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The Greek Debt Crisis Could Spell the End of the Eurozone; Former IMF Chief Strauss-Kahn Accused of Rape in France; Ratko Mladic's Trial on Hold Indefinitely

Aired July 04, 2011 - 16:00   ET

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

BECKY ANDERSON, CNN INTERNATIONAL ANCHOR: They stood shoulder to should to help rescue debt-ridden Greece, but is the Franco-German plan to stave off a default falling apart?

With the country forced to sell off billions of dollars in assets, Britain foreign secretary tells me that Greece's very sovereignty is now at stake.

Plus we'll take you inside the undercover unit charged with bringing human traffickers to justice.

And is this the face of a new era, at Wimbledon?

These stories, and more, tonight, this week CONNECT THE WORLD.

Well, on hurdle cleared and another one appears. Such has been the story of Greece since it went cap in hand to its neighbors. Now, that was more than 15 months ago, April 23, 2010. Just last week riots broke out, as you know, in the Greek capital Athens as the country's parliament passed a package of stinging austerity measures. Well, the vote was crucial, of course, to secure the latest installment of its first bailout. Without it, the country could have run out of money by the middle of this month.

Yet days after the disaster was averted the country's financial future is once again in doubt. A plan for a second bailout, put forward by Greece and agreed by Germany, has fallen foul of ratings agency S&P. It says that it would amount to a default. What Greece owes almost beggars belief, some $450 billion. That is the big number hanging over Greek heads, threatening the country with bankruptcy.

I spoke to Richard Quest, my colleague, a short time ago, to make sense of this latest problem of the debt ridden nation.

(BEGIN VIDEOTAPE)

ANDERSON: Richard, I am a French banker, for example. And some time ago I lent you, Greece, say $1 billion.

RICHARD QUEST, CNN ANCHOR, QUEST MEANS BUSINESS: And for which, in return, I gave you a good old fashioned bond that is said in, say, two years' time, next year, I would repay you, your $1 billion.

ANDERSON: That is what an IOU is.

QUEST: Basically.

ANDERSON: Except that is not what is happening at the moment, is it?

QUEST: No, because well, I have behind me, the IMF, the European Union, the ECB, and we are now all saying to you, ah, come on. I'll tell you what, give me that back, I'll give you another one. Oh, better still-you don't want it next year. When it comes due, we'll roll it over. How about 2015, of 2020, or 2030?

ANDERSON: Call me old fashioned, but when I was doing Economics 101 at university, I learned that if a government doesn't pay off, or it can't make its payments, then it goes into default. Effectively it is rated D.

QUEST: Right. Right, and this is the problem with the proposals that have been put forward, whether a soft roll over, or anything else, or any of the variations that have been cobbled together, the all assume this word voluntary. And everybody is forgotten the rules of S&P, Fitch and Moody's. Is this a distressed asset that is heading toward conventional default. Are you going to suffer losses? Will the maturity change? There is a whole raft of rules and that is why S&P says, this cobble together plan is really nothing more than a default.

ANDERSON: And let's remind our viewers the job of a rating agency is to monitor of the quality of these financial assets that are out there, that people might invest in. And let's also remind ourselves that during the sub-prime crisis, they didn't do that well. Now they are being asked to turn a blind eye. Is that right?

QUEST: Yes, that is the long and short of it. During the sub-prime, they were rating triple A absolute garbage. Stuff that should have been put in the bin and forgotten about. And they were roundly condemned by the U.S. Congress. They gave evidence before the Congress, it was a shambled, conflict of interest.

What they are saying now, is-hang on a second. This is what you are trying to do, and others. It doesn't look right. It doesn't smell right. You are trying to do something through the back door that you can't do for the front. And the seriousness of this, if tested in the courts, is that we'll end up with a structured or selective default, which is exactly what the Europeans don't want.

ANDERSON: What does happen next?

QUEST: What happens next is they have to go back to the drawing board. They've got the austerity plan. They've got the money. So, Greece is OK for the next few months. But bailout number two, the so-called private participation, the bit that Germany is demanding as the price for bailout. They don't have a mechanism yet. Look, they can argue about it. But they don't want to argue about it. They want a cast iron, guaranteed mechanism. And what S&P today, was basically-shot the whole thing down.

(END VIDEOTAPE)

ANDERSON: Well, one way to fill the void, according to the head of Euro Group, Jean-Claude Juncker, is for Greece to sell off its assets. And that is what it is being forced to do. The EU and IMF are now demanding a massive privatization program of everything from real estate to power, to the ports. But in an interview with Germany's "Focus" magazine, Juncker warns that this fire sale means that the sovereignty of Greece will be massive limited. This is the question of Greece losing its economic and political independence.

