1 00:00:23,240 --> 00:00:25,440 Long before I launched Ashley Madison there were affairs, 2 00:00:25,520 --> 00:00:27,080 and long after I'm gone there'll be affairs 3 00:00:27,160 --> 00:00:28,600 and so what I'm just trying to do is help people 4 00:00:28,680 --> 00:00:30,560 have the most perfect affair. 5 00:00:30,640 --> 00:00:34,160 Biderman says he built a billion-dollar business 6 00:00:34,240 --> 00:00:35,480 betting on infidelity. 7 00:00:35,720 --> 00:00:39,360 25 million members in 37 countries. 8 00:00:39,440 --> 00:00:45,000 My phone was dancing across the table. It was crazy. 9 00:00:45,240 --> 00:00:49,840 They made it sound like it was this play land of people hooking up... 10 00:00:49,920 --> 00:00:53,280 ...it had glamour, sex and crime, 11 00:00:53,360 --> 00:00:57,160 hacking and danger. It had everything. 12 00:00:58,200 --> 00:01:00,560 Kind of a quick hookup kind of site... 13 00:01:06,720 --> 00:01:08,920 This is the story of a website, 14 00:01:09,000 --> 00:01:12,360 and the rise and fall of its ambitious founder Noel Biderman. 15 00:01:13,320 --> 00:01:17,480 The audacious Ashley Madison dot com was set up in 2011 16 00:01:17,560 --> 00:01:20,800 as a safe place to arrange illicit affairs. 17 00:01:21,440 --> 00:01:25,920 By 2006 the site had 1.1million users in North America 18 00:01:26,000 --> 00:01:27,680 and had launched in Europe. 19 00:01:27,960 --> 00:01:30,080 Its growth after that was extraordinary. 20 00:01:30,200 --> 00:01:34,000 -26 million people, that's growth! -It's good business. 21 00:01:34,080 --> 00:01:36,040 What is your goal? Just keep goin'? 22 00:01:36,160 --> 00:01:38,240 World domination, keep going to the moon. 23 00:01:38,560 --> 00:01:41,760 In 2007 Biderman became CEO 24 00:01:41,840 --> 00:01:44,520 and found himself in the middle of a media storm. 25 00:01:44,720 --> 00:01:46,360 I'm not necessarily encouraging infidelity 26 00:01:46,440 --> 00:01:48,000 I don't think it needs that much encouragement. 27 00:01:48,080 --> 00:01:50,040 How are you not encouraging infidelity? 28 00:01:50,720 --> 00:01:53,720 Noel Biderman appeared continuously on TV chat shows 29 00:01:53,800 --> 00:01:56,000 defending and promoting the site. 30 00:01:56,440 --> 00:01:59,360 He called himself the king of infidelity. 31 00:02:00,440 --> 00:02:03,880 His wife, Amanda, also took part in the promotions. 32 00:02:04,160 --> 00:02:06,480 I see it as a platform that helps people stay married, 33 00:02:06,560 --> 00:02:09,400 they help millions of people find contentment, 34 00:02:09,480 --> 00:02:11,240 passion and happiness. 35 00:02:11,320 --> 00:02:14,120 Noel said that society was changing, 36 00:02:14,200 --> 00:02:17,120 the model of relationships that we have from the past 37 00:02:17,200 --> 00:02:18,560 and at the moment isn't working. 38 00:02:18,640 --> 00:02:20,560 A lot of people are having affairs and 39 00:02:20,640 --> 00:02:22,320 it's all done behind people's backs. 40 00:02:22,400 --> 00:02:24,040 It's destructive for families. 41 00:02:24,120 --> 00:02:27,680 And they said that they were leading the way in helping with this. 42 00:02:28,400 --> 00:02:30,560 I was separated from my wife, 43 00:02:30,640 --> 00:02:33,120 I was working a lot. It's hard to meet people. 44 00:02:33,840 --> 00:02:35,760 Christopher was looking for a like-minded woman 45 00:02:35,840 --> 00:02:37,280 to have an affair with. 46 00:02:37,520 --> 00:02:41,720 The big attraction to it was that it's a hookup, 47 00:02:41,800 --> 00:02:45,040 it's not a date. There isn't any of the risk, 48 00:02:45,280 --> 00:02:47,640 you know, everybody knows where they stand. 49 00:02:47,720 --> 00:02:50,920 It was definitely more geared towards sort of the, 50 00:02:51,440 --> 00:02:56,640 as I like to say, the afternoon delight, kind of situation. 51 00:02:56,720 --> 00:02:59,200 Kind of a quick hook up kind of site. 52 00:02:59,640 --> 00:03:02,680 Like any dating site, users had to choose profile names 53 00:03:02,760 --> 00:03:04,160 and fill in their preferences. 54 00:03:04,240 --> 00:03:07,840 Experimenting with tantric sex. One-night stand... 55 00:03:07,960 --> 00:03:10,920 Although these choices were a little more direct than usual. 56 00:03:11,000 --> 00:03:15,120 ...likes to be watched, cuddling and hugging, and erotic movies. 57 00:03:16,560 --> 00:03:18,520 Sounds like an interesting weekend. 58 00:03:20,400 --> 00:03:24,480 Tamsin is a marketing consultant and a serial mistress. 59 00:03:24,560 --> 00:03:27,520 She has chosen affairs to committed relationships most of her life. 60 00:03:27,680 --> 00:03:32,120 Initially, you know, men are very hesitant to make the first move. 61 00:03:32,200 --> 00:03:34,880 When we start talking that's the first thing. 62 00:03:35,000 --> 00:03:37,440 They want to find out, are you real? 63 00:03:37,520 --> 00:03:39,520 Do you really live in the United States? 64 00:03:39,600 --> 00:03:42,360 And that's when I would start getting emails saying 65 00:03:42,440 --> 00:03:44,160 that this woman checked out your profile, 66 00:03:44,240 --> 00:03:47,440 she wants to talk to you, this person's interested in you. 67 00:03:47,960 --> 00:03:51,360 And because if you didn't have a paid account, 68 00:03:51,440 --> 00:03:52,760 you hadn't bought the credits, 69 00:03:52,840 --> 00:03:55,480 you couldn't see the actual pictures of the profiles 70 00:03:55,560 --> 00:03:56,800 they were all blurred. 71 00:03:57,240 --> 00:03:59,280 Men had to buy credits 72 00:03:59,360 --> 00:04:02,000 in order to reply to messages sent to them. 73 00:04:03,320 --> 00:04:08,920 And then once you start talking, inevitably for some strange reason, 74 00:04:09,000 --> 00:04:12,960 men have this insatiable desire to send you dick pictures. 75 00:04:13,800 --> 00:04:17,640 Pictures of their penises. Sometimes it's even the first picture. 76 00:04:17,720 --> 00:04:20,320 I don't even know what their face looks like. 77 00:04:20,680 --> 00:04:21,840 Okay. 78 00:04:22,000 --> 00:04:25,600 People have affairs and cheat for a lot of different reasons, 79 00:04:26,160 --> 00:04:28,320 it's not always just physical. 80 00:04:28,560 --> 00:04:33,120 We all like to think it's that but in reality even men 81 00:04:33,200 --> 00:04:37,640 the vast majority are seeking out an affair for emotional reasons as well. 82 00:04:37,720 --> 00:04:41,400 I did meet and talk to quite a few men, 83 00:04:41,480 --> 00:04:42,960 a lot of politicians... 84 00:04:43,200 --> 00:04:45,920 A lot of corporate CEOs, a lot of guys 85 00:04:46,000 --> 00:04:48,600 who are just in middle management, just not happy. 86 00:04:48,840 --> 00:04:51,560 I mean that was one thing about Ashley Madison, 87 00:04:51,640 --> 00:04:55,640 you got everything from construction workers and students 88 00:04:55,720 --> 00:04:57,880 so it was pretty interesting. 89 00:04:58,200 --> 00:05:00,600 People want more from their relationships, 90 00:05:00,680 --> 00:05:01,880 more from their lives and 91 00:05:01,960 --> 00:05:04,200 not feeling so ashamed to be honest about 92 00:05:04,280 --> 00:05:05,320 what they really want. 93 00:05:05,400 --> 00:05:07,520 People are gonna have affairs anyway. 94 00:05:07,600 --> 00:05:10,000 It's always happened, it's on an increase. 95 00:05:10,080 --> 00:05:11,800 It wasn't in the workplace. 96 00:05:11,880 --> 00:05:14,120 It wasn't with close friends of the family. 97 00:05:14,200 --> 00:05:15,800 I got that concept. 98 00:05:15,880 --> 00:05:19,600 It's less damaging, people's needs get met. 99 00:05:20,440 --> 00:05:22,440 Ashley Madison.com was bought 100 00:05:22,520 --> 00:05:26,280 by another of Noel's companies, Avid Life Media in 2007. 101 00:05:26,920 --> 00:05:30,240 Their promotional videos gave a veneer of corporate acceptability 102 00:05:30,320 --> 00:05:32,120 to otherwise niche products. 103 00:05:33,080 --> 00:05:36,200 Two years later they created EstablishedMen.com and 104 00:05:36,280 --> 00:05:40,080 CougarLife.com calling them innovative dating services. 105 00:05:40,400 --> 00:05:43,240 But the main money maker was always Ashley Madison. 