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LexisNexis Breach Worse Than First Reported; Homeland Security Officer Subdue Suspected Suicide Bomber; Rumsfeld Makes Surprise Trip to Iraq

Aired April 12, 2005 - 10:00   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 CO-ANCHOR: That's it for us on this "AMERICAN MORNING." Let's get right to Daryn Kagan. She's at the CNN Center. She's going to take us through the rest of the couple of hours ahead this morning. We'll see you back here tomorrow, "AMERICAN MORNING."
Hey, Daryn. Good morning.

DARYN KAGAN, CNN CO-ANCHOR: Good morning. You guys have a great day in New York City. Thank you.

Let's go ahead and take a look at what's happening now in the news.

We are closely following a hostage drama now unfolding in west- central Germany. Police there telling us that a man harmed with a kitchen knife led four to seven children off of a public bus and into an occupied house. Police have surrounded the house and are reported to be talking to the hostage taker. We'll report any developments right away.

Right now on Capitol Hill, live pictures for you. President Bush's choice for National Intelligence director is before the Senate Intelligence Committee, or will be soon. John Negroponte, a career diplomat is likely win approval to oversee the nation's 15 spy agencies. That job was created in response to intelligence failures before and after the 9/11 attacks.

Also this hour, another Bush nominee facing a second day of hearings. John Bolton appearing before the Senate Foreign Relations Committee, as the panel considers his nomination as the U.S. ambassador to the United Nations. Democrats have attacked his previous criticisms of the U.N.

And Defense Secretary Donald Rumsfeld made an unannounced visit to Iraq today. Rumsfeld meeting with U.S. military brass and holding a pep talk with the troops. The secretary also sat down with new Iraqi leaders. He noted the progress they've made toward building a government. And he urged them to stay the course.

Good morning. I'm Daryn Kagan. Thanks for being with thus morning.

We're going to start with the story about you're security. LexisNexis is now saying the personal information of some 310,000 American may have been stolen. The company compiles and sells personal and financial data on consumers. The potential number of people affected by the breaches is now 10 times what was disclosed last month.

Our technology correspondent Daniel Sieberg joining me now to talk about how this could have happened. And also, we'll ultimately get to what you need to do at home.

DANIEL SIEBERG, CNN TECHNOLOGY CORRESPONDENT: Yes, we're learning this is a much bigger story than it was just a little while ago. Last month, people may have heard that about 30,000 personal records were stolen, or somehow obtained from LexisNexis. Now they're saying this is much bigger, an additional some 200,000 stolen, so about a total of 310,000. LexisNexis is actually a bigger company. The division of this is Seisint that is responsible for collecting this information.

Now, what is this all about? Basically what we're talking about here is a company that collects personal information, Social Security numbers, drivers' licenses numbers, credit card information. You name it; if you're out there they probably know something about you. The reason is because if you're apply for a mortgage, a home loan, if you're looking to get a job, they keep this information and share it with qualified or approved third parties.

Now, what potentially has happened in this case is that the information was compromised. We're not sure if it was hacked, probably wasn't hacked. At least that's what if company is saying, but stolen somehow. Remember ChoicePoint not too long ago they were in the news with what we think is a similar situation.

In the case of ChoicePoint, it was done through social engineering. What that means is a third party posed as a legitimate business trying to obtain this personal information. They were able to get it. And then basically stole all this information.

Similar situation is likely what happened in the LexisNexis case, in that they were fooled, they were tricked. It is not so much that they were getting through any type of security, but they were fooled into giving this information away. We're talking about all types of information here, driver license numbers, Social Security Numbers.

The company is saying that none of this information -- that no one has reported any cases of identity theft yet. We're talking about 300,000 plus people here. This is an investigation that's been going on for a couple years. They do have a statement that they released that says, "We are taking action to notify individuals where we found some indication that they may have some risk of identity theft or fraud." That is taking the form of letters that have been mailed out to these people that apparently went out yesterday.

So If you were a victim of all this, and again it could be anybody out there. It's not just people -- even if you haven't heard of LexisNexis it doesn't mean they haven't heard of you, or Seisint for that matter. So a lot of people may be a little bit anxious looking for one of these letters to come in the mail. KAGAN: In some ways isn't it scarier that it probably wasn't hacked? That means the system of how they give out information really doesn't work.

