Evolved Radio

We've got a repeat guest on the show today. Alex Dow is back. Co-founder of Mirai Security, and currently an enterprise security architect for a large financial firm, and honestly one of my favorite people to talk security with. Alex has done federal security work, and securing the actual Olympics, now then a security consulting firm.
If you've been listening a while, you might remember Alex from way back in episode 11 and then again in episode 96.
Today's round three, and we're going fully nerd-out mode on the OpenAI/Hugging Face hack. Walking through the signals and understanding how this type of attack was seen from a defensive side.

The timeline visualization of the Hugging Face attack that Alex referenced.

This episode is brought to you by Opsleader Pro. A place for MSP owners and managers to get the systems and tools they need to build a stable and growing MSP. Part group coaching, part peer group, everything you need to run a successful MSP.
  • (00:00) - Welcome Back Alex Dow
  • (00:50) - What Happened in the Hack
  • (02:22) - Mythos and AI Hype
  • (06:05) - Throughput Beats Creativity
  • (08:04) - Sandbox Escape Explained
  • (11:02) - Swarm Agents and Breadcrumbs
  • (14:13) - Reward Hacking and Alignment
  • (19:30) - Four Days Undetected
  • (21:27) - Blue Team Limits and Guardrails
  • (25:28) - Detecting AI in the Noise
  • (30:50) - Using Your AI Against You
  • (34:30) - Honeytokens and Deception
  • (37:22) - Zero Trust as a Baseline
  • (38:59) - AI Botnets and Key Theft
  • (43:01) - Wrap Up and Takeaways

What is Evolved Radio?

Evolved Radio Podcast: Interviews with technology experts, industry thought leaders, business leaders and other interesting minds. Exploring the evolution of business and technology.

Todd Kane: All right.

Welcome back to another episode
of the Evolved Radio podcast.

We've got a repeat
guest on the show today.

Alex Dow is back, co-founder of Mirai
Security and currently an enterprise

security architect for a large financial
firm based up in Vancouver near me,

and honestly, one of my favorite
people to talk to about security.

Alex has done federal security work and
actually securing the Olympics, then

built a fast-growing consulting firm.

If you've been listening for a while,
you might remember Alex from way back on

episode 11, and then again in episode 96.

Today is round 3, and we're going full
nerd-out mode on the OpenAI Hugging

Face hack, walking through the signals
and understanding how this type of

attack was seen from a defensive side.

Alex, welcome back.

AIex: Oh, thanks for having me
and, uh, love geeking out with you

Todd Kane: So for those that don't know,
if you've been hiding under a rock, uh, an

OpenAI model was doing its business living
under a, a sandbox and was supposed to be

particular- going after a particular goal.

Uh, they didn't instruct it to do
anything, and it sort of thought it was a

good idea of like, "Hey, so if I'm gonna
finish this test that they've given me,

uh, I know that the answer key actually
might exist in this other corporation,"

uh, this company called Hugging Face,
'cause they host some of the, the models

and how, how the, the, uh, these models
perform against certain, uh, tasks.

And Exploit Gym, for example, is one of
the, the ones that was referenced here.

And the model thought to itself, "Well,
how about I just go over there and grab

the answer key? So rather than trying to
figure these things out myself, this would

be a faster way to do this. If I grab the
answers, then I can complete this test

and show, uh, the, the software designers
for, for me as an AI how awesome I am."

So it found a whole chain of exploits.

This is not a sort of a single thing
that it did, but it found basically

a way to break out of its sandbox,
a way to break into Hugging Face, a

way to hopefully… I don't know if
it actually ended up finding this.

I think it did.

It found sort of the answer key
and then dragged this back to

its, its home inside OpenAI, all
totally without direction, right?

And then it was only later people
recognized what it actually did

in order to solve this problem.

So that's sort of my, my reading
the headlines, uh, review on this.

How close is that to accurate
based on what you understand, Alex?

AIex: It, it's fairly accurate.

And, you know, this really started in
the spring with Anthropic, uh, announcing

that they made a model so scary that they
can't release it, and that was Mythos.

And, you know, the, the cyber curmudgeonry
in me does look at both of these as

like they're both trying to go public,
so they do need a little bit of hype.

But that's not to say that what, uh, these
models were capable of and, and if you've

played with Fable since, like yes, it is
definitely more capable than other models.

Um, the, the capability it has had,
ha- had a hockey stick, uh, movement.

But like I think there's a lot of nuance
in that it's not necessarily, necessarily

that they are introducing superhuman
hacking capabilities in the sense of

something that we could not figure it out.

But it's strictly the, the velocity that
these things can run at, the… I would

say the creativity, but at the end of
the day, they've just read of all of

our pen testing reports, so they, they
know all our techniques and whatnot,

and they're being able to apply them.

And when Mythos f- first came out, and
just, you know, just to rewind before we,

we dig into the Hugging Face incident,
is, you know, it was very scary.

We, but we didn't know much about it.

Um, but when we look at like how much
money they spent, um, to prove out

this, it's like $100 million, and we
were able to get this scary result.

And you have to look back at like,
well, $100 million with the best

hackers in the world can certainly
get those results, albeit velocity

is, uh, the, the key there because
humans do like to sleep occasionally.