106 00:05:44,240 --> 00:05:48,520 # Looking for someone other than my wife # 107 00:05:48,600 --> 00:05:53,640 # Other than my wife Ashley Madison's right # 108 00:05:53,720 --> 00:05:55,960 Ashley Madison became known for their cheeky, 109 00:05:56,040 --> 00:05:58,120 often outrageous press campaigns. 110 00:05:58,680 --> 00:06:00,440 # other than my wife # 111 00:06:00,920 --> 00:06:04,320 This cheesy advert was banned by Australian regulators. 112 00:06:04,480 --> 00:06:07,200 # Looking for someone other than my wife # 113 00:06:08,440 --> 00:06:13,520 # Other than my wife Ashley Madison's right # 114 00:06:14,960 --> 00:06:17,440 They courted controversy around the world, 115 00:06:17,520 --> 00:06:20,480 translating their glossy ads everywhere they went. 116 00:06:26,080 --> 00:06:29,840 In 2009 Tiger Woods was caught cheating on his wife. 117 00:06:29,920 --> 00:06:32,880 Within a week Ashley Madison had offered to pay him 118 00:06:32,960 --> 00:06:36,280 5 million dollars to be the face of the brand. 119 00:06:36,360 --> 00:06:38,560 He didn't take the money, but 4 months later 120 00:06:38,640 --> 00:06:40,720 they had sponsored the Tiger Woods Mistress Pageant 121 00:06:40,800 --> 00:06:42,280 on The Howard Stern Show. 122 00:06:42,360 --> 00:06:45,000 Here's our guest judge Noel Biderman. 123 00:06:45,080 --> 00:06:47,080 Dude put up a hundred grand. 124 00:06:47,160 --> 00:06:49,760 It seemed that no gimmick was too tabloid. 125 00:06:49,840 --> 00:06:51,760 ...she's mistress number four. 126 00:06:51,840 --> 00:06:55,480 The peculiar genius not just of their marketing efforts 127 00:06:55,560 --> 00:06:59,400 but I think of their leadership seems to be to be able to take anything, 128 00:06:59,480 --> 00:07:03,560 even negative news and turn it into a promotional opportunity. 129 00:07:03,640 --> 00:07:05,560 You are Tiger Woods Mistress, 130 00:07:05,640 --> 00:07:09,640 here comes Noel Biderman with a check for 75,000 dollars. 131 00:07:14,320 --> 00:07:17,240 Despite the 2008 economic downturn, Ashley Madison appeared to be recession-proof. 132 00:07:21,280 --> 00:07:24,520 By 2015 Avid Life Media announced 133 00:07:24,600 --> 00:07:28,280 that they had grossed 115 million dollars in the previous year, 134 00:07:28,920 --> 00:07:30,480 up 45 per cent. 135 00:07:30,840 --> 00:07:34,920 Pre-tax profits came in at 55 million dollars. 136 00:07:37,720 --> 00:07:42,520 But then, on 19th July last year, everything changed. 137 00:07:42,880 --> 00:07:45,040 Brian Krebbs, a tech journalist, 138 00:07:45,120 --> 00:07:47,520 revealed that Ashley Madison had been hacked. 139 00:07:47,720 --> 00:07:49,480 Employees had opened their computers 140 00:07:49,560 --> 00:07:52,400 to find an illustrated message on their screens. 141 00:07:52,800 --> 00:07:55,360 The Impact Team hackers threatened to publish 142 00:07:55,440 --> 00:07:58,680 stolen data unless Ashley Madison and Established Men 143 00:07:58,760 --> 00:08:01,320 shut down their controversial websites. 144 00:08:03,320 --> 00:08:06,400 The consequences for not complying as noted 145 00:08:06,480 --> 00:08:09,840 in this threat would be the release of Ashley Madison 146 00:08:09,920 --> 00:08:12,000 and Established Men client list, 147 00:08:12,080 --> 00:08:15,920 including their names, client profiles and credit card data. 148 00:08:16,080 --> 00:08:18,120 By the time I've read the story it hit them, 149 00:08:18,200 --> 00:08:19,760 it was all over the world. 150 00:08:19,840 --> 00:08:25,040 I think every major news agency had already covered it within 6 to 12 hours. 151 00:08:25,480 --> 00:08:26,560 Avid Life Media 152 00:08:26,640 --> 00:08:30,800 has been fully cooperating with the police investigation. 153 00:08:31,600 --> 00:08:36,000 This hack is one of the largest data breaches in the world. 154 00:08:38,520 --> 00:08:42,560 I was in a meeting and all of a sudden 155 00:08:42,760 --> 00:08:45,040 my phone started dancing across the table, 156 00:08:45,320 --> 00:08:48,480 and I'm trying to concentrate, 157 00:08:48,560 --> 00:08:49,480 and I'm looking over 158 00:08:49,560 --> 00:08:53,920 and I'm seeing the names of business associates, 159 00:08:54,000 --> 00:08:55,640 my business clients, friends of mine, 160 00:08:55,720 --> 00:08:59,200 people I had met on Ashley Madison contacting me. 161 00:08:59,280 --> 00:09:01,000 And my heart sank. 162 00:09:01,080 --> 00:09:03,960 The hack appeared very strange because 163 00:09:04,040 --> 00:09:08,920 it was so hollywoodesque as if it had been scripted. 164 00:09:09,240 --> 00:09:12,240 Crazily so, I mean when you cover hacks all the time, 165 00:09:12,320 --> 00:09:13,480 it's always very dry. 166 00:09:13,560 --> 00:09:17,000 Nobody's very interested in the details of how they actually got the data 167 00:09:17,080 --> 00:09:19,000 and spread it. But this was different. 168 00:09:19,560 --> 00:09:22,240 The impact team gave Avid Life 30 days 169 00:09:22,360 --> 00:09:23,800 to shut down their sites 170 00:09:23,880 --> 00:09:26,720 enough time for the media to get into frenzy. 171 00:09:32,160 --> 00:09:36,360 The hackers were blackmailing with the threat of more data to come. 172 00:09:36,480 --> 00:09:39,120 Everyone was desperate to know who was using 173 00:09:39,200 --> 00:09:41,800 the world's number one website for adultery? 174 00:09:43,600 --> 00:09:45,880 When the company didn't comply, 175 00:09:45,960 --> 00:09:48,760 over 30 million user details were released 176 00:09:53,520 --> 00:09:56,760 Across the world suspicious partners frantically tried to find out 177 00:09:56,840 --> 00:09:59,080 if their partner was among them. 178 00:10:00,600 --> 00:10:03,440 One Australian radio show went a step further: 179 00:10:03,840 --> 00:10:07,120 They were happy to help trawl through the data dump. Live on air. 180 00:10:07,240 --> 00:10:09,640 When it came on the news about the Ashley Madison hack 181 00:10:09,720 --> 00:10:13,760 he sort of went a bit funny and you've got his details 182 00:10:13,840 --> 00:10:19,240 We've got his details here. And his details have revealed 183 00:10:19,320 --> 00:10:21,800 that he's actually on the website, Joe. 184 00:10:22,200 --> 00:10:24,880 -Yeah, I'm sorry 185 00:10:25,200 --> 00:10:27,200 Are you freaking kidding me? 186 00:10:27,640 --> 00:10:30,880 The ripple effect of the impact team's actions 187 00:10:30,960 --> 00:10:34,560 has and will continue to have a long term social 188 00:10:34,640 --> 00:10:37,600 and economic impact, and they have already sparked 189 00:10:37,680 --> 00:10:40,680 spinoffs of crimes and further victimization. 190 00:10:40,760 --> 00:10:44,640 I had quite a few of the gentlemen that I had met and talked to 191 00:10:44,720 --> 00:10:50,040 their wives were decimated and hurt 192 00:10:50,120 --> 00:10:52,520 and they wanted to talk. 193 00:10:52,600 --> 00:10:56,640 As of this morning we have two unconfirmed reports 194 00:10:56,720 --> 00:10:59,880 of suicides associated because of the leak 195 00:10:59,960 --> 00:11:02,960 of Ashley Madison's customers profiles. 196 00:11:03,040 --> 00:11:05,800 This being covered as if the CIA had been hacked. 197 00:11:05,960 --> 00:11:09,200 What is so interesting here is that somebody would want to do this. 198 00:11:09,400 --> 00:11:11,720 ...there's lipstick. Who is she? 199 00:11:12,040 --> 00:11:15,600 Many celebrities, politicians, religious leaders 200 00:11:15,680 --> 00:11:18,760 and military personnel were reported to be members. 201 00:11:18,840 --> 00:11:20,720 Just tell me her name, you might as well tell me. 202 00:11:20,920 --> 00:11:22,720 This was brought to wife's attention. 203 00:11:22,800 --> 00:11:26,400 She has forgiven me for this mistake that I've made. 204 00:11:26,480 --> 00:11:29,120 I've sought forgiveness to God and he's forgiven me 205 00:11:29,200 --> 00:11:31,120 so I've been completely cleansed of this sin. 206 00:11:33,280 --> 00:11:36,640 After the frenzy around user identities had died down, 207 00:11:36,720 --> 00:11:40,160 the media turned its attention to the business itself. 208 00:11:41,640 --> 00:11:46,160 It became obvious that Avid Life Media profited from a wide range of websites. 