The bad guys live inside your machine. They watch everything you do. Any time you type in your bank account or credit card information on to the machine, they're capturing it. They're capturing your passwords.

Moreover, computers are becoming increasingly embedded in the hardware around us. The typical new car, says Goodman, has 250 computer chips. And in this Google prototype now legally riding the roads of Nevada, even the driving is fully computerized.

So, you could put in bad GPS directions and have a car drive off a bridge. Every day, we're plugging more and more of our lives into the Internet, including bridges, tunnels, financial systems, hospitals, police emergency dispatch 911 systems, military systems, robotics systems. And there's a history of all of these being hacked.

Diabetic pumps, cochlear implants, brain computer interface. There are 60,000 pacemakers in the United States that connect to the Internet, which means that the Internet connects to your pacemaker. It's great when you're suffering from an arrhythmia and your doctor can remotely shock you, but what happens if the kid next door does that because it's fun and does it for the lulz...