A little earlier I spoke to British Foreign Secretary William Hague, a known euro skeptic. And ask him if this financial crisis will lead to greater federalism in the Eurozone. This is what he said.

(BEGIN VIDEOTAPE)

WILLIAM HAGUE, FOREIGN SECRETARY, GREAT BRITAIN: I always argue many a time that it would lead, the euro would naturally lead, either it would great a political union or it would experience many difficulties. Well, now we are seeing some of those affects. But the important thing is for countries to address their budget deficits and to have their own finances under control. We are doing that here in the United Kingdom and we look to it at every other European country to do the same.

BECKY ANDERSON, CNN INTERNATIONAL ANCHOR: Last question: Jean-Claude Juncker, chair of the Eurozone finance ministers, has himself said the bailout means the sovereignty of Greece would be massively limited. Do you see the limitation of sovereign states, certainly so far as their economic policy is concerns going forward?

HAGUE: Well, yes, certainly countries that become heavily indebted to others, need bailouts, or any sort of from the IMF, the Eurozone, are limiting their own sovereignty. They are limiting their own sovereignty. They are heavily in debt. Their economic actions are limited and that is determined outside those countries. So, that naturally happens when a country gets into such difficulties. And it would have happened here in Britain had we not had a change of government.

(END VIDEOTAPE)

ANDERSON: William Hague speaking to me earlier. I want to get the opinion now of a man whose job it is-I'm sorry, I'm going to go over here-whose job it is to assess risk for one of Europe's biggest banks. I spoke to Valenijn Van Nieuwenhuijzen, chief economist at ING Investment Management, a little bit earlier. And I began by asking if Greece's sovereignty is a problem?

(BEGIN VIDEOTAPE)

VALENIJN VAN NIEUWENHUIJZEN, ING INVESTMENT MANAGEMENT: Well, obviously, it concerns me. You know, it is still the case that large contagion risks are out there, and until we find a long-term credible solution for the sovereignty issue, you know, it will be haunting markets, and it will be coming back even if it gets a little bit quieter over the next couple of weeks.

ANDERSON: Will it get quieter over the next couple of weeks?

NIEUWENHUIJZEN: Well, our assessment is that it will. We will probably get some kind of a temporary solution and the next Greek package next week at the EU summit. But at the end they are providing a solution which has already failed over the last 12 months, and six or nine months down the road the IMF will be coming back from Athens and once again probably see that Greek is not living up to its promises.

ANDERSON: Yes, and the potential for contagion here is obvious. More broadly, the Greek crisis, of course, I you'll agree reflect an inherent weakness in the Eurozone, or the Euro structure. This is one size fits all currency and interest rate set for these widely divergent economies. It doesn't work, does it?

NIEUWENHUIJZEN: It is obviously the case that there is indeed a failure in the setup of the Eurozone. And actually it also points to the fact that therefore, let's say, core Europe share some responsibility in the problems that they are facing right now. Because a lot of the imbalances within Europe has actually been built up since the euro was introduced. So to that extent, I think it is quite clear that core Europe has a strong incentive to participate in a credible solution.

ANDERSON: Are we looking at the potential failure of the entire project? And when I talk about the entire project, I'm talking about the Eurozone and there are 17 members of that. But we could go so far as to say the entire project when it comes to European integration at this point, couldn't we?

NIEUWENHUIJZEN: Well, of course, we could. I mean, it is quite clear that, you know, with all the populistic forces at play in Europe at some point this could fall apart. On the other hand, you have to realize that Europe always needs crisis to make jumps forward. And actually that is our take on this situation as well. At some point, politicians have to accept that we move closer to something like a fiscal union and give up some sovereignty at the local level.

ANDERSON: Are these politicians involved in this, good enough?

NIEUWENHUIJZEN: Well, that is a big question, of course. I mean, this is all-even being an economist, you know, this is all new stuff. And you sort of have to make it up on the plate. It is quite difficult to do that in time. And with this enormous amount of market pressure and pressure from the local electorate, it is quite challenging. But in the end, you know, we will be able. And this is one of the benefits of taking some time with these temporary solutions. In the end there is enough smart people out there to find a credible solution. We are convinced of that.

ANDERSON: Let's hope so.

Over the weekend, Eurozone finance ministers threw a life line to Greece approving the next traunch of emergency aid. That $17 billion will be paid on the 15th of July pending IMF approval. Now the IMF are meeting on Friday to sign off on that. And that payment will allow Greece to avoid the immediate threat of default in July.

All right, coming up on CONNECT THE WORLD, it is 11 minutes past 9:00 out of London. Dramatic scenes at the Hague today. Ratko Mladic thrown out of court. We'll have more on that in a few minutes, along with all the other stories we are following for you today. In 10 minutes' time, more from CNN's "Freedom Project". We are going to meet these people fighting to expose the horrors of human trafficking. And then, inside the mind of a computer hacker. We'll have more on the latest wave of attacks. That in about 30 minutes from now. You are with CNN.

(COMMERCIAL BREAK)

ANDERSON: Welcome back, you are with CONNECT THE WORLD, I'm Becky Anderson in London. As promised, let's take a look at the other stories we are following this hour here.

(NEWSBREAK)

(COMMERCIAL BREAK)

ANDERSON: Shining a spotlight on the horror of human trafficking CNN is devoting an entire year to revealing the dark world of modern-day slavery. What we call our "Freedom Project" we show you the terrible plight of victims. It is now, or certainly now, we have the chance to see the struggle through investigators' eyes. Today we debut "Freedom Project Undercover." Now, this is a new series, looking at those fighting to take down the traffickers. A special unit in Catalonia, in Spain, is given CNN unprecedented access to show you just what it takes to bring these criminals to justice. Martin Savidge has your report.

(BEGIN VIDEOTAPE)

MARTIN SAVIDGE, CNN INT'L. CORRESPONDENT (voice over): There are aspects to the fight against human trafficking that might seem exciting, busting down doors, rescuing victims. But before agents get to this point they go through months, sometimes years of investigation.

Behind this sleek exterior lies the headquarters of the Mossos D'Esquadra, or the Autonomous Police. The police agency for the Catalonian Region of Spain. And in this office are the 15 agents dedicated to human trafficking. They work undercover so we can't show you their faces. Sub- Inspector Xavier Cortes is their boss, the man behind the mask. He helped form the central unit against trafficking of human beings, four years ago. And he says you first need to know the unique challenges of fighting human trafficking to understand his unit.

XAVIER CORTES, SUB-INSPECTOR, MOSSOS D'ESQUADRA (through translator): Research techniques are different than a regular criminal investigation, such as the solving of a robbery. To investigate criminal organizations what one cannot do is solve the crime. You can locate and dismantle the organization, so that their objective is different. You get to know who are the members, how they live, how they interact, and how the organization is organized.

SAVIDGE: This investigation board shows intricate process of exposing a criminal ring. For these men and women, working in this unit means months of evidence gathering, the never-ending hours of investigation. That foster dedication, it bonds the agents together as they work on some of the toughest cases in organized crime.

CORTES (through translator): These investigations are very long, very long meaning no less than seven or eight months. But always around one year. It is a year of pure dedication and being always available without a normal schedule.

SAVIDGE: This unit has helped rescue dozens of women and children in forced prostitution. And in their largest bust yet, helped to free 450 victims of forced labor. Many of their successes come from the use of informants. The tricky, yet very necessary part of breaking a case.

CORTES (through translator): Considering in the vast majority of cases criminal organizations doing the trafficking of people that operate in Catalonia, are organizations from foreign countries. It is almost impossible to get agents to infiltrate them. If we, however, have people of their own nationalities, with their own particular interests, working from the inside, for us, we are ultimately able to gather vital information.

SAVIDGE: The informants usually have good reason to see the organization brought down. They are often victims. In fact, most of the cases are the result of an escaped victim, who came into a police station to make a report. Some have even stayed in a bad situation just to make sure agents have what they need to make the bust.

The Catalonian Region where the Mosses D'Esquadra operates has both a blessing and a curse. Barcelona, the largest city in the region, draws tourists with its nearly year-round pleasant weather. The walking hand in hand, with the tourists, are criminals hoping to make money off of them.

CORTES (through translator): The number of people that come here, attracted primarily for the party concept that foreigners bring, come looking for recreational activities. Unfortunately, some of these recreational activities the tourists look for is sex.

SAVIDGE: Tourists looking for sex can find it along the highways, in brothels, or clubs, on busy city streets. The legality of prostitution in Spain is complicated. And it hinges on whether these women want to sell their bodies, or whether they are forced to. Figuring that out is one of the human trafficking units biggest challenges. Martin Savidge, CNN.

(END VIDEOTAPE)

ANDERSON: And tomorrow on CNN, Sub-Inspector Cortes explains why investigating forced prostitution in Catalonia is a unique challenge.

(BEGIN VIDEOTAPE)

SAVIDGE: Because it is legal to prostitute yourself, Inspector Cortes says many women come to Catalonia knowing that is what they'll be doing. Usually a bad economic situation, or the desire to help family back home pushes them to it.