209 00:11:48,680 --> 00:11:51,680 And not all of them were dating services. 210 00:11:58,240 --> 00:12:02,320 Ashley Madison's meteoric rise continued unabated 211 00:12:02,400 --> 00:12:08,240 and by 2015 they claimed to have over 30 million users. 212 00:12:08,720 --> 00:12:11,520 -Alex. 213 00:12:11,720 --> 00:12:15,480 They even launched their very own Affair Anywhere mobile app 214 00:12:15,560 --> 00:12:18,480 and brazenly spread the word around the globe. 215 00:12:24,600 --> 00:12:29,960 But on the 19th July the site was hacked with catastrophic effects. 216 00:12:30,240 --> 00:12:34,000 It would become one of the largest cyber breaches of all time. 217 00:12:34,080 --> 00:12:36,560 Multiple sites are now being downloaded 218 00:12:36,680 --> 00:12:39,920 nobody is going to be able to erase that information. 219 00:12:40,080 --> 00:12:42,240 But despite the sensitivity of the website, 220 00:12:42,320 --> 00:12:43,280 we now know that 221 00:12:43,360 --> 00:12:46,000 Ashley Madison was warned of security vulnerabilities 222 00:12:46,080 --> 00:12:49,720 a number of times before the 2015 scandal. 223 00:12:55,400 --> 00:12:58,880 The Philippines has become an unlikely global cyber hotspot. 224 00:13:00,200 --> 00:13:02,640 Jayson Zabate is a Filipino hacker. 225 00:13:03,400 --> 00:13:05,640 He managed to infiltrate the website in the months 226 00:13:05,720 --> 00:13:09,320 before the disastrous hack of July 2015. 227 00:13:10,240 --> 00:13:14,880 Just checking Ashley Madison website. 228 00:13:14,960 --> 00:13:17,120 I try to hack it. 229 00:13:17,240 --> 00:13:22,160 I check the code and find what is the flaw or the weaknesses. 230 00:13:23,040 --> 00:13:26,640 Jayson is part of an international community of cyber bounty hunters 231 00:13:26,720 --> 00:13:28,520 known as white hat hackers. 232 00:13:28,600 --> 00:13:33,440 My job is to help keep companies secure. I don't want to be a black hat. 233 00:13:33,520 --> 00:13:35,040 I am not a bad guy. 234 00:13:36,000 --> 00:13:38,240 These hackers can make a lot of money by showing 235 00:13:38,320 --> 00:13:41,200 large companies where their vulnerabilities lie. 236 00:13:44,040 --> 00:13:46,360 Jayson pays his university fees this way. 237 00:13:49,120 --> 00:13:52,120 He found a way into Ashley Madison relatively quickly. 238 00:13:52,280 --> 00:13:57,600 I have found cross-site scripting and bypassing cross-site request forgery. 239 00:13:57,680 --> 00:14:01,600 That will allow an attacker to change profile details. 240 00:14:02,160 --> 00:14:03,920 Jayson told Avid Life Media 241 00:14:04,000 --> 00:14:06,720 he had managed to find a flaw in their security 242 00:14:06,800 --> 00:14:09,480 and they paid him a small fee in return for information. 243 00:14:09,560 --> 00:14:11,000 But it was too late. 244 00:14:11,800 --> 00:14:14,120 The Impact Team of hackers had apparently been accessing 245 00:14:14,200 --> 00:14:17,080 the site for a long time before Jayson got there. 246 00:14:17,200 --> 00:14:20,920 Impact Team claims they had been watching the site grow 247 00:14:21,000 --> 00:14:24,480 for some time to the tens of millions of users. 248 00:14:24,560 --> 00:14:27,240 And they said they wanted to stop the next 60 million customers. 249 00:14:27,320 --> 00:14:32,400 They likened Avid Life Media to a drug dealer abusing addicts. 250 00:14:33,160 --> 00:14:35,520 Joseph Cox believes he is the only journalist 251 00:14:35,600 --> 00:14:38,600 to have had contact with the Impact hackers themselves. 252 00:14:38,800 --> 00:14:43,200 Impact Team said when they hacked Ashley Madison no one was watching. 253 00:14:43,400 --> 00:14:46,400 As in there were very few security barriers 254 00:14:46,480 --> 00:14:48,480 to getting into the network and they also said 255 00:14:48,560 --> 00:14:51,880 it was possible to hop from different parts of the network 256 00:14:51,960 --> 00:14:53,880 with a very simple password. 257 00:14:54,520 --> 00:14:56,560 And this had been in the work for some time. 258 00:14:56,880 --> 00:14:59,760 They said that they had been exfiltrating the data 259 00:14:59,840 --> 00:15:01,320 over a number of years. 260 00:15:02,160 --> 00:15:05,360 Ashley Madison talked a good game about their security 261 00:15:05,440 --> 00:15:09,120 but as we've seen security was not at the top of their agenda, 262 00:15:09,200 --> 00:15:11,200 what was at the top of their agenda was making money. 263 00:15:11,360 --> 00:15:13,720 Jeremy Bullock is a data analyst 264 00:15:13,800 --> 00:15:16,320 who used the information released in the hack to analyze 265 00:15:16,400 --> 00:15:18,240 Ashley Madison's business practices. 266 00:15:19,040 --> 00:15:23,080 He was one of the first to identify the company's use of fembots. 267 00:15:23,720 --> 00:15:26,120 When he looked at the email addresses of users, 268 00:15:26,200 --> 00:15:29,040 he discovered 837 individual members 269 00:15:29,120 --> 00:15:31,120 that all shared the same email address. 270 00:15:32,440 --> 00:15:34,320 These seemed to be fake profiles 271 00:15:34,400 --> 00:15:36,400 who were programmed to contact real users. 272 00:15:38,200 --> 00:15:41,720 They have also been called engagers or iconians. 273 00:15:41,880 --> 00:15:44,240 These were algorithms that enabled 274 00:15:44,320 --> 00:15:48,520 Ashley Madison to contact gullible men 275 00:15:48,600 --> 00:15:52,040 and pretend to be available women 276 00:15:52,120 --> 00:15:53,840 and made them part with money. 277 00:15:54,400 --> 00:15:58,000 Iconians would send messages to users of the site. 278 00:15:58,080 --> 00:16:01,800 In order for men to chat back they would have to pay. 279 00:16:02,680 --> 00:16:07,120 Why 837 rather than 80,000? Because they didn't need 80,000. 280 00:16:07,200 --> 00:16:10,600 You could move these 837 around, you could make them different. 281 00:16:10,680 --> 00:16:12,160 They were programs now, 282 00:16:12,240 --> 00:16:15,440 they didn't have to be manually manipulated. 283 00:16:15,520 --> 00:16:17,080 Very very clever. 284 00:16:19,000 --> 00:16:23,240 They made it sound like it was this play land of people hooking up 285 00:16:23,320 --> 00:16:26,240 and there's millions of women here 286 00:16:26,320 --> 00:16:28,240 and they're all interested in you. 287 00:16:28,320 --> 00:16:33,880 I had contact with probably around 200 profiles 288 00:16:33,960 --> 00:16:38,040 and out of that I believe I spoke with one actual person. 289 00:16:43,040 --> 00:16:44,080 But the idea that bots 290 00:16:44,160 --> 00:16:48,600 and fake profiles were on the pages of Ashley Madison was not new. As early as 2008 consumer attorney Fillippo Marchino 291 00:16:54,240 --> 00:16:56,720 was preparing a case against Avid Life Media 292 00:16:56,800 --> 00:16:58,960 on behalf of disgruntled users. 293 00:16:59,920 --> 00:17:02,440 One of the first things we did is we pulled the terms 294 00:17:02,520 --> 00:17:04,920 and conditions off of the website of Ashley Madison 295 00:17:05,560 --> 00:17:08,560 and buried in the middle was a couple of sentences 296 00:17:08,640 --> 00:17:10,840 that read something to the extent of 297 00:17:10,920 --> 00:17:13,240 "this is only an entertainment website, 298 00:17:13,320 --> 00:17:17,160 you may be responding or contacted by robots" 299 00:17:17,640 --> 00:17:20,040 and that just did not sound right 300 00:17:20,120 --> 00:17:23,520 because people were not engaging AshleyMadison.com 301 00:17:23,880 --> 00:17:26,600 to talk to robots. 302 00:17:27,040 --> 00:17:29,800 That was not the crux of the idea. 303 00:17:30,200 --> 00:17:33,520 Fillippo then came across AshleyMadisonSucks.com, 304 00:17:33,600 --> 00:17:36,200 a sounding board for unhappy customers. 305 00:17:36,480 --> 00:17:38,040 He discovered that Biderman's company, 306 00:17:38,120 --> 00:17:42,000 Avid Life Media was taking legal action against the site. 307 00:17:42,240 --> 00:17:47,880 We felt that AshleyMadisonSucks.com was a rightful forum 308 00:17:47,960 --> 00:17:49,920 for people to voice their opinions 309 00:17:50,000 --> 00:17:55,360 and was in no way violative of the trademark AshleyMadison.com. 310 00:17:55,440 --> 00:17:57,280 Fillippo agreed to represent the owner 311 00:17:57,360 --> 00:17:59,240 of AshleyMadisonSucks.com. 312 00:17:59,400 --> 00:18:02,640 What happened then is that things got strange. 