[Carol Costello, Cnn Anchor:] We begin actually with two separate stories on computer hacking. A sobering reminder that any of us can be a victim at any time. Take for example the case of Cassidy Wolf, Ms. Teen USA. A hacker took control of her computer and snapped photos of her in the nude in the privacy of her own bedroom. More than 100 people are now under arrest for allegedly using that same malware to hijack personal computers without the person's knowledge around the world. We'll have more on the FBI's global crackdown on that in just a minute. But first, Attorney General Eric Holder is about to hold a news conference and he's expected to announce a milestone in cyberspying. The U.S. files its first ever charges against officials in Chinese government for hacking into American companies. Five military officers in China are accused of hacking into those companies to steal trade secrets. The targets included American trade unions and steel companies. The U.S. believes China's cyberspying is both widespread and worrisome. CNN's Jim Sciutto dealt exclusively with this issue during his years in Beijing. He was chief of staff to the U.S. ambassador there at that time. So tell us more about this cyberhacking Jim.
[Jim Sciutto, Cnn Chief National Security Correspondent:] Carol, this is a huge deal. First thing to start with, it's a major problem for American companies. Estimated that they lose $100 billion a year from hacking, stolen trade secrets, et cetera, that cost half a million jobs a year. This is a real problem. It's not a small one. The second thing is that it's not misbehavior by Chinese companies. It's a view of the U.S. government that this is Chinese government policy. This happens with the express approval and direction of the most senior leaders in China and what you have here today is proof in effect so say American prosecutors that that's the case. They're going after five members of the People's Liberation Army in this building in Shanghai secretive building exposed last year where investigators have traced a good portion of these cyberattacks. In effect from the view of the Department of Justice, this is the smoking gun they hoped to get out there to say this goes right to the Chinese government, right to the highest levels of government and it reaches average Americans in lost money for U.S. businesses and lost jobs.
[Costello:] But the people the U.S. government is charging are in China so, I mean, how can they really punish them?
[Sciutto:] Well, that's a good question. This is less about putting these guys in jail and showing evidence that this goes right to the Beijing government and in effect publicly calling the Chinese government out for this. The first time the president did this was last year. He met with the Chinese president in the sunny lands summit, they met there. Not official visit. Relaxed. This is when the U.S. government was going to hit China hard on this hacking and call them out for it. Bad timing because the very same week, Edward Snowden, releases his revelations about NSA spying and that undermine the U.S. argument. U.S. government officials will say the NSA does this for national security and not for corporate secrets and there's evidence of that. But of course the timing undermine the U.S. arguments. A year later you have another hit back from the USA saying we know you're doing this. We'll go public with it. We won't let this happen to U.S. businesses. That's really the intention. We'll see if it makes a difference.
[Costello:] Stay right there. Eric Holder has not yet began speaking, when he begins speaking, of course, we'll take those comments for our viewers live and I want you on the other side to help us understand. Thanks so much. Another major hacking case you saw here first here on CNN, the FBI swooped in and arrested more than 100 people in a worldwide sting. They're accused of hijacking victims' home computers and then using those home computers to snap pictures of them. You may remember the story of Cassidy Wolf, Ms. Teen USA. A hacker got control of her webcam in her bedroom and snapped nude photos of her. She had absolutely no idea and then these hackers threatened to put these photos online.
[Cassidy Wolf, Miss Teen Usa:] I don't know how I was hacked exactly. A malware was attached on my computer and was tracing what I was doing on my computer and watching my every move through a my webcam and of course, this is obviously going to change the way I use my computer for the rest of my life.
[Costello:] Everybody else too, right. CNN Justice Reporter, Evan Perez, is following this developing story. Who's responsible for this?
[Evan Perez, Cnn Justice Reporter:] The FBI and police in 17 countries say that there's basically a cybercrime ring that's been responsible for this software called black shades. A software that was used to hack into Cassidy Wolf's computer and they've been working on this case for a couple years. As you said, they've done over 100 arrests and they've done hundreds of interviews and searches in the last few days in Europe, in Canada, and in the U.S. And we expect to hear more about this later this morning.
[Costello:] Where did they get this device that they can install on person's home computer? Is it easy to get?
[Perez:] Well, yes. It's really easy to get. You can go on a web site and download it and buy it for 40 or 50 bucks. This has been a huge problem. It's a booming business because basically it's off the shelf software like the software you buy to do your taxes. Same thing. You basically just have employees who can help you figure it out if you have any problems. We're told by law enforcement this is really easy to use and not very sophisticated and once it is in your computer, it can keep track of passwords and get passwords for your bank accounts and used for everything from bank fraud to extortion Carol.
[Costello:] So hopefully they'll figure out a way to remove it from the internet so people can't buy it any longer. That would be a good thing, right?
[Perez:] Yes. Absolutely.
[Costello:] Evan Perez, thanks so much. I know you'll have more information for us later. There's a scary new development as a deadly respiratory virus sickens another person in the United States already worldwide close to 600 cases of MERS have been reported. This virus which comes from the common cold family has killed already 171 people. Now for the first time in the United States, a man got Middle Eastern Respiratory Syndrome from casual contact here in this country. He did not travel to the Middle East. An Illinois man tested positive following s couple of business meetings with a man from Indiana. That Indiana man got sick just days later. Dr. William Schaffner is past president of the National Foundation For Infectious Diseases and joins us for more insight this morning. Good morning, Doctor.
[Dr. William Schaffner, Past President, National Foundation For Infectious Diseases:] Hello, Carol. Good morning.
[Costello:] Glad to have you back. I know you said we should not be freaked out by this, but this latest case involved a handshake and one man shook hands with someone who had MERS and contracted this disease. That's scary.
[Schaffner:] I hope it's not too scary because sustained so-called casual or community transmission is not a feature of this virus yet. Yes, there was a handshake, but there were also two 45-minute meetings in which this person was within six feet of the other person. It probably was respiratory spread. The MERS patient breathed out the virus and the other person breathed it in. This is still not happening commonly either in the Middle East or here and so far public health is tracking this very, very carefully. It's contained. It's not spreading like influenza.
[Costello:] Well, the other curious thing is one man got really sick and the other man, he just felt mildly uncomfortable. So why do some people get full-blown MERS and others suffer mild symptoms?
[Schaffner:] Infectious diseases have done that. Perhaps the milder person got a lower dose. Also, perhaps the more sick person had underlying illnesses, diabetes, underlying heart disease or lung disease. Certainly in the Middle East, people with those underlying illnesses and if you are older, those are the people who get the more severe illnesses.
[Costello:] OK, so here's the thing I find most scary. Sometimes the symptoms are so mild many people don't even know they have MERS. That's problematic, isn't it?
[Schaffner:] It is problematic in that sense, but we don't see that happening very frequently yet. That's why the studies are being done. So we all need to stay tuned as the CDC does its good work and let us know what the issues are. So far, it is not spreading widely or wildly.
[Costello:] OK, I feel better now. You have a great bedside manner, Dr. William Schaffner. Thank you very much.
[Schaffner:] Glad to help, Carol.
[Costello:] Thank you. Still to come in the NEWSROOM, what do the words death trap, Titanic and apocalyptic have in common? Why the auto giant is sending out strange new guidance.