CORTES (through translator): What they do is contact groups that have control of the areas and that emerging prostitution here in our territory. And they create a contract and say, you will come here, and I will take a percentage of your earnings.

SAVIDGE: Cortes says the problem arises when the women arrive on Spanish soil. Sometimes they are locked up in apartments for weeks at a time, and told they have an enormous debt to pay off for bringing them there. Their families back home are threatened. And if the women fight back the sexual aggression begins.

(END VIDEOTAPE)

ANDERSON: A preview there. Well, part two of what is a four-part investigation. You can see that tomorrow, on "PRISM" that is a program that airs at 5 p.m. London Time, right here on CNN.

After the break on CONNECT THE WORLD, the new king in England. It has taken almost a decade but has the Nidal Federer reign come to an end at the home of tennis.

After that, another major corporation falls victim to a dramatic hack attack. So how safe is your computer?

And 10 years of Harry Potter. It is almost time to say good bye to Hogwarts. That in about 20 minutes time. Stay with us.

(COMMERCIAL BREAK)

ANDERSON: Here on CNN.

Just days after financial disaster was averted, Greece's ability to stave off bankruptcy remains in doubt. A plan for a second bailout put forward by France and agreed by Germany has fallen foul of rating's agency S&P. It says the proposal to extend Greece's loans would amount to a default.

Well, a lawyer for the French journalist Tristane Banon says she will formally accuse former IMF Dominique Strauss-Kahn of attempted rape in 2003. Strauss-Kahn's lawyer though say counter charges have against her have already been filed for false declarations.

Ratko Mladic's war crimes' trial is on a hold indefinitely. At his arraignment on Monday in the Hague, the former Bosnian Serb commander refused to enter a plea and repeatedly interrupted the proceedings. The judge had him removed from the courtroom then ordered "not guilty" pleas on his behalf.

Venezuelan president Hugo Chavez has left Havana, stays home in Caracas after surgeons in Cuba removed a cancerous tumor. He returns just one day before Venezuela's bicentennial.

The four American astronauts scheduled to launch Friday on the last shuttle flight has arrived at the Kennedy Space Station in Florida. Atlantis is scheduled to liftoff on Friday on a 12-day mission to the International Space Station.

Right. Let's get you some sport and to tennis now.

Novak Djokovic is getting used to his new title "World number one." The 24-year-old beat Spanish Rafael Nadal in the men's finals at Wimbledon on Sunday. It's the first time since 2002 that someone other than Nadal or Roger Federer has clinched the men's singles title.

Candy Reid joins us with more now from CNN Center. I know you're a huge tennis fan. I know Nadal is (INAUDIBLE) it wasn't his best game but my goodness, Novak really went at him. Is this really the beginning of one era and the end of another?

CANDY REID, CNN SPORTS ANCHOR: No, I don't think so. But Djokovic has kind of been in the conversation for a little bit. Of course, he has won the Australian Open twice including earlier this year. So he's kind of been the definite number three but not any better than Federer and Nadal. But now, as you know, this Monday, he was crowned the world's number one and he deserved it, doesn't he? He's won eight titles this year, lost just one match in all.

Becky, I can tell you he's just arrived in Serbia and there are apparently a hundred thousand Serbian tennis fans to greet him. Novak has such personality, the press absolutely love him. For instance, at Wimbledon, he was engaged in an impromptu conversation with world number one on the women's side, Caroline Wozniacki, and he answered all her questions, kind of tongue-in-cheek. He's also been telling the press about a squirrel who was in house and he couldn't feed them at the Wimbledon rental house. So you know, he does have this amazing persona. People really just really like him.

I know - I was talking to Pedro Pinto yesterday. We both managed to play a football match with Novak. He's just one of those guys. He arranged the match for Japan in Miami in March. You know, it's not all about tennis but hasn't he improved? He's improved everything. He did always have one of the best backhands in the game. Now, he's got one of the best serves. He's got great footwork. He now believes that he said after winning that Davis Cup at the end of 2010 for Serbia, he said he got this newfound belief that he really could beat everybody and he's done so. He's beaten Rafa Nadal five times, all in finals this year. He's beaten Roger Federer three times. And he says, well, he told (INAUDIBLE) just a sensational year.

(BEGIN VIDEO CLIP)

NOVAK DJOKOVIC, 2011 WIMBLEDON CHAMPION: The start of 2011, somebody told me that already after Wimbledon, I would be number one and a two grand slam champion. And this year, it's incredible. I mean, I - but I always believed that I can - that I can play well, that I can win majors and now it's all coming together. It feels much better on the court. I know what to do. And I take my chances when they're presented.

