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			 Most cars today are equipped with some level of connectivity and 
			self-driving vehicles are being developed. Given this level of 
			sophistication, protecting cars from contamination with malicious 
			software has become big business. 
			 
			"We view this as a potential $10 billion market opportunity over the 
			next five years," said Daniel Ives, an analyst with FBR Capital 
			Markets in New York. 
			 
			"As we have seen with cyber security over the past decade, the 
			lion's share of the innovation going after this market is from 
			Israel and Silicon Valley." 
			 
			The threat appears real enough. 
			 
			Fiat Chrysler recalled 1.4 million vehicles to install new software 
			last year after cybersecurity researchers showed they could turn off 
			a Jeep Cherokee's engine as it drove. Software manipulation, albeit 
			intentional, was also behind Volkswagen's emissions scandal. 
			 
			From its headquarters in Tel Aviv, Check Point, one of the world's 
			largest cyber security firms, pioneered the computer firewall two 
			decades ago. It hopes to repeat that success with a security capsule 
			for vehicles. 
			 
			Connected cars need a two-pronged defense. 
			  
			First, they must make sure nothing bad gets in, like a virus 
			sneaking through a navigation system. Then they have to keep 
			internal communications secure to allow functions like side-view 
			mirrors which angle down when vehicles are put into reverse. 
			 
			Check Point is focusing on protecting the car's external gateway, 
			said Alon Kantor, vice president of business development. After two 
			years of meeting carmakers and their top suppliers, he said they now 
			have a working "proof of concept". 
			 
			"The car manufacturers didn't know exactly what cyber security was. 
			We had to study the networks in different cars. It was mutual 
			learning," Kantor said. 
			 
			With Check Point's system, everything going in and out of the car 
			passes through the company's cloud-based network, where it is 
			inspected in real time and malware is blocked. 
			 
			"The idea is to prevent the next recall and handle all security and 
			updates over the air," Kantor said. 
			 
			VULNERABILITIES 
			 
			Experts warn that hackers may eventually try to track driving 
			patterns, interfere with fleet management or falsify information 
			passed electronically to insurers. 
			 
			"Automakers are working to keep pace with the dynamic nature of 
			cyber threats by incorporating security by design, developing 
			internal expertise, and cultivating partnerships -- both procedural 
			and operational -- with organizations specializing in cyber 
			defense," says the Alliance of Automobile Manufacturers, a 
			Washington-based association of 12 of the largest car makers. 
			 
			Some 420 million connected cars will be on the road in 2018, and the 
			number has risen 57 percent annually since 2013, according to market 
			researcher IDATE. 
			 
			Technology companies are alive to the business opportunity. 
			 
			Last week, Harman International Industries, a maker of connected car 
			systems, said it was buying Israeli-founded cyber defense start-up 
			TowerSec to protect its products with market-ready platforms. 
			Israeli media estimated the deal at $70 million. 
			
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			Technology giants like IBM and CISCO have asked their teams in 
			Israel to work on protecting cars. 
			 
			"What makes cars so vulnerable to attack is that they are such 
			complex systems," said Yaron Wolfsthal, head of the IBM research 
			center in the desert city of Beersheba. 
			 
			Premium cars, put together from a complex supply chain, can run on 
			up to 100 million lines of software code -- about 12 times more than 
			in the new F-35 stealth fighter jet. 
			 
			Like other global technology firms, IBM set up a branch in Beersheba 
			two years ago when the military began moving operations there, 
			including elite intelligence and cyber warfare units whose graduates 
			are behind many of Israel's private sector successes. 
			 
			IBM has developed a comprehensive prototype, Wolfsthal said, and is 
			looking to integrate it with a car manufacturer. The program will be 
			connected to other IBM systems that can spot patterns of broader 
			security breaches. 
			 
			NEW SKILLS 
			 
			None of the handful of companies in Israel that spoke with Reuters 
			would give the names of carmakers with whom they are talking. But 
			the pitching process can include exposing them to the vulnerability 
			of their own models. 
			Check Point said it showed executives from a few large automakers 
			that it can hijack their car's external communication channel using 
			a handheld transceiver and frequency jammer, both of which can be 
			bought on eBay for a few hundred dollars, and a laptop computer 
			running open-source software. 
			 
			Also based in Tel Aviv, Argus Cyber Security developed a defense 
			system that protects a car's internal networks as well as the 
			external wireless connection. 
			 
			The start-up was founded by graduates of the military's cyber 
			intelligence unit and in September raised $26 million, including 
			from auto supplier Magna International. 
			
			  
			 
			 
			Yoni Heilbronn, the company's head of marketing, was the only 
			foreigner to appear at a closed-door session last year in the U.S. 
			Congress discussing how to protect connected cars. 
			 
			"Car manufacturers for the last 100 years simply built cars and were 
			very good at doing that. Cyber security is generally not their core 
			competence," he said. "This is where it comes back to Israel." 
			 
			(Editing by Luke Baker and Keith Weir) 
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