SIEBERG: Well, I mean exact -- I mean in a sense, it's a fairly low-tech way of doing things, to go about getting this information. It may not require a lot of computer skill or ability. It really is you're faking it. Some of these people who do these social engineering tactics they are actors. They're posing as legitimate business trying to get this information. So people are saying maybe LexisNexis or ChoicePoint needs to be more secure in the way that they look at these companies, or these people that are trying to get information. And perhaps the government should have more oversight into these operations.

KAGAN: Potential fake I.D. to have identify theft.

SIEBERG: Right. Exactly. And the irony, of course, is that the companies are designed to protect against any sort of fraud activity. They're trying to secure your information. Or to make it so that nobody can access it without getting permission. So it's an unfortunate case here. Again, fair number of people that are affected and lots of stuff you can do, which we're going to talk about.

KAGAN: Right. Now we're going to talk about that now.

Thank you for your part of the story Daniel Sieberg.

Let's go and talk about how you can protect yourself from identity theft. Here's some expert advice. Do not carry your Social Security card or passport unless absolutely necessary. Only keep a few credit cards in your purse or wallet when shopping.

Keep a list of your credit card and bank account numbers with the expiration dates and telephone numbers. In an emergency, notify these companies quickly to stop fraudulent charges. Don't throw away credit card receipts in a public trash container. Shred credit card and bank statements, old receipts, utility bills and new credit card offers. Use creative pass words and pins, and do not store those numbers and password in your purse or wallet.

Five minutes after the hour. We move on now to security on Capitol Hill. A Chinese man who said he wanted to talk to President Bush ignited fears of a suicide bomber and the swift action of police.

Our national correspondent Bob Franken has details on that.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: In the wake of 9/11 and the fears of the worse at the Capitol since then, the police did not take long to act.

UNIDENTIFIED MALE: Got him.

UNIDENTIFIED MALE: They just took him down. (APPLAUSE)

(CHEERING)

FRANKEN: They quickly subdued and dragged away a loan man. Shortly after noon, dressed in black, he planted himself near a fountain on the west side of the Capitol about 40 feet from the building. When he refused to move, police operated on the assumption he might be a suicide bomber. They evacuated offices that face that side of the Capitol, offices that included the Senate majority and minority leaders' suites, as well as that of the House speaker.

After the man was subdued, left behind were his two suitcases. Officers in bomb suits using X-rays detected wires and batteries in one. And decided to blow it up.

(EXPLOSION)

FRANKEN: Officials have warned people inside the Capitol there would be an explosion. As for the other bag, a HAZMAT officer confirmed it contained nothing but clothing. Police report the wires and batteries turned out to be parts of a CD player. As for the suspect, investigators say he recently came to the United States from China.

TERRANCE GAINER, CHIEF, U.S. CAPITOL POLICE: We began a dialogue with the individual to see if we can get some indication of what his problem was, and how dangerous he might be or not be. He only would say at first, that he wanted to speak to the president.

FRANKEN: He made a stand at the spot where President Bush was inaugurated in January. Tourists, who had been hustled away from the grounds while the drama unfolded, were allowed to return to the Capitol. (on camera): That is what they had come to see. But many had witnessed a security that they never had expected.

Bob Franken, CNN, Capitol Hill.

(END VIDEOTAPE)

KAGAN: A bomb scare in Kansas City, Missouri, also prompted the evacuation of hundreds of people from a downtown building, and detonated a suspicious looking bag. Take a look.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Fire in the hole! Fire in the hole! Fire in the hole!

(EXPLOSION)

(END VIDEO CLIP)

KAGAN: Turns out the bag didn't contain explosives. but police said they had to play it safe after a man told the building security guard that he was a terrorist. A bomb-sniffing dog indicated something suspicious strapped to the man's bicycle.

An international spat over U.S. airspace has Homeland Security officials scrambling to close a loophole. This all came to light on Friday when U.S. officials denied permission for a KLM flight to crossover the U.S. during its trip from Amsterdam to Mexico City. U.S. officials had learned indirectly two people aboard were on the No Fly list. And under current law KLM were not required to notify the U.S. since the plan plane wasn't landing here.

The Department of Homeland Security, fearing another 9/11 style of attack use of airliners, is considering an emergency amendment that would require such notification.

Is there a smarter way to spend tax dollars for Homeland Security? Some Washington lawmakers certainly think so. About two hours from now, Congressman Chris Cox will introduce legislation to change the way those funds are passed out.