(END VIDEO CLIP)

ANDERSON: Right. He's going to take his chances of course in the U.S. Is he a favorite for the U.S. Open at this point, do you think?

REID: Yeah, I think he is. He has reached the final there twice before including last year when he lost to Rafa Nadal in four sets. He's got a superb game for the hard courts. I would say that's even his favorite surface. He's never won the U.S. Open and he still needs to win the French Open. I think in the next few years he'll do both.

ANDERSON: All right. Let's get some other sports' headlines out of the way, shall we?

REID: All right. Yes, of course, well, Novak went to the Wimbledon winner's ball, I can tell you, on Sunday night with Petra Kvitova, the Czech who won the ladies' title with a straight set victory over Maria Sharapova. As a result, the 21-year-old who reached the semifinals at the all-England cup last year moved up one spot in the rankings to number seven in the world.

Now, if you're on the ranking site looking for Serena Williams' name in the top 100, well, you won't find it. Because of her 4th round exit, she plummeted from 25th to 175th. She won the title last year and had all those points to defend so she lost them all.

The number one is still Caroline Wozniacki although she also fell at the 4th hurdle. The Dane hasn't won a major title but has won five other titles this season.

All right. Let's pedal on to the Tour de France now and it was an emotional day for Tyler Farrar of the U.S. He became the first American to win a stage of the Tour on Independence Day. And on crossing the line, he paid tribute to his good friend Wouter Weylandt who died during the Giro d'Italia in May.

There's something for everyone at the Tour. The farmers in Olonne-sur-Mer in the west of the country must have been a little dizzy as they went round and round. But they wanted to express their satisfaction in feeding the riders.

This third stage was the first of the sprinters to shine. (INAUDIBLE) Mark Cavendish certainly had victory on his mind but he had a terrible day. He was stripped of the ten points he won in the intermediate sprint for a clash with yellow jersey winner Thor Hushovd and then felt he was impeded on the final corner and finished fifth.

No one had the chance to impede Ferrar. He was too quick and held off Romain Feillu of France and Spain's Jose Joaquin Rojas. Ferrar's Garmin team-mate Hoshovd remains the tour's overall leader.

And we can have a comprehensive look at sports, more from the Tour de France and more on Djokovic's victory and his number one status in a half- hour show "World Sports," Becky, which is in just under 60 minute time. I know you'll be watching.

ANDERSON: Yes. That is, of course, I - listen, before you go, I mean, we talked at the beginning of all of this about whether you think it's really the end of an era for the sort of Nadal and Federer's. I'm not sure that you're completely convinced by that but we've also seen a change in the top with the women as well. It feels like things are moving on at least, doesn't it?

REID: It does a little bit but I still think the top 4 in the men's game are going to dominate for at least another 12 months if not longer. Rafa Nadal has got a stress fracture, I must say, in his foot. It's going to probably keep him out for six weeks but he didn't mention it at all after that Wimbledon loss. Isn't that impressive? I've actually written a blog on that - cnn.com/worldsports - on the absolute sportsmanship of that man - Rafa Nadal - and Novak Djokovic's wonderful tournament.

Now, here's what Boris Becker, Martina Navratilova had to say on Novak Djokovic. They were in the CNN London bureau earlier this Monday.

(BEGIN VIDEO CLIP)

BORIS BECKER, PAST WIMBLEDON CHAMPION: He dominated Nadal from the baseline. That was - it used to be impossible with Nadal, whoever went to long base, I mean, with Nadal would never win the point. Djokovic was even better than that. He has athletic ability, he runs faster, he has this split where I sometimes wonder if he's going to hurt his leg or not because he's really so wide apart. And then he improved his serve this year. The whole package is perfect. And something happened when he won the Davis Cup for Serbia last December. There's something in his mind happened. I think he became the man.

MARTINA NAVRATILOVA, PAST WIMBLEDON CHAMPION: Everybody has the will to win but very few have the will to prepare, and Novak has put in the work off the court and on the court, and the Davis Cup, as he said, he just lost his fear because if he can do it for his country, he can do it anywhere. And since then, he's been playing like a man possessed but it's a result of years and years of hard work and - as Boris said - he's so flexible. He has power even when he's stretched out wide and when most people just get the ball back, he still generates power because he's got power and flexibility and I just want to watch.

(END VIDEO CLIP)

REID: Two former champions there. I think they know how to win on the grass, certainly, Becky, and you saw a picture there of Novak Djokovic doing something like this. Well, he was actually eating the grass on Centre Court. He said he felt like an animal and wanted to have some experience. So there we go, back to you. I'll leave you on that note.