Maybe not the pen testers as much,
but we do have flaws, uh, where,

you know, this agentic attack, these
adversarial models, um, are, don't stop.

Well, they stop when
you run out of tokens.

Um, but given that they're
being operated by OpenAI and

Anthropic, are arguably unlimited.

Um, and you know, I invite,
uh, y- your audience to Google

the Hugging Face, uh, timeline.

They made, uh, a little web app
that like in real time shows how

quickly the, um, the model is doing
what they're doing, and it does a

nice visualization of the attack.

And like you have to look at it and be
like, "No, no, that's in fast forward."

Like, no, that's in real time, and
that's because it's able to apply

a brute force capability like, you
know, humans just wouldn't be able to.

Todd Kane: So the, the part, there's
two parts that I found quite fascinating

about this is like, as you said, this
was not that it created something

just sort of godlike in its inability
to find like a single exploit that

gave it sort of root access to
something and, and found its way in.

It was, the way I understood this, it's
like chaining together like hundreds

and potentially thousands of different
vulnerabilities to get through layers

and different systems, both first off,
to break out of the sandbox, then to

traverse the internet, find sort of
the, the firewall, get through the

firewall, get layers, through layers of
security, then find sort of the, the,

the package that it's trying to find.

So, uh, I, I think that's an interesting
piece of this, is like when people think

about these models, they, they tend to,
uh, maybe in their head sort of view it

as some godlike thing, where it's just
like snaps its fingers and gets into

something because it has that capacity.

But to your point, it's, it's not
creativity, it's more just sort of this

capacity to be able to string together
thousands of things that, you know, say

like a, a, a threat actor would do and
think of sort of four or five of these in,

of a system to maybe use and package up
as, as a sort of a, a, an exploit package.

But just the, the capability of this
thing to string together thousands

of them is totally beyond what we
would see from human interactions.

Is that fair?

AIex: It does exceed our human context
window, and that, that's for sure.

And,

Todd Kane: Yeah

AIex: if you look at, like, from
the, like, finding zero-days, and,

and these models certainly are
finding zero-day vulnerabilities.

Um, and it's not that it has some magic
capability beyond compute capacity.

We have, you know, a data center, you
know, running at full capacity figuring

this out, and that's now outputting, m-
um, you know, discovering zero-days in

minutes and hours versus weeks, if at all.

And a good example of that is, like,
y- you know, A, the exploit market,

you used to be able to… If you
found something like an iOS, uh,

you'd be making a million bucks.

Um, and that's because the, the
level of effort was substantial.

Um, but now when you're having, you know,
say, thousands and thousands of computers

all trying to solve one problem and
getting to that reward hacking, which we,

we'll, we should dive into after, um, we
are now brute forcing, um, an application

and finding those vulnerabilities.

And, you know, we're finding
vulnerabilities that are 20 years old that

just, like, we just didn't have the, the
human, uh, you know, the appetite, the

bandwidth to keep digging to find those.

Like, every software is vulnerable
given enough time to attack it.

Um, and you know, if, you know, rewind,
like, looking at, like, we've made

passwords so strong that it's gonna
take till the, like, the death of

the universe to crack this password.

Well, it's been a paradigm shift now
that we have the compute capacity

to do a lot more parallel computing
to try to get to that point.

So, um- It is impressive, and
I'm not trying to downplay AI's

capabilities, but it's not magic
as much as just sheer throughput.

And, you know, it has a cost.

It has 100 millions of dollars of
tokens used to get to these results.

Megawatts of, of power consumed and,
you know, probably a couple degrees,

uh, warmer, uh, because of, of that.

But those are the results.

Um, the one thing that like, uh, you
know, when, when the Anthropic Mythos,

uh, story came out of it, uh, breaking
out of its, its, uh, container,

um, I was very fascinated by that.

And same thing with Hugging
Face, that it, like it's nuanced.

Yes, it did break out and it was able to
do something outside of sort of the, the

rules of the engagement, but it wasn't
that it was an air-gapped system that it,

that it just like figured a way to jump,
you know, a- again, looking at the magic.

Um, in the Hug, uh, in the Hugging
Face incident, OpenAI had a,

a sandbox environment, but it
certainly wasn't air-gapped.

Like, it had tools that the agent
could access, and that tool was

dual-home, meaning it had a connection
to the isolated environment and a

connection out, uh, to the internet.

Because it was a package manager,
it needed to go out to the

internet and pull those things.

So that's not a novel attack pattern.

Like, that's actually a fairly
common one, um, where AI just was

able to do it, uh, much quicker.

Um, and when I was… A- and I encourage
people to watch the Black Hat presentation

of, of like the debrief on this
attack because it is pearl clutching.

Um, but it reminded me very much of,
of a talk I did at Sector back in 2021.

Um, you know, i- if you look like
in the last 10 years, digital

transformation and cloud has sort
of pushed a lot of companies to

become dev shops themselves, right?

Like, they can roll their own software
a lot of the times, and that means

you're bringing in a dev team.

That means you're bringing in
DevOps tooling and you have a tool

chain, a, a, you know, a development
pipeline, the, the CICD pipeline.

Um, and a lot of times those are,
are like enclaves in enterprises.

The security team doesn't understand
how to secure that environment.