Just a few examples for you how the some $10 billion has been spent so far. Air-conditioned garbage truck in Newark, New Jersey. A Dale Carnegie course for Washington, D.C. sanitation workers. And bulletproof dog vests for the Canine Corps in Columbus, Ohio.

Committee Chair Cox spoke earlier on CNN's "AMERICAN MORNING."

(BEGIN VIDEO CLIP)

REP. CHRIS COX (R-CA), CHMN., HSE. HOMELAND SECURITY: We're using the old grant programs that are essentially political formulas, like the highway program, to send billions of dollars under the new counter terrorism priority system. and it just isn't working. We've got to change it 9/11 Commission recommends to one based on threat, based on risk. So that the terrorists, who are trying to do us harm, meet with some resistance rather than we have a lot of government wastes.

(END VIDEO CLIP)

KAGAN: Cox also says more than two-thirds of the money that's been approved by Congress is still waiting to be paid out.

Stay tuned to CNN day and night for the most reliable news about your security.

It's back to Iraq today for Donald Rumsfeld. The defense secretary made his second surprise visit to the country in the last three months. This time, he had a message for the new Iraqi leaders.

Our Jamie McIntyre is in Baghdad with the secretary.

(BEGIN VIDEOTAPE)

JAIME MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice-over): The unannounced visit to Iraq was Defense Secretary's Rumsfeld's ninth since the 2003 invasion. And it comes at a time of cautious optimism that Iraq may be at its 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 election 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. troop will be with as soon as they are no longer needed and not one day sooner.

(voice-over): At a town hall meeting with U.S. soldier 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 have an exit strategy. We have a victory strategy.

UNIDENTIFIED MALE: Whoa!

UNIDENTIFIED MALE: Whoa!

UNIDENTIFIED MALE: Whoa!

RUMSFELD: 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)

KAGAN: President Bush has his own meeting with U.S. troops. Next hour, Mr. Bush will speak with troops at Fort Hood, Texas. He'll thank them for their service in Iraq and speak about the changes in the country. CNN will have live coverage beginning around 11:20 Eastern. Still to come this hour on CNN LIVE TODAY, some people are having a hard time staying dry in the Pelican State. Where is the rain headed next? We'll take a look at your morning forecast.

Also, a manhunt is on for one suspected killer. Up next, we hear from the man who helped a fugitive write a book about his life behind bars.

Later a little too much to drink on prom night, not the kids, we're talking about the driver. Details straight ahead.

(COMMERCIAL BREAK)

KAGAN: It was a wet and wild bus ride in Shreveport, Louisiana, after morning storms bumped up to four inches of rain on the northern part of the state. In addition to the vehicles bogging down, some homes reported a foot of floodwaters washing in. At least two deaths are blamed on those storms.

Jacqui Jeras is taking a look at Louisiana and also the rest of the country.

(WEATHER REPORT)

KAGAN: A nationwide manhunt is under way for a former prison inmate from South Carolina. Thirty-seven-year-old Stephen Stanko is suspected of two killings in the coastal area known as Grand Strands surrounding Myrtle Beach. A teenage girl also says Stanko raped her. Stanko served eight and a half years in prison for kidnapping. And in a book he co-authored with two professors, vowed he would never be in prison again.

Stephen Stanko co-authored that book about his life behind bars. Gordon Crews is the criminology professor who helped write "Living in Prison." Crews told CNN's "AMERICAN MORNING" he is concerned that Stanko might fight to the death to avoid returning to prison and take other lives with him.

(BEGIN VIDEO CLIP)

GORDON CREWS, CO-AUTHOR, "LIVING IN PRISON": The last time I talked to him was in the fall. He made it quite clear that he's not wanting to go back to prison. Things that had happened to him when he was incarcerated. And also I think he's crossed the 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)

KAGAN: When they last spoke, Crews says that Stanko told him of the struggles and trying to return to society.

We want to update you now on a story that broke live right here on CNN yesterday. Charges are expected today against New Jersey man who held off police for nearly seven hours, after triggering a statewide Amber Alert. Amoutah Saunders surrendered peacefully and was taken into custody yesterday. He's accused of abducting his girlfriend and her 4-month-old daughter.

We watched the standoff for much of our 11 a.m. Eastern hour here on CNN LIVE TODAY. He also shot and wounded the girlfriend's father. The woman and child were released unharmed about halfway through the standoff. Saunders faces a host of possible charges including aggravated assault.

She has had three DUI arrests and numerous other violations. So what was this Florida woman doing driving a limo filled with prom goers? That is a good question. Find out why she's in trouble again. That story is still ahead.

But up next, the fight that high gas prices are taking out of small businesses.

(COMMERCIAL BREAK)

UNIDENTIFIED MALE (voice-over): This is CNN breaking news.

KAGAN: This news that's just in to CNN has to do with the plot that was discovered last summer. You probably remember it, a plot alleged -- plot to have surveillance around a number of financial building in New York and New Jersey.

Well, now U.S. government sources confirming to CNN that three men are now in British custody charged in connection with surveillance of those U.S. financial targets. That was in 2000 and 2001. Of course, the plot wasn't discovered until last summer during on investigation that took place in Afghanistan. So three men now in custody in connection with that alleged plot.

Our Kelli Arena getting some more information out of Washington, D.C. when she's ready, we will go back to her.

And strap your seat belt in because we're going for today's gas watch. You don't have to drive to feel the bite. The record prices are forcing a lot of businesses to pass along the higher costs. And those that don't could pay an even higher price.

Our senior correspondent Allan Chernoff has that story for us.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNN-FN CORRESPONDENT (voice-over): If only Michael Brennan could tap his client's energy to fuel his business.

MICHAEL BRENNAN, MOBILE PET GROOMING OWNER: I know. Nobody likes this part that much.

CHERNOFF: Brennan run as mobile dog grooming service. If your pup needs a wash, cut and style, perhaps even a toenail clipping, Michael's Aussie Pet Mobile will make a house call.

BRENNAN: There's a sort of pleasure in dealing with dogs all day long. And in dealing with owners of dogs. It's -- they're remarkably pleasant group. I know... CHERNOFF: A retired nurse, Brennan got into the business a year and a half ago. He's had no problem finding clients. Trouble is, the cost of getting to them. The pet mobile is a 3500-pound converted horse trailer, equipped with water, heater, pumps and generator. A Ford F-150 pulls the load. Combined truck with trailer and you get about eight miles a gallon, by Brennan's estimate.

BRENNAN: It does eat gas remarkably well. Certainly a little troublesome that we have to drive big trucks in order to pull the trailers that we pull.

CHERNOFF: Now consider prices at the pump. Near a record high of $2.27 a gallon nationwide. And in Chicago's northern suburbs, Brennan's territory, $2.33 a gallon. Ouch! Brennan has two pet mobiles, his cost of gas has been averaging about $570 a month.

BRENNAN: Our most recent bill from Shell was on the order of $750. If you go back to October, it was about $450. So there is a substantial increase going on there.

CHERNOFF: That's why Brennan raised prices in October. The average groom is now $63. And he's planning another price hike. Well, aware it will likely cost him some customers.

BRENNAN: And we're breaking even about now. But if the gas price goes up, if our overhead goes up, then it will no longer be breaking even.

CHERNOFF: Brennan fears if gas prices keep soaring, he'll take such a bath that he'll no longer be able to afford giving them to Chicago's dogs.

(LAUGHTER)

BRENNAN: I'm on the lookout for technology that will turn dog hair into gasoline because I've got a whole lot of dog hair.

CHERNOFF: Allan Chernoff, CNN, New York.

(END VIDEOTAPE)

KAGAN: Northwest plane makes an unexpected delivery. Still to come, how this 200-pound engine part ended up in a field in Minnesota.

Plus, all they wanted was a ride to the prom. Was that too much to ask for a sober driver? That story when CNN LIVE TODAY continues.

(BEGIN VIDEOTAPE)

CHRISTY FEIG, CNN MEDICAL CORRESPONDENT (voice-over): Another arthritis drug is pulled from the market. Dug maker Pfizer removed the painkiller Bextra at the request of the FDA. The FDA says it was the risk of serious skin reactions that caused them to make the decision. Pfizer respectfully disagrees with the agency, and says they plan on exploring their options. The FDA is also asking advertiser to put the strongest possible warning, the black box warning, on the only remaining Cox-2 drug on the market, Celebrex.

A new treatment may offer hope to thousands of U.S. adults suffering from alcohol dependence. A study published in the "Journal of American Medical Association," and paid for by the makers of drug, shows the injectable form of the alcohol dependency drug, Naltrexone, may be the help so many are looking for.

