>>> A "60 MINUTES" INVESTIGATION IS EXPOSING PRICE GOUGING AT THE PENTAGON AND YOU WOULD BE HARD-PRESSED TO FIND A BETTER
EXAMPLE THAN THIS. >> THIS BILL IS AN OIL PRESSURE SWITCH THAT NASA USED TO BUY. WELL, THEIR OIL SWITCH WITH ALL
OF THE CABLE COSTS $328. THIS OIL SWITCH WE PAID OVER $10,000 FOR IT. >>> ELIZABETH, SORRY, NEED MY
PASSPORT NUMBER BECAUSE THE UKRAINE TRIP IS ON. YOU CAN READ THAT OUT TO ME. >> THAT'S MY VOICE, BUT THAT'S
NOT ME. IT'S THE DIGITAL RESULT OF A CLEVER HACKER AND A CHEAP VOICE ALTERING APP.
>> DID YOU THINK IT WAS ME? >> YES. >> THIS IS ONE OF THE SCAMS THAT ARE COSTING AMERICAN CITIZENS
$10 BILLION A YEAR. AS YOU'LL HEAR, PEOPLE OVER 60 ARE LIKE ONE OF THE MAIN TARGETS.
>> IT'S LIKE A DEATH IN THE FAMILY. >> WELL, SHE'S WORK TODAY HARD FOR MY MONEY.
>> I SHOWER HAVE. >>> JEFF KOONS IS ONE OF THE MOST PROMINENT AND POLARIZING ART STARS IN THE WORLD.
HIS CREATIONS MAY LOOK SIMPLE BUT THEY CAN TAKE DECADES TO MAKE AND OFTEN PUSH BOUNDARIES OF TECHNOLOGY AND SOMETIMES
TASTE. CRITICS MAY SCOFF AT TIMES BUT THAT'S NOTHING NEW, JEFF KOONS HAS BEEN CONTROVERSIAL SINCE HE
FIRST STARTED SHOWING HIS ART MORE THAN 40 YEARS AGO. >> I'M LESLEY STAHL. >> I'M BILL WHITAKER.
>> I'M ANDERSON COOPER. >> I'M SHARYN ALFONSI. >> I'M JON WERTHEIM. I'M CECILIA VEGA.
>> I'M SCOTT PELLEY. THOSE STORIES AND MORE ON "60 MINUTES." >>> WITH THE U.S. SUPPLYING
BILLIONS OF DOLLARS OF MUNITIONS TO UKRAINE AND GROWING TENSIONS IN THE TAIWAN STRAIT, SOME PENTAGON GENERALS ARE SOUNDING
ALARMS ABOUT THE DWINDLING SUPPLY OF U.S. WEAPONS, AT A TIME WHEN THE COST OF REPLACING THEM IS SKYROCKETING.
WE WONDERED WHY THE PENTAGON IS FINDING IT HARD TO PROCURE WEAPONS IT NEEDS THE A PRICE TAXPAYERS CAN AFFORD?
A SIX-MONTH INVESTIGATION BY "60 MINUTES" FOUND IT HAS LESS TO DO WITH FOREIGN ENTANGLEMENTS THAN DOMESTIC ONES.
WHAT CAN ONLY BE DESCRIBED AS PRICE GOUGING BY U.S. DEFENSE CONTRACTORS. >> THE GOUGING THAT TAKES PLACE
IS UNCONSCIONABLE. IT'S UNCONSCIONABLE. >> PERHAPS NO ONE UNDERSTANDS THE PROBLEM BETTER THAN SHAY
ASSAD, NOW RETIRED AFTER FOUR DECADES NEGOTIATING WEAPONS DEALS. IN THE 1990s, HE WAS EXECUTIVE
VICE PRESIDENT AND CHIEF CONTRACT NEGOTIATOR FOR DEFENSE GIANT RAYTHEON. THEN HE SWITCHED SIDES.
UNDER PRESIDENTS GEORGE W. BUSH, BARACK OBAMA AND DONALD TRUMP, ASSAD ROSE TO BE THE DEFENSE DEPARTMENT'S MOST SENIOR AND
AWARDED CONTRACT NEGOTIATOR. THE PENTAGON, HE TOLD US, OVERPAYS FOR ALMOST EVERYTHING. FOR RADAR AND MISSILES,
HELICOPTERS, PLANES, SUBMARINES, DOWN TO THE NUTS AND BOLTS. >> THIS, BILL, IS AN OIL PRESSURE SWITCH THAT NASA USED
TO BUY. WELL, THEIR OIL SWITCH WITH ALL OF THE CABLING COST $328. THIS OIL SWITCH WE PAID OVER
$10,000 FOR IT. >> SO WHAT ACCOUNTS FOR THAT HUGE DIFFERENCE? >> GOUGING.
WHAT ELSE CAN ACCOUNT FOR IT? >> TO ASSAD'S FORMER DEFENSE INDUSTRY ASSOCIATES, HE WAS THE MOST HATED MAN IN THE PENTAGON,
FOR HIS DOGGED SCRUTINY OF THEIR PRICING PRACTICES. >> NO MATTER WHO THEY ARE, NO MATTER WHAT COMPANY IT IS, THEY
NEED TO BE HELD ACCOUNTABLE. AND RIGHT NOW, THAT ACCOUNTABILITY SYSTEM IS BROKEN IN THE DEPARTMENT OF DEFENSE.
>> SO DOES THAT AFFECT OUR READINESS? >> THERE'S NO DOUBT ABOUT IT. YOU JUST CAN ONLY BUY SO MUCH.
BECAUSE YOU ONLY HAVE SO MUCH MONEY. AND THAT'S WHY I SAY IS IT REALLY ANY DIFFERENT THAN NOT
GIVING A MARINE ENOUGH BULLETS TO PUT IN HIS CLIP? IT'S THE SAME THING. >> ASSAD POINTS TO THE PATRIOT
WEAPONS SYSTEM, A PILLAR OF AIR DEFENSES FOR THE U.S., NATO, UKRAINE AND TAIWAN. IN 2015, ASSAD ORDERED A REVIEW
AND ARMY NEGOTIATORS DISCOVERED LOCKHEED MARTIN AND ITS SUBCONTRACTOR BOEING WERE GROSSLY OVERCHARGING THE
PENTAGON AND U.S. ALLIES BY HUNDREDS OF MILLIONS OF DOLLARS FOR THE PATRIOTS'S PAC-3 MISSILES.
>> AND OVER A SEVEN-YEAR PERIOD, THESE COMPANIES JUST KEEP RAKING IT IN. >> WHAT LEVEL OF PROFIT ARE WE
TALKING ABOUT? >> WELL, IF THE AVERAGE PROFITABILITY THAT WAS NEGOTIATED IN A FIRM FIXED PRICE
CONTRACT WAS TYPICALLY BETWEEN 12% AND 15%, SO A COMPANY COULD MAKE -- >> THAT'S A GOOD PROFIT.
>> SURE. >> BUT SHAY ASSAD TOLD US PENTAGON ANALYSTS FOUND TOTAL PROFITS APPROACHED 40%.
>> BASED ON WHAT THEY ACTUALLY MADE, WE WOULD YOU HAVE RECEIVED AN ENTIRE YEAR'S WORTH OF MISSILES FOR FREE.
>> AN ENTIRE YEAR WORTH OF MISSILES. >> WE WOULD HAVE GOT THEM FOR FREE.