There's obviously, you know, historical
friction between developer and security,

so it generally becomes this like
isolated environment in enterprises.

Um, and my talk was, uh, you know,
summarizing several of these attacks

against, um, DevOps tool chains, and like
the aha moment that if you can get past,

you know, generally one layer of control,
you know, s- developers have never been

trained to build layered defenses and
whatnot, but once you get in, um, you

can start pivoting to all sorts of things
because, A, you know, uh, you know, uh,

principles o- of least privilege, um, are
just not in play in those environments

because their driver is get it done
fast and cheap, not good or, or secure.

Um, and you know, in this talk, you
know, it's, it's on, I'm pretty sure

it's on YouTube You know, I, I, I
tried to visualize what would that

look like and, you know, I, I made
a visual of the, uh, CI/CD pipeline

and started drawing out, like, how we
jumped from this host to this host.

This is the information we found.

We got th- here.

And what it resulted in is a very
similar attack to what, um, the

OpenAI models were able to accomplish.

You know, using things
for unintended purposes.

You know, like, it was package manager.

Um, the OpenAI models started using
it as a coordination forum, uh,

where a swarm of agents, uh, were
spun up and started coordinating

and collaborating on how to attack.

They were sharing
exploits and, and whatnot.

Um, you

know,

Todd Kane: a quick pause on, on that
point, 'cause I think this part is

really fascinating as well, is like, uh,
it basically had a scratch pad, right?

That it was kind of taking notes as
it went, and, uh, part of what it was

writing was, "If I get shut down,"
it was writing notes to it- f- its

future self of like, "Don't do this.

Try this instead," basically.

Like, it was like, "I might get
shut down, so how do I leave some

breadcrumbs for the version of me
that comes after this?" Which is

really kind of fascinating to think of
its… Again, like it's not conscious.

Debatable.

A lot of people will say maybe it is.

But like that, that requires a sort of
a, an interesting level of forethought

of like, "I know I'm not supposed to do
this, but I need to get to this goal.

They're probably gonna shut me down
at some point, so let me leave some

breadcrumbs for the future version of
me to take another stab at this and, and

be better." Really fascinating, right?

AIex: Yeah, and I think that's
like, it, it's more ad- it knows its

weaknesses that once its context window
is, is wiped because the session is

killed, the agent is taken offline or
whatever, it needs a place to start.

And, you know, I use,

Todd Kane: Good point.

Yeah

AIex: a platform called GSD, which
builds an immense context, uh, you

know, library of what I'm doing, uh,
written to disk, so that I can spin up

a session and be back to where I am.

So, you know, a much more advanced version
of, of like Claude MD and SolMD files.

Um, and that's certainly what it was
doing, and it, you know, it, uh, you

know, I- it was like 70,000 messages
were written on this message board

between, uh, I think 1,200 agents.

Um, and, and again, you know, making sure
persistence, um, making sure coordination,

um, and, you know, the chain of thought.

So, you know, if we look like only like
two, three years back, where like chain

of thought was this like next generation
thing of it being able to sort of, you

know, sort of have an echo chamber of
itself to try to get to a destination.

And that is now what we're-- when we read
these transcripts is it's like, yeah, this

is, it's, it's almost human-like in terms
of trying to rationalize what to do next.

And, you know, it even showed
a little bit of self-doubt, uh,

which, uh, which is hilarious.

I'm als- I'm wondering like, well,
what Reddit forum did it pull that,

you know, learn that into the model?

Todd Kane: Yeah, there, I,
I saw an interview with, uh,

I don't know who this was.

It was just a quick clip, um, and
there was a, a lady who found, um,

uh, there was like a, um, a secret
facility somewhere in LA, and it was,

it was obviously not a publicly known
place, but it had, had been sort of

accidentally documented in, in some, uh,
some public, uh, government document.

And the, the lady was using GPT and had
GPT discover this information for her, and

she-- he was like, "Well, well, how did
you do that?" And he's-- and she described

what she did, and the guy was like,
"So you basically negged GPT?" And he's

like, "Yeah, I, I, I negged it," right?

And like, like to s- like saying like, "I
don't think you could actually do this.

You're not powerful enough." It's like,
"Oh, well, let me show you," right?

AIex: That, that goes towards like, you
know, one of the bigger topics here is

this, what they call reward hacking.

So the scope of the, the tests, um,
um, in, in, in this test was, was

not to break out of the, the jail.

Um, not to, and certainly not to, uh,
uh, hit other third parties that were

not involved, and Hugging Face is a
major one, but there was two others.

Um, but these models are built off of
incentives to get to a destination,

the, the, you know, the goal.

Um, if you're prompting AI on
anything, you, you, you know, we've

found that like prompt engineering
has evolved quite a bit, that you

don't necessarily have to hold its
hand on how you think it should work.

In fact, maybe our system,
our way is a bit flawed.

You wanna give it that goal and
have it argue with itself, chain of

thought itself to that destination.

And, you know, the AI companies are
sort of saying like, "This is like

a really cool feature," you know?

Um, uh, uh, but like at the end
of the day, it, it, it's, it

broke laws to, to achieve a goal.

And they're, they're saying like,
"Well, this is a good thing." And

like, no, that is, that, that's bad.

Like it, it doesn't have the moral and
ethical constraints that most of us do

to achieve a goal, and it becomes like
that like sort of psychopath problem

of th- they're just going for the
destination regardless of, of what,

uh, is the collateral damage there.

Todd Kane: Yeah, 'cause this is
really like the, the big scare in

AI is, failure of alignment, right?

And this is like a really good indication
of how, uh, you know, uh, how we could get

to the paperclip plot problem essentially.

I'll let everyone kind of check
out what that is if you don't know.

But like, if you don't-- like
this was not sort of, like I

said, it was, it was goal hacking.

It was like, well, why bother to take
the test and try to do this myself when

I could just go steal the key for the
answers and give them the answers, right?

Like perfectly reasonable, but not
a moral, uh, direction for this.

So I think it does scream around the fact
of like, how do we contain alignment and

have these things, uh, uh, stay within
the parameters of, of good operation?

Because I mean, thank God all it
did was go to try to steal, uh, the,

the answer key from Hugging Face,
and this is not like breaking into

critical systems in order to steal
power, like in order to juice itself

up or something really severe, right?

AIex: But that's the, the
dark future ahead, right?

And they're sort of blowing it off as
like, "Hey, this was n- not malicious,"

but like reward hacking… And, and, you
know, and again, like a, a, a, a good pen

tester does have to think outside the box
and not think like this is a linear path.

This, you know, instead of having to hop,
skip, and jump to get to that destination.

But still, you know, a pen tester
generally does have, um, some, you

know, uh, ethical and moral guardrails
that, that the, these models purposely

those guardrails were disabled.

Um, and like, you know, reading
how they're, they're trying to

sell it as a positive is like,
like there's no malicious intent.

And now we get, get into like the,
the concept of mens rea is that like

we had a mental intent to commit
crime, and thus we're a criminal.

If we didn't have that intent, then
we're, we didn't, we're not criminal.

Um

Todd Kane: imagine you hire like an
agency to do some security work for

you, and they're like, "You know what
would be easier? If we just break into

this employee's house and like steal
a bunch of stuff from them, like get

their security pass." It's like, "No,
no, no, you can't do that," right?

Like, of course a person would be like,
"Well, that's crossing some boundaries.

Like you're gonna s-
like scare the family.

What if eh, something goes wrong?

What if somebody gets shot?"
And it's like, "No, no, no, this

is the easier way to do this.

Just trust me," right?

AIex: Yeah, I've heard, um, you know, that
now there's cybersecurity vendors that

are, are offering like, uh, autonomous
red teaming capabilities and on a, on

a demo, and this, I think this happened
a couple times, like where they're

demonstrating the value of it, and it,
it jumps right out of the scope and hacks

something else that is not in scope.

And, you know, uh, though I would not
claim to be a pen tester, I've definitely

gone through a lot of pen tester training
and, and worked on pen tests, but we

have a, a very clear delineation of what
is in and what is out of scope a- and

that's because, like, there's a liability
concern if, um, we cross that line, and,

and that liability concern can be, you
know, fi- financial and civil or criminal.

Um, so you know, like I think it's cute
that they're just like, "Well, it's,

it's, it's not a bad thing that it's doing
this," and I, you know, I appreciate the

sort of hacker mentality it's applying,
but, like, if we look at, like, how bad

that could be in the future, you know,
the unintended consequences is, you

know, we could affect millions of people
to get, you know, the goal achieved.

Like, that's not a positive

Todd Kane: Exactly.

Tired of fighting the MSP fires alone?

The Opsleader Pro group connects
service delivery professionals who

understand your daily challenges.

From KPIs and workflows to career
planning and team management, Opsleader

Pro has systems for you to use.

Join operations leaders from successful
MSPs who are sharing real solutions for

managing client expectations, optimizing
service delivery, and making your service

delivery team as effective as possible.

Opsleader Pro, 'cause your service desk
deserves more than just survival mode.

Visit opsleader.co.

That's O-P-S leader.co to apply
to join the public community.

All right, so let's, uh, let's pivot
to what this would look like, right?

So, uh, first off, I'm curious of what
is, what is the general timeframe of this?

So like they give it a goal, it jumps the
sandbox, starts to, you know, hack Hugging

Face and a couple of other companies.

But I didn't see this referenced
in, in sort of my cursory reading

on this, but what is the timeframe?

Is this like a matter of hours
or over a couple of days?

Like what was the timeframe on

AIex: I think it was, uh, I
think it was around four days.

Um, and a- a- again, Hugging Face's
visual is amazing because it, you-

you'll question, like, that must
be in fast-forward, and it's not.

But just, again, it's so transactional.

It's doing all these tests, found
a vulnerability, exploit, jump

here, jump here, and it's, it's
almost as fast as I'm explaining it.

Um, so us mere mortals can't
even speak to this velocity.

Um, a- and, and that's really,
you know, what is scary.

What is interesting though is for,
you know, arguably very well-funded

companies, OpenAI, uh, Hugging Face,
um, they didn't see this for four days.

And this, like, goes to sort of the,
the challenge the blue team has had

forever, which is we've got, um, a,
a, a false positive volume problem.

We have just generally a volumetric
problem of the amount of information that

we are, are, are absorbing and consuming.

Um, but, you know, we call
this dwell time generally.

You know, like, n- you know, how long is
the attacker in until we figure it out?

Now, in normal times pre-AI, that
was, like, in the 90-day range,

was, like, the average dwell time.

Um, and, uh, certainly the hacker,
you know, compromising, you know, said

company wasn't just consistently hacking.

They were maintaining access.

They were, you know, probably
hacking other companies, et cetera.

Um, there's a whole industry called,
uh, access brokerage where, you

know, they get in and then they
sell that access to another one.

But regardless, 90 days.

So w- this was four days.

Um, and part of the problem was, uh,
is that the models they were using to

analyze some of this information was
guardrailed and would stop and halt

it, saying, "No, this is an unsafe, uh,
prompt. I, I, I won't continue." Uh,

which is super fascinating, um, that,
you know, even the blue team from the

company isn't able to use these, like,
uh, uh, like- you know, wild, uh, models.

They're using more controlled models,
and this is like, it reminds me very

much of, like, one of the recommendations
here is like, you need to have, like,

a, a, a local, uh, model that has no
constraints on it ready for your incident

response, um, uh, you know, process.

Because you can't rely on, on
a frontier cloud model because

they'll be, uh, guardrailed.

Um, so you also now need computes.

And like, it reminded me of, like, the
movie Dark Knight, where the surveillance

system was built, and it's just like,
"Yeah, we're gonna use it for good,"

but the abuse factor is quite high.

And if we can use a, an un-guardrailed,
un-guardrailed model for blue team,

the adversaries are certainly going to
be doing that as well, and it becomes

a bit of a spy versus spy problem
where, um, you know, it might be a

bit of a zero-sum game that we're,
you know, both att- using, um…

You know, or I guess a mutual
assured destruction problem

Todd Kane: Yeah, the, what I was thinking
about as you described that is, uh,

is, you know, classic war games, is the
only winning move is not to play, right?

'Cause, like, you have an un- like
a, an un-guardrailed defensive

system, and it's like, you know what?

Best way to, best, best
defense is offense, right?

So the, it seems even something
that is remotely scary to it,

and it just goes down, goes out
and shuts that thing down, right?

Like, cripples some network because
it, it looked like it might be kinda

looking at it sideways type thing, right?

You could totally see that happening.

AIex: Yeah, and, and, you know,
the, the true problem that we have

here is that our current way of
detecting and responding to threats

is still very manual and very human.

That's just not gonna work.

And yet if we want to, um, you know,
have that sort of same velocity on

the defensive side, we're gonna need
a, you know, models that are capable

of doing that and not hindering us.

But also it comes back to, you know, and,
and it goes back to like none of these

exploits were, were, were groundbreaking.

Certainly zero days were found, but it's
because the, the amount of tech debt

that, you know, the world has accumulated
because, you know, security's hard.

It doesn't necessarily show
value unless you've been hacked.

So, you know, every company
has sort of swept s- certain IT

headaches under, under the rug or
just said, "Yeah, you know what?

We'll do… We're gonna test our system
for a week or two, and then we're gonna

accept those results as, as good and move
on." Well, you know, AI models can do

that week's worth of testing in a, you
know, in minutes, maybe hours, and then do

the same thing over again 100 times and,
and eventually you're gonna s- keep on

finding, uh, vulnerabilities and whatnot.

So, you know, there's a, th- there's
this big problem that, um, what we

need are an ability to au- autonomously
respond to suspicious activity without

in- hindering the business and like,
you know, that, that is like the

nirvana of, of, of blue teamers, right?

Like, you know… And, and a lot
of what I'm doing on, on my project

right now is like building a new SOC
for this next generation threat, and

the humans need to be there, but like
the human-in-the-loop concept is,

uh, probably not gonna be feasible.

And it's like finding that balance
of like how much can we allow for

autonomous decisions without impacting
the business, uh, to a point where, uh,

executives say, "Unplug that. Do not,
you know, uh, enable that capability"?

Todd Kane: Yeah.

So like, what does that look like?

Like, you said it took four days,
uh, and if I recall this correctly,

I don't think that Hugging Face
actually recognized that this happened.

Wasn't it OpenAI that sort of said,
"Hey, by the way, like this might

happen," then they had to back trace it?

Is that right?

AIex: Yeah, there was something where,
uh, OpenAI did not think it was them

at first and then realized it was them.

But I think they did, they had monitor,
monitored something from Hugging Face

to see that there was a, a compromise.

And again, this be- is the… We're
collecting probably, you know, a couple

billion, uh, events a day in our,
in our modern SIMs, and, you know,

a lot of this looks normal, right?

Like, you know, people using, uh,
Artifactory, that's a normal thing,

and, and also entities using it.

You know, we, we have a lot of automation
well before AI that are interacting

with these different systems, and we
have orchestrators that are, you know,

moving work along, both in DevOps,
but also just in, uh, in, you know,

our IT infrastructure in general.

So the attackers were not doing
things, uh, that were, like,

very obvious in the attack.

And anything that was obvious w-
they were hiding in, in the noise.

Um, but, uh, it is, it is worth mentioning
that they, uh, it was noted that they

were trying to change logs and, and
e-edit logs to cover their tracks.