ANDERSON: Good stuff. Thank you. Candy Reid with you on sports news this evening. I remember listening to an interview with him this weekend and he said the first game of tennis he ever watched was Wimbledon. He always wanted to win at Wimbledon.

All right. We're going to move on.

An alarming jaw-dropping post on Twitter which turned out to be as a fake. Fox News is the latest in a string of high profile cyber-targets. Up next, we get inside the - a look at the psychology of an (INAUDIBLE) such with CONNECT THE WORLD in a minute and a half. Stay with us.

(COMMERCIAL BREAK)

ANDERSON: Now, what we are about to show you is not real. It's the work of hackers.

This tweet supposedly from Fox News reads "Breaking news - Barack Obama assassinated. Two gunshot wounds have proved too much." Well, hackers used the foxnewspolitics account to put out a number of fake (INAUDIBLE) president had died and that vice president (INAUDIBLE) . It appeared they still weren't removed.

Fox News is just the latest high profile name to have suffered a hacking attack on Sunday. Computer hackers claim to have breached Apple's website, posting what they alleged were internal passwords and usernames from one of the company's servers.

Well, it's just the latest in a string of brazen attacks that have compromised government and corporate websites around the world. Think Sony, ATT, and indeed the CIA.

So how vulnerable are we and our computers?

To find out, Dan Rivers opened up his laptop to someone posing as a hacker and here is what he discovered.

(BEGIN VIDEO TAPE)

DAN RIVERS, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Virtual attacks on computers are increasing dramatically each year. Computer security specialist McAfee says the first quarter of 2011 was their busiest ever.

Expert Alex Hinchliffe shows me a map with the distribution of just one of those malicious programs.

ALEX HINCHLIFFE, COMPUTER SECURITY EXPERT: The infection has spread across PCs ranging from west coast America, east coast, South America, even to the remote parts of Africa and then larger clusters or larger dots indicated on the map arising at even the more densely-populated cities or they're going to be (INAUDIBLE) now where it's actually spread too much faster or more widespread than other countries.

RIVERS (on camera): And this is just one piece of malware and you're finding how many each day?

HINCHLIFFE: Around 50-60,000 a day on average.

RIVERS: That's a massive problem.

HINCHLIFFE: It is, yes.

RAJ SAMANI, COMPUTER SECURITY SPECIALIST, MCAFEE: We've seen a steady growth in the password-stealing type of malware. So, you know, for example, being able to install some software onto your computer, capture your passwords for the site that you may be using and then using that for potentially identity theft or financial gain.

RIVERS (voice-over): Pete Wood is a self-proclaimed "ethical hacker" who tests company cyber-security by posing as the real thing and knows plenty on the dark side.

PETE WOOD, "ETHICAL HACKER": They might be activists, people who are - have a particular political-end agenda. They might be criminals who are out to make money. Or they might just be showing-off to their friends.

RIVERS (on camera): So just to give you an idea of how vulnerable most computers are, let's just pretend I'm sitting here typing an email to my bank and Pete is over there trying to hack in and grab the information. Just tell me what you've managed to do.

WOOD: Well, I've detected your computer with a logical (INAUDIBLE) remote access Trojan or RAT to its friends and you might have gotten that through clicking on an email link or going to a website. Now, I've got complete control of your computer. I can watch what you type, see what's on your screen, even steal your passwords.

RIVERS (voice-over): The solution: be very skeptical about unsolicited emails.

SAMANI: Always think to yourself, "Before I actually enter my details onto a website, before I actually click on this link, did I actually apply for this?"

RIVERS: And be cautious about which websites you browse. McAfee, which sells web security software, says it monitors 8,500 new malicious websites being set-up each day.

Dan Rivers, CNN, (INAUDIBLE), England.

(END VIDEO TAPE)

ANDERSON: Amazing, isn't it? So who are the hackers behind these breeches? Well, a group calling itself the Script Kiddies claimed responsibility for the Fox News hacking. They are reportedly connected loosely to the online vigilante group Anonymous who brood prominence through their support of the whistle-blower site WikiLeaks.

AntiSec, a hacking campaign that includes hackers from Anonymous, and the now-defunct Lulz Security are thought to be behind Sunday's Apple attack. AntiSec is internet shorthand for anti-security. Lulz Security has claimed responsibility for a number of attacks including the CIA - unclear whether they - or their members played a role in the Sony PlayStation network breach. The group though said it hacked websites to push them to increase security but it also says it's fun which brings us to that question "What motivates hackers?"