>> BOEING DECLINED OUR REQUEST FOR COMMENT. LOCKHEED TOLD US, WE NEGOTIATE WITH THE GOVERNMENT IN GOOD
FAITH ON ALL OUR PROGRAMS. BUT AFTER THE REVIEW, THE PENTAGON NEGOTIATED A NEW CONTRACT WITH THE COMPANY,
SAVING $550 MILLION. >> WELL, THAT'S HOW YOU BECOME THE MOST HATED MAN IN THE PENTAGON.
WHEN YOU SAY, NO, NO, WE'RE ACTUALLY GOING TO PAY ATTENTION TO THIS. >> ARMY NEGOTIATORS ALSO CAUGHT
ASSAD'S FORMER EMPLOYER RAYTHEON MAKING WHAT THEY CALLED UNACCEPTABLE PROFITS FROM THE PATRIOT SYSTEM, BY DRAMATICALLY
EXAGGERATING THE COST AND HOURS IT TOOK TO BUILD THE RADAR AND GROUND EQUIPMENT. >> YOU CALLED RAYTHEON ON THE
CARPET. >> YES, I DID. YOU KNOW, OF COURSE, I REPORTED THAT INFORMATION UP UP THE
CHAIN. BUT THEN I WENT TO THE INSPECTOR GENERAL AND I ALSO WENT TO THE DEFENSE CRIMINAL INVESTIGATIVE
SERVICE, AND I SAID, I WANT THIS LOOKED INTO. >> RAYTHEON TOLD US IT IS WORKING TO EQUITABLY RESOLVE THE
MATTER, AND IN 2021, CEO GREGORY HAYES INFORMED INVESTORS THE COMPANY WOULD SET ASIDE $290 MILLION FOR PROBABLE LIABILITY.
>> I WILL SAY THIS IS AN ONGOING INVESTIGATION BY DOJ. WE THINK THESE WERE ONE-OFF EVENTS THAT OCCURRED, SHOULD NOT
HAVE OCCURRED, BUT THEY DID. >> ONE-OFFS? >> NO, IT'S NOT ONE-OFF, AND IT'S NOT ONE-OFF WITH A LOT OF
COMPANIES. >> A DEPARTMENT OF DEFENSE STUDY RELEASED LAST MONTH FOUND MAJOR CONTRACTORS FLUSH WITH TENS OF
BILLIONS OF PENTAGON DOLLARS TO HAND OUT TO SHAREHOLDERS. >> WE HAVE TO HAVE A FINANCIALLY HEALTHY DEFENSE INDUSTRIAL BASE.
WE ALL WANT THAT, BUT WHAT WE DON'T WANT TO DO IS GET TAKEN ADVANTAGE OF AND HOODWINKED. >> AND THE U.S. HAS NOWHERE ELSE
TO GO? >> WE HAVE NOWHERE ELSE TO GO. FOR MANY OF THESE WEAPONS THAT ARE BEING SENT OVER TO UKRAINE
RIGHT NOW, THERE'S ONLY ONE SUPPLIER. AND THE COMPANIES KNOW IT. >> IT WASN'T ALWAYS LIKE THIS.
THE ROOTS OF THE PROBLEM CAN BE TRACED BACK TO 1993, WHEN THE PENTAGON LOOKING TO CUT COSTS URGED DEFENSE COMPANIES TO
MERGE. 51 MAJOR CONTRACTORS CONSOLIDATED TO FIVE GIANTS. >> THE LANDSCAPE HAS TOTALLY
CHANGED. IN THE '80s THERE WAS INTENSE COMPETITION AMONG A NUMBER OF COMPANIES.
AND SO THE GOVERNMENT HAD CHOICES, THEY HAD LEVERAGE. WE HAVE LIMITED LEVERAGE NOW. >> THE PROBLEM WAS COMPOUNDED
WHEN THE PENTAGON IN ANOTHER COST-SAVING MOVE, CUT 130,000 EMPLOYEES WHOSE JOBS WERE TO NEGOTIATE AND OVERSEE DEFENSE
CONTRACTS. >> THE WATCHDOGS IN THE GOVERNMENT. >> THE WATCHDOGS, THE
NEGOTIATORS, THE ENGINEERS, THE PROGRAM MANAGERS. OVER 50% WAS REMOVED. >> IT WAS THE ERA OF DOWNSIZING.
>> ABSOLUTELY. >> THE GOVERNMENT GETTING GOVERNMENT OUT. >> LET BUSINESS DO THEIR THING,
RIGHT? IT WAS ULTIMATELY A DISASTER. >> AND THE GOVERNMENT WAS COMPLICIT.
>> YES. THEY WERE CONVINCED THAT THEY COULD RELY ON THE COMPANIES TO DO WHAT WAS IN THE BEST
INTERESTS OF THE WAR FIGHTERS AND THE TAXPAYERS. >> THE PENTAGON GRANTED COMPANIES UNPRECEDENTED LEEWAY
TO MONITOR THEMSELVES. INSTEAD OF SAVING MONEY, ASSAD TOLD US THE PRICE OF ALMOST EVERYTHING BEGAN TO RISE.
IN THE COMPETITIVE ENVIRONMENT BEFORE THE COMPANIES CONSOLIDATED, A SHOULDER FIRED STINGER MISSILE COST $25,000 IN
1991. WITH RAYTHEON NOW THE SOLE SUPPLIER, IT COSTS MORE THAN $400,000 TO REPLACE EACH MISSILE
SENT TO UKRAINE. EVEN ACCOUNTING FOR INFLATION AND SOME IMPROVEMENTS THAT'S A SEVEN-FOLD INCREASE.
>> INDUSTRY'S MOTIVATIONS AND OBJECTIVES ARE DIFFERENT THAN THE DEPARTMENT OF DEFENSE'S. >> RETIRED AIR FORCE LIEUTENANT
GENERAL CHRIS BOGDAN SPENT HIS CAREER OVERSEEING THE PURCHASE OF SOME OF THE COUNTRY'S MOST CRITICAL WEAPONS SYSTEMS.
>> THEY ARE COMPANIES THAT HAVE TO SURVIVE, MAKE PROFIT. THE DEPARTMENT OF DEFENSE, ON THE OTHER HAND, WANTS THE BEST
WEAPON SYSTEMS IT CAN HAVE AS QUICKLY AS POSSIBLE AND AS INEXPENSIVELY AS POSSIBLE. THOSE ARE OPPOSITE ENDS OF THE
SPECTRUM. >> BUT IN OUR SYSTEM, THERE'S NOTHING WRONG WITH PROFIT. >> NO, THERE ISN'T.
BUT TAKEN TO AN EXTREME, INDUSTRY MAY NOT MAKE THE BEST DECISIONS IN THE BEST INTERESTS OF THE GOVERNMENT.
>> GENERAL BOGDAN SAYS WE'VE ONLY BEGUN TO FEEL THE FULL IMPACT. IN 2012, HE WAS TAPPED TO TAKE
THE REINS OF THE TROUBLED F-35 JOINT STRIKE FIGHTER PROGRAM. IT WAS SEVEN YEARS BEHIND SCHEDULE AND $90 BILLION OVER
THE ORIGINAL ESTIMATE, BUT BOGDAN TOLD US THE BIGGEST COSTS ARE YET TO COME FOR SUPPORT AND MAINTENANCE, WHICH COULD END UP
COSTING TAXPAYERS $1.3 TRILLION. >> WE WON'T BE ABLE TO BUY AS MANY F-35s AS WE THOUGHT. BECAUSE IT DOESN'T MAKE A WHOLE
LOT OF SENSE TO BUY MORE AIRPLANES WHEN YOU CAN'T AFFORD THE ONES YOU HAVE. >> THE PENTAGON HAS CEDED
CONTROL OF THE PROGRAM TO HOCK LOCKHEED MARTIN. THE CONTRACTOR IS DELIVERING THE AIRCRAFT THE PENTAGON PAID TO
DESIGN AND BUILD, BUT UNDER THE CONTRACT, LOCKHEED AND ITS SUPPLIERS RETAINED CONTROL OF DESIGN AND REPAIR DATA.