Naltrexone is one of several pills approved for treating alcohol dependence. But it requires you to take it daily. The ones a month injection would offer convenience for those patients who don't adhere well to taking a daily dose.

Christy Feig, CNN.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN CO-ANCHOR: That's it for us on this "AMERICAN MORNING." Let's get right to Daryn Kagan. She's at the CNN Center. She's going to take us through the rest of the couple of hours ahead this morning. We'll see you back here tomorrow, "AMERICAN MORNING."
Hey, Daryn. Good morning.

DARYN KAGAN, CNN CO-ANCHOR: Good morning. You guys have a great day in New York City. Thank you.

Let's go ahead and take a look at what's happening now in the news.

We are closely following a hostage drama now unfolding in west- central Germany. Police there telling us that a man harmed with a kitchen knife led four to seven children off of a public bus and into an occupied house. Police have surrounded the house and are reported to be talking to the hostage taker. We'll report any developments right away.

Right now on Capitol Hill, live pictures for you. President Bush's choice for National Intelligence director is before the Senate Intelligence Committee, or will be soon. John Negroponte, a career diplomat is likely win approval to oversee the nation's 15 spy agencies. That job was created in response to intelligence failures before and after the 9/11 attacks.

Also this hour, another Bush nominee facing a second day of hearings. John Bolton appearing before the Senate Foreign Relations Committee, as the panel considers his nomination as the U.S. ambassador to the United Nations. Democrats have attacked his previous criticisms of the U.N.

And Defense Secretary Donald Rumsfeld made an unannounced visit to Iraq today. Rumsfeld meeting with U.S. military brass and holding a pep talk with the troops. The secretary also sat down with new Iraqi leaders. He noted the progress they've made toward building a government. And he urged them to stay the course.

Good morning. I'm Daryn Kagan. Thanks for being with thus morning.

We're going to start with the story about you're security. LexisNexis is now saying the personal information of some 310,000 American may have been stolen. The company compiles and sells personal and financial data on consumers. The potential number of people affected by the breaches is now 10 times what was disclosed last month.

Our technology correspondent Daniel Sieberg joining me now to talk about how this could have happened. And also, we'll ultimately get to what you need to do at home.

DANIEL SIEBERG, CNN TECHNOLOGY CORRESPONDENT: Yes, we're learning this is a much bigger story than it was just a little while ago. Last month, people may have heard that about 30,000 personal records were stolen, or somehow obtained from LexisNexis. Now they're saying this is much bigger, an additional some 200,000 stolen, so about a total of 310,000. LexisNexis is actually a bigger company. The division of this is Seisint that is responsible for collecting this information.

Now, what is this all about? Basically what we're talking about here is a company that collects personal information, Social Security numbers, drivers' licenses numbers, credit card information. You name it; if you're out there they probably know something about you. The reason is because if you're apply for a mortgage, a home loan, if you're looking to get a job, they keep this information and share it with qualified or approved third parties.

Now, what potentially has happened in this case is that the information was compromised. We're not sure if it was hacked, probably wasn't hacked. At least that's what if company is saying, but stolen somehow. Remember ChoicePoint not too long ago they were in the news with what we think is a similar situation.

In the case of ChoicePoint, it was done through social engineering. What that means is a third party posed as a legitimate business trying to obtain this personal information. They were able to get it. And then basically stole all this information.

Similar situation is likely what happened in the LexisNexis case, in that they were fooled, they were tricked. It is not so much that they were getting through any type of security, but they were fooled into giving this information away. We're talking about all types of information here, driver license numbers, Social Security Numbers.

The company is saying that none of this information -- that no one has reported any cases of identity theft yet. We're talking about 300,000 plus people here. This is an investigation that's been going on for a couple years. They do have a statement that they released that says, "We are taking action to notify individuals where we found some indication that they may have some risk of identity theft or fraud." That is taking the form of letters that have been mailed out to these people that apparently went out yesterday.

So If you were a victim of all this, and again it could be anybody out there. It's not just people -- even if you haven't heard of LexisNexis it doesn't mean they haven't heard of you, or Seisint for that matter. So a lot of people may be a little bit anxious looking for one of these letters to come in the mail. KAGAN: In some ways isn't it scarier that it probably wasn't hacked? That means the system of how they give out information really doesn't work.