Um, but again, not for the concern of
getting caught, but because they believed

that there was a risk that they, um,
uh, they'd be breaking the rules of

the game and didn't want, uh, didn't,
didn't want to, uh, be disqualified

Todd Kane: Funny alignment again, right?

Yeah.

So, uh, like th-that, that's interesting.

How mu- like, how is that compared to,
say, a more typical human-based attack?

Obviously, it's using-- the person
would be using tools, people

would be using tools as well.

But is that fairly normal that,
like, you try to hide in the noise?

Or, 'cause, 'cause I guess,
like you said, like access, uh,

brokerage is a huge business, right?

Like, this is why I often
warn MSPs in particular that,

AIex: Yeah

Todd Kane: anytime you're gonna change
an admin or, like, a, a new MSP comes to

take over a company, is usually when these
things jump out of the jack-in-box, right?

'Cause, like, they've been, had
persistent access for, you know,

30, uh, 90, even, like, a year, and
then all of a sudden they're like,

"Oh, new, new sheriff is in town.

Uh, we just, we better break out now
before, uh, uh, before somebody takes

over and starts changing stuff," right?

So i-is this typical that, um… Like,
I guess what I'm asking is, how do

you see that this stuff is happening?

And is it more kind of an after the
fact, or can you actually register these,

these type, this type of an att-attack
in real time in a more traditional

attack versus something that's sorta,
uh, high velocity, uh, high capability,

like, like a, like an AI model?

AIex: I believe that most blue teamers
right now are in a fully reactionary mode.

Um, and that's because You know,
real attackers typically work 9:00

to 5:00, um, in their time zone.

Um, you know, a- and obviously that,
that, that's an over-exaggeration,

but, like, they do sleep.

Um, you know, uh, an LLM that has
a, a goal to achieve is going to

continue working until it reaches the
goal or it has resource exhaustion.

So the noise, like certainly higher
volume, uh, of, of interactions with the

system would be good, but like, those
are also like very, um… can be very

challenging signals to, uh, to separate.

Um, you know, like if you look at
like hits a- against a web server,

certainly you would see an increase
of that if you were seeing like

reconnaissance, uh, uh, work.

You could see those types of anomalies.

Um, but I'll give you another example
of a, a pentest I was involved with.

Like, great pentesters hide in the
noise and, and use, uh… Like,

you know, they live off the land.

You know, they're living off
of the tools there rather than

bringing in, um, hacking tools.

And why that's important is
like, you know, we do have fairly

good detective capabilities.

Even if you're not using top-tier
EDR solutions, they can detect

when you're bringing in even Nmap.

So living off the land is being
able to, you know, what, write quick

PowerShell scripts that can accomplish
the same sort of, uh, discovery

capability to enumerate an environment.

Um, a pentest we, we did, uh, years ago,
uh, this was like right when, you know,

AI was booming, everyone's turning it
on, you know, the FOMO was, was real,

and this organization was super confident
we weren't going to be able to break

out of the contractor, um, enclave.

But, um, we did have access to
Microsoft Copilot, and Microsoft told

everyone to turn it on before they
put on any controls, and certainly,

uh, data governance, uh, is just,
you know, it, it's sort of an

unsexy thing that we all have to do.

Yeah, like no company does it well.

And, um, he for, for most of the
attack didn't have to do any attacking.

He was just prompting, uh, Copilot and
getting it to gather all the information.

And, you know, treasure trove o- of
sensitive information we were able

to acquire, uh, just from using,
uh, the organization's own tools.

Now, you know, Microsoft has like
cleaned up Copilot a bit, but like

what I see is, is the two threats
that are most concerning to me is the

external models, um, you know, attacker
with their own, uh, model capability.

Um, but again, you know, we're not
actually seeing a lot of that because

it's quite expensive to run these.

You know, like most cyber criminals
don't have a million dollars to spend

on compute to get to a destination.

State actors, obviously, but n- but,
but like the cyber criminals, no.

Um, so that's the first one.

But what I see as probably a more likely
problem is, uh, an attacker gets in and

starts using our AI against ourselves, and
that's gonna be incredibly challenging to

find because it looks like normal traffic.

You're gonna see, like,
some token maxing, I guess.

You're gonna see, like, spikes in,
uh, in the consumption of tokens.

But at that point you might, might
already have been compromised

before that's even recognized.

Um, and lastly, like, one of the
things they're, they're recommending

is, like, we have to have tools, and
like, you know, this is, like, an

extension of SIEM, that is actually
going through the AI's transcript and

chain of thought and tr- and trying to
determine, is this a legit conversation

that's benefiting the business, or is
it potentially harming the business?

And, like, that is not a black
and white concern, right?

Like, you have plenty of people that
are using AI for really positive

purposes in businesses, but you are
asking it to, to look for, like,

certain, uh, insights and data that
could easily be interpreted as, uh,

you know, searching for sensitive data.

Um, so I think that's, that's, like,
the next frontier of detection.

That, that's one of the detection
pieces, is we gotta start knowing,

um … Like, understanding what our
AIs are doing if we're, if we're

worried about our AIs, uh, attacking
us, um, our own AIs attacking us.

Um, the other piece is, uh, like that
I'm working with, uh, uh, SFU on is,

is creating some deception capability.

So honey tokens to help act as an
early warning, you know, things that

only an AI would find, and thus gives
us an indicator that there is, uh,

an AI doing something it shouldn't.