313 00:18:03,640 --> 00:18:07,560 The proverbial shit hit the proverbial fan if you will. 314 00:18:08,240 --> 00:18:11,120 We became the target of online activities that 315 00:18:11,200 --> 00:18:13,200 couldn't really be traced back to anybody. 316 00:18:13,280 --> 00:18:18,200 But that were borderline bullying, 317 00:18:18,520 --> 00:18:19,520 if you will. 318 00:18:19,880 --> 00:18:22,080 Suddenly web pages were created blackmailing 319 00:18:22,160 --> 00:18:25,520 Fillippo's client and threatening him if he didn't take down 320 00:18:25,600 --> 00:18:27,800 AshleyMadisonSucks.com. 321 00:18:28,480 --> 00:18:30,560 False Things were written about Fillippo, 322 00:18:30,640 --> 00:18:34,920 his client, family members and even his employees. 323 00:18:35,000 --> 00:18:37,080 Anonymous emails were sent with further threats 324 00:18:37,160 --> 00:18:38,920 and untrue allegations: 325 00:18:39,000 --> 00:18:43,000 one suggested that Fillippo's client had HIV. 326 00:18:43,240 --> 00:18:45,560 We were never actually able to trace back 327 00:18:45,640 --> 00:18:47,840 who these emails were coming from 328 00:18:47,920 --> 00:18:52,320 but it all started occurring right at the same time. 329 00:18:53,160 --> 00:18:57,320 It seemed to be a coordinated attack 330 00:18:57,400 --> 00:19:02,360 to dissuade my client from proceeding with what he was doing. 331 00:19:03,000 --> 00:19:05,400 In a separate effort to get the site shut down, 332 00:19:05,480 --> 00:19:08,800 Noel Biderman offered the owner of AshleyMadisonSucks.com 333 00:19:08,880 --> 00:19:11,040 money for the IP address. 334 00:19:11,200 --> 00:19:14,440 He repeated his demands in a phone call recorded by the owner 335 00:19:14,520 --> 00:19:17,080 and in the presence of two witnesses. 336 00:19:17,280 --> 00:19:18,120 Give me the URL back 337 00:19:18,200 --> 00:19:20,200 I offered you ten grand, you're being an ass. 338 00:19:20,720 --> 00:19:23,480 I'm being a schmuck. You sent an email to my girlfriend. 339 00:19:23,560 --> 00:19:26,120 You have no idea. Yeah just wait for the world 340 00:19:26,200 --> 00:19:28,080 of hurt I will bring on you. Just wait. 341 00:19:29,640 --> 00:19:32,120 I found out on the news that they'd been hacked 342 00:19:32,200 --> 00:19:35,720 and all their information had been dumped. 343 00:19:36,080 --> 00:19:39,280 I was very surprised to find out that some documents 344 00:19:39,360 --> 00:19:42,120 which had been exchanged between us and them 345 00:19:42,200 --> 00:19:44,120 which otherwise should have been confidential, 346 00:19:44,200 --> 00:19:45,840 were now public domain. 347 00:19:47,520 --> 00:19:49,360 You email my girlfriend and tell her 348 00:19:49,440 --> 00:19:52,320 that you're putting up a site about her and she may have HIV. 349 00:19:52,400 --> 00:19:55,400 I'm going to do so much worse to you. 350 00:19:55,480 --> 00:19:56,880 You're messing with my livelihood. 351 00:19:56,960 --> 00:19:58,960 You choose to be an ass. I'm being one back 352 00:19:59,040 --> 00:20:01,760 but I can be ten times worse. I have way more resources than you. 353 00:20:01,840 --> 00:20:04,640 You have 24 hours my friend. I'm going to drag you through the mud. 354 00:20:09,040 --> 00:20:10,320 The first dump of information 355 00:20:10,400 --> 00:20:12,800 by The Impact Team of hackers revealed 356 00:20:12,880 --> 00:20:15,240 information about many users of the site 357 00:20:15,320 --> 00:20:17,520 but the hack didn't end there. 358 00:20:17,640 --> 00:20:20,880 It seemed on the surface to be cut and dry, 359 00:20:20,960 --> 00:20:23,320 here is a company, it's been hacked. 360 00:20:23,400 --> 00:20:26,800 Here are all the victims. There's the story the end. 361 00:20:27,080 --> 00:20:28,920 It should have blown over, but it didn't. 362 00:20:29,800 --> 00:20:33,360 What came then took the hack to the next level. 363 00:20:34,000 --> 00:20:36,720 Plenty of data breeches take customer data, 364 00:20:36,800 --> 00:20:40,880 emails addresses, passwords maybe some other customer information 365 00:20:40,960 --> 00:20:44,520 and depending on the website that can be relatively easy. 366 00:20:44,600 --> 00:20:47,200 But to get emails, product source-code, 367 00:20:47,280 --> 00:20:51,840 internal documents, the hacker really has to take several more steps 368 00:20:51,920 --> 00:20:54,560 and really penetrate a company's network. 369 00:20:54,640 --> 00:20:57,880 The second dump of information related to the company 370 00:20:57,960 --> 00:21:00,120 and the CEO himself. 371 00:21:00,200 --> 00:21:02,520 There was so much email. 372 00:21:02,600 --> 00:21:06,120 I mean it was every email from 2011, 373 00:21:06,200 --> 00:21:09,240 2012 all the way till June 2015. 374 00:21:09,320 --> 00:21:10,400 A lot of email. 375 00:21:10,840 --> 00:21:12,920 I'm totally guessing here but what 376 00:21:13,000 --> 00:21:14,480 it looked like somebody had thrown 377 00:21:14,560 --> 00:21:16,760 a USB stick in someone's computers 378 00:21:16,840 --> 00:21:19,120 and just dragged over email files. 379 00:21:19,200 --> 00:21:21,920 I looked less like a hack than a copy. 380 00:21:22,600 --> 00:21:26,520 Not all data breaches become public, I mean 381 00:21:26,600 --> 00:21:29,080 probably most of them don't become public. 382 00:21:29,160 --> 00:21:31,320 But the fact that anybody can log on 383 00:21:31,400 --> 00:21:33,240 to a website on the so called dark web, 384 00:21:33,320 --> 00:21:36,400 download this data and see it for themselves... 385 00:21:36,480 --> 00:21:37,960 I mean that's appealing. 386 00:21:38,200 --> 00:21:40,480 I start looking through the emails because... 387 00:21:40,560 --> 00:21:42,200 I was interested in seeing if 388 00:21:42,280 --> 00:21:44,160 I could figure out who would do it. 389 00:21:44,640 --> 00:21:46,720 I wanted to figure out who did it. 390 00:21:49,200 --> 00:21:51,200 Well, then I became an addict. 391 00:21:52,640 --> 00:21:55,600 But as Gina, the editor of ANewDomain.com, 392 00:21:55,680 --> 00:21:57,400 looked through the emails 393 00:21:57,480 --> 00:21:59,080 more questions came up. 394 00:21:59,160 --> 00:22:02,200 Soon I was just looking in the email trying to figure out, 395 00:22:02,600 --> 00:22:04,320 what was Ashley Madison? 396 00:22:04,520 --> 00:22:07,320 Was it really a dating site? It didn't appear so. 397 00:22:08,160 --> 00:22:09,440 Avid Life Media 398 00:22:09,520 --> 00:22:11,200 the parent company of Ashley Madison, 399 00:22:11,280 --> 00:22:14,280 and headed by Noel Biderman owned a lot of different websites 400 00:22:14,360 --> 00:22:16,880 through many different shell companies. 401 00:22:17,000 --> 00:22:19,240 Some of these like Established Men and Cougar Life 402 00:22:19,320 --> 00:22:21,280 were publicly part of the portfolio, 403 00:22:21,720 --> 00:22:25,440 and some of them weren't so obviously linked to Avid Life Media. 404 00:22:26,200 --> 00:22:32,440 It isn't one dating site, it's many sites in every major market in the world. 405 00:22:32,520 --> 00:22:38,320 It's really a sprawling business and a sprawling collection of websites 406 00:22:38,400 --> 00:22:42,040 that appear to be designed to get people to come in 407 00:22:42,120 --> 00:22:43,800 to do other stuff. 408 00:22:43,880 --> 00:22:47,520 And that stuff doesn't seem to have a lot to do with dating. 409 00:22:48,560 --> 00:22:50,080 The company owned websites 410 00:22:50,160 --> 00:22:53,520 that seemed to cater for every conceivable male fantasy. 411 00:22:54,200 --> 00:22:57,680 Each one was slick and targeted at a specific market. 412 00:22:58,920 --> 00:23:02,280 So yes there's married women that will have an affair with you, 413 00:23:02,360 --> 00:23:03,360 that's Ashley Madison. 414 00:23:03,440 --> 00:23:06,120 There's older women who will have an affair with younger guys 415 00:23:06,200 --> 00:23:08,440 that's Cougar Life. 416 00:23:08,520 --> 00:23:11,120 Broke College Girls, find a broke college girl 417 00:23:11,200 --> 00:23:13,040 and maybe you could be her sugar daddy. 