PHILLIPS: Stay tuned to CNN day and night about all issues concerning your security. Well, straight ahead, which would you rather do, get a root canal or fill out your taxes? A new survey -- we all have a choice on that, don't we? We got you...

O'BRIEN: Root canal. I want the root canal.

PHILLIPS: You want the root canal?

O'BRIEN: Yes, I do.

PHILLIPS: I think I'd rather do my taxes.

All right. And a new resident moves on to Wisteria Lane. Find out who is becoming the newest -- I guess we just gave it away, maybe -- "Desperate Housewife" later on LIVE FROM -- Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: I'm Susan Lisovicz at the New York Stock Exchange. A big payback could be in store for some burned investors. I'll have that story next on LIVE FROM. So stay with us.

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VERONICA DE LA CRUZ, CNN ANCHOR: Even as we race to understand the Earth, environmental warnings are sounding for the planet. At CNN.com, a closer look at how the Earth is changing.

Is global warming really a threat? Most scientist s do believe it is but have yet to approach a basic agreement on how it's happening.

Scientists do agree that the Earth has gotten warmer. Since 1850, average global temperatures have risen more than half-degree Celsius. And the concentration of greenhouse gases in the atmosphere is near its highest point in recorded history. This interactive explainer breaks down the global warming process.

Also, a look at some of the discoveries and milestones of climate change from the modern age from 1896, when a Swedish scientist first described what is now known as the greenhouse effect, to 2005, when more than 140 countries ratified the Kyoto Protocol. Scientists are saying climate change could have drastic consequences.

In this interactive map, fine out where in the world landscapes are changing as temperatures rise. As the Earth's population grows, we know that human impact on the planet's resources are coming under closer scrutiny. A host of problems dominate the environmental agenda, with many issues overlapping and influencing one another.

What do you think are some of the biggest issues? How do you feel about the current state of the environment?

You can participate in our "Quick Vote" or send us an e-mail with your thoughts. Log on to cnn.com/changingearth.

From the dot-com news desk in Atlanta, I'm Veronica De La Cruz.

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PHILLIPS: Well, burned investors could finally be getting a payback for buying stocks based on tainted Wall Street research.

O'BRIEN: Susan Lisovicz joining us from the New York Stock Exchange. Maybe there is justice in this world -- maybe.

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PHILLIPS: "Now in the News," a former high-level government official calls President Bush's nominee for U.N. ambassador a "serial abuser." The Senate Foreign Relations Committee is in a second day of hearings on John Bolton. The former State Department bureau chief charged that Bolton harassed analysts who disagreed with him on Cuba's weapons capabilities.

A federal indictment unsealed today links three men to a suspected terrorist plot against several U.S. financial centers. The three are already in British custody. The Justice Department does plan a news conference for 3:00 p.m. Eastern. We'll cover it for you live.

LexisNexis now says personal information on 310,000 Americans may have been stolen from its databases. That's nearly 10 times the number that the firm disclosed last month. "NEWSNIGHT WITH AARON BROWN" will take an in-depth look at cyber security and how you can protect yourself from identity theft. That's tonight at 10:00 Eastern on CNN.

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