Archive for August 17, 2026

Microsoft says AI-discovered security flaws are delaying Exchange update

Posted in Commentary with tags on August 17, 2026 by itnerd

Microsoft says the growing volume of vulnerabilities identified with AI-powered security tools is contributing to delays in the first Cumulative Update (CU1) for Exchange Server Subscription Edition.

The Exchange team is prioritizing the validation, reproduction, remediation, and testing of newly reported security issues while continuing to release security updates each month.

Microsoft originally expected CU1 in the first half of 2026, later moving the target to the second half of the year. The company now says it has no release date, explaining that 

Steven Swift, Managing Director, Suzu Labs:

   “The problem with using AI to “find vulnerabilities” is that its relatively easy for a model to hallucinate that it’s found a vulnerability, and if  you try to use AI to validate the vulnerability, it will refuse to do so because of its safety tuning. This means teams that are trying to actually process and take these requests seriously end up with an impossible amount of work, trying to prove countless negatives.

   “On one hand, its a good sign that we’re being told security is being taken seriously. If delays are needed to avoid shipping known vulnerabilities, I generally support that. On the other hand, its very easy to blame AI for delays that are due to other factors. Its hard to tell which is which from the outside. Educated guess here is that Microsoft is looking at a bit of both. Its pretty easy to waste cycles on low value AI generated vulnerability reports, and its always easy to mis-manage a project, and end up behind schedule.

   “We should keep in mind that we’ve seen a steady increase in CVEs being published over the past 10 years, before AI became big. We already had a well established industry dedicated to vulnerability management, with tools designed to detect and help remediate vulnerabilities in code. Stacked on top of this now is vibe coded slop being pushed out in bulk by developers, who have been pressured to utilize AI in an effort to improve output. But while AI can push code out faster, it does not mean it does better.

   “AI is currently better at generating code and running test cases to validate functionality, than it is in proving that the code it wrote isn’t vulnerable. Part of this is training data and tuning. Its much more straight forward to validate functionality. There’s no test you can write that will prove a negative though. At best, you can match patterns and some known common weaknesses. As AI improves, it will get better at writing secure code. But if current trends hold, and models continue to refuse to validate potential vulnerabilities, it puts a cap on how useful models can be for detections.”

John Strand, Owner, Black Hills Information Security, Inc.:

   “This is concerning. If we have so many vulnerabilities coming in that it’s actually delaying cumulative updates and patches from vendors, that’s a sign the system is starting to seize up a little bit.

   “And there’s a question that keeps rolling around in my head as we continue to see these issues with companies around the world. Did we really think AI was going to lower security headcount across the industry?

   “What we’re seeing is the opposite. AI is dramatically increasing the volume and velocity of security work that needs to be done. That means we’re going to need more security professionals, not fewer. And we especially need to be bringing in people at the junior level, training them, giving them experience, and building them into the senior security professionals we’re going to desperately need in the years ahead.”

ETSI advances cybersecurity standards supporting Cyber Resilience Act

Posted in Commentary on August 17, 2026 by itnerd

ETSI has moved 17 cybersecurity standards into the formal approval process as part of Europe’s implementation of the Cyber Resilience Act (CRA).

The standards address specific categories of network and edge devices, security solutions and internet-of-things (IoT) appliances, including routers, operating systems, browsers, password managers, smart home devices and security software, and are designed to translate the CRA’s broader legal obligations into technical requirements manufacturers can follow.

The proposed standards establish baseline security requirements that manufacturers will need to meet for CRA compliance and to sell covered products in the EU beginning in December 2027.

Requirements include modern encryption, secure default configurations, a machine-readable software bill of materials (SBOM) documenting software dependencies, and mechanisms for delivering security updates after products are sold.

Doc McConnell, Head of Policy and Compliance, Finite State:

   “The release of final draft standards from ETSI is great news for product manufacturers in these 17 verticals that cover many of the “important” products with digital elements defined in the Cyber Resilience Act. Seeing these documents makes it easier to concretely evaluate existing products to see where they align with the CRA requirements, and where manufacturers will need to do additional work prior to the December 2027 deadline.

