David Michaux, Director of Whispering Bell. Razan Alzayani / The National
David Michaux, Director of Whispering Bell. Razan Alzayani / The National
David Michaux, Director of Whispering Bell. Razan Alzayani / The National
David Michaux, Director of Whispering Bell. Razan Alzayani / The National

UAE’s ‘ethical hacker’ helped tighten IT security at companies across country


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DUBAI // David Michaux has hacked into the IT systems of banks, leading corporations and oil and gas providers.

He has even created fake Facebook profiles of seductive women to dupe senior executives into revealing sensitive information about their companies.

All very unethical and illegal. But Mr Michaux has never been charged with a crime, because he is the UAE’s definitive “ethical hacker”.

In the 13 years he has been in the country, he has helped hundreds of key government and private institutions radically improve their IT security by performing “stress tests” on their infrastructure.

His work has helped foster a climate in which the UAE has gone from lagging behind Europe and the US in terms of internet security, to overtaking some countries.

Mr Michaux was working in Brussels for technology company Scan IT when he was drafted to Abu Dhabi to help improve internet security for Etisalat.

The provider had been hacked by a 22-year-old Briton, Lee Ashurst, which disrupted internet service across most of the country for almost a month.

The hack had exposed glaring security weaknesses in Etisalat’s security infrastructure, something which, at the time, was common across most major corporations in the country.

“People here didn’t really understand the internet so much,” said Mr Michaux. “The country is so safe; if you left your laptop in the back of the car, no one would steal it. Because of that, people sometimes have a false sense of security. Back then, they applied that same sense of security to their IT.”

The Etisalat job was intended to be a one-off. However, shortly after 9/11 happened and many US individuals and companies left the region. This sparked more business for Scan IT.

An IT security conference at the time suddenly lacked presenters and sponsors, and Mr Michaux was asked to speak at the conference without having to pay sponsorship fees.

Soon after, the contracts started to roll in and the company decided to set up a more permanent presence in the Emirates.

By 2003, 80 per cent of the company’s revenue was from the UAE, rather than from Belgium. However, because Scan IT’s UAE operations were also a source of significant expense, the company wanted to close the Dubai office.

In 2004, Mr Michaux bought out Scan IT Middle East and established it as his own company.

He said among the first contracts he had were from banks. Many members of boards in local banks did not trust their own IT departments, Mr Michaux said, so he was hired to conduct “penetration tests” to assess their security infrastructure.

“I was 27 years old and I was running a company over here that was responsible for breaking into banks,” said Mr Michaux, who is now 38. “It’s every kid’s dream.

“That was when IT security started coming into play here. Now things are far more advanced, you don’t get those assignments any more. But back then it was all about building awareness. Now they’ve overtaken Europe and the US, to a certain extent.”

By the time Mr Michaux sold his company, in 2007, it was one of the largest security firms in the region.

He retired to Malaysia in 2009 but managed to stay only for a year before getting “bored”.

He was invited back to Dubai to establish a new company called Whispering Bell, specialising in physical and IT security.

He still owns a house in Kuala Lumpur and spends a week there every month but has no plan to retire again.

“The way the country is going here, they’re investing very heavily into security,” he said. “You get to play with toys and new devices that you would never get to use anywhere else in the world, unless you worked for the NSA or the CIA.”

Despite his expertise, it has never been a temptation to work at a government level. “I’ve never wanted to go that way, although I’ve been accused of it many times,” he said.

mcroucher@thenational.ae

Frankenstein in Baghdad
Ahmed Saadawi
​​​​​​​Penguin Press

Libya's Gold

UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves. 

The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.

Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.

A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.

FFP EXPLAINED

What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.

What the rules dictate? 
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.

What are the penalties? 
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.

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Tamkeen's offering
  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
  • Option 2: 50% across three years
  • Option 3: 30% across five years 

Springtime in a Broken Mirror,
Mario Benedetti, Penguin Modern Classics

 

UK’s AI plan
  • AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
  • £10bn AI growth zone in South Wales to create 5,000 jobs
  • £100m of government support for startups building AI hardware products
  • £250m to train new AI models
MATCH INFO

Champions League quarter-final, first leg

Tottenham Hotspur v Manchester City, Tuesday, 11pm (UAE)

Matches can be watched on BeIN Sports

Villains
Queens of the Stone Age
Matador

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Joker: Folie a Deux

Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

The bio

Who inspires you?

I am in awe of the remarkable women in the Arab region, both big and small, pushing boundaries and becoming role models for generations. Emily Nasrallah was a writer, journalist, teacher and women’s rights activist

How do you relax?

Yoga relaxes me and helps me relieve tension, especially now when we’re practically chained to laptops and desks. I enjoy learning more about music and the history of famous music bands and genres.

What is favourite book?

The Perks of Being a Wallflower - I think I've read it more than 7 times

What is your favourite Arabic film?

Hala2 Lawen (Translation: Where Do We Go Now?) by Nadine Labaki

What is favourite English film?

Mamma Mia

Best piece of advice to someone looking for a career at Google?

If you’re interested in a career at Google, deep dive into the different career paths and pinpoint the space you want to join. When you know your space, you’re likely to identify the skills you need to develop.  

 

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

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Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

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MATCH INFO

Fixture: Thailand v UAE, Tuesday, 4pm (UAE)

TV: Abu Dhabi Sports