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FBI: Terror Suspects "Going Dark"; NCAA Commends S. Carolina for Flag Removal; South Carolina Confederate Flag Coming Down . Aired 6:30-7a ET

Aired July 10, 2015 - 06:30   ET

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

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[06:32:57] JAMES COMEY, FBI DIRECTOR: This is not your grandfather's al Qaeda. This is a group of people using social media to reach thousands and thousands of followers to find the ones who might be interested in committing acts of violence and moving them to an encrypted end-to-end message encrypting app. Our job is to look a haystack the size of this country for needles that are increasingly invisible to us because of end-to-end encryption.

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CHRIS CUOMO, CNN ANCHOR: That is a high state of urgency coming from FBI Director James Comey.

There was good news also -- there were real threats over the July 4th holiday. And the authorities were able to catch some bad guys, stopping those plots before they happened. The bad news is what you were just hearing -- encrypted messages between terrorists and lone wolves are becoming harder to crack.

So, let's bring in Philip Mudd, CNN counterterrorism analyst, former CIA counterterrorism official, to discuss.

So, first, these threats over the Fourth, you laughed them off, and it turns out that the truth is, Mr. Mudd, if that's your real name, that we were all basically a step from death and they had to foil plots.

What did they uncover and how did we stop them?

PHIL MUDD, CNN COUNTERTERRORISM ANALYST: What you're talking about and what the FBI director talked about is the growing temple of operations against people who are inspired by ISIS social media. I don't think he's talking specifically about whether someone was directing something against July 4th. He's talking about the number of people picked up in the weeks and months before. If they had not picked them up, the likelihood one would have done something on July 4th.

One of the challenges we see with ISIS, and he -- the FBI director correctly contrasted ISIS to al Qaeda is the ISIS guys are more unpredictable. They are not focused on major events. They're not taking a long time to develop plots. There are hundreds, thousands of people following ISIS propaganda in this country. Compared to when I followed these terrorist target, this business has gotten fuzzier.

CUOMO: So, that's interesting. So, you are saying the speed which they communicate and they can motivate forces earlier intervention by authorities. So you make a stop, you catch your guy, but don't have him for as big a crime?

[06:35:01] MUDD: That's right. And if you look at a couple cases in the past few months, you see people, especially initially ISIS suspects who are charged with lying to an officer, which is a federal crime. It's called 1001 violation.

The reason that happens is the time between when someone begins to be radicalized by ISIS and the time they might take action is very small. So, if you are traditionally running an operation like that, you want to let it run, figure out where the money is coming from, who is radicalizing them.

In this new world of ISIS, you don't have the time to watch the operation develop because the individual is radicalized so quickly. And therefore, you don't always have the time or luxury to build a full counterterrorism case.

CUOMO: All right. So, these people wind up going to jail for not too long, they are young and dumb. So, they come out of prison young and dumb. There's still a threat. Let me ask you, why do you think this time is being compressed? Why is it taking to as long to get somebody to make such a terrible decision?

MUDD: There's a couple reasons why. First, when you look at the al Qaeda generation terrorists, those guys were committed to trying to do another 9/11. They thought, based on their interest in recruiting more people, in bringing in more money, they couldn't set the bar lower than 9/11.

So, they are trying to prevent attacks, for example, on the New York subway. The way ISIS is operating flipped terrorism on their head. We are not going to operate in secret. We don't care if you bust some of ourselves.

If we are communicating with hundreds of thousands of people via Twitter, if 1 percent gets through, that's fine. If they commit small acts, minor acts with a weapon, minor acts with a small device, that's good enough for us.

The final point is, if you look at a lot of these cases, these people are young, 17, 18, 19 years old. I did a few stupid things when I was that age, I'm sure you did, knowing you, Chris, a lot of stupid things when you're at that age. These people get radicalized quickly because like a lot of kids, we tend to think they are different because they're ISIS adherent.

They are not different. They are stupid kids and get radicalized quickly. CUOMO: Something you made a point of in the past is that this

surveillance and what we do and don't do is a pendulum. You saw it swing the other day. And now, it seems Director Comey is giving some fuel to that. He says going dark is real. Encrypted communications, the lack of private companies wants to give us information is hurting us.

What is the next stage in this debate? What is going to be the hard question to face?