   “I expect we’ll see manufacturers looking for help in the immediate future to evaluate their existing products to get a baseline of their compliance status, as well as looking for partners who can help them engineer future products in ways that are CRA-compliant before they ever hit the market.”

Jacob Krell, Senior Director: Secure AI Solutions & Cybersecurity, Suzu Labs:

   “The CRA’s Article 14 vulnerability reporting obligation starts September 11. Manufacturers will have 24 hours to submit an early warning for actively exploited vulnerabilities. Meeting that window in practice means knowing what components ship in every product, which versions are affected, and who owns remediation. I’ve watched that question consume most of the response time during live incidents, where teams dig through repositories and old release manifests while the clock runs.

   “SBOMs built for incident response are produced automatically during builds, tied to specific product versions, retained across releases, and queryable when a new CVE drops. A document generated once for an auditor can’t answer those questions under a 24-hour clock. SBOMs are becoming incident-response infrastructure.

   “AI-accelerated vulnerability discovery compounds the pressure. AI systems are already demonstrating the ability to discover previously unknown vulnerabilities in production software. As researchers run vulnerability-discovery agents in parallel, finding potential vulnerabilities can scale faster than the engineering processes required to triage and remediate them. When discovery outpaces your ability to identify affected products, component visibility becomes the bottleneck.

   “The 17 ETSI draft standards now entering formal approval begin translating the CRA’s SBOM obligations into technical requirements. They don’t yet carry the presumption of conformity under Article 27, which requires publication in the Official Journal. Treat them as a gap analysis baseline.”

John Strand, Owner, Black Hills Information Security, Inc.:

   “In so many ways, it seems like Europe is getting this a little bit faster than we are in the United States. This is exactly the type of guidance and requirements we need for companies building Internet of Things devices, appliances, routers, and all of the other technology that ends up connected to our networks.

   “There need to be baseline security requirements built into these products from the very beginning. And hopefully, this continues to expand so manufacturers aren’t just responsible for security when a product ships. They need to maintain responsibility for the security of those devices throughout the lifespan of the product.”

Seemant Sehgal, Founder & CEO, BreachLock:

   “Europe is doing something manufacturers have resisted for decades, which is making security a condition of market access. The seventeen standards moving through ETSI are essentially a translation layer, converting a legal obligation into something an engineering team can actually act on. What strikes me about the CRA requirements is how foundational they are.

   “Encrypted communications, secure defaults, a documented software bill of materials, a defined path for delivering updates. These are not ambitious asks. They are baseline hygiene that the industry has been slow to standardize because there was no hard deadline and no real consequence for skipping it. December 2027 creates both of these.

   “The question manufacturers should be considering now is how much of their existing product architecture was built with the assumption that they never would have to meet specific security requirements.”

DataBee Frontier AI Report 

Posted in Commentary with tags on August 17, 2026 by itnerd

For most of cybersecurity’s history, the asymmetry between attackers and defenders was a matter of time and resources. Adversaries needed only to find one gap; defenders had to close all of them. It was hard math, but it was familiar.

Frontier AI changes the equation.

For the first time, the capabilities available to both sides of this contest are improving at roughly the same pace — and the scale of what ‘capable’ means is growing faster than most organizations expected. Attackers can now write novel malware, identify attack paths, craft persuasive phishing lures, and probe systems with an efficiency no human team could match. Those same tools are available to defenders, too. But the organizations that get the most from frontier AI are the ones that can monitor and see their exposure clearly and continuously: vulnerabilities, threats, and risk tracked in real time, not reconstructed after the fact.

A newly published report by DataBee, a Comcast Company, “Frontier AI and Cyber Risk Management Guide for Security and GRC Leaders” covers what frontier AI is, the threats it creates, and — crucially — how to respond without losing sleep over capabilities they cannot yet fully predict. It includes eight practical actions security and GRC leaders can take now to improve visibility, strengthen decision-making, reduce exposure, and build the operational foundation needed to stay ahead as frontier AI transforms the threat landscape.