With more on what (INAUDIBLE), I'm joined now in the studio by a man who's been researching this for some time now. Misha Glenny is author of "DarkMarket: CyberCrime, Cybercops and You." My goodness, what a title!

Let's just start (INAUDIBLE). Why do people do this?

MISHA GLENNY, AUTHOR, "DARKMARKET: CYBERCRIME, CYBERCOPS AND YOU": Well, most people start hacking when they're in their early teens and most hackers are men, between about 90 and 95percent. They do it as young teenagers because they're exploring the internet and some of them find that they're really good at that. And it's to the time before they really developed any sort of moral or political compass. And very soon, they find that they can do spectacular things whose implications they don't fully understand but as time goes on, they get deeper and deeper into this world which is a world apart from normal life. So that's how a lot of hackers - not all hackers - but a lot of hackers find comfort in that world that they don't have any outside world.

ANDERSON: So a hacker is different from a hactivist because that would be an activist who's a hacker one. Tell me, how many people - do we know how many people around the world are hacking at any one time?

GLENNY: We know that thousands are hacking around the world but a precise number is absolutely impossible to tell because a lot of hacks now are automated hacks. You have things called "off-the-shelves" malware which means you can go to a virtual store and buy viruses or buy things that create a botnet - those terrible things with which people attack other computers. And so - and a lot of these things are automated. So there's hacking going on which looks like somebody's doing it but in fact it's just a robot hacking to see whether any computer's happen to be vulnerable in that area.

ANDERSON: Dan's report revealed that for the most times or oftentimes, hackers aren't necessarily looking for financial gain although we've seen some quite spectacular hacks into corporate communities. If they're not doing it for financial gain, talk me through what's going on in there.

GLENNY: Well, this is very important. A hack looks like a hack wherever it's coming from. You just don't know what the motivation is. You have people who do it for financial gain, it's a fairly straightforward why they're doing it. You have people who are doing it who are working for a corporate - for a company - who are hacking another company to find out trade secrets or to compromise their rivals. You have spies engaged in hacking to find out what's going on in another country's system, for example. And then you have groups like Anonymous and LulzSec who you mentioned who are essentially politically-motivated. They're motivated. I mean, they're very specific about their ideological goals - Anonymous - and they want to expose people who they think have been doing bad things around the world.

ANDERSON: How compromised are we as individuals with our online world and perhaps more importantly, how compromised is the world in this online world that we live in?

GLENNY: Well, in terms of companies, you can pretty much say now that there are two types of companies - those that know they've been hacked and those that don't know they've been hacked - because there's so much activity going on that the chances are now very high that you will have been - you will have been breached at some time if you're a company. As an ordinary user, on the whole, you may lose your credit card details and as a result, be very distressed but the bank will pay back your money. But if you don't keep up your anti-virus protection which is incredibly important particularly if you use Windows because Windows is the most vulnerable system, then you will - you will lose your identity at some point and you will run into real trouble. It's a big problem and it's growing.

ANDERSON: Remarkable stuff. A growing menace. Well, it's been a week, viewers, looking at your privacy, investigating just how compromised we are. Thank you for joining us this evening.

You're watching CNN. This is CONNECT THE WORLD.

It's 10 minutes to 10 in London. I'm Becky Anderson.

Up next, all grown up. After 10 years, it is time to say goodbye to Harry, Hermione, and Ron. We're going to have more Pottermania in a few moments. Next.

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ANDERSON: Well, we've reached the end of an era for three young British film stars and their millions of fans around the world. The Harry Potter phenomenon is almost over after a decade.

"Harry Potter and the Deathly Hallows Part 2" is due for release within days and it will be a sad day for a generation of kids who grew up their wizarding friends Harry, Ron, and Hermione, and a lot of adults, of course, also under their spells too.

So will anything be left to fill the void left by Hogwarts? (INAUDIBLE) what's next for these glamorous young actors and the army of talented people behind the cameras?

I spoke to a few of them - a few of the stars - and those behind the cameras of part 2 of the Deathly Hallows. Have a listen here.

(BEGIN VIDEO TAPE)

"You're a wizard, Harry."

ANDERSON (voice-over): The words that marked the start of a multi-billion dollar movie franchise in a film that changed the lives of three British school children forever.

Now, 10 years since cinema audiences first fell under Harry Potter's spell, the pupils of Hogwarts are saying goodbye in a film that's darker and more dramatic than any that has come before.

TOM FELTON, "DRACO MALFOY": I think there's a - there's a slight undertone of severity and seriousness with the fact that people are losing their lives. It's a kind of no longer innocent chants and spells that things are kicking off.

EMMA WATSON, "HERMIONE GRANGER": The scale of it and the impact it has, the drama, is just kind of amazing.