THE PROPRIETARY INFORMATION NEEDED TO FIX AND UPGRADE THE PLANE. >> SO YOU SPEND BILLIONS AND
BILLIONS OF DOLLARS TO GET THIS PLANE BUILT. AND IT DOESN'T ACTUALLY BELONG TO THE DEPARTMENT OF DEFENSE?
>> THE WEAPON SYSTEM BELONGS TO THE DEPARTMENT. BUT THE DATA UNDERLYING THE DESIGN OF THE AIRPLANE DOES NOT.
>> WE CAN'T MAINTAIN AND SUSTAIN THE PLANES WITHOUT LOCKHEED. >> CORRECT. AND THAT'S BECAUSE WE DIDN'T UP
FRONT EITHER BUY OR NEGOTIATE GETTING THE TECHNICAL DATA WE NEEDED SO THAT WHEN A PART BREAKS THE DOD CAN FIX IT
THEMSELVES. >> WHEN A PART BREAKS, IT'S LIKELY TO COME FROM A SUBCONTRACTOR LIKE TRANSDIGM,
WHICH HAS SEEN ITS STOCK SOAR AS IT BUYS UP COMPANIES THE MILITARY DEPENDS ON FOR SPARE PARTS.
FOUNDER NICK HOWLEY HAS TWICE BEEN CALLED BEFORE CONGRESS OVER ACCUSATIONS OF PRICE GOUGING, SHAY ASSAD'S REVIEW TEAM FOUND
THE GOVERNMENT WILL PAY THE COMPANY $119 MILLION FOR PARTS THAT SHOULD COST $28 MILLION. >> COULD YOU SELL TO THE DOD
THESE PARTS AT A LOWER PRICE AND STILL MAKE A REASONABLE PROFIT? >> I DON'T BELIEVE THAT'S THE QUESTION FOR US.
>> TRANSDIGM TOLD US IT FOLLOWS THE LAW AND CHARGES MARKET PRICES, BUT IN 2006, SHAY ASSAD SAYS APACHE HELICOPTERS WERE
UNABLE TO FLY WITHOUT A CRUCIAL VALVE. TRANSDIGM HAD TAKEN OVER THE MANUFACTURER AND HIKED THE PRICE
OF THE VALVE BY $747, UP ALMOST 40%. >> WE SAID, LOOK, WE NEED THESE PARTS TO GO ON AIRCRAFT THAT ARE
IN IRAQ. THEY SIMPLY SAID, WE'RE NOT GOING TO SHIP IT UNTIL YOU COUGH UP.
>> TO THE BATTLEFIELD? >> THAT'S CORRECT. THIS WAS GOING TO THE BATTLEFIELD.
>> BY 2018, THE VALVE WOULD GROW TO COST ALMOST $12,000. A PENTAGON REPORT CALLED IT EXTORTION.
IN MARCH, THE PENTAGON ANNOUNCED ITS LARGEST BUDGET EVER, $842 BILLION, ALMOST HALF WILL GO TO DEFENSE CONTRACTORS.
WHILE CONTRACT SPENDING IS GOING UP, PENTAGON OVERSIGHT IS GOING DOWN, THROUGH CUTS AND ATTRITION.
WE MET WITH RECENTLY RETIRED AUDITORS JULIE SMITH AND MARK OWEN, AND CONTRACTING OFFICER KATHRYN FORESMAN WHO ARE PART OF
THE DOWNSIZING. THEY TOLD US LESS OVERSIGHT AND SHAY ASSAD NOW GONE, THE PENTAGON IS LOSING THE BATTLE TO
HOLD DOWN PRICES. >> SO EXPLAIN TO ME, WHY CAN'T THE DEPARTMENT OF DEFENSE JUST STEP UP TO TRANSDIGM AND SAY NO,
WE'RE NOT GOING TO PAY THAT? >> BECAUSE WE DON'T HAVE ANOTHER SOURCE FOR A LOT OF THE SPARES THAT THEY PROVIDE RIGHT NOW.
THEY ARE THE LITERALLY ONLY GAME IN TOWN IN ORDER TO MAKE AN AIRCRAFT FLY. SO WE'RE AT THEIR MERCY.
>> THAT MAKE SENSE TO ANY OF YOU? >> NO. IT IS VERY CONCERNING TO ME,
CONTRACTORS SEE THAT THEY CAN DO THIS, THEY ARE THE ONES THAT HOLD THE POWER. >> SO IT'S NOT REALLY A TRUE
CAPITALISTIC MARKET BECAUSE ONE COMPANY IS TELLING YOU WHAT'S GOING TO HAPPEN. >> SO IF IT'S NOT A CAPITALISTIC
SYSTEM, WHAT IS IT? >> IT'S A MONOPOLY. >> MONOPOLY. >> IF YOU'RE HAPPY WITH
COMPANIES GOUGING YOU AND JUST LOOKING YOU RIGHT IN THE EYE AND SAY I'M GOING TO KEEP GOUGING YOU BECAUSE I KNOW YOU DON'T
HAVE THE GUTS TO DO ANYTHING ABOUT IT. THEN I GUESS WE SHOULD JUST KEEP DOING WHAT WE'RE DOING.
>> IN REPORTING THIS STORY, THE DEFENSE DEPARTMENTAL ALLOWED "60 MINUTES" SOME BACKGROUND INTERVIEWS WITH ANALYSTS, BUT
ULTIMATELY DECIDED NOT TO PROVIDE ANYONE TO SPEAK ON CAMERA.
>>> MORE AMERICANS THAN EVER RELY ON ALARM SYSTEMS, GATES OR DOORBELL CAMERAS TO HELP PROTECT THEIR FAMILIES, BUT
STATISTICALLY, YOU ARE NOW MORE LIKELY TO BE THE VICTIM OF THEFT ONLINE THAN A PHYSICAL BREAK-IN AT HOME.
A NEW REPORT FROM THE FBI REVEALS THAT AMERICANS LOST MORE THAN $10 BILLION LAST YEAR TO ONLINE SCAMS AND DIGITAL FRAUD.
PEOPLE IN THEIR 30s WHO ARE AMONG THE MOST CONNECTED ONLINE FILED THE MOST COMPLAINTS. BUT WE WERE SURPRISED TO LEARN
THE GROUP THAT LOSES THE MOST MONEY TO SCAMMERS IS SENIORS. TONIGHT, WE WILL SHOW YOU HOW CYBER CON ARTISTS ARE USING
ARTIFICIAL INTELLIGENCE, WIDELY AVAILABLE APPS AND SOCIAL ENGINEERING TO TARGET OUR PARENTS AND GRANDPARENTS.
>> IT'S LIKE A DEATH IN THE FAMILY. >> SHE'S WORKED SO HARD, YOU KNOW.
>> FOR MY MONEY, I SURE HAVE. >> SUSAN MONAHAN AND HER DAUGHTER TAMARA ARE TALKING ABOUT HOW THE 81-YEAR-OLD WAS
CONNED OUT OF THOUSANDS OF DOLLARS IN WHAT LAW ENFORCEMENT CALLS A GRANDPARENT SCAM. >> TELL ME ABOUT THE CALL YOU
THAT GOT. >> THERE WAS A YOUNG ADULT ON THE LINE SAYING, GRANDMA, I NEED YOUR HELP.
IN A FRANTIC VOICE SCARED SAYING I WAS DRIVING AND SUDDENLY THERE WAS A WOMAN STOPPED IN FRONT OF ME.
SHE'S PREGNANT AND I HIT HER. AND THEY'RE GOING TO TAKE ME TO JAIL. AND, GRANDMA, PLEASE DON'T CALL
MY MOM AND DAD BECAUSE I DON'T WANT THEM TO KNOW. AND I SAID, BRANDON, IT DOESN'T SOUND LIKE YOU.
HE SAID OH, I HAVE A COLD, GRANDMA. >> YOU THINK IT'S YOUR GRANDSON? >> I DO.
AND HE SAID GRANDMA, A FRIEND OF MINE HAS AN ATTORNEY, THAT WE CAN USE AND THAT WE CAN DO SOMETHING ABOUT ME GOING TO
JAIL. AND I SAID, YES, OF COURSE. >> MONAHAN SAID THE SCAMMER PRETENDING TO BE A HELPFUL
ATTORNEY GOT ON THE LINE. IT WAS JUNE OF 2020. DURING THE PANDEMIC AND HE PROMISED TO KEEP HER GRANDSON
OUT OF JAIL. IF SHE COULD GET $9,000 FOR BAIL TO HIM QUICKLY. >> WHAT OTHER INSTRUCTIONS WERE
YOU GIVEN? >> I NEEDED TO MAKE AN ENVELOPE THAT WAS ADDRESSED TO THIS CERTAIN JUDGE, THAT HE WAS GOING
TO COORDINATE THIS THROUGH AND WRITE ON THERE AND THEY GAVE ME THE NAME, THE ADDRESS, AND EVERYTHING ELSE FOR THIS
ENVELOPE. >> DID IT SOUND PRETTY LEGITIMATE? >> OH, ABSOLUTELY.
HE HAS THE LEGALESE. >> MONAHAN IS A TAX PREPARER, WITH AN MBA. THE SCAMMER KEPT HER ON THE
PHONE AS SHE RUSHED TO THE BANK. >> WHAT DID HE SAY? >> HE SAID WHEN YOU GO THERE, MAKE SURE YOU TELL THEM THAT
IT'S FOR HOME IMPROVEMENTS BECAUSE THEY MIGHT QUESTION THE FACT THAT YOU'RE WITHDRAWING $9,000.
>> MINUTES AFTER MONAHAN GOT HOME WITH THE CASH, A COURIER SHOWED UP TO TAKE IT. THIS IS VIDEO FROM THE DOORBELL
CAMERA. YOU CAN HEAR MONAHAN ON THE PHONE WITH THE SCAMMER AS SHE HANDS OFF THE MONEY.
>> HE SAID TO MOVE YOUR BUTT BECAUSE THEY'RE ON A DEADLINE. >> OKAY. HAVE A GREAT DAY.
>> SHE SAYS AS SOON AS THE COURIER LEFT AND THE ADRENALINE LEFT HER BODY, SHE WAS FILLED WITH A SICK FEELING SHE'D BEEN
SCAMMED. >> IT'S JUST DEVASTATING. >> WHAT DID THEY DO TO YOUR MOM? BEYOND THE MONEY, BEYOND TAKING
$9,000 FROM HER? >> WELL, IT'S YOUR LIVELIHOOD. I'M SORRY, IT JUST GETS YOU, LIKE, IN YOUR GUT.
>> THE FEDERAL TRADE COMMISSION REPORTS SCAMS LIKE THESE SKYROCKETED 70% DURING THE PANDEMIC WHEN SENIORS HOME ALONE
WENT ONLINE TO SHOP OR KEEP IN TOUCH WITH FAMILY. >> HOW MUCH MONEY WERE YOU SCAMMED OUT OF?
>> $11,300. >> $14,000. >> $7,600. >> JUDY ATTIG AND HER HUSBAND
RON A RETIRED IRON WORKER, WERE VICTIMS OF THE SAME GRANDPARENT SCAM AS SUSAN MONAHAN. THAT'S THE VIEW FROM THEIR
DOORBELL CAMERA, AS THE SAME COURIER TOOK OFF WITH $7,600 OF THEIR SAVINGS. >> $7,600 HITS HARD.
>> OH, YEAH. >> WELL, THAT WAS FOR -- IF WE WANTED TO GO ON A TRIP OR SOMETHING.
IT WAS TERRIBLE. I WAS A MESS. >> STEVE SAVAGE, A RETIRED SCIENTIST, WAS SCAMMED WHEN HE
OPENED A FAKE EMAIL FROM THE GEEK SQUAD. >> THE EMAIL SAYS THAT YOUR BANK ACCOUNT IS BEING CHARGED $399
FOR ANOTHER YEAR. AND I'M LIKE, WAIT A MINUTE, I DON'T REMEMBER IT BEING ANYWHERE CLOSE TO THAT.
>> THE CUSTOMER SERVICE NUMBER WENT TO A SCAMMER POSING AS A REPRESENTATIVE OF THE COMPANY. SAVAGE WAS DUPED OUT OF $14,000.
>> ESTER MAESTRE WAS SCAMMED TOO. THE RETIRED NURSE SAYS AN ALARM SOUNDED ON HER iPAD WITH A
MESSAGE TO CALL TECH SUPPORT. SHE DID. HE SAID THAT LAST NIGHT BETWEEN 4:00 AND 9:00 P.M., YOUR BANK
ACCOUNT HAS BEEN HACKED. >> AND YOUR HEART PROBABLY STOPPED. >> OH, YOU KNOW, I FELT SO
NERVOUS. BUT HE SAID, I AM GOING TO TRANSFER YOU TO ANOTHER GUY WHO'S A SECURITY AT CHASE BANK.
>> THAT FAKE BANK EMPLOYEE TOLD HER HACKERS MIGHT ABLE TO ACCESS HER BANK ACCOUNT AND INSTRUCTED HER TO IMMEDIATELY WITHDRAW
MONEY AND DEPOSIT IT INTO A NEW ACCOUNT FOR SAFEKEEPING. MAESTRE DID AND LOST $11,000. >> AND HAVE YOU BEEN ABLE TO
RECOVER ANY OF YOUR MONEY. > NOTHING. >> NOTHING. >> I'M THE ONE THAT PULLED THE
MONEY OUT OF THE BANK SO I WON'T BE REIMBURSED. >> IF YOUR HOUSE GETS BROKEN INTO, YOU CALL THE POLICE.
IF THIS HAPPENS -- >> THERE'S NO ONE TO CALL. >> SCOTT PIRRELLO IS A DEPUTY DISTRICT ATTORNEY WHO RUNS SAN
DIEGO'S ELDER JUSTICE TASK FORCE AND CONNECTED US TO THE VICTIMS YOU JUST HEARD FROM. HE SAYS STUDIES SHOW ONLY 1 IN
EVERY 20 SENIORS WHO HAVE BEEN SCAMMED REPORT IT. OFTEN, THEY'RE EMBARRASSED. >> MOST PEOPLE WHO HAVE NOT
EXPERIENCED THIS THINK, WELL, THESE PEOPLE MUST HAVE DEMENTIA OR ALZHEIMER'S. IT'S NOT THE CASE.
OUR VICTIMS ARE AS SHARP AS A TACK. WE HAD A WOMAN, 66 YEARS OLD, SHE CAME HOME.
SHE GOT A MESSAGE ON HER COMPUTER FROM MICROSOFT AND THE MESSAGE SAID THAT SHE HAD A VIRUS ON HER COMPUTER.
AND THEN THAT VIRUS HAD SOMEHOW INFECTED HER FINANCIAL ACCOUNTS. WITHIN A MATTER OF WEEKS THIS VICTIM HAD LOST $800,000.
>> OH, MY GOSH. >> THE SCARIEST PART OF THESE SCAMS IS THAT THESE VICTIMS HAVE NO RECOURSE.
THEY'RE LEFT BEWILDERED. >> WHAT TYPICALLY HAPPENS? >> THE SENIORS THAT HAVE THE COURAGE TO REPORT THAT THIS HAS
HAPPENED ARE BEING TOLD THAT I'M SORRY THERE'S NOTHING WE COULD DO. AND THAT IS THE REALITY.
THAT A LOCAL POLICE DETECTIVE IN KANSAS CITY DOESN'T HAVE THE REACH TO GO INVESTIGATE A CASE THAT'S BEING OPERATED FROM THE
CARIBBEAN OR FROM NIGERIA OR GHANA. >> INVESTIGATORS ALSO HAVE TRACED SCAMMED TO EUROPE,
SOUTHEAST ASIA AND CANADA. >> TO COMBAT THEM, SAN DIEGO'S ELDER JUSTICE TASK FORCE HAS TAKEN A NEW APPROACH.
INVESTIGATORS COLLECT EVERY LOCAL FRAUD CASE, THEN COLLABORATE WITH FEDERAL AUTHORITIES TO CONNECT THEM.
>> IF WE HAVE A VICTIM THAT LOST $12,000 HERE IN SAN DIEGO, THERE IS WITHOUT QUESTION, DOZENS OF OTHER VICTIMS TO THE SAME SCAM
AND MILLIONS OF DOLLARS IN LOSSES. AND THEN ONCE WE IDENTIFY THAT THE SCAM IS PART OF SOMETHING
MUCH LARGER, THEN WE CAN DELIVER THAT TO OUR FEDERAL PARTNERS WITH THE REACH TO GO AROUND THE COUNTRY.
BECAUSE THESE ARE NETWORKS. THEY ARE TRANSNATIONAL, ORGANIZED CRIMINAL NETWORKS. >> IN 2021, PIRRELLO HELPED THE
FBI BRING DOWN A NETWORK OF CRIMINALS WHO STOLE MILLIONS OF DOLLARS FROM ELDERLY VICTIMS. >> REMEMBER, THOSE DOORBELL
VIDEOS FROM THE GRANDPARENTS SCAM? THE COURIER, A 22-YEAR-OLD CALIFORNIAN WAS THE STARTING
POINT FOR THE FBI'S CASE. SHE'S SERVING TIME FOR HER ROLE, BUT THE FBI SAYS THE SCAM'S RING LEADERS, TWO BAHAMIAN NATIONALS,
BASED IN FLORIDA, FLED THE COUNTRY BEFORE THEY COULD BE ARRESTED. >> IF YOU DON'T KNOW HOW A
CRIMINAL THINKS, THEN YOU REALLY DON'T KNOW HOW YOU CAN PROTECT YOURSELF ONLINE. >> RACHEL TOBAC IS WHAT'S CALLED
AN ETHICAL HACKER. SHE STUDIED HOW THESE CRIMINALS OPERATE. SO ETHICAL HACKERS, WE STEP IN
AND SHOW YOU HOW IT WORKS. >> TOBAC IS THE CEO OF SOCIAL PROOF SECURITY, A DATA PROTECTION FIRM THAT ADVISES
FORTUNE 500 COMPANIES, THE MILITARY AND PRIVATE CITIZENS ON THEIR VULNERABILITIES. WE HIRED HER TO SHOW US HOW EASY
IT IS TO USE INFORMATION FOUND ONLINE TO SCAM SOMEONE. WE ASKED HER TO TARGET OUR OUR UNSUSPECTING COLLEAGUE
ELIZABETH. >> TOBAC FOUND ELIZABETH'S CELL PHONE NUMBER ON A BUSINESS NETWORKING WEBSITE.
AS WE SET UP FOR AN INTERVIEW, TOBAC CALLED ELIZABETH BUT USED AN AI-POWERED APP TO MIMIC MY VOICE AND ASK FOR MY PASSPORT
NUMBER. >> YES, YES, I DO HAVE IT, OKAY, READY? >> TOBAC PLAYS THE AI GENERATED
VOICE RECORDING FOR US, TO REVEAL THE SCAM. >> ELIZABETH, SORRY, I NEED MY PASSPORT NUMBER BECAUSE THE
UKRAINE TRIP IS ON. CAN YOU READ THAT OUT TO ME? >> DOES THAT SOUND FAMILIAR? >> YES, I GAVE HER --
>> WOW. >> I HAVE -- >> I WAS DUPED. >> WHAT DID IT SAY ON THE PHONE?
>> SHARYN. >> HOW DID YOU DO THAT? >> SO I USED SOMETHING CALLED A SPOOFING TOOL TO ACTUALLY BE
ABLE TO CALL YOU AS SHARYN. >> OH, SO I WAS HACKED AND I FAILED THE HACKING -- >> NO.
>> BUT EVERYBODY WOULD GET TRICKED WITH THAT EVERYBODY WOULD. IT SAYS SHARYN.
WHY WOULD I NOT ANSWER THIS CALL? WHY WOULD I NOT GIVE THAT INFORMATION?
>> TOBAC SHOWED US HOW SHE TOOK CLIPS OF ME FROM TELEVISION AND PUT IT INTO AN APP. THAT CLONED MY VOICE.
IT TOOK ABOUT FIVE MINUTES. >> I AM A PUBLIC PERSON. MY VOICE IS OUT THERE. COULD A PERSON WHO'S NOT A
PUBLIC PERSON LIKE ME BE SPOOFED AS EASILY? >> ANYBODY CAN BE SPOOFED. AND OFTEN TIMES, ATTACKERS WILL
GO AFTER PEOPLE. THEY DON'T EVEN KNOW WHO THESE PEOPLE ARE. BUT THEY KNOW THIS PERSON HAS A
RELATIONSHIP TO THE OTHER PERSON. THEY CAN IMPERSONATE THAT PERSON ENOUGH JUST BY CHANGING THE
PITCH AND THE MODULATION OF THEIR VOICE. AND I BELIEVE THAT'S MY NEPHEW AND I NEED TO REALLY WIRE THAT
MONEY. >> TOBAC SAYS HACKERS NO LONGER NEED TO INFILTRATE COMPUTERS THROUGH A BACK DOOR.
SHE SAID 95% OF THE HACKS TODAY HAPPEN AFTER A USER CLICKS ON A TEXT, A LINK. >> YOU WERE ABLE TO HACK MY
COLLEAGUE ELIZABETH WHO IS A TECH-SAVVY MILLENNIAL. WHAT DOES THAT TELL YOU? >> ANYBODY CAN BE HACKED.
ANYBODY CAN FALL FOR WHAT ELIZABETH FELL FOR. IN FACT, WHEN I DO THAT TYPE OF ATTACK, EVERY SINGLE TIME THE
PERSON FALLS FOR IT. >> SHE SAID HACKERS ARMED WITH BASIC INFORMATION LIKE A RELATIVE'S NAME FOUND ONLINE OR
AN APP THAT CAN MIMIC A VOICE OR CHANGE THE CALL I.D. CAN CREATE A CONVINCING STORY. >> IF YOU WERE TO RECEIVE A
PHONE CALL, A TEXT MESSAGE, AN EMAIL, AND IT'S ASKING FOR SOMETHING SENSITIVE, URGENT, AND THEY WANT ME TO GIVE SOMETHING
TO THEM. I'M GOING TO TAKE A BEAT AND I'M GOING TO CHECK THAT PERSON AND THEY WHO THEY ARE.