MUDD: Boy, this is a simple story. I fear it is going to end up in tragedy. If you are following a target, if you're following a terrorist, the first way you want to follow them, in addition to putting people on the street, which is very inefficient, very costly, is obviously you want to look at stuff like e-mail, phone traffic.

In the age of the Internet now, in 2015, as the director said, those people that you want to follow can get over the counter encryption stuff that's very good. So, you're going to go to the Internet service provider and you're going to ask them a simple question, we want a window into the activity of these people on the Internet.

The Internet service providers today are saying, no, we are not going to give you that window.

Here is what is going to happen, Chris -- until there's an event where the FBI says a lot of Americans just lost their lives because we couldn't read somebody's e-mail traffic, I think this is going to remain a theoretical conversation and the service provider is going to say, we don't want to give you that stuff because our primary responsibility is keeping secure and protecting the rights of people who use our services over the Internet.

This is theoretical today. I predict at some point, it's going to end up being really practical and we're going to have a tough conversation about whether the FBI gets a window into your e-mails.

CUOMO: Philip Mudd, thank you very much for the perspective.

MUDD: Thank you.

CUOMO: Must also be noted, Philip Mudd believes that macrame is going to make a comeback as a hobby in the United States. So, take it for what's worth -- Mick.

MICHAELA PEREIRA, CNN ANCHOR: We will. We always do.

All right. The World Cup champion women's soccer team are going to get a hero's welcome in New York City today. The first ever ticker tape parade for a women's team will be held in the Canyon of Heroes, but they have to change it to the Canyon of Heroin, won't they?

More on the bleacher report.

(COMMERCIAL BREAK) [06:43:08] PEREIRA: In just about three hours, the Confederate flag will be removed from the grounds of the South Carolina statehouse. Governor Nikki Haley signed the measure into law Thursday. She says the flag will come down with dignity and a special ceremony.

Now, the battle is growing meanwhile in Congress. Republicans are under fire, forced to withdraw a proposal to allow the Confederate flag to remain at national cemeteries and parks.

CUOMO: The leader of al Qaeda in the Arabian Peninsula, also known as AQAP, just put out an audio message to attack the U.S. This comes as the FBI director reveals the foiling of several plots inspired by another terrorist organization, ISIS, also aimed at killing Americans on or around July 4th. Now, Director Comey says the government is struggling to break encryptions used by terrorists to recruit on social media.

PEREIRA: A new warning if you take ibuprofen. The FDA now says that inflammatory drugs without steroids, things like ibuprofen, do increase the risk of heart attack or stroke. Now, earlier, the agency has said they might increase the risk. Officials are asking drug makers to change the labels to reflect this stronger warming. Medication like Advil, Motrin, Aleve and Celebrex would all be affected.

CUOMO: Also known as vitamins to the aging athlete.

Some good news for you -- three Wisconsin, they sisters went missing during a camping trip in Wyoming. Some feared the worse, all alive. Officials say Megan, Erin and Kelsie Sharer were spotted by a search copter and rescued a short time later. The search began Tuesday when the girls failed to meet their mother for a scheduled trip to Chicago. The girls were said to be hungry, otherwise just fine.

PEREIRA: And quite a story to tell of survival, got to hear about that.

All right. With the Confederate flag now coming down in South Carolina, the NCAA says the state can now, once again, host championship events.

Andy Scholes has more for us in the bleacher report and also word of a parade in New York City later today.

ANDY SCHOLES, CNN SPORTS CORRESPONDENT: That's right, Michaela.

[06:45:00] But, first, let's talk about what's going on in South Carolina. The NCAA has previously banned the state of South Carolina from bidding for the right to host NCAA championships because the confederate flag was being flown. But the boycott is now over. The state can put its name in the hat in future events.

The NCAA released a statement saying, "We commend lawmakers for taking this action to remove the Confederate flag from the capitol grounds. For nearly 15 years, we have protested the flag by not allowing states like South Carolina to host preselected NCAA championships." All right. Serena Williams is heading back to the ladies final at Wimbledon. She beat Maria Sharapova in straight sets yesterday. She will now face Garbine Muguruza in the finals. If Serena wins Saturday, she'll hold all four grand slam titles at once and can still go for the calendar grand slam at the U.S. Open in September.