ANDERSON: In "Harry Potter and the Deathly Hallows Part 2," Harry Potter must confront the evil Voldemort in a battle for the future of the wizarding world.

For Daniel Radcliffe, this was one of the toughest roles of his "wizarding" career.

DANIEL RADCLIFFE, "HARRY POTTER": I mean it's like I'm a different actor, I think, in part 2 from part 1. Part 2 is the only film out of all seven that I can watch and go "I am really happy with my performance in it" and I know that there's stuff that I wouldn't do differently but by overall, I'm pleased with the work I've done.

ANDERSON: The action-packed finale throws up some long-awaited romances and an unlikely hero.

For the actors who grew up out of Hogwarts, it's a highly-charged farewell.

RUPERT GRINT, "RON WEASLEY": I'm quite emotional, actually. I find myself getting a little bit kind of choked-up at the end.

RADCLIFFE: It was the end of an era and the end of - it felt - feels like we're suddenly moving beyond our adolescent childhood.

WATSON: I'd started when I was 9 and I'm now 21 and it's been everything. It's where I went to school. It's where I met my fans. It's where I - it's where I learned everything that I know. It's - you know - it's kind of (INAUDIBLE). It's the whole thing.

ANDERSON (voice-over): This may be the end of an era out of Hogwarts for this young actress and her friends (INAUDIBLE) their Hollywood education has only just begun.

(END VIDEO TAPE)

ANDERSON: Well, fans in London have been given enough Harry Potter madness to hold them over for a while. CNN's Neil Curry has joined the faithful for a Potter movie marathon. Take a look at this.

(BEGIN VIDEO TAPE)

NEIL CURRY, SENIOR PRODUCER "THE SCREENING ROOM" (voice-over): It's 10 o'clock in London but the night is just beginning for hundreds of Harry Potter fans who've come to the BFI Imax cinema for a weekend spent in the company of witches, wizards, ghosts and goblins. It will be another 12 hours before they stagger out into the light of day.

They come suitably attired with the Hermiones outnumbering the Dumbledore, dementors, Hagrids, and Harrys - characters that have become known the world over. And it's that global connection which has brought together some of the fans here tonight.

LAURA SMITH, HARRY POTTER FAN: It's pretty much the most exciting thing that ever happened to me. Beats my wedding just to my husband.

CURRY: In the projection room, Dennis Laws is threading one of the seven films that will be showing during the next two nights. It means assembling several kilometers of film, many hours of work, and then staying awake all night to show it to the audience.

DENNIS LAWS, IMAX PROJECTIONIST: It's very exciting and the people here know every page of the books. They know all the stories. And so the audience reaction is very, very special because they know what the line is. Many of the people who are here tonight have grown up from sort of Daniel Radcliffe's age when he did the first movie and it's really interesting to see that first movie after all these years to just realize how young he was when he did the film.

CURRY: This weekend is all about reliving the magic of the movies which millions of us have grown up with over the past decade and it gives viewers a chance to watch the young actors growing up on screen. Nod off for a moment and you'll find Ron Weasley's voice has broken and Harry has sprout his facial hair.

By 4:30 a.m., we're still only two films into the movie marathon but spirits are high among the faithful.

JOHN CLIFFORD, HARRY POTTER FAN: It's been going amazing. It's been brilliant. It's just - it's something like coming like this, I've never really done before, definitely not on this scale. It's just like it's an amazing place to do it.

CURRY: Green tea and coffee is provided by the cinema to keep eyelids open and focused on the action. But it doesn't work for everyone.

With 7,000 tickets sold for the new film during the first day of sales, IMAX is considering further nighttime screenings to cater to the demand.

(END VIDEO TAPE)

ANDERSON: Neil Curry reporting.

Before we go, in tonight's parting shot, an American icon finding a home on the streets of London. Recognize this face? Well, the one-time actor has already been immortalized in celluloid, now the larger-than-life of late American president Ronald Reagan has been cast in stone.

Former U.S. Secretary of State Condoleezza Rice is in London for the unveiling earlier of the statue on the grounds of the U.S. embassy. It coincided (INAUDIBLE) with the 4th of July celebrations and President Reagan's birth 100 years ago this year. He was the 40th president of the United States. He enjoyed close ties with the British Prime Minister Margaret Thatcher. She was too frail to attend the ceremony but in a tribute, she described President Reagan as a true leader who - and I quote - "brought millions of people to freedom as the iron curtain finally came down."

I'm Becky Anderson. That is your world connected. Thanks for watching.

The world news headlines and "Back Story" will follow this short break. Don't go away.

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