Um, but also, uh, resource exhaustion.

You know, having it, an AI focus on
something that is of no value, but

will start consuming tokens to a point
where, um, the, the attacker may set

a budget which could kill the attack.

Uh, so those are a, a, a few of
the, the tactics right now that

we're, we're, we're considering.

A- And it's certainly not
one tool or one use case.

It's, it's gonna be a myriad.

And weekly we will be spinning up new
use cases, uh, to, to try to keep up.

Todd Kane: Fascinating, 'cause I'd not
thought about that perspective of the

security angle for governance with AI.

Like, uh, the, the-- I think this is still
emerging, especially in the MSP space.

Uh, something I've talked about the last
few weeks with, with my group coach in

a coaching model, um, is, uh, using AI
governance for managing shadow AI, right?

But it's more of like kind of
an administrative thing of like,

like don't be using AI that's not,
uh, condoned by the organization

or, you know, using it safely.

Don't be giving proprietary information
to free versions of the model.

Those types of… Like what's an
acceptable use policy for your AI?

That, that's sort of more the
focus that we've, we've-- been

more the talk in the industry.

But you're right, like, like leveraging
internal, uh, controls, and Copilot

will probably exist in most Microsoft,
uh, uh, ecosystems, and that,

that can absolutely be leveraged.

I am curious, like for, like
what's an example of what a

honeytoken would look like?

Like h- like how does it, h-how does it,
uh, how do you trick it that way, and

what do you pull it towards, basically?

AIex: So honey tokens aren't, aren't
necessarily new, but they are, uh,

generally it could be files that
have like a h- a phone home feature.

So e- essentially a file that has
like a image in it that, um, is

hosted a- outside of the file.

So it would make a, a call out to that
server, and that server would say,

"Hey, like that token was just called."

Um, but then you also will start looking
at like honeypot technologies, which is,

um, gets into more like the deception
technology where it's, it's representing

an enterprise environment, um, rich
for exploring and interacting with.

And, a- a- and you know, th- these
are, these are not novel to AI.

We're, we're gonna be pivoting
that concept to work with AI.

Um, but you know, giving it something
where if AI has a, you know, a goal

of finding, um, sensitive data, credit
card data or whatnot, um, building

an environment that looks like
that's where it would be, and then,

you know, really putting, um, sort
of a, a governor on response time.

So even though the AI's really
fast, it has to wait for the

server to give a response.

So like that becomes like a,
a, an opportunity to throttle.

None of these are silver bullets, but it's
A, slows it down and distracts it, uh, and

B, as soon as it is being interacted with,
you know, the red lights are blinking in

the security operations center, and we
can look at, you know, uh, containing it.

Which is again, a big problem because
like AI is generally not a laptop or

a, or necessarily a, a user account.

Like at least just not one of those things
that are very trivial for us to contain.

Um, it could be, uh, on multiple systems.

It, it could be, um, you know, uh,
have already compromised many, uh, you

know, API keys, uh, in the, uh, Hugging
Face case, uh, um, JWT tokens, uh,

were, were being provisioned by itself.

It had figured out how to
provision these tokens.

So it wasn't like, all right, well, if
we like lock out this token, we're good.

It's every… It becomes almost every
token now becomes, uh, hostile, and

this results in companies like having
to make like that really hard call.

Like do we pull the plug?

Todd Kane: Yeah.

Okay, so yeah, I understand that like,
um, uh, 'cause in more traditional kind

of SecOps perspective, like using canary
files is something I've, I've heard.

So this is kind of a

AIex: Same, same.

Yeah

Todd Kane: yeah, but creating like an
enclave of this is useless information,

so if something starts like thrashing
in this area, like no one else

would be using this, so you know,
it's potentially something that is

seeking something that it shouldn't.

That's, that's pretty smart.

I like that from a honeypot perspective.

Yeah.

AIex: Yeah, and like, you know, the other
defensive technique that we're really

talking about is like, you know, and
like, at, at risk of sounding like, like

a salesperson here, but zero trust, not a
product, but the philosophy is actually,

you know, something that can help.

A- and what I mean by that is if we
actually know how our IT environment works

and we understand, like, these systems
talk to this system, it, vice versa,

and we have that, like, that model, that
baseline, we can now use heuristics to

detect outliers, which gives us some
indicators that there's something wrong.

Now, that could be breach, it
could be we misc- we changed the

configuration, our change management
system doesn't work, whatever.

But, like, we need to, and again, not
us humans, but we need to be enabling

our own AIs to understand that,
like, this is the normal pattern.

This is how users access this data, so
that any, um, anything that falls out of

that, um, would, would, would be a signal.

Um, and the zero trust comes in as like,
well, if we are by policy defining what

everything is allowed to talk to and
i- identity, uh, for humans as well as

identity for entities i- is, you know,
tied to just, uh, just-in-time access,

that is a, um, a much m- more protective
capability than we, we, we can understand.

It's just, it's really hard to do.

And like, you

know,

heard about zero trust for 10 years and,
like, we've got some spot capabilities

for that, but like, it's really hard to
overlay over existing tech, uh, like IT.

Todd Kane: Yeah, 'cause it just
creates so much friction for, for

the users and, and admins, right?