Now, later this morning, the men take the court for the semifinals. The match everyone is looking forward to is Andy Murray versus Roger Federer. Federer is looking for a record eighth gentlemen's title, while the home favorite Murray is looking to win his second. That match gets going around 10:30 Eastern.

And the World Cup championship celebration continuing today for the U.S. women's soccer team. They are being honored with a ticker tape parade along the Canyon of Heroes in Lower Manhattan. This will be the first time ever a women's sports team is getting a parade in the city.

Guys, more than 50 tons of confetti is expected to be used for this parade. All the fun is going to get started around 11:00 Eastern.

It should be a good time.

PEREIRA: This is such a moment for female athletes.

CUOMO: Good history. Good history.

PEREIRA: Goodness me, very good. Powerful day.

CUOMO: Herstory.

PEREIRA: I love that.

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CUOMO: It's not as good as Mick's nontroversy.

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CUOMO: I usually just steal. She's not on camera with me at the time.

All right. So, we are going to take a break here. We do have a story we want you to get involved with.

Mick has talked to you about this earlier in the week. A composite image of this little girl -- she was found dead two weeks. Millions of people are trying to get together to find out who she is. We have the latest on the search coming up.

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[06:51:26] PEREIRA: Fifty million views, still no answers. The body of a little girl found on the shoreline of Boston harbor two weeks ago. Police are asking for the public's help. They need your help.

They want to identify this little one using this composite image. So far, no luck.

Why is the case resonating so much with the American public?

Joining us now, "Boston Globe" reporter Laura Crimaldi. She's been covering this story since it broke and wrote the initial "Boston Globe" story.

Laura, thanks so much for agreeing to talk to us. We want to publicize it as much as we can.

You have covered the story. I'm sure you covered others like it, Laura. Why do you think this one is grabbing so many by the heart?

LAURA CRIMALDI, BOSTON GLOBE REPORTER: I think it's the beautiful composite of the little girl which was assembled by the National Center for Missing and Exploited Children. They say they believe it's a real true-to-life rendering about what this girl looked like in life and, I think, people are just drawn in by that image. They are upset by the circumstances under which she was found dead. And they want to help solve this mystery.

PEREIRA: Yes, it's almost as though we couldn't help her before, but we can help now, right? I mean, it's just exploded on social media. I found it on my Facebook feeds and Instagram. It is really resonated with people.

Why do you think social media played such a big part this time?

CRIMALDI: I think it's what you just spoke to, that people have the ability to do something, to help investigators solve this mystery. They can do something by sharing the image on Facebook, retweeting it on Twitter or whatever form of social media they prefer. That is given the image a lot of exposure.

Still, investigators are not at a point where they can say who this little girl is. They are really hoping that someone related to her will come forward and give them information and emphasized they can do so anonymously.

PEREIRA: One of the things they have done is yesterday, Laura, developed, that they updated this picture of him. And again, composite image. This is not necessarily exactly what she looks like. They couldn't take pictures of the body obviously because of the grim circumstances he was found in.

But they updated it to add the earrings. You think earrings don't change the child's look. But tell us why it's significant.

CRIMALDI: Well, it does open up another avenue for people to think about. Do you remember a little girl whose ears you might have pierced at one of those places in the mall or elsewhere. It gives a true to life image of her that may trigger a memory.

It's just like releasing the images of the leggings she was wearing and also the blanket she was found wrapped in. People, the investigators are trying to give information that they think will generate tips about finding this girl's identity.

PEREIRA: They don't believe she had been dead a long time, correct?

CRIMALDI: That's right. They haven't been able to say exactly how long they believe she was dead, but they believe it was just a short period of time. When she was found, it was a body, it wasn't skeletonized remains or a very decomposed body.

PEREIRA: So, that way, the memories could be fresh, why they are showing the clothing, the blanket and updating the earrings.

I know you live in Boston. In fact, I understand you are from and live near that area, Deer Island, where the body of this little one was found.

[06:55:01] Tell us about that area. I understand it was a jogger or somebody walking a dog that encountered her body?

CRIMALDI: Yes. There was a woman who was walking her dog on the shore of Deer Island. Her dog was drawn to this trash bag and going around the trash bag. This woman approached her dog to see what was interesting the dog so much.