418 00:23:13,120 --> 00:23:18,040 There's that site. There's bondage sites, there's gay sites, 419 00:23:18,120 --> 00:23:22,120 if you can find a male fantasy, there's a site for it. 420 00:23:22,480 --> 00:23:26,880 All the websites had one aim: to draw in male customers. 421 00:23:30,280 --> 00:23:32,480 Ashley Madison user Tamsin could see how 422 00:23:32,560 --> 00:23:34,560 people got drawn onto other websites. 423 00:23:34,960 --> 00:23:37,400 I think it's become a sort of a gateway drug, 424 00:23:37,480 --> 00:23:41,080 if you will, for relationships and websites, 425 00:23:41,160 --> 00:23:46,720 and Internet dating of this sort, that it's a good area 426 00:23:46,800 --> 00:23:50,080 and a good site for people to get their feet wet, 427 00:23:50,160 --> 00:23:52,480 and then once they're there, then the banners 428 00:23:52,560 --> 00:23:55,320 for the more sort of directed websites pop up. 429 00:23:56,040 --> 00:23:58,480 One of Avid Life's most popular websites 430 00:23:58,560 --> 00:24:00,200 was Established Men. 431 00:24:00,600 --> 00:24:03,840 It claims to be the premier online dating service that 432 00:24:03,920 --> 00:24:07,920 connects young, beautiful women with rich, successful men! 433 00:24:08,000 --> 00:24:10,440 The website makes it clear women cannot advertise 434 00:24:10,520 --> 00:24:12,000 their services as an escort 435 00:24:12,080 --> 00:24:14,960 however many female users are looking for 436 00:24:15,040 --> 00:24:18,360 ''a mutually beneficial arrangement'', an MBA 437 00:24:19,040 --> 00:24:23,200 a common online term for a relationship often involving money. 438 00:24:25,200 --> 00:24:27,520 A lot of times women are looking for arrangements 439 00:24:27,600 --> 00:24:30,080 because they're having difficulty making ends meet. 440 00:24:30,800 --> 00:24:33,480 And a lot of times men are not in a position 441 00:24:33,560 --> 00:24:38,240 to have a formal relationship with all the bells and whistles 442 00:24:38,320 --> 00:24:41,320 and responsibilities that go along with it. 443 00:24:41,480 --> 00:24:43,320 Marketing Consultant Tamsin has lived 444 00:24:43,400 --> 00:24:46,600 an arrangement lifestyle on and off since she was 19. 445 00:24:46,840 --> 00:24:50,120 This is more of a situation where the man provides the woman 446 00:24:50,240 --> 00:24:55,000 with an allowance, spoiling, takes care of her travel expenses. 447 00:24:55,080 --> 00:25:00,440 Enables her basically to be able to be on his schedule on an as needed basis. 448 00:25:01,080 --> 00:25:02,600 Like the term sugar-daddy, 449 00:25:02,680 --> 00:25:05,200 a mutually beneficial arrangement, is a relationship 450 00:25:05,280 --> 00:25:07,920 where men and women negotiate the terms. 451 00:25:09,160 --> 00:25:13,600 A lot of those are escorts. Some of them just boldly say "escorts". 452 00:25:13,680 --> 00:25:15,400 But... 453 00:25:15,480 --> 00:25:19,640 Escort services are illegal in the US outside of a couple of areas 454 00:25:19,720 --> 00:25:21,920 so you can't really come out and say: 455 00:25:22,000 --> 00:25:26,680 "Hey, I'm a hooker!" You know, it's illegal. 456 00:25:28,920 --> 00:25:32,200 Avid Life Media also owns ArrangementFinders.com, 457 00:25:32,280 --> 00:25:34,440 a more blatantly erotic website. 458 00:25:35,160 --> 00:25:36,480 Even though the website states 459 00:25:36,560 --> 00:25:38,800 that it doesn't allow escorts to use their service, 460 00:25:38,960 --> 00:25:40,440 they actively encouraged girls 461 00:25:40,520 --> 00:25:43,440 who would like some extra income through dating to join. 462 00:25:44,120 --> 00:25:46,440 Start dating the way evolution programmed you to 463 00:25:46,520 --> 00:25:48,040 and we can ship bubbles right to you. 464 00:25:48,280 --> 00:25:51,040 They created another tongue-in-cheek marketing campaign, 465 00:25:51,120 --> 00:25:54,880 this time with the porn star Kayden Kross as the face of the brand. 466 00:25:55,280 --> 00:25:56,840 We're not just creating arrangements, 467 00:25:56,920 --> 00:25:57,880 we are also creating new jobs. 468 00:25:57,960 --> 00:26:00,160 -No jobs. 469 00:26:00,240 --> 00:26:02,160 -Blow jobs. 470 00:26:03,000 --> 00:26:05,760 When they deliberately advertised outside a university 471 00:26:05,840 --> 00:26:09,000 they made the news again. People were stunned. 472 00:26:09,080 --> 00:26:11,400 I'm here along Santa Monica Boulevard near Overland Avenue. 473 00:26:11,480 --> 00:26:14,360 A spokesperson for Avid Life Media said the placement 474 00:26:14,440 --> 00:26:17,400 and timing of the ad is part of the company's strategy. 475 00:26:17,480 --> 00:26:19,480 With graduation right around the corner 476 00:26:19,560 --> 00:26:21,600 and students looking for jobs and money. 477 00:26:21,680 --> 00:26:23,840 When we asked if this was prostitution 478 00:26:23,920 --> 00:26:27,080 the spokesperson said, "No, it's intimacy with a twist." 479 00:26:29,440 --> 00:26:30,920 But emails in the dump 480 00:26:31,000 --> 00:26:32,920 purporting to be from Noel Biderman's inbox 481 00:26:33,000 --> 00:26:35,880 reveal that the company not only knew they hosted escorts, 482 00:26:35,960 --> 00:26:38,280 they actively sought them. 483 00:26:40,040 --> 00:26:44,320 In one case it appeared that 2,500 escorts were emailed enticing them 484 00:26:44,400 --> 00:26:46,320 to join Arrangement Finders. 485 00:26:47,400 --> 00:26:51,280 When it worked they planned to contact 45,000 more. 486 00:26:52,960 --> 00:26:56,360 Some emails discussed the possibility of bringing foreign women to the US 487 00:26:56,440 --> 00:26:58,040 to work as sugar babies. 488 00:27:01,880 --> 00:27:04,440 And how the company would market them. 489 00:27:07,600 --> 00:27:10,360 They also investigated how the women could come to the US 490 00:27:10,440 --> 00:27:12,280 by lying to the authorities. 491 00:27:17,440 --> 00:27:18,960 ArrangementFinders.com 492 00:27:19,080 --> 00:27:21,840 is one of Avid Life's most successful sites. 493 00:27:22,200 --> 00:27:23,760 And it was to take Noel Biderman 494 00:27:23,840 --> 00:27:27,880 and Avid Life Media in a new direction: movies. 495 00:27:28,920 --> 00:27:30,760 He experimented with product placement 496 00:27:30,840 --> 00:27:33,080 and an unknown starlet. 497 00:27:33,160 --> 00:27:35,880 It just happened to be in hardcore porn. 498 00:27:37,400 --> 00:27:39,320 The site is also known for its shocking, 499 00:27:39,400 --> 00:27:41,880 deliberately provocative marketing stunts. 500 00:27:42,920 --> 00:27:47,280 This ad from 2013 featuring zombie husbands and wives was banned 501 00:27:47,360 --> 00:27:50,400 buying the company even more free publicity. 502 00:27:53,120 --> 00:27:55,840 But the owners of Ashley Madison, Avid Life Media, 503 00:27:55,920 --> 00:27:57,440 have a loose definition of dating. 504 00:27:57,520 --> 00:27:59,240 It's so simple a caveman could use it. 505 00:27:59,320 --> 00:28:01,320 In their deliberately lo-fi styled advert 506 00:28:01,440 --> 00:28:03,040 for ArrangementFinders.com 507 00:28:03,120 --> 00:28:06,800 Kayden Kross, the face of the brand, explains what they do. 508 00:28:07,200 --> 00:28:09,640 It's a dating site for all you sexy silver backs out there 509 00:28:09,720 --> 00:28:11,480 who think it's time for a little arm candy. 510 00:28:11,560 --> 00:28:15,360 And for all you arm candy to get a bit of purse candy. 511 00:28:15,440 --> 00:28:17,880 Are these dating options any good you ask? 512 00:28:18,200 --> 00:28:21,680 No. But blowjobs are f**king great. 513 00:28:21,920 --> 00:28:24,040 The company has denied this is prostitution, 514 00:28:24,120 --> 00:28:26,320 but rather intimacy with a twist. 515 00:28:27,200 --> 00:28:30,440 ArrangementFinders.com is interesting for an additional reason: 516 00:28:30,800 --> 00:28:33,440 this is the website that took the CEO Noel Biderman 517 00:28:33,520 --> 00:28:36,360 and his team into the world of pornography. 518 00:28:44,400 --> 00:28:51,120 I took some photos of myself in a state of undress in a bank on Wall Street. 519 00:28:51,840 --> 00:28:53,720 And then the photos went viral. 