SIEBERG: Well, I mean exact -- I mean in a sense, it's a fairly low-tech way of doing things, to go about getting this information. It may not require a lot of computer skill or ability. It really is you're faking it. Some of these people who do these social engineering tactics they are actors. They're posing as legitimate business trying to get this information. So people are saying maybe LexisNexis or ChoicePoint needs to be more secure in the way that they look at these companies, or these people that are trying to get information. And perhaps the government should have more oversight into these operations.

KAGAN: Potential fake I.D. to have identify theft.

SIEBERG: Right. Exactly. And the irony, of course, is that the companies are designed to protect against any sort of fraud activity. They're trying to secure your information. Or to make it so that nobody can access it without getting permission. So it's an unfortunate case here. Again, fair number of people that are affected and lots of stuff you can do, which we're going to talk about.

KAGAN: Right. Now we're going to talk about that now.

Thank you for your part of the story Daniel Sieberg.

Let's go and talk about how you can protect yourself from identity theft. Here's some expert advice. Do not carry your Social Security card or passport unless absolutely necessary. Only keep a few credit cards in your purse or wallet when shopping.

Keep a list of your credit card and bank account numbers with the expiration dates and telephone numbers. In an emergency, notify these companies quickly to stop fraudulent charges. Don't throw away credit card receipts in a public trash container. Shred credit card and bank statements, old receipts, utility bills and new credit card offers. Use creative pass words and pins, and do not store those numbers and password in your purse or wallet.

Five minutes after the hour. We move on now to security on Capitol Hill. A Chinese man who said he wanted to talk to President Bush ignited fears of a suicide bomber and the swift action of police.

Our national correspondent Bob Franken has details on that.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: In the wake of 9/11 and the fears of the worse at the Capitol since then, the police did not take long to act.

UNIDENTIFIED MALE: Got him.

UNIDENTIFIED MALE: They just took him down. (APPLAUSE)

(CHEERING)

FRANKEN: They quickly subdued and dragged away a loan man. Shortly after noon, dressed in black, he planted himself near a fountain on the west side of the Capitol about 40 feet from the building. When he refused to move, police operated on the assumption he might be a suicide bomber. They evacuated offices that face that side of the Capitol, offices that included the Senate majority and minority leaders' suites, as well as that of the House speaker.

After the man was subdued, left behind were his two suitcases. Officers in bomb suits using X-rays detected wires and batteries in one. And decided to blow it up.

(EXPLOSION)

FRANKEN: Officials have warned people inside the Capitol there would be an explosion. As for the other bag, a HAZMAT officer confirmed it contained nothing but clothing. Police report the wires and batteries turned out to be parts of a CD player. As for the suspect, investigators say he recently came to the United States from China.

TERRANCE GAINER, CHIEF, U.S. CAPITOL POLICE: We began a dialogue with the individual to see if we can get some indication of what his problem was, and how dangerous he might be or not be. He only would say at first, that he wanted to speak to the president.

FRANKEN: He made a stand at the spot where President Bush was inaugurated in January. Tourists, who had been hustled away from the grounds while the drama unfolded, were allowed to return to the Capitol. (on camera): That is what they had come to see. But many had witnessed a security that they never had expected.

Bob Franken, CNN, Capitol Hill.

(END VIDEOTAPE)

KAGAN: A bomb scare in Kansas City, Missouri, also prompted the evacuation of hundreds of people from a downtown building, and detonated a suspicious looking bag. Take a look.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Fire in the hole! Fire in the hole! Fire in the hole!

(EXPLOSION)

(END VIDEO CLIP)

KAGAN: Turns out the bag didn't contain explosives. but police said they had to play it safe after a man told the building security guard that he was a terrorist. A bomb-sniffing dog indicated something suspicious strapped to the man's bicycle.

An international spat over U.S. airspace has Homeland Security officials scrambling to close a loophole. This all came to light on Friday when U.S. officials denied permission for a KLM flight to crossover the U.S. during its trip from Amsterdam to Mexico City. U.S. officials had learned indirectly two people aboard were on the No Fly list. And under current law KLM were not required to notify the U.S. since the plan plane wasn't landing here.

The Department of Homeland Security, fearing another 9/11 style of attack use of airliners, is considering an emergency amendment that would require such notification.

Is there a smarter way to spend tax dollars for Homeland Security? Some Washington lawmakers certainly think so. About two hours from now, Congressman Chris Cox will introduce legislation to change the way those funds are passed out.

Just a few examples for you how the some $10 billion has been spent so far. Air-conditioned garbage truck in Newark, New Jersey. A Dale Carnegie course for Washington, D.C. sanitation workers. And bulletproof dog vests for the Canine Corps in Columbus, Ohio.