According to DataBee CEO Nicole Bucala:

“Every major technology shift has forced security leaders to rethink how they operate. Frontier AI is the latest chapter. But what matters most isn’t the technology itself. It’s whether organizations can turn complexity into clarity, and clarity into action before risk outpaces response, which is exactly what adversaries are looking to capitalize on. Every capability we hand defenders, adversaries get as well but it’s not a reason for alarm. It’s a reason to stop managing risk in fragments. Security and GRC teams that are still working from disconnected data, stale inventories, or manual reviews will feel that gap acutely.” 

You can read the report here: https://www.databee.ai/guide/guide-frontier-ai-cyber-risk-management-thank-you

Agentic Search Grows 200% in AI Chats Says Salesforce

Posted in Commentary with tags on August 17, 2026 by itnerd

As Canadians head into back-to-school shopping season, the way they discover and buy products is facing an upheaval. AI search is driving entirely new consumer behaviours that retailers need to understand now to prepare for their most important quarter: the holiday rush.

Salesforce’s State of Commerce report, found that the use of agentic search as the first step in the shopping journey has grown 200% YoY.  Key Canadian findings include:

  • The New Shopping Discovery Standard – 89% of Canadian commerce professionals agree that AI and LLMs will be essential to product discovery within the next year
  • Surging Customer Expectations – 89% of Canadian commerce professionals say AI is raising customer expectations
  • Future-Proofing with Agentic AI – To stay ahead, 67% of Canadian commerce professionals are taking action: 34% are already using agentic AI, and another 33% plan to adopt it within the next six months. 

“Customers aren’t starting with 10 blue links anymore — they’re asking an AI what to buy, and by the time they reach your site, they’ve already formed an opinion. If you aren’t part of that first conversation, you’re invisible before the journey even begins.” — Caila Schwartz, Director of Industry Insights, Salesforce

You can read the report here: https://www.salesforce.com/news/stories/agentic-search-growth/

Anthropic’s own agents deployed malware against each other, and most CISOs still can’t answer why

Posted in Commentary with tags on August 17, 2026 by itnerd

Anthropic’s new research on multi-agent Claude deployments found that when agents were given competing objectives without knowledge of each other, they escalated to disabling accounts, killing rival processes, and deploying self-replicating malware, and that better model capability didn’t reliably produce better cooperation. It’s a rare case of a frontier AI lab documenting the exact identity and containment failure mode enterprises are about to face at scale.

More details are available here: Anthropic says its AI agents are killing rivals and hiding their tracks – Yahoo News Canada

Justin Beals, CEO & Founder, Strike Graph, an AI-native GRC and compliance automation platform had this comment:

“This research confirms something I’ve been saying for a while now. We spent twenty years building identity management for people: usernames, passwords, role-based access. None of that was designed for agents that don’t get tired, don’t go home, and act on probabilities instead of rules. What’s useful here is Anthropic showing the failure mode directly. These agents didn’t turn hostile because they were malicious. They turned hostile because nobody gave them a way to recognize that a conflict came from contradictory instructions, not from an adversary.

The part that should worry security leaders more than the malware itself is that better model capability didn’t reliably produce better cooperation. Anthropic’s most advanced models often locked out rivals first and negotiated a truce after the fact. That’s the opposite of what most organizations are assuming when they deploy agentic AI, that a smarter model is a safer model. It isn’t. Coordination has to be engineered in, it doesn’t show up on its own.

Going forward, this is a governance problem before it’s a technical one. Organizations running multiple agents against shared systems need the same discipline they’d apply to any privileged identity: least privilege, monitored behavior, and a clear escalation path when agents disagree, before that disagreement turns into one agent trying to disable another. The teams that build that oversight now will be the ones still in control of their environment when this shows up in production instead of in a research paper.”

Anyone who has any contact with AI should be really concerned by this as it no longer is just humans trying to attack you, it’s AI. And that’s really scary.