520 00:28:54,720 --> 00:28:57,760 The bathroom was not a public it was a private bathroom 521 00:28:57,840 --> 00:29:01,400 and I used to take pictures in there when I was bored anyway 522 00:29:01,480 --> 00:29:04,240 just cause I'm a millennial and we do things like that. 523 00:29:05,360 --> 00:29:11,320 And within days, literally days, they went completely viral over the Internet. 524 00:29:11,840 --> 00:29:13,960 And I was dubbed "The Wall Street porn star" 525 00:29:14,040 --> 00:29:17,640 before I even decided if I wanted to do porn or not. 526 00:29:17,720 --> 00:29:20,400 But at that point I was committed right? 527 00:29:23,160 --> 00:29:25,280 You've got that Ashley Madison investment right? 528 00:29:25,680 --> 00:29:29,080 Yeah, and we're working on some other interesting stuff. 529 00:29:29,480 --> 00:29:33,040 Veronica Vain would become Noel Biderman's leading lady. 530 00:29:33,200 --> 00:29:34,640 Screwing Wall Street, 531 00:29:34,720 --> 00:29:38,760 the Arrangement Finders IPO was the first fully-branded porn film, 532 00:29:38,840 --> 00:29:41,280 full of not-so-subtle product placement. 533 00:29:42,600 --> 00:29:45,600 Veronica was offered the lead part as her porn debut. 534 00:29:45,880 --> 00:29:49,320 The story was a spoof of the original Hollywood film Wall Street. 535 00:29:49,960 --> 00:29:51,520 You wanna work with me? 536 00:29:52,280 --> 00:29:54,520 The reason I was really interested in this deal 537 00:29:54,600 --> 00:29:56,760 I knew that it was pretty groundbreaking 538 00:29:56,840 --> 00:29:58,000 what they were doing. 539 00:29:58,080 --> 00:30:01,880 Even if it wasn't necessarily the best way to go about it at the time, 540 00:30:02,080 --> 00:30:03,520 the fact that they were doing it 541 00:30:03,600 --> 00:30:05,160 and that they were a mainstream brand. 542 00:30:05,240 --> 00:30:08,160 You were good enough to get in my office. 543 00:30:08,240 --> 00:30:10,920 Let's see it you're good enough to stay. 544 00:30:12,600 --> 00:30:15,040 That movie wasn't really the gold mine for him, 545 00:30:15,120 --> 00:30:18,360 he wasn't just looking for his brand to be in porn. 546 00:30:18,440 --> 00:30:21,120 Just the fact that it was my name 547 00:30:21,200 --> 00:30:25,840 and I was this girl who was being portrayed as being young and cute 548 00:30:25,920 --> 00:30:27,320 and having a good head on her shoulders. 549 00:30:27,680 --> 00:30:32,000 I was the girl he wanted to sell to all these guys. 550 00:30:32,200 --> 00:30:33,920 The plan worked very well. 551 00:30:34,000 --> 00:30:37,920 The clips that were released for free have had over three million views 552 00:30:38,000 --> 00:30:40,160 but it was Veronica's association with the brand 553 00:30:40,240 --> 00:30:42,200 and appearances on legitimate news channels 554 00:30:42,280 --> 00:30:43,600 that really had an effect. 555 00:30:43,680 --> 00:30:45,080 I always wanted to do something 556 00:30:45,160 --> 00:30:46,400 more entrepreneurial with my career 557 00:30:46,480 --> 00:30:49,120 I knew I wasn't fit for a more conservative environment 558 00:30:49,200 --> 00:30:51,880 and I saw an industry that's undergoing a new wave of innovation 559 00:30:51,960 --> 00:30:53,640 and I really wanted to be a part of it. 560 00:30:53,720 --> 00:30:58,560 The site had 200 per cent increase in overall web traffic 561 00:30:58,640 --> 00:31:04,320 but more impressively a 400 per cent increase in signups. 562 00:31:04,400 --> 00:31:07,960 Which I think it's basically saying that if you were going to Arrangement Finders 563 00:31:08,040 --> 00:31:12,160 as a result of seeing me in this clip or in the media or something 564 00:31:12,240 --> 00:31:14,680 you're almost immediately converting into a member. 565 00:31:15,280 --> 00:31:18,400 It was another major marketing success for Noel Biderman. 566 00:31:18,560 --> 00:31:21,120 Why do you think Noel was so clever at this? 567 00:31:21,200 --> 00:31:24,720 Speaking as an entrepreneur myself most entrepreneurs 568 00:31:24,800 --> 00:31:25,840 when they come up with an idea 569 00:31:25,920 --> 00:31:28,600 it's because they saw a market need for something that they needed. 570 00:31:28,680 --> 00:31:30,360 Most entrepreneurs won't just like: 571 00:31:30,440 --> 00:31:32,320 "Oh, people need this but I don't really want it." 572 00:31:32,400 --> 00:31:34,640 Most entrepreneurs when they start something 573 00:31:34,720 --> 00:31:36,880 they want the product that's why they are making it. 574 00:31:36,960 --> 00:31:42,880 So I can only imagine that he might have wanted to have some sort of affair, 575 00:31:43,000 --> 00:31:44,400 or make it easier to have affairs. 576 00:31:44,480 --> 00:31:46,640 And that's quite brilliant that he went to the market 577 00:31:46,720 --> 00:31:47,920 being like ''I don't have affair, 578 00:31:48,000 --> 00:31:52,040 I'm happily married blah blah, I just like start this for other guys.'' 579 00:31:52,120 --> 00:31:55,520 If your husband was cheating on you, 580 00:31:55,640 --> 00:31:58,600 would you be OK with him going to a site such as yours? 581 00:31:58,680 --> 00:32:01,120 Absolutely not, that's not what I signed up for. 582 00:32:01,200 --> 00:32:03,600 Noel was the master of press interviews. 583 00:32:03,680 --> 00:32:05,840 He often included his wife in the discussion. 584 00:32:05,920 --> 00:32:09,600 And I live in a traditional situation with Noel and... 585 00:32:09,800 --> 00:32:13,920 And he was always clear: he had never had an extra-marital affair. 586 00:32:14,000 --> 00:32:16,240 And I would be devastated if he did this to me. 587 00:32:16,520 --> 00:32:18,880 But information released in the Ashley Madison hack 588 00:32:18,960 --> 00:32:21,520 revealed that Noel did have affairs, 589 00:32:21,680 --> 00:32:23,920 in fact, it appeared that over three years 590 00:32:24,000 --> 00:32:26,280 he had had relationships with a number of women, 591 00:32:26,360 --> 00:32:30,160 many of whom he had met through his own site, Established Men. 592 00:32:31,480 --> 00:32:33,560 Noel frequently discussed money with these women 593 00:32:33,640 --> 00:32:36,200 and even offered one work at Avid Life. 594 00:32:36,680 --> 00:32:40,480 He appears to have been a serial sugar daddy himself. 595 00:32:41,680 --> 00:32:45,920 It seems that very little of the Ashley Madison story was as it appeared. 596 00:32:46,840 --> 00:32:49,240 It's hard to know if the mainstream media would have given Noel 597 00:32:49,320 --> 00:32:51,480 and his company quite so much airtime 598 00:32:51,560 --> 00:32:55,040 if they'd known all that was happening behind the scenes. 599 00:32:55,840 --> 00:32:58,760 I don't think Ashley Madison is inventing prostitution. 600 00:32:58,840 --> 00:33:05,120 I think what the emails suggest they're doing is helping to automate it. 601 00:33:05,200 --> 00:33:07,280 And making it very easy. 602 00:33:07,360 --> 00:33:10,480 Just like Google didn't invent looking stuff up. 603 00:33:10,560 --> 00:33:14,280 To my knowledge, Ashley Madison, they're not running a prostitution ring 604 00:33:14,360 --> 00:33:18,800 or their own escort service that's against the law or anything like that. 605 00:33:18,880 --> 00:33:21,960 What I find more immoral is about the way 606 00:33:22,040 --> 00:33:25,320 they deal with reporters and journalists, 607 00:33:25,400 --> 00:33:28,920 misleading them into thinking that the company is something that it isn't. 608 00:33:29,000 --> 00:33:32,280 But that's not illegal either. 609 00:33:32,520 --> 00:33:33,520 Because they're a private company 610 00:33:33,600 --> 00:33:36,520 and they can tell people anything they want to about their business. 611 00:33:36,600 --> 00:33:39,000 I think Ashley Madison were brilliant at marketing 612 00:33:39,080 --> 00:33:42,080 they seemed to know what the papers wanted. 613 00:33:42,160 --> 00:33:45,600 And they would take this little seed of truth, 614 00:33:45,680 --> 00:33:49,800 blow it up and that was probably what made them so successful in the media. 615 00:33:49,880 --> 00:33:51,840 You need to get a little bit more with times, and to be honest... 616 00:33:51,920 --> 00:33:52,920 Louise Van der Veld 617 00:33:53,000 --> 00:33:55,880 is a professional sex and relationship counselor. 618 00:33:56,040 --> 00:33:57,400 She was employed by Ashley Madison 619 00:33:57,480 --> 00:34:00,520 as a media spokesperson in 2013, 620 00:34:00,600 --> 00:34:03,360 although she soon fell out with the company over money. 621 00:34:03,440 --> 00:34:06,520 She did get an insight into how the company worked. 622 00:34:06,600 --> 00:34:10,360 ...because the relationship model is fundamentally flawed from the off. 623 00:34:10,440 --> 00:34:13,400 When I first agreed to be their spokesperson, 624 00:34:13,480 --> 00:34:16,120 it was very much me coming from an authentic point of view, 625 00:34:16,200 --> 00:34:20,320 about my beliefs about my experience of working with couples who had affairs. 626 00:34:20,400 --> 00:34:22,440 A lot of that kind of got ditched 627 00:34:22,520 --> 00:34:27,880 and they totally glamorized it with a shocking headline approach. 628 00:34:27,960 --> 00:34:31,080 And the hacked emails revealed not just exaggeration, 629 00:34:31,160 --> 00:34:33,320 but deliberate deception of the media. 630 00:34:43,320 --> 00:34:46,840 Even blue chip publications fell for their stories. 631 00:34:47,800 --> 00:34:51,040 Forbes is one of the world's largest financial publications, 632 00:34:51,120 --> 00:34:54,600 it's one of the most respected financial publications in the world. 633 00:34:54,680 --> 00:34:56,400 Noel and Avid Life Media 634 00:34:56,520 --> 00:34:58,520 were cultivating a relationship with a journalist 635 00:34:58,600 --> 00:35:02,080 who was trying to get a piece commissioned by the magazine. 636 00:35:03,640 --> 00:35:08,280 Forbes editors had agreed to do an article about them 637 00:35:08,360 --> 00:35:11,880 and their fantastic growth but they wanted to see some numbers. 638 00:35:12,200 --> 00:35:15,960 And from the trail of emails you see employees saying, 639 00:35:16,040 --> 00:35:22,480 woah I can do up this chart and I can make up this set of data points 640 00:35:22,560 --> 00:35:25,480 a lot of it seems to be largely invented. 641 00:35:26,280 --> 00:35:29,040 The company appears to have dramatically exaggerated 642 00:35:29,120 --> 00:35:32,280 the financial figures for the Ashley Madison website. 643 00:35:33,200 --> 00:35:36,960 All those websites, all those affiliate marketing deals. 644 00:35:37,360 --> 00:35:39,760 All the many different little revenue streams 645 00:35:39,840 --> 00:35:41,600 that Ashley Madison and Avid 646 00:35:41,680 --> 00:35:44,760 and its related companies have all over the world. 647 00:35:44,840 --> 00:35:49,840 But how could Forbes have known about all of that? And back then nobody did. 648 00:35:50,840 --> 00:35:52,600 Noel's dream was for Ashely Madison 649 00:35:52,680 --> 00:35:54,320 to be listed on the stock market 650 00:35:54,400 --> 00:35:58,560 and sell its shares to the public through what's called an IPO. 651 00:35:59,200 --> 00:36:02,920 We're a huge company. Maybe you can help us with the IPO, 652 00:36:03,000 --> 00:36:05,840 I think it's about time we go and raise a billion bucks and show the world. 653 00:36:05,920 --> 00:36:07,040 That's interesting! 654 00:36:07,120 --> 00:36:09,760 It could happen. If you looked at our business with a blind on it right? 655 00:36:09,840 --> 00:36:11,000 You just looked at the numbers and 656 00:36:11,080 --> 00:36:12,600 the growth and the membership and you go oh my God 657 00:36:12,680 --> 00:36:13,760 this thing is worth billions... 658 00:36:13,840 --> 00:36:15,840 Noel wanted everyone to look at the business 659 00:36:15,920 --> 00:36:20,440 through a filter. To cover the entire empire of sex sites, porn affiliates 660 00:36:20,520 --> 00:36:23,360 and escort listings with the blanket of Ashley Madison. 661 00:36:23,600 --> 00:36:28,200 Because Noel was so good at making it look mainstream and OK, 662 00:36:28,280 --> 00:36:31,000 and commonplace and OK to talk about, 663 00:36:31,080 --> 00:36:34,440 I think people were more likely to be able to talk openly 664 00:36:34,520 --> 00:36:37,600 about AshleyMadison.com than they are about PornHub.com. 665 00:36:37,680 --> 00:36:40,360 So if Forbes comes out and says: ''Wow! Ashley Madison is one of the largest, 666 00:36:43,200 --> 00:36:46,040 most successful dating sites in history, 667 00:36:46,120 --> 00:36:51,120 it's nearly a billion-dollar company then 8 other major publications 668 00:36:51,200 --> 00:36:54,560 the world over will say ''Wow! Forbes, Bloomberg, it must be true.'' 669 00:36:54,640 --> 00:36:57,120 I mean with nobody really questioning, 670 00:36:57,200 --> 00:37:01,520 could this really be a billion-dollar company 671 00:37:01,600 --> 00:37:04,000 45 per cent growth in one year really? 672 00:37:04,080 --> 00:37:09,480 You really can't blame Ashley Madison for taking advantage of a lazy press. 673 00:37:09,720 --> 00:37:13,080 In September 2015, two months after the hack, 674 00:37:13,360 --> 00:37:15,280 another Forbes article was written: 675 00:37:15,840 --> 00:37:19,840 "We really don't know how big Ashley Madison was, although I'm pretty sure 676 00:37:19,920 --> 00:37:22,760 that it was nowhere near as big as it seemed." 677 00:37:23,680 --> 00:37:25,960 But while the hack appears to have revealed so much 678 00:37:26,040 --> 00:37:28,120 about the users and owners of the website, 679 00:37:28,200 --> 00:37:31,120 we know very little about the hackers themselves. 680 00:37:31,200 --> 00:37:34,280 A year later no one has been arrested for the crime 681 00:37:34,360 --> 00:37:36,560 and the case is still ongoing. 682 00:37:36,800 --> 00:37:40,800 Avid Life Media is offering a 500,000 dollar reward 683 00:37:40,880 --> 00:37:45,280 to anyone providing information that leads to the identification, 684 00:37:45,360 --> 00:37:48,520 arrest and prosecution of the person or persons 685 00:37:48,600 --> 00:37:51,480 responsible for the leak of the Ashley Madison database. 686 00:37:51,560 --> 00:37:55,440 And no one has collected that half a million-dollar reward. 687 00:37:55,520 --> 00:37:56,520 Standby. 688 00:37:56,800 --> 00:37:58,840 Good looking, healthy, 689 00:37:58,920 --> 00:38:02,160 certainly old enough to get married, what a lovely picture 690 00:38:02,240 --> 00:38:06,280 this bride and groom make each is a dream in the others mind. 691 00:38:07,160 --> 00:38:08,400 Many marriages were rocked 692 00:38:08,480 --> 00:38:10,880 when the user details of AshleyMadison.com 693 00:38:10,960 --> 00:38:14,080 were leaked last year. Divorce lawyers claimed 694 00:38:14,160 --> 00:38:17,000 it was Christmas in September for the industry. 695 00:38:17,080 --> 00:38:20,120 Why does it have to happen this way for them? 696 00:38:20,880 --> 00:38:22,120 Whose fault was it? 697 00:38:25,040 --> 00:38:27,000 The dating industry was also rocked. 698 00:38:27,080 --> 00:38:30,600 Shortly after the hacked emails of Noel Biderman were published, 699 00:38:30,680 --> 00:38:34,720 Avid Life Media announced that he had agreed to step down as CEO. 700 00:38:35,200 --> 00:38:38,040 They said this was in the best interests of the company. 701 00:38:39,320 --> 00:38:42,480 Team Impact, this is your wake up call. 702 00:38:42,560 --> 00:38:46,480 Your actions are illegal and will not be tolerated. 703 00:38:46,640 --> 00:38:49,800 But the police still have no idea who did it. 704 00:38:50,200 --> 00:38:52,520 The hackers called themselves The Impact Team, 705 00:38:52,600 --> 00:38:54,080 an anonymous-style group 706 00:38:54,160 --> 00:38:57,280 who called the users of Ashley Madison cheating dirt bags 707 00:38:57,360 --> 00:39:00,760 and accused Avid Life of profiting from the pain of others. 708 00:39:01,200 --> 00:39:04,000 This kind of hack is known as hacktivism. 709 00:39:11,080 --> 00:39:16,240 Hacker house near Manchester, is filled with people who know that world. 710 00:39:17,120 --> 00:39:21,400 If you understand the rules of somebody else's system better than they do, 711 00:39:21,480 --> 00:39:24,640 then you effectively get to rewrite the rules of the game. 712 00:39:25,480 --> 00:39:29,560 Trying to take down a website that promotes unfaithfulness between couples. 713 00:39:29,640 --> 00:39:32,280 It could be considered vigilantism. 714 00:39:32,400 --> 00:39:33,880 Is it ok to cheat on your wife? 715 00:39:33,960 --> 00:39:37,520 Because you can do it behind closed doors on this website, 716 00:39:37,600 --> 00:39:39,840 and then what happens when that is exposed? 717 00:39:39,920 --> 00:39:41,440 Are we all now supposed to feel sorry for you? 718 00:39:41,560 --> 00:39:43,880 I personally would never do anything illegal, 719 00:39:43,960 --> 00:39:48,080 but when the Ashley Madison thing happened it was like 720 00:39:48,160 --> 00:39:49,280 yeah good on them! 721 00:39:49,360 --> 00:39:52,040 A lot of big hacktivists, I mean this is what they go for, 722 00:39:52,120 --> 00:39:55,400 they try to expose big corporate companies. 723 00:39:55,480 --> 00:39:58,720 The means of going in and shutting down some other site, 724 00:39:58,920 --> 00:40:00,160 it's still breaking the law. 725 00:40:01,960 --> 00:40:04,640 It's getting serious, we're seeing more the effect it will have on 726 00:40:04,720 --> 00:40:06,200 on people's lives. 727 00:40:09,000 --> 00:40:10,560 Hacker House was set up to try 728 00:40:10,640 --> 00:40:13,640 and bring hackers into the mainstream and not to break the law. 729 00:40:14,360 --> 00:40:18,200 But The Impact Team's action was more than just illegal. 730 00:40:18,640 --> 00:40:23,000 Whether they thought the reason behind it was purely moral, 731 00:40:23,080 --> 00:40:24,360 only they can answer. 732 00:40:24,440 --> 00:40:27,720 But it's not like this was a victimless crime at all, 733 00:40:27,800 --> 00:40:29,680 I mean people killed themselves. 734 00:40:31,000 --> 00:40:33,560 We still have no idea who hacked Avid Life Media, 735 00:40:33,640 --> 00:40:35,800 and for what true motive. 736 00:40:35,880 --> 00:40:38,400 They didn't appear to make money from the hack, 737 00:40:38,480 --> 00:40:40,240 so there must have been a different reason. 738 00:40:40,320 --> 00:40:42,160 Some people think it was a competitor 739 00:40:42,520 --> 00:40:47,200 I'm of the belief that it was probably a competing website. 740 00:40:48,160 --> 00:40:52,200 That may have masterminded or saw the opportunity. 741 00:40:52,280 --> 00:40:55,960 May have planted an employee over a period of time. 742 00:40:56,040 --> 00:40:59,680 Or they were the ones that handled the hack externally. 743 00:40:59,880 --> 00:41:02,720 One theory was that it was an inside job. 744 00:41:03,360 --> 00:41:08,240 There is chance that the Impact team was just an insider. 745 00:41:08,320 --> 00:41:11,880 Judging by the quality and richness of the data. 746 00:41:11,960 --> 00:41:14,240 Internal email, product source code, 747 00:41:14,320 --> 00:41:18,400 they likely had to be on the company network itself 748 00:41:18,640 --> 00:41:20,400 rather than just the website. 749 00:41:23,840 --> 00:41:28,240 I believe that someone had a personal problem with the CEO 750 00:41:28,320 --> 00:41:30,400 or the executives at the company 751 00:41:30,480 --> 00:41:33,200 and felt cheated in some way 752 00:41:33,280 --> 00:41:35,120 where they were getting revenge. 753 00:41:35,680 --> 00:41:38,560 Judging by the way that I was treated by the company 754 00:41:38,640 --> 00:41:43,040 and the way that they just seemed used to dealing with employees 755 00:41:43,120 --> 00:41:45,200 that were not happy 756 00:41:45,280 --> 00:41:49,080 I think it possibly was an inside job. 757 00:41:49,840 --> 00:41:52,400 Lots of people could have had a motive 758 00:41:52,480 --> 00:41:57,680 to either harm either Avid in general or Noel specifically. 759 00:41:57,960 --> 00:42:00,360 People inside, people outside. 760 00:42:00,440 --> 00:42:02,200 This was a company that sued a lot of people, 761 00:42:02,280 --> 00:42:04,440 fired a lot of people. 762 00:42:04,520 --> 00:42:07,880 Finding a person with a motive is too easy. 763 00:42:07,960 --> 00:42:09,880 There's too many people with motives. 764 00:42:16,280 --> 00:42:17,600 But whoever did it, 765 00:42:17,680 --> 00:42:21,160 the real world impact of Ashley Madison continues. 766 00:42:21,240 --> 00:42:24,240 Anybody who's been through what I've been through 767 00:42:24,320 --> 00:42:27,040 through would love to see that site down. 768 00:42:28,000 --> 00:42:29,080 Long before the hack, 769 00:42:29,160 --> 00:42:32,640 Ashley Madison had been helping to destroy marriages. 770 00:42:32,760 --> 00:42:36,080 Many of the real women on the site were from rural areas. 771 00:42:36,800 --> 00:42:40,520 When the hack happened you can actually go and see per area, 772 00:42:40,600 --> 00:42:47,200 Utah, Idaho... where they had some of the highest Ashley Madison accounts. 773 00:42:47,280 --> 00:42:50,520 And these are conservative, rural areas. 774 00:42:50,600 --> 00:42:55,880 It's something that actually is not very surprising to me. 775 00:42:59,080 --> 00:43:02,360 In 2012, several years before the hack, 776 00:43:02,440 --> 00:43:04,600 Jim received some messages on his phone. 777 00:43:04,680 --> 00:43:08,320 By accident one of his wife's accounts was networked to his cell. 778 00:43:08,720 --> 00:43:12,560 I started getting emails and text messages 779 00:43:12,640 --> 00:43:16,000 between my wife and another guy telling him "I'm gonna start a fight with my husband 780 00:43:19,520 --> 00:43:21,880 and figure out some way to go meet up with you." 781 00:43:22,560 --> 00:43:27,360 I threw up. I actually threw up. 782 00:43:27,920 --> 00:43:29,280 In the end, Jim was able 783 00:43:29,400 --> 00:43:31,960 to recover many of the messages his wife had sent. 784 00:43:32,040 --> 00:43:35,640 Stuff you can never un-know, you can never un-see 785 00:43:35,720 --> 00:43:40,440 There was a video. Someone sent me a video, it was her having sex. 786 00:43:41,520 --> 00:43:43,040 Jim discovered that his wife 787 00:43:43,120 --> 00:43:47,280 had had affairs with six different men on the Ashley Madison website. It's like a drug, it's like you're addicted. 788 00:43:51,880 --> 00:43:54,480 You want more, you want that adrenaline, you want that feeling. 789 00:43:54,560 --> 00:43:56,040 That's the only way I can think of it. 790 00:43:58,240 --> 00:43:59,320 I have these... 791 00:44:00,640 --> 00:44:01,840 5 little kids. 792 00:44:02,480 --> 00:44:04,920 I did not want them to be raised... 793 00:44:06,680 --> 00:44:08,920 in a broken home. 794 00:44:10,800 --> 00:44:15,880 I felt like it was my fault, I felt responsible. 795 00:44:16,320 --> 00:44:20,000 I just tried talking to her and explaining, I love you, 796 00:44:20,080 --> 00:44:24,400 we have 5 kids, let's not destroy this family. 797 00:44:24,760 --> 00:44:27,800 But in the end it was impossible to reconcile: 798 00:44:27,880 --> 00:44:30,200 the couple divorced. 799 00:44:30,280 --> 00:44:35,200 It took a long time before I stopped getting nauseous, 800 00:44:35,280 --> 00:44:40,280 like physically wanted to throw up any time I saw Ashley Madison. 801 00:44:40,360 --> 00:44:43,400 Until the hack. That was a good day. 802 00:44:50,160 --> 00:44:52,960 We don't know who did the hack, but we do know that 803 00:44:53,040 --> 00:44:57,080 The Impact Team has threatened to do more attacks. 804 00:44:58,440 --> 00:45:01,800 I asked the Impact team whether they were going to hit any other companies 805 00:45:01,880 --> 00:45:04,840 and they said, essentially, sure. 806 00:45:04,920 --> 00:45:07,960 Maybe even politicians. 807 00:45:08,520 --> 00:45:11,960 All systems have weaknesses. 808 00:45:12,040 --> 00:45:16,360 Even the biggest social networking sites. 809 00:45:16,440 --> 00:45:20,040 There is no such thing as a secure system. 810 00:45:22,640 --> 00:45:27,000 As more of our lives become intertwined with the digital world, 811 00:45:27,080 --> 00:45:30,120 cars having connection to the internet for example, 812 00:45:30,200 --> 00:45:32,400 hacking is only going to increase. 813 00:45:32,920 --> 00:45:34,400 Is that scary? 814 00:45:36,640 --> 00:45:38,040 Yeah! 815 00:45:38,120 --> 00:45:40,600 Greeting citizens of the free world.