>> POLITELY PARANOID. >> TOBAC HAS WORKED WITH A CONSULTANT FOR AURA, A BOSTON-BASED TECHNOLOGY COMPANY
THAT CREATED SOFTWARE TO PROTECT THE IDENTITY, PASSPORTS OF FAMILIES IN ONE APP. >> THE CEO OF AURA, HE SAYS
THEIR SOFTWARE CAN REROUTE SCAM CALLS AWAY FROM GRANDPARENT. >> IF THE PARENT IS GETTING A CALL AND WE'RE IDENTIFYING USING
AI THAT THE CALL IS A POTENTIAL SCAM CALL, THEN WE CAN ROUTE THAT CALL TO ME. >> THIS STOP THE STOP THE CALL
FROM GETTING IN? >> IT DOES. >> HE CASE AI IS ALSO USED TO MONITOR FINANCES AND ALERT USERS
OF PROBLEMS IN REALTIME. >> IF I SEE A CHARGE FOR MY MOM FOR $10 AT STARBUCKS THAT FEELS OKAY.
BUT IF THERE'S A $500 FROM STARBUCKS, SOMETHING IS OFF KILT PER. SO WE TRY TO FIGURE OUT WITH AI
CONTEXTUALLY WHAT'S DIFFERENT. BUT IF SOMETHING'S OFF PATTERN, WE NEED TO LOOK AT THAT. >> SAN DIEGO DEPUTY DISTRICT
ATTORNEY SCOTT PERIL LOW SAYS MORE HELP IS NEEDED FROM LAW ENFORCEMENT AND THE BANKING AND RETAIL INDUSTRIES TO PROTECT
SENIORS. THE FBI REPORTS OVER THE PAST TWO YEARS THE LOSSES FROM DIGITAL THEFT HAVE DOUBLED.
>> TRENDS AND DATA ARE HORRIFYING. WE HAVE THE SENIOR POPULATION IS GROWING EXPONENTIALLY EVERY
YEAR. WE HAVE THIS DYNAMIC OF 81 REPORTING AND THEN WE HAVE THE TECHNOLOGY COMING.
PEOPLE ARE CONVINCED THAT AI IS PLAYING A PART IN MAYBE PRETENDING ITS THE GRANDCHILD'S VOICE.
WE'RE ALL JUST NEXT ON THE CONVEYER BELT AND WE ALL NEED TO DO A BETTER JOB.
>>> HERE WHAT IT SOUNDS LIKE TO BE TARGETED BY A GRANDPARENTS SCAM. >>> JEFF KOONS IS ONE OF THE
MOST PROMINENT AND POLARIZING ART STARS IN THE WORLD, PERHAPS YOU'VE SEEN ONE OF HIS GIANT BALLOON DOG SCULPTURES OR THE
STAINLESS STEEL INFLATABLE RABBIT HE MADE THAT RESOLVE FOR $91 MILLION A FEW YEARS AGO. THE HIGHEST PRICE EVER PAID AT
AUCTION FOR A WORK BY A LIVING ART. I BOUGHT A MUCH LESS EXPENSIVE WORK OF HIS AT A CHARITY AUCTION
ABOUT TEN YEARS AGO. HIS CREATIONS MAY LOOK SIMPLE BUT THEY CAN TAKE DECADES TO MAKE.
OFTEN PUSH THE BOUNDARIES OF TECHNOLOGY AND SOMETIMES TASTE. CRITICS MAY SCOFF AT TIME BUT THAT'S NOTHING NEW.
JEFF KOONS HAS BEEN CONTROVERSIAL SINCE HE FIRST STARTED SHOWING HIS ART MORE THAN 40 YEARS AGO.
YOU'LL FIND THE LARGEST COLLECTION IN JEFF KOONS' WORK AT THE BROAD MUSEUM IN LOS ANGELES.
VISITING IT IS LIKE SHOW UP AT A STRANGE CHILDREN'S PARTY LONG AFTER THE KIDS HAVE GONE TO BED. THERE'S A GIANT PAINTING OF A
PARTY HAT, A PORCELAIN MICHAEL JACKSON AND HIS CHIMP BUBBLES. A KIND OF POP CULTURE PIETA, THE HULK EVEN MAKES AN APPEARANCE.
THE STAR TRACTION, A TEN-FOOT TALL STAINLESS STEEL BALLOON DOG SCULPTURE. HE SHOWED IT TO US AFTER HOURS.
WE HAD TO MAKE MACHINES TO MAKE THIS WORK. ARE BALLOON DOG WEIGHS A TON AND TOOK JEFF KOONS SIX YEARS TO
MAKE. >> I STARTED WITH A BALLOON. I BLEW IT UP, I TWISTED A BALLOON DOG.
>> DID YOU KNOW HOW TO MAKE A BALLOON DOG? >> NO, I JUST GOT A LITTLE BOOK. I SAW HOW YOU DO IT.
SO I TWISTED IT UP, I PROBABLY MADE ABOUT 50 OF THEM. I MADE A MOLD OF IT AND THAN WAS USED TO MAKE THE STAINLESS STEEL
PIECES. ORIGINALLY, WHEN I MADE THIS PIECE I THOUGHT I COULD MAKE IT FOR $300,000.
WHICH STILL THAT'S A LOT OF MONEY, BUT IT ENDED UP JUST TO CREATE THE PIECE ENDED UP COSTING ME 1.6.
>> WOW. >> THAT IS MORE THAN WHAT I SOLD THE WORK FOR. >> THAT'S CLASSIC KOONS, HE'S
FAMOUS FOR GOING OVERBUDGET AND HIS OBSESSIVE ATTENTION TO DETAIL IS LEGENDARY. HE SPENT 20 YEARS FIGURING OUT
HOW TO TURN THIS MASS OF ALUMINUM INTO A TEN-FOOT TALL PILE OF PLAY-DOH. TO GET THESE BASKETBALLS TO
APPEAR SUSPENDED IN AIR HE ENLISTED THE HEM OF A NOBEL PRIZE WINNING PHYSICIST. AND HE USED MORE THAN 60,000
LIVING FLOWERS TO CREATE THIS. 40 FOOT SCULPTURE OF A PUPPY. AND CAN OFTEN TAKES FAMOUS CHARACTERS AND ART TICKS MAKING
THEM LARGER AND SHINIER. HE ELEVATES EVERY DAY THINGS, MAKING THEM LARGER, SHINIER OR SURREAL VERSIONS OF THEMSELVES.
>> LIKE THAT RABBIT RESOLVE FOR A FEW YEARS AGO FOR $91 MILLION. HE MADE FOUR THAT LOOK AT FIRST LIKE THEY'RE JUST PLASTIC
INFLATABLES BUT THEY'RE HIGHLY POLISHED STAINLESS STEEL AND WEIGH ABOUT 150 POUNDS. >> IT'S ICONIC, BECAUSE IT CAN
REPRESENT SO MANY DIFFERENT THINGS, I CAN THINK OF EASTER. I CAN THINK OF A POLITICIAN WITH A KIND OF MICROPHONE.
SOMEBODY MAKING PROCLAMATIONS. BUT I THINK THE MOST IMPORTANT THINGS TO ME, IT'S REASON IT'S REFLECTIVE, REFLECTING YOU,
REFLECTING ME, THE VIEWER FINISHES A WORK OF ART. IT'S ABOUT YOUR FEELINGS YOUR EXPERIENCES.
IT'S ABOUT YOUR POTENTIAL. >> MAYBE YOU'RE THINKING JEFF KOONS SOUNDS LIKE A PHONY SELF-HELP PROPHET.