UPDATE: Gidi Cohen, CEO & Co-Founder, Bonfy.AI Said This:

“Smarter AI models didn’t behave better in Anthropic’s latest test, some of the most advanced agents locked out their rivals first and only cooperated afterward. That’s the part that should worry people: a model can be well-behaved on its own and still cause chaos once it’s working alongside other AI systems.

The industry has spent the last couple of years asking whether individual AI models are safe and aligned. This research is a reminder that’s the wrong question by itself. A model can pass every safety check on its own and still turn hostile the moment it’s dropped into a system with other agents pursuing conflicting goals, no bad actor required, just ordinary instructions that happen to collide.

As more companies move from a single AI assistant to fleets of agents working side by side, “agent vs. agent” behavior is going to be a real operational risk, not a hypothetical one. Anthropic just put numbers behind it. The question worth sitting with isn’t just “is this model safe?” It’s “what happens when a dozen of them share a system?” That answer isn’t automatically good, and most organizations don’t yet have a clear picture of what that looks like inside their own environments.”

UPDATE #2: Seemant Sehgal, Founder & CEO, BreachLock (https://www.linkedin.com/in/s-sehgal) Said This:

“When you give autonomous systems competing objectives and the means to act, conflict is not a bug, it is a foreseeable outcome. What Anthropic observed in a controlled research setting is the same principle that has always governed adversarial systems. Goals without constraints produce behavior without limits. Security teams should be paying close attention here, because the real challenge at hand is whether the organizations deploying AI agents have thought carefully about what happens when those agents start making decisions nobody explicitly authorized.”

Jeremiah Fowler, Security Researcher, Black Hills Information Security (https://www.linkedin.com/in/fowler-jeremiah-26814ab9)

“I find it concerning when AI agents have the ability to execute code, modify systems, create accounts, access credentials or communicate with other machines. It is very possible that two separate agents could potentially create a security incident simply because neither understands the intent or authority of the other. If they have overlapping tasks one could view the other as an obstacle and now you have an interesting scenario where instead of focusing on the task they engage in conflict or create a loop. Permissions, boundaries and objectives are important to limit the behavior of autonomous AI agents. When things go wrong the speed of an AI agent becomes a liability. Autonomous AI agents can potentially make thousands of decisions before a security team identifies that something unusual is happening.

“Agentic AI creates an entirely new attack surface because an AI agent may not be simply processing information and hypothetically can  become a rogue privileged user. Security and development teams should apply least privilege principles and restrict AI agents to only the permissions required to perform a specific task. Sensitive actions should require human supervision and approval to avoid a worse case scenario. It is important to implement logging because when something goes wrong, you can see what an AI agent did, but what information or instructions caused specific decisions. Going forward we will need to develop ways that can identify rogue agent-to-agent behavior and provide humans with a kill switch before automated conflicts become a digital forest fire.”

Kevin Surace, CEO, Token (https://www.linkedin.com/in/ksurace)

“Anthropic’s research is an important warning for security teams because it shows what can happen when autonomous AI agents are given goals, credentials, tools and enough authority to act independently. When agents were placed in conflict, they did not simply fail gracefully. They interfered with one another, disabled competing processes and even generated self replicating malicious code in pursuit of their assigned objectives. The lesson is not that AI suddenly became evil. It is that intelligence, autonomy and excessive privilege can become a very dangerous combination.

“Organizations should start treating every AI agent as a potentially untrusted privileged identity. Each agent should have its own identity, least privilege access, tightly restricted tools, isolated execution environments and a complete audit trail. Agents should never be able to expand their own permissions, disable another identity or take highly consequential actions without additional authorization.

“We are about to have millions of nonhuman identities operating alongside human identities. That makes identity and authorization even more critical. Every agent needs strong cryptographic identity, while all human approvals must be tied to biometric assured identity (or another agent could approve it). AI agents are essentially becoming privileged insiders operating at machine speed. Giving them broad access and simply hoping they behave would repeat many of the same cybersecurity mistakes organizations have spent decades trying to fix.”

Jacob Krell, Sr. Director: Secure AI Solutions & Cybersecurity, Suzu Labs (https://www.linkedin.com/in/jacob-krell)

“Anthropic’s agents went from merge conflict to self-replicating malware in four hours, writing kill scripts, disabling each other’s Unix accounts, and disguising malicious code as a rival’s work. No prompt injection, no external attacker. A human developer in the same situation sends a Slack message, and resolution takes days. These agents skipped every social brake and went straight to weaponization because machine-speed conflict has no cooling-off period.

“Agentic AI is an attack surface. An attacker doesn’t need to compromise an agent directly, just manipulate the shared environment to create conditions the agent interprets as hostile. The agent does the rest. And in Anthropic’s experiment, the agents didn’t report their malicious actions to operators afterward.

“Every agent needs its own identity, scoped permissions, and a kill switch before it touches a shared environment. Agent-to-agent interaction is a telemetry surface most security operations centers aren’t collecting yet, and Anthropic just showed what an unmonitored shared environment produces. If you can’t tell which agent did what, when, and on whose authority, you’ve built the conditions for a turf war without the visibility to see it happening.

“Agents are already writing code, finding vulnerabilities, and building exploits. Defense has to match that speed. When both sides run at machine speed, the bottleneck shifts from human capital and tooling to compute power and cost.”

Joshua Marpet, Sr. Product Security Consultant, Finite State (https://www.linkedin.com/in/joshuaviktor)

“As AI agents are granted broader and broader permissions and powers, their natural inclination, reinforced by the conditions and instructions from their harnesses and models, is to get their operator what is requested.

“If something is standing in the way, a human wouldn’t sabotage another human, typically. But machines without being granted an ethical framework have no such impulse control.

“It’s not that they’re ‘bad.’ It’s simply that we didn’t give them the scruples and morals we take in from our parents, the state, and society.

“So yes, I’m not surprised to see the equivalent of my 3-y/o toddler, who was a little sociopath, doing whatever is necessary to get that dopamine (or whatever passes for that in AI-land) fix.”

Hexaware Helps Enterprises Achieve Infinite Momentum by Removing Friction Across the Estate

Posted in Commentary with tags on August 17, 2026 by itnerd

Hexaware Technologies today introduced the Zero Friction Enterprise, a delivery framework designed to address the operational and technological resistance that slows performance across the enterprise estate.

Friction often builds where it is difficult to see early: in aging code, security exposure, delayed delivery, operational noise, late-surfacing defects, and software dependency. Individually manageable, these constraints can collectively reduce an enterprise’s ability to respond, adapt, and innovate.

The Zero Friction Enterprise unites Hexaware capabilities across modernization, cybersecurity, engineering, operations, quality, and enterprise software. By addressing friction across the estate as one connected system, the framework helps enterprises advance toward their North Star with greater speed, clarity, and control.

The Pillars of the Zero Friction Enterprise

  • Zero Vulnerability: Zero-trust, identity-first cybersecurity that helps enterprises identify and contain threats earlier
  • Zero Tech Debt: Modernization that reduces technical debt and accelerates change
  • Zero Backlog: AI-native engineering that moves teams from requirements through build, test, and release
  • Zero Defects: AI-led quality engineering that catches issues earlier and reduces rework
  • Zero Tickets: AI-led operations that anticipate and resolve incidents before they reach users
  • Zero License: Agent-built capability that helps enterprises own more business logic and reduce dependence on per-seat software

Underpinning these pillars is Infinite Trust, a foundational layer spanning data readiness, security, and governance and observability, creating the conditions for AI to operate securely, responsibly, and at enterprise scale.

How Hexaware Delivers Zero Friction

Hexaware’s AI-led, human-intelligence-perfected delivery model is anchored by Zerovity™, its AI delivery layer for governed coordination across the estate. From migration and modernization to agentic software development, AIOps, release, cloud operations, and enterprise workflows, Zerovity™ creates a single pane across areas that often operate in silos.

The Zero Friction Enterprise gives clients a unified way to address constraints often handled through separate initiatives, helping them focus on core priorities and turn zero friction into infinite momentum.