Committee Chair Cox spoke earlier on CNN's "AMERICAN MORNING."

(BEGIN VIDEO CLIP)

REP. CHRIS COX (R-CA), CHMN., HSE. HOMELAND SECURITY: We're using the old grant programs that are essentially political formulas, like the highway program, to send billions of dollars under the new counter terrorism priority system. and it just isn't working. We've got to change it 9/11 Commission recommends to one based on threat, based on risk. So that the terrorists, who are trying to do us harm, meet with some resistance rather than we have a lot of government wastes.

(END VIDEO CLIP)

KAGAN: Cox also says more than two-thirds of the money that's been approved by Congress is still waiting to be paid out.

Stay tuned to CNN day and night for the most reliable news about your security.

It's back to Iraq today for Donald Rumsfeld. The defense secretary made his second surprise visit to the country in the last three months. This time, he had a message for the new Iraqi leaders.

Our Jamie McIntyre is in Baghdad with the secretary.

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JAIME MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice-over): The unannounced visit to Iraq was Defense Secretary's Rumsfeld's ninth since the 2003 invasion. And it comes at a time of cautious optimism that Iraq may be at its 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 election 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. troop will be with as soon as they are no longer needed and not one day sooner.

(voice-over): At a town hall meeting with U.S. soldier 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 have an exit strategy. We have a victory strategy.

UNIDENTIFIED MALE: Whoa!

UNIDENTIFIED MALE: Whoa!

UNIDENTIFIED MALE: Whoa!

RUMSFELD: 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)

KAGAN: President Bush has his own meeting with U.S. troops. Next hour, Mr. Bush will speak with troops at Fort Hood, Texas. He'll thank them for their service in Iraq and speak about the changes in the country. CNN will have live coverage beginning around 11:20 Eastern. Still to come this hour on CNN LIVE TODAY, some people are having a hard time staying dry in the Pelican State. Where is the rain headed next? We'll take a look at your morning forecast.

Also, a manhunt is on for one suspected killer. Up next, we hear from the man who helped a fugitive write a book about his life behind bars.

Later a little too much to drink on prom night, not the kids, we're talking about the driver. Details straight ahead.

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KAGAN: It was a wet and wild bus ride in Shreveport, Louisiana, after morning storms bumped up to four inches of rain on the northern part of the state. In addition to the vehicles bogging down, some homes reported a foot of floodwaters washing in. At least two deaths are blamed on those storms.

Jacqui Jeras is taking a look at Louisiana and also the rest of the country.

(WEATHER REPORT)

KAGAN: A nationwide manhunt is under way for a former prison inmate from South Carolina. Thirty-seven-year-old Stephen Stanko is suspected of two killings in the coastal area known as Grand Strands surrounding Myrtle Beach. A teenage girl also says Stanko raped her. Stanko served eight and a half years in prison for kidnapping. And in a book he co-authored with two professors, vowed he would never be in prison again.

Stephen Stanko co-authored that book about his life behind bars. Gordon Crews is the criminology professor who helped write "Living in Prison." Crews told CNN's "AMERICAN MORNING" he is concerned that Stanko might fight to the death to avoid returning to prison and take other lives with him.

(BEGIN VIDEO CLIP)

GORDON CREWS, CO-AUTHOR, "LIVING IN PRISON": The last time I talked to him was in the fall. He made it quite clear that he's not wanting to go back to prison. Things that had happened to him when he was incarcerated. And also I think he's crossed the 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)

KAGAN: When they last spoke, Crews says that Stanko told him of the struggles and trying to return to society.

We want to update you now on a story that broke live right here on CNN yesterday. Charges are expected today against New Jersey man who held off police for nearly seven hours, after triggering a statewide Amber Alert. Amoutah Saunders surrendered peacefully and was taken into custody yesterday. He's accused of abducting his girlfriend and her 4-month-old daughter.

We watched the standoff for much of our 11 a.m. Eastern hour here on CNN LIVE TODAY. He also shot and wounded the girlfriend's father. The woman and child were released unharmed about halfway through the standoff. Saunders faces a host of possible charges including aggravated assault.

She has had three DUI arrests and numerous other violations. So what was this Florida woman doing driving a limo filled with prom goers? That is a good question. Find out why she's in trouble again. That story is still ahead.