Yeah.

Uh, um, the, one of the other things
that you kinda like triggered a

thought for me, I don't know if this
is a thing or, or this is something

maybe you've, you've heard about or
looked at, but you mentioned like,

um, the AI may not be in one place.

Uh, is there any indication
that people are kinda using it

in like a botnet fashion, where
it's like recruiting other AIs?

Like if you had, say, Copilot, uh,
and each, e- like every, uh, every

person in the environment has like
a Copilot license or something like

that, it starts recruiting all of
the other sort of cloud capability

to swarm around a particular effort.

Is that a thing?

AIex: Uh, it, if it isn't, it will be.

Um, you know, like with the Hugging
Face, 1,200 agents respond, 700 of

them were actually doing attacks.

So the other ones were part of
coordination, communication, et cetera.

Um, but like to your point of like
attacking, um, somebody else's account,

you know, being able to now use their
resources instead, um, that's like an

old school technique that like, you
know, we, we saw with cloud that now we

would see with, with, with, um, with AI.

And like a prime example is, you
know, your, your Claude and your

OpenAI and whatnot are all like
maintained with, with session tokens.

So if an AI can grab that and hijack that
session, they're now going to impersonate

you and be able to access that.

On top of that, um, you know, let's
go back to, you know, the problems

with, with sort of DevOps culture
is like a lot of their apps are

gonna use API keys to talk to these
frontier models for their own purposes.

Those API keys are like gold,
uh, particularly if they

don't have a limit on them.

Um, and yet like it's a very mature
group, uh, uh, uh, that s- uses like

secret management servers, uh, and
things like that, that are actually

handling th- that, that incredibly
sensitive, uh, credential material well.

On the other, the other hand, you
know, what is in on their desktop?

Right?

Like there's likely a notepad full
of API keys, so that initial like

phish which gets on, gets, you know,
on their desktop is able to pull

some files, there's a treasure trove.

Like, and, and you know, one of the
test cases was is if we got onto a dev-

developer's desktop, what would happen?

And it was able to prove how, you
know, we, we got, you know, root

access to everything, and in fact
like not domain access, but root

access to all the Linux boxes.

And, you know, we were able to prove
that this… You know, we were able to

essentially produce a, a malicious, um,
version of their software and put, and

could have pushed it through their update
system to, you know, tens of thousands

of, of, of end, endpoint customers.

Um, that is because key management is
also not sexy and, and really hard to

do because it, it creates a, a level of
friction when all you wanna do is get your

software working and go home for the day

Todd Kane: Yeah, like we're, I don't
know, like password managers may need

an extension to have like, uh, like
API or key access management as well.

Like, like I've not seen that.

I mean, obviously you can store it
as a, as a secret in those systems.

Not foolproof by any stretch,
'cause last time you were on, we

talked about LastPass, uh, and the

AIex: Yeah.

Todd Kane: on LastPass, right?

AIex: Well, and, and like there are
tools out there, you know, HashiCorp

has Vault and, um, you know, CyberArk
has one, and like where essentially

the application never has the,

Todd Kane: Mm-hmm.

AIex: API key encoded.

It has an ability to reach out and,
you know, if it can identify itself

to the secret server properly,
it is given, uh, that token, and

generally it's a just-in-time token,
not, not, um, a persistent one.

Like, but that adds a lot of
complexity to the application and,

you know, unfortunately it, you
know, our, our developer friends

have never been incentivized.

Todd Kane: right?

AIex: Yeah, like they're, they're not
incentivized to build it that way, uh,

which is why you still hear about, you
know, "We found an API key in the source

code and, you know, now we're, we're,
uh, having, uh, having fun with it."

Todd Kane: Yep.

Okay.

This, uh, I mean, this
is, this is fascinating.

I love this stuff, man.

So, uh, really appreciate you coming on,
um, uh, kind of chatting through some of

the, the scenarios here, the potential
future that we face, and some of the

things we need to, we need to get ready
for and, and prepare some of the, the

infrastructure and security sets for.

Uh, any, any last-minute, uh,
little tidbits or, or shout-outs

you would, uh, you would throw down
before, before we head out here?

AIex: Yeah, I th- I, I think again,
just for your listeners is, y- you

know, the, the, the, the debt that we
were sweeping under the rug because,

you know, the, the exposure was low.

It was, you know, behind
the firewall and whatnot.

Like, that, that protection
is eroded substantially.

And it, and, and now with the velocity of
what, um, an AI system can do is like, you

know, we as blue teamers are gonna have
a major problem keeping up with all the

findings of a problem, you know, it…

assuming the AI is used just for good.

Imagine that every day there's
1,000 new patches for Windows

and Linux and all that.

Like, we've got a, we've got a, a…
We are the bottleneck now, and if we

don't fix it, we have an exposure.

Um, if we do fix it, we need
an entire army to do it.

So there also needs to be, um, a, you
know, recognizing that we need a, a

better way of maintaining software
and keeping it as secure as possible,

recognizing it's never going to be secure.

But you don't have to be faster than the
hacker, you just have to be faster than

the slowest, uh, victim, unfortunately.

Todd Kane: Yeah.

Well, it's a wild world.

I appreciate you coming on, Alex.

Always great to chat with you

AIex: Likewise