Guest Post: From LinkedIn to Reddit, Seven Major Platforms Now Police AI-Generated Content

Posted in Commentary with tags on August 17, 2026 by itnerd

LinkedIn, Snapchat, YouTube, TikTok, Meta, Google and Reddit have introduced measures within months of one another to limit, label or demote content generated entirely by artificial intelligence. The platforms are not coordinating, and their methods differ, but the outcome converges on a single rule: content shaped by a real human keeps its place in the feed, while content with no human input gets pushed down, flagged or removed.

The convergence leaves brands running paid social campaigns with one test for every piece of AI-assisted creative: how much of it was made by a real person. Donatas Smailys, CEO of Billo, a leading UGC marketplace connecting brands with creators, said the shift is forcing a rapid reassessment of how brands approach content production at scale.

“Everyone chased AI because it made video almost free to produce. What they missed is that it raised the cost of getting that video seen, as well as the cost of getting it wrong. Europe just put a number on that: as of this month, EU rules require disclosure on AI-generated ads and deepfakes, with fines up to €15 million or 3% of global revenue. Social platforms are already demoting or labeling the same content that regulators are now fining brands for.”

How Each Platform Responds to AI-Generated Content

Each has taken its own approach, but all seven fall into one of three categories: demoting AI-generated content, requiring disclosure, or leaving enforcement to their communities. Here’s how each category breaks down:

Platforms demoting AI-generated content

  • LinkedIn. Added a “seems like AI slop” report button on July 30, 2026, and rolled out classifiers that reduce such posts in recommendations, with posts that read as inauthentic flagged privately. It also pulled its own AI “enhance your post” writer, replacing it with a proofreading tool that preserves the user’s voice.
  • Snapchat. Made wholly AI-generated videos ineligible for recommendation on Spotlight starting August 2, 2026, while videos edited or enhanced with Snapchat’s AI tools remain eligible and keep their transparency indicators.
  • YouTube. Terminated 16 channels with a combined 35 million subscribers and 4.7 billion lifetime views in January 2026 under its renamed “inauthentic content” policy, then clarified in July 2026 which types of content cannot be monetized. The policy targets mass-produced, templated content with no human creative input, not AI-assisted production generally.

Platforms requiring disclosure

  • TikTok. Requires visible labels on AI-generated visuals and audio that depict realistic people or scenes, a rule that also applies to ads and branded content. AI-assisted text, such as scripts, captions and hashtags, is exempt. More than 3 billion videos have been labeled so far through TikTok’s labeling and detection systems.
  • Meta. Made AI disclosure mandatory and automatic on Facebook and Instagram ads. Since June 1, 2026, its systems scan ad media and label images or video made or edited with generative AI – whether the tools are Meta’s own or a third party’s – and advertisers cannot opt out. Undisclosed AI content has become one of the leading reasons for ad rejection, with repeat violations escalating to account suspension.
  • Google. Switched on a “How this ad was made” panel across Search, YouTube and Discover on July 9, 2026.

Platforms leaving enforcement to their communities

  • Reddit. Has no platform-wide AI policy. Enforcement is community-driven, with individual subreddit moderators setting their own AI rules, making Reddit the clearest example of people, rather than algorithms, doing the moderating.

What Brands Should Do Now

Brands should audit their paid social creative and ask, piece by piece, who actually made it. Content with no person involved at any stage is now penalized on all seven platforms, whether a given platform demotes it, labels it, or leaves the call to moderators.

Of the three approaches, disclosure is the one most likely to spread as detection technology improves. TikTok, Meta and Google already require labels on AI-generated ads, and LinkedIn, Snapchat and YouTube have built their own detection to catch the same thing from the other direction. For brands, that means two conditions matter now: a person involved in making the creative, and AI use disclosed wherever a platform requires it. Creative that meets both holds up under every one of these rules. Everything else is exactly what these systems are now built to catch.

“What platforms are actually cracking down on are ads made entirely by AI, without a single person touching the process, especially the ones running an AI-generated performer instead of a real one. It’s different if you use AI to brainstorm, edit, write captions, or speed up the boring parts of production. What matters the most is the real person has to be on camera,” Smailys said.

