Archive for September 12, 2026

The scary part of Anthropic’s report isn’t the hacking

Posted in Commentary with tags on September 12, 2026 by itnerd

Anthropic is clearly losing control of the message. Even though it put out a report warning about the dangers of AI in the wrong hands, AI is moving beyond helping attackers work faster to autonomously adapting malware, compressing attacks that once took teams days or weeks into hours, and forcing defenders to rethink detection and response around behavior rather than static signatures. What’s worse is a that a researcher that used to work for Anthropic is warning that there’s a 10% chance of AI killing all humans.

John Strand, Owner, Black Hills Information Security (https://www.linkedin.com/in/john-strand-a1b4b62)

“I’m kind of shocked that they’re shocked about this.

“We’re seeing cybercriminals and nation-states use AI models in a variety of different ways for cyberattacks, espionage, weapons research, biological research, and other military purposes. There have even been reports of Iran using AI for work related to missile guidance systems.

“Why are we surprised?

“People are using these technologies to reduce the overall cost and effort required to achieve their goals and objectives. That’s what technology does. And those goals don’t suddenly have to be legal or moral just because AI is involved. Criminal organizations are going to use it. Intelligence agencies are going to use it. Militaries are going to use it. Of course they are.

“The reason I’m shocked that people are shocked is that we’ve been warning about exactly this type of scenario since before modern AI really started taking off. Hell, science fiction books and movies have been beating us over the head with these ideas for decades.

“Apparently, we learned nothing.

“But there’s a much bigger issue here, and that’s control.

“We’ve already seen legitimate AI companies struggle with controlling what their models and agents can do. We’ve seen concerns around agents escaping intended boundaries, interacting with systems they weren’t supposed to interact with, and potentially hacking third parties without authorization.

“Now ask yourself a much scarier question. What controls are organized criminal groups and rogue nations putting around their AI models? What safeguards are they implementing to make sure those systems don’t do something absolutely hideous?

“Probably not the controls we’d like them to have.

“We are very, very quickly approaching a point of no return with some of these technologies. In fact, I think there’s a good argument that we may already be there. Pandora’s box is open. We’re not putting this technology back in the box, and pretending that bad actors somehow won’t use it is ridiculous.

“So where does that leave defenders?

“You have to start looking at how AI can augment your defensive strategies. The attackers are going to use it to move faster, automate more of their operations, lower their costs, and increase the scale of their attacks.

“Defenders need to do the same thing.

“We need to use AI to identify attacks faster, understand what’s happening faster, react faster, and mitigate these attacks faster than we ever have before.

“Because waiting for the bad guys to decide not to use this technology isn’t a strategy.”

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

“Anthropic’s September 2026 threat report documents the shift from AI as a productivity tool for attackers to AI as an evasion engine. The GTG-20006 case, attributed to Midnight Blizzard, ran an autonomous evasion loop where AI agents monitored whether deployed malware triggered security detections, then rewrote and redeployed it until it passed clean. No human touched the iteration.

“Traditional polymorphic engines mutate code mechanically, rotating encodings and shuffling instructions while the underlying logic stays intact. AI rewrites the logic itself. Each variant can take different execution paths, different system calls, different timing behaviors. When mutation happens at the architectural level, behavioral heuristics face the same combinatorial problem that killed static signatures a decade ago.

“I’ve seen AI generate code with environmental keying and timing variations that would take a specialist days to build by hand. The model treats side-channel behavior as an optimization problem, so the evasion complexity comes for free. Defenders need to use the same capability in reverse, using AI to dynamically generate novel exploit variants and continuously train detection models against threats that haven’t been seen in the wild yet. Static signature libraries can’t keep pace with an adversary that rewrites malware faster than analysts can write rules. Detection needs to become generative too.”

Eric Capuano, Dir. of SOC Operations, Black Hills Information Security (https://www.linkedin.com/in/ecapuano)

“The attacks in this report are not new, and Anthropic says as much. Stolen credentials, unpatched edge devices, exposed services, phishing. What changed is the time budget. One intrusion went from a single stolen developer token to full administrative control of a cloud environment in roughly three hours. Another pulled more than 2,100 Azure AD token sets across 40 tenants in about 34 hours with agents doing nearly all the work. A single hacktivist got inside 14 of 42 targets. Those used to be team-sized outcomes, and now one operator with a harness produces them.

“The case defenders should study is the espionage actor that used agents to watch whether its implants were getting flagged, then rewrote and redeployed them until they went quiet. That cycle is where defenders used to get leverage. You shipped a detection, the attacker had to retool, and that cost them days. When retooling is automated, a static signature is worth less than the time it took to write. Detection has to sit on behavior: a new device registered in the tenant, a device code sign-in from somewhere unusual, a service account exporting mail in bulk, an API key being used from infrastructure you do not own.

“The question of whether current controls are enough is missing the point a bit. The controls are fine. Most of these intrusions started with a credential someone left in a mobile app, a container, or a repo, and moved through tokens nobody was watching. Conditional access, phishing-resistant MFA, and short token lifetimes would have blunted most of it. The gap is that those controls were not in place, and the time to discover they were missing is now measured in hours instead of weeks. 

“In order: treat AI API keys as production credentials, because this report shows attackers stealing them for compute and for cover. Block or tightly restrict device code flow in Entra. Alert on new device registrations and on bulk mailbox export. Then look hard at response tempo. If an identity alert sits for two days before anyone works it, you are already slower than the adversary.”

Clearly AI is out of control or close to it. The question will be will profits be placed over people, or the other way around. We’re about to find out.

Visa, MasterCard and Ant International launch “Know Your Agent” framework

Posted in Commentary with tags , , on September 12, 2026 by itnerd

Visa, Mastercard, and Ant International have a new Know Your Agent (KYA) interoperability framework. At first glance this sounds good. But we’ll need a very high level of trust that these “agents” are tied down.

Ted Miracco, CEO, Approov:

“Know Your Agent is an important first step, and it’s encouraging to see the networks aligning on it. However knowing who built or authorized an agent is not the same as knowing what is actually making the request. A key or a certificate proves someone holds a credential. It doesn’t prove the software using it is the authentic agent, unmodified, and not one of a thousand copies. We learned that lesson securing mobile apps. As agents start spending money, trust has to be established at every request, not just at onboarding.

“Certification only tells you what an agent should be. Merchants and payment APIs also need proof of what is actually running, verified cