60 Minutes: Season 48, Episode 29

48 - 29: Not Paid | Hacking Your Phone

Not Paid - Audits of the nation's biggest insurance companies have uncovered a systemic practice of insurers not paying benefits on millions of policies - even when the companies knew the policyholder was deceased. Lesley Stahl reports that 25 insurance companies, without admitting wrongdoing, have agreed to pay more than $7.5 billion in back death benefits in a series of settlements reached with states across the country. Thirty-five companies still have not settled and remain under investigation.

Hacking Your Phone - International experts in mobile security including California-based Lookout founder John Hering and Berlin-based Karsten Nohl of Security Research Labs show how mobile phones and the networks that carry their signals can be exploited by hackers. Hering gathered a group of security researchers in Las Vegas during a hackers convention and they broke into the phone of 60 Minutes correspondent Sharyn Alfonsi. Hering demonstrated how he could read Alfonsi's email and collect her credit card and other private and personal information. Nohl and his team in Berlin showed how they were able to exploit a flaw in a global mobile network called Signaling System Seven -- or SS7. The team was able to monitor and record a phone that 60 Minutes lent to U.S. Rep. Ted Lieu, D-California, a member of the House Oversight and Reform Subcommittee on Information Technology.