But up next, the fight that high gas prices are taking out of small businesses.

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UNIDENTIFIED MALE (voice-over): This is CNN breaking news.

KAGAN: This news that's just in to CNN has to do with the plot that was discovered last summer. You probably remember it, a plot alleged -- plot to have surveillance around a number of financial building in New York and New Jersey.

Well, now U.S. government sources confirming to CNN that three men are now in British custody charged in connection with surveillance of those U.S. financial targets. That was in 2000 and 2001. Of course, the plot wasn't discovered until last summer during on investigation that took place in Afghanistan. So three men now in custody in connection with that alleged plot.

Our Kelli Arena getting some more information out of Washington, D.C. when she's ready, we will go back to her.

And strap your seat belt in because we're going for today's gas watch. You don't have to drive to feel the bite. The record prices are forcing a lot of businesses to pass along the higher costs. And those that don't could pay an even higher price.

Our senior correspondent Allan Chernoff has that story for us.

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ALLAN CHERNOFF, CNN-FN CORRESPONDENT (voice-over): If only Michael Brennan could tap his client's energy to fuel his business.

MICHAEL BRENNAN, MOBILE PET GROOMING OWNER: I know. Nobody likes this part that much.

CHERNOFF: Brennan run as mobile dog grooming service. If your pup needs a wash, cut and style, perhaps even a toenail clipping, Michael's Aussie Pet Mobile will make a house call.

BRENNAN: There's a sort of pleasure in dealing with dogs all day long. And in dealing with owners of dogs. It's -- they're remarkably pleasant group. I know... CHERNOFF: A retired nurse, Brennan got into the business a year and a half ago. He's had no problem finding clients. Trouble is, the cost of getting to them. The pet mobile is a 3500-pound converted horse trailer, equipped with water, heater, pumps and generator. A Ford F-150 pulls the load. Combined truck with trailer and you get about eight miles a gallon, by Brennan's estimate.

BRENNAN: It does eat gas remarkably well. Certainly a little troublesome that we have to drive big trucks in order to pull the trailers that we pull.

CHERNOFF: Now consider prices at the pump. Near a record high of $2.27 a gallon nationwide. And in Chicago's northern suburbs, Brennan's territory, $2.33 a gallon. Ouch! Brennan has two pet mobiles, his cost of gas has been averaging about $570 a month.

BRENNAN: Our most recent bill from Shell was on the order of $750. If you go back to October, it was about $450. So there is a substantial increase going on there.

CHERNOFF: That's why Brennan raised prices in October. The average groom is now $63. And he's planning another price hike. Well, aware it will likely cost him some customers.

BRENNAN: And we're breaking even about now. But if the gas price goes up, if our overhead goes up, then it will no longer be breaking even.

CHERNOFF: Brennan fears if gas prices keep soaring, he'll take such a bath that he'll no longer be able to afford giving them to Chicago's dogs.

(LAUGHTER)

BRENNAN: I'm on the lookout for technology that will turn dog hair into gasoline because I've got a whole lot of dog hair.

CHERNOFF: Allan Chernoff, CNN, New York.

(END VIDEOTAPE)

KAGAN: Northwest plane makes an unexpected delivery. Still to come, how this 200-pound engine part ended up in a field in Minnesota.

Plus, all they wanted was a ride to the prom. Was that too much to ask for a sober driver? That story when CNN LIVE TODAY continues.

(BEGIN VIDEOTAPE)

CHRISTY FEIG, CNN MEDICAL CORRESPONDENT (voice-over): Another arthritis drug is pulled from the market. Dug maker Pfizer removed the painkiller Bextra at the request of the FDA. The FDA says it was the risk of serious skin reactions that caused them to make the decision. Pfizer respectfully disagrees with the agency, and says they plan on exploring their options. The FDA is also asking advertiser to put the strongest possible warning, the black box warning, on the only remaining Cox-2 drug on the market, Celebrex.

A new treatment may offer hope to thousands of U.S. adults suffering from alcohol dependence. A study published in the "Journal of American Medical Association," and paid for by the makers of drug, shows the injectable form of the alcohol dependency drug, Naltrexone, may be the help so many are looking for.

Naltrexone is one of several pills approved for treating alcohol dependence. But it requires you to take it daily. The ones a month injection would offer convenience for those patients who don't adhere well to taking a daily dose.

Christy Feig, CNN.

(END VIDEOTAPE)

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