PLENTY OF CRITICS DO BUT HE DOES SEE ART AS SOMETHING THAT CAN HELP PEOPLE HAVE A PERSONAL TRANSFORMATION.
>> ART CAN BE ANYTHING, I MEAN, IT REALLY CAN BE. MY PERSONAL EXPERIENCE OF ART IS THAT YOU DON'T HAVE TO BRING
ANYTHING TO IT OTHER THAN YOURSELF. >> SO, YOUR MESSAGE TO PEOPLE IS YOU DON'T NEED TO HAVE A THESIS
IN ART HISTORY TO INTERACT WITH ART AND WHAT YOU FEEL FROM IT IS VALID. >> IT'S AS VALID AS ANYBODY ELSE
COULD EXPERIENCE. >> WHY BALLOON DOGS? WHY GAZING BALLS? AN INFLATABLE RABBIT?
>> MEMORIES. YOU KNOW, AROUND EASTER TIME, I WOULD SEE A LOT OF INFLATABLE RABBITS IN THE YARDS.
I WOULD SEE GAZING BALLS IN PEOPLE'S YARDS, IN THEIR GARDENS. OUR NEIGHBORS WHO DO THAT, I
MEAN, HOW GENEROUS THEY ARE FOR US THAT WE'RE JUST DRIVING BY OR WALKING BY AND WE CAN LOOK. AND WE CAN HAVE A LITTLE AWE AND
WONDERMENT JUST FOR THAT SECOND. TO ME, THEY'RE SYMBOLS OF CULTURAL HISTORY. >> KOONS GREW UP OUTSIDE YORK,
PENNSYLVANIA, IN A RURAL COMMUNITY, WHERE YOU CAN STILL FIND GAZING BALLS IN PEOPLE'S YARDS.
HE HAS EIGHT CHILDREN, SIX WITH HIS SECOND WIFE JUSTINE, TO WHOM HE'S BEEN MARRIED FOR 21 YEARS THEY STILL LIVE PART TIME IN
PENNSYLVANIA, IN KOONS' GRANDPARENTS' HOUSE, PART OF AN 800-ACRE FARM WHERE THEY RAISE HORSES AND COWS.
>> I THINK MOST PEOPLE DON'T ENVISION THIS IS THE LIFE YOU HAVE AS A WORLD FAMOUS ARTIST. >> WELL, I'M VERY INVOLVED IN MY
WORK. BUT ON THE WEEKENDS AND SUPPERS AND HOLIDAYS THIS IS A REALLY IMPORTANT PART OF MY LIFE.
>> KOONS HAS BEEN DRAWING AND PAINTS SINCE CHILDHOOD. IN 1974, WHILE STUDYING ART IN COLLEGE, HIS MOTHER HELPED HIM
MEET ONE OF HIS FAVORITE SEWER REALIST PAINTS. >> MY MOTHER CALLED ME AND SAID I JUST SAW A MAGAZINE THAT
SALVADOR DALI SPENDS HALF HIS YEARS IN NEW YORK CITY AT THE ST. REGIS HOTEL. AND I THOUGHT, MAYBE I'LL CALL
HIM. >> YOU THOUGHT YOU'D CALL HIM? I CALLED THE ST. REGIS AND I ASKED FOR SALVADOR DALI'S ROOM
AND THEY PUT ME THROUGH. I WAS QUITE NERVOUS AND SIGH TOLD HIM I WAS A FAN AND WOULD ENJOY VERY MUCH TO MEET HIM.
HE SAID CAN YOU COME TO NEW YORK THIS WEEKEND ON SATURDAY. I SAID YES. HE SAID BE IN THE LOBBY AT
12:00, AND I'LL MEET YOU THEN. AND HE WAS SPECTACULAR. IT WOULD NEVER HAVE OCCURRED TO ME JUST CALL SALVADOR DALI.
>> I HAD NOTHING TO LOSE. >> KOONS AND DALI SPENT THE AFTERNOON TOGETHER, AND AT THE END, HE ASKED THE WORLD-RENOWNED
ARTIST TO POSE FOR THIS PICTURE. >> I REMEMBER, HE PUT HIS MUSTACHE UP AND HE WAS TELLING ME, YOU KNOW, KID, HURRY UP, I
CAN'T HOLD THIS POSE ALL DAY. BUT I LEFT NEW YORK THAT EVENING FEELING LIKE I COULD DO THIS. >> AFTER FINISHING SCHOOL, HE
HITCHHIKED TO NEW YORK AND STARTED MAKING ART IN HIS LOWER EAST SIDE APARTMENT BUYING CHEAP PLASTIC INFLATABLES.
PUTTING THEM ON MIRRORS. HE HAD GRAND-AM BISHSS BUT NEEDED CASH. >> SO EVENTUALLY, I BECAME
LICENSED AND REGISTERED TO SELL COMMODITIES AND MUTUAL FUNDS SO THAT'S WHAT I STARTED TO DO TO MAKE MORE MONEY TO MAKE THE
WORKS. >> THAT'S NOT A CAREER MOVE THAT A LOT OF ARTISTS MAKE. >> I DID IT ONLY THAT I COULD
MAKE MY VACUUM CLEANER PIECES. >> THE VACUUM CLEANERS HE'S TALKING ABOUT WERE FIRST GOT HIM NOTICED IN 1980.
HE BOUGHT ABOUT 20 BRAND-NEW VACUUMS DISPLAYED THEM IN CASES WITH FLUORESCENT LIGHTS IT WAS PART OF A SERIES CALL THE NEW.
>> I WAS SHOWING THEM FOR THEIR NEWNESS. THIS WAS A BRAND-NEW OBJECT. IT WAS NEVER USED.
YOU CAN SEE THAT IT'S CLEAN. IT'S PRISTINE, ITS LUNGS ARE PURE. >> AND SENSUAL ASPECTS?
>> SENSUAL, I MEAN, YOU HAVE THE HANDLE, AND YOU HAVE THE BAG RIGHT THERE. AND IT COULD BE LOOK THE AT AS
MASCULINE AND YOU COULD LOOK AT IT AND OH, THE BAG IS THE WOMB. >> ART DEFINITELY IS IN THE EYE OF THE BEHOLDER.
>> WHAT DID YOU THINK OF JEFF KOONS AS AN ARTIST AND FIRST SORT OF CAME ON THE SCENE. >> I WAS INTERESTED IN HIM AND I
WAS ALSO KIND OF REPULSED BY HIM. >> ROBERT ST. ORRR, FORMER DEAN AT THE YALE SCHOOL OF ART WAS A
CURATOR AT MUSEUM OF MODERN ART IN NEW YORK. >> I THINK SOME OF WORK IS REALLY UNPLEASANT BUT IT DOESN'T
MEAN IT'S NOT SERIOUS. >> WHAT'S UNPLEASANT ABOUT IT? >> THE IMAGERY IS VULGAR, VULGAR MEANS MANY THINGS.
>> SO IT'S TAKING AN OBJECT WHICH THE NEW YORK ELITES MIGHT LOOK AT AND THINK OH, THAT'S TACKY.
THAT'S TRASHY, SOMETHING YOU BUY IN A GIFT SHOP AND BLOWING IT UP AND MAKING IT PERFECT AND SAYING THAT THIS HAS VALUE?
IT HAS MEANING. >> AND IT'S VALUE. >> WHAT IS THE MESSAGE OF THAT? >> THE MESSAGE IS THAT IT'S
THERE TO BE EMBRACED THAT IT'S NOT TO BE MOCKED. THAT ONE SHOULD NOT BE SMUGLY SURE OF ONE'S OWN TASTE TO THE
POINT OF IT DENYING THE POSSIBILITY OF OTHER TASTES. >> AND IS HE BEING HONEST ABOUT THAT.
>> I THINK HE'S TOTALLY HONEST. I THINK THAT HE HAS MADE ALL OF THAT FAIR GAME IN A WAY THAT WE HAVE NOT SEEN SINCE WARHOL.
>> LIKE ANDY WARHOL, JEFF KOONS HAS A FACTORY OF SORTS WITH AN ASSEMBLY LINE OF PAINTS METICULOUSLY FOLLOWING HIS
INSTRUCTIONS, AND DOZENS OF DIGITAL ASSISTANTS, SCULPTURES AND CRAFTSMEN ALL OVER THE WORLD HELPING MAKE HIS COMPLEX PIECES
WHICH ARE OFTEN INSPIRED BY VERY SIMPLE THINGS. THIS IS A VERY MODERN GRANDMOTHER'S CLOSET.
TURNS OUT KOONS WAS FASCINATED BY HIS GRANDPARENTS' PORCELAIN FIGURINES AS A CHILD AND HAS COLLECTED HUNDREDS OF THEM.
>> WHERE DID YOU FIND THIS? >> I FOUND IT ONLINE. >> HE DECIDED TO MAKE THIS $150 BALLERINA INTO A
MULTIMILLION-DOLLAR EIGHT-FOOT TALL MARBLE SCULPTURE BUT IT WOUND UP TAKING HIM 12 YEARS. FIRST HE USED A C.A.T. SCAN
MACHINE TO DIGITAL MAP EVERY DETAIL OF THE FIGURINE INSIDE AND OUT. THEN IT TOOK HIM FIVE YEARS AND
THE HELP OF M.I.T. SCIENTISTS TO BEGIN TRANSLATING ALL OF THOSE DETAILS INTO CONSTRUCTIONS. CARVING TOOK ANOTHER SEVEN
YEARS. >> WE WENT WITH KOONS TO A WORKSHOP IN PENNSYLVANIA TO CHECK ON THE PROGRESS AND FOUND
AYAMI AOYAMA AND HER TEAM CAREFULLY POLISHING THE BALLERINA BY HAND. >> DO YOU HAVE SENSE OF HOW MANY
HOURS OF WORK IS DONE ON A PIECE? >> 33,000 HOURS. >> FOR JUST THE HANDWORK.
>> IT MUST BE EXHAUSTING. >> YEAH. >> THAT LOOKS LIKE A DENTAL TOOL?
>> YEAH, THAT'S ALL IN POLISHER, YOU KNOW, THE LADIES ACTUALLY USE. >> IS IT REALLY?
>> YEAH. >> YOU'LL NOTICE JEFF KOONS ISN'T DOING THE SCULPTING OR PAINTING HE COMES UP WITH THE
IDEAS AND SETS THE STANDARDS BUT HIS ARTISANS DO THE LABOR WHICH HAS LED TO CRITICISM INCLUDING OUR OWN MORLEY SAFER.
>> 30 YEARS AGO MORLEY DID A STORY CRITIQUING TEMPORARY ART AND LIKED KOONS TO A P.T. BARNUM SELLING TO SUCKERS.
>> HE DOESN'T ACTUALLY PAINT OR SCULPT. HE COMMISSIONS CRAFTSMEN TO DO THAT AND HE GOES SHOPPING FOR
BASKETBALLS OR VACUUM CLEANERS. >> IS IT A LEGITIMATE CRITICISM? >> IT'S A LEGITIMATE CRITICISM IF YOU LOOK AT ART IN A WAY THAT
YOU'RE KIND OF WANT EVERYTHING TO BE DONE BY THE ARTIST THEMSELVES. IT BECOMES LIMITED WHAT YOU CAN
DO WITHIN ONE LIFE IF YOU ARE BEING RESPONSIBLE FOR EVERYTHING. IT'S LIKE THE PRODUCTION OF THIS
PROGRAM RIGHT NOW. ANDERSON, IF YOU HAD TO BE PHONE THE LIGHTING AND FOR THE EDITING.
>> IF I WAS RESPONSIBLE FOR THE LIGHTING, YOU WOULDN'T SEE YOU OR MYSELF. >> BUT IF YOU HAD TO BE
RESPONSIBLE FOR EVERYTHING, HOW MANY PROGRAMS WOULD BE YOU BE ABLE TO CREATE? I'VE DESIGNED, WORKED ON THE
SYSTEMS, SO THAT THE WHOLE PROCESS, AT THE END OF THE DAY, IT'S AS IF EVERY MARK WAS MADE BY MYSELF.
>> AT 68, KOONS HAS REACHED A LEVEL OF COMMERCIAL SUCCESS FEW ARTISTS EVER IMAGINE. HE'S HELPED DESIGN CARS FOR BMW,
AN ALBUM COVER FOR LADY GAGA, EVEN A SUPERYACHT. AND LATER THIS YEAR, HE HOPES TO CREATE A PERMANENT ART EXHIBIT
ON THE MOON. HE'S MADE 125 SMALL STAINLESS STEEL MOON SCULPTURES AND LANDS THEM.
>> IS THERE SOMETHING ABOUT THE ATMOSPHERE ON THE MOON THAT WOULD AFFECT THE LIFESPAN OF A WORK?
>> YES, ALMOST EVERYTHING. YOU HAVE THE TREMENDOUS RADIATION, YOU HAVE THE TEMPERATURE CHANGE, AT LEAST 250
DEGREES DIFFERENCE FROM NIGHT TO DAY. ONE OF THE MOST INHOSPITABLE ENVIRONMENTS THAT YOU ACCOUNT
IMAGINE FOR A WORK OF ART. >> THE MOON SCULPTURES ARE FOR SALE, OF COURSE, EYE ALONG WITH A NFT, A NONFUNGIBLE TOKEN WHICH
SERVES AS DIGITAL PROOF THAT YOUR WART WORK IS ACTUALLY UP THERE. YOU'LL ALSO GET ONE OF THESE
LARGER MOONS TO SHOW OFF HERE ON EARTH HE WON'T SAY HOW MUCH IT WILL COST YOU BUT WITH JEFF KOONS, IT'S A SAFE BET THE PRICE
TAG WILL BE OUT OF THIS WORLD.
>>> NOW, THE LAST MINUTE OF "60 MINUTES." >>> THANK YOU FOR WATCHING OUR 55th SEASON OF "60 MINUTES."
WE'VE BEEN ON SOME AMAZING ADVENTURES THIS YEAR, AND "60 MINUTES" HAS INTERVIEWED SOME FASCINATING CHARACTERS AMONG
THEM PRESIDENTS AND PRINCES, PRIME MINISTERS AND CONTROVERSIAL MEMBERS OF CONGRESS.
WE LEARNED A BIT ABOUT THE NATURE OF OUR PETS AND TRIED NEVER TO BE PREDICTABLE. WE'VE VIEWED NATURE'S AWES AND
WAR'S ATROCITIES. ALONG THE WAY, WE'VE BEEN ENTERTAINED BY SOME MUSICIANS AND PERFORMERS.
WE'VE EXPLORED EVIDENCE OF MIRACLES AT PILGRIMAGE SITES AND EVIDENCE OF DESPERATION AT OUR BORDERS.
AND WE'VE INTRODUCED A NEW CORRESPONDENT WHO HAS PLUNGED RIGHT IN. THANKS FOR COMING ALONG WITH US.
I'M BILL WHITAKER, WE'LL BE BACK NEXT WEEK FOR A SUMMER OF CLASSIC AND UPDATED STORIES WHILE WE BEGIN REPORTING AND
SHOOTING FOR THIS FALL. OUR 56th SEASON OF "60 MINUTES."