And that's when she found this gruesome discovery, that's when she made this gruesome discovery. Deer Island is part of the Boston Harbor Islands, it connects to the town of Winthrop in Massachusetts. And it's home to a waste water treatment plant.

But the periphery of the island is a network of trails paved and unpaved. You can see all the Boston Harbor islands from there, the city skyline. It's very popular with fishermen, joggers, dog walkers, bicyclists. It's an idyllic spot.

PEREIRA: They can't necessarily pinpoint if the bag with the body came from there or another part of the water way. They are parts of their investigation.

Obviously, the reason we are doing this is to publicize this case, this image, this composite image of the little one that's being called "Baby Doe".

We need America's help. As Laura mentioned, maybe you pierced her ears or have seen her recently. We are asking you to call the Suffolk County State Police Detective Unit. You've got the number there on your screen, 617-727-8817.

I am going to read all these numbers. Massachusetts State Police Communications Section, 508-820-2121. Or you can call the Winthrop police tip line. Again, you can do the calls anonymously, 617-539- 5806.

We should point, we are going to talk, in the 8:00 hour, the host of "THE HUNT," John Walsh, about this case. We know that he's worked cases like this before. We want to get his insight.

Our thanks to Laura Crimaldi. Great work, thank you for bringing it to our attention, and also to the attention of the nation. This is an important story to get out there.

CRIMALDI: Thank you.

PEREIRA: We are following lot of news on this Friday. So, let's get to it.

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BILL CLINTON, FORMER PRESIDENT: I almost cried when I saw that picture of the South Carolina legislature yesterday.

GOV. NIKKI HALEY (R), SOUTH CAROLINA: The bill has been signed.

CUOMO: Just hours, the confederate battle flag coming down.

UNIDENTIFIED FEMALE: An embarrassing moment for Republicans on Capitol Hill yesterday.

CHAIRMAN: All those opposed no.

CHAMBER: No!

UNIDENTIFIED FEMALE: The Los Angeles Police Department confirms with CNN, it does have an open investigation regarding Cosby.

UNIDENTIFIED MALE: If all the allegations are true, Mr. Cosby will end up being the most prolific serial rapist in American history.

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: There was no Iraq. I would bomb the hell out of those oil fields.

If you think that Iran isn't doing lots of nuclear work behind our backs as we're negotiating, then you are foolish.

ANNOUNCER: This is NEW DAY with Chris Cuomo, Alisyn Camerota and Michaela Pereira.

(END VIDEOTAPE)

PEREIRA: Good morning.

CUOMO: Good morning.

PEREIRA: And good morning to you. Welcome back to your NEW DAY. Alisyn has the day off.

Well, the sun is rising one final time on the Confederate in South Carolina. About three hours from now, the flag will be removed from the grounds of the state capitol. Governor Nikki Haley says the flag will come down with dignity.

CUOMO: It comes, of course, after the slaughter of nine people last month at an African-American church. Debate of the controversial symbol extending beyond South Carolina. You have other states taking it up, even Congress is erupting their own fight.

So, let's go first to CNN's Alina Machado. She is in Columbia, South Carolina.

And that is where the first ceremony will be -- Alina.

ALINA MACHADO, CNN CORRESPONDENT: Well, Chris, the Confederate battle flag has been flying here on the state capitol grounds since the 1960s. In a few hours, all of that will change.

The governor signed the bill into law, surrounded by the very lawmakers who helped make this a reality. She had next to her some of the families of the nine victims of the Charleston massacre, those people who died some 23 days ago. Each family will receive one of the pen's the governor used to sign this bill into law.

The governor spoke about the victims right before she signed the bill and spoke about this historic moment.

Here is what she had to say.

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HALEY: This is a story about action. This is a story about the history of South Carolina and how the action of nine individuals laid out this long chain of events that forever showed the state of South Carolina what love and forgiveness looks like.

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MACHADO: The governor is not expected to make any remarks during today's flag removing ceremony. The flag will be removed by the director of South Carolina's Department of Public Safety, then, it will be taken to the Confederate relic room, which is a museum that's just a few blocks from here -- Michaela.

PEREIRA: So many fought for that, saying that's where it belongs, in a museum.

Alina, thank you so much for tat.

Meanwhile, the debate over the Confederate flag erupting on the floor of the House.