60 Minutes 48x30 - Episode 30

Audits of the nation's biggest insurance companies haveuncovered a systemic practice of insurers not paying benefitson millions of policies—even when the companies knew thepolicyholder was deceased. Lesley Stahl reports that 25insurance companies, without admitting wrongdoing, haveagreed to pay more than .5 billion in back death benefits,in a series of settlements reached with states across thecountry. Thirty-five companies still haven't settled and remainunder investigation.International experts in mobile security,including California-based Lookout founder John Hering andBerlin-based Karsten Nohl of Security Research Labs, show howmobile phones and the networks that carry their signals can beexploited by hackers. Hering gathered a group of securityresearchers in Las Vegas, during a hackers convention, andthey broke into 60 MINUTES correspondent Sharyn Alfonsi'sphone. Hering demonstrated how he could read Alfonsi's email aswell as collect her credit card and other private and personalinformation. Nohl and his team in Berlin showed how they wereable to exploit a flaw in a global mobile network calledSignaling System Seven—or S-S-7. The team was able to monitorand record a phone that 60 MINUTES lent to U.S. Rep. Ted Lieu(D.-Calif.), a member of the House Oversight and ReformSubcommittee on Information Technology.