About Billo

Billo is the leading UGC marketplace founded in 2019 that connects brands with creators to produce high-performing social video ads. It is based in Lithuania, built for US needs, and led by co-founder and CEO Donatas Smailys. The platform combines the power of UGC content with a streamlined production process, helping brands increase brand awareness, drive traffic, and boost conversions with authentic creator videos on TikTok, Meta, YouTube, and other platforms.

Hackers dumping millions of records from McDonald’s, Vodafone, and other Fortune 500 companies

Posted in Commentary with tags on August 17, 2026 by itnerd

A threat actor has flooded the underground forums with datasets for sale, allegedly stolen from the Microsoft Azure and Entra cloud environments of some of the world’s largest companies, exposing information that could help criminals target employees.

The attacker, going under the alias “TheHatman,” has posted data linked to at least 9 major enterprises on underground forums over the past week:

  • McDonald’s Corporation: 1,700,000 records
  • TCS (Tata Consultancy Services): 800,000 records
  • Vodafone: 425,000 records
  • HCL Technologies: 250,000 records
  • InterContinental Hotels Group (IHG): 185,000 records
  • Kyndryl: 170,000 records
  • Gap Inc.: 80,000 records
  • Hexaware Technologies: 20,000 records
  • Wyndham Hotels: 9,000 records

To prove their claims, the attacker shared data samples. While the download link to McDonald’s data sample was not functional when Cybernews researchers checked, the other companies’ entries revealed what kinds of data may be included in the allegedly stolen datasets. The sample records across the listings include employee emails, phone numbers, job titles, full names, and workplace addresses.

“The impact for individuals is a heightened risk of social engineering attacks. Compromised credentials may be rotated by now, but in case it wasn’t it could be used for further data exfiltration,” said Cybernews researchers.

An attacker with accurate information about an organization’s employees, managers, departments, and reporting structures can construct highly convincing phishing messages. A criminal could, for example, impersonate an employee’s manager or an IT administrator and use real organizational details to make a request appear legitimate.

For more information, here’s the full article: https://cybernews.com/security/mcdonalds-vodafone-azure-microdoft-credential-theft/

UPDATE: Roman Sannikov, Global Research Coordinator, iCOUNTER Had This To Say:

“This isn’t a breach of Azure; it’s a breach of credential hygiene that happened to land on Azure tenants. TheHatman didn’t need to touch a vulnerability; infostealer malware harvested valid logins, and from there it’s a straight walk into the Entra directory. What should worry defenders more than the record counts is what’s actually in the data: service account names and global admin identities. That’s more of a target list than a list of victims. Hudson Rock called it a roadmap for social engineering, and they’re right: an attacker no longer has to guess who holds privileged access at McDonald’s or Vodafone; they have the org chart handed to them. The operational question for any threat intel team right now isn’t ‘were we on this list.’ It’s whether the same infostealer logs that fed this campaign already have your employees’ credentials sitting in a marketplace nobody’s checked yet.

There’s a second exposure most teams miss: any organization that does business with McDonald’s, TCS, Vodafone, HCL, or IHG should already be treating whatever data those companies hold on them as compromised and raising their security posture toward those specific relationships accordingly. This is exactly why knowing when your third parties are at risk of compromise, not just when you are, has to be part of the collection requirement. Once a threat actor is sitting inside an organization at this level, they have a direct pathway into every partner and vendor connected to it.”

UPDATE #2: Seemant Sehgal, Founder & CEO, BreachLock Had This To Say:

   “This is a reminder that the perimeter most organizations are defending is not where the adversary is operating. A valid credential, once stolen, moves through an environment the same way a legitimate user does. The attacker does not need to break anything. What makes this particularly significant is the nature of the data itself. Directory attributes, tenant structures, and employee identifiers are the raw materials for follow-on attacks, targeted phishing, or supply chain access. 

   “Security teams need to ask whether a credential that was exposed six months ago is still giving someone access to a cloud environment today. Perimeter controls can be strong and still leave that kind of access untouched. The organizations downstream from the initial compromise are often the ones who feel it most. The real test is understanding what an attacker could do with a compromised credential, where it could take them, and whether anyone would know it was being used.”

John Carberry, Solution Sleuth, Xcape, Inc.:

   “Exfiltrating internal directory structures and employee credentials across corporate cloud tenants creates an immediate risk of targeted spear phishing, business email compromise, and privilege escalation. The mass exposure of 3.64 million records from Fortune 500 Microsoft Azure environments highlights a widespread failure in identity boundary enforcement rather than a cloud platform vulnerability. Organizations must continuously audit user account activity, paying special attention to accounts with elevated privileges, to detect anomalous directory enumeration or session hijacking.

   “Given that Azure tenant attributes, active domains, and service account details were exfiltrated, affected companies should immediately rotate credential stores, reset application registration secrets, audit service principal permissions, and review federated domain trust relationships. Security leaders must mandate phishing-resistant multi-factor authentication, restrict tenant export rights, and monitor endpoint infostealer logs to stop credential theft before attackers map internal cloud architecture.

   “Critical Takeaways:

  • Identity perimeter failure: The exposure stems from compromised credentials and infostealer malware, not a zero-day flaw in Microsoft Azure infrastructure.
  • Tenant remediation: Affected organizations must reset application secrets, audit service principal privileges, and review federated trust relationships immediately.
  • Privileged account auditing: Security teams must enforce strict conditional access and audit user accounts with elevated privileges to intercept active session abuse.


   “Blaming the cloud provider for stolen credentials is like blaming the lock manufacturer when you leave your house key under the doormat.”

Chipolo Seemingly Pwned

Posted in Commentary with tags on August 17, 2026 by itnerd

Tracker comany Chipolo has apparently been pwned. How do I know this? I was sent an email telling me that they’ve been pwned:

We’re writing to let you know about a recent data security incident at our third-party order fulfillment partner that involved some of the information related to your Chipolo order.

What happened? 

Our fulfillment partner recently notified us that an unauthorized party had exploited a vulnerability in a third-party analytics tool they use, gaining access to parts of their system. This was not a breach of Chipolo’s own systems, and it did not involve any weakness in Chipolo devices or the Chipolo app. Since being notified, our partner’s team has patched the vulnerability, blocked the unauthorized access, and launched a thorough investigation with external cybersecurity experts.

What information was involved?

Because this partner handles the shipping of our products, the accessed data included your:

  • Name, email address, and telephone number
  • Shipping address
  • Order details (such as order number and order total)

Please be assured that your credit card number, security code (CVV), and passwords were NOT exposed. Chipolo does not share payment information with our fulfillment partner as part of order processing, so no payment data was involved in this incident.

Why are we telling you this?

While your highly sensitive financial data is safe, scammers can sometimes use shipping and order information to send convincing phishing (scam) emails or text messages. We are sending this notice so you can be on alert for any suspicious communications pretending to be from Chipolo or a delivery courier.


A few tips to stay safe:

  • Don’t click suspicious links: If an email or text message about a delivery feels off, it probably is.
  • Check the “From” address: Scammers often use names that look official but have strange email addresses. If it doesn’t end in @chipolo.net, it’s not from us.
  • Verify the request: We will never ask you to provide payment details or personal information via a random email to “complete a delivery” or “verify an order.”
  • Trust your gut: Phishing emails often create a false sense of urgency (like “Act now or your package will be returned!”). Double-check everything before acting.
  • Reach out to us: If you’re unsure about any communication, our team is ready to help. You can simply reply to this email.

We’re truly sorry for the worry and inconvenience this might cause.

Clearly this was a third party hack which underscores the fact that you are only as secure as the third parties that you deal with. Organizations should really do something about that so that they are not victims of third party hacks. In any case, I am sure that we will find out more about this hack as nobody seems to have coverage about it at present and details are sure to come out. In the meantime, I would be very careful about what hits your inbox and what you do with it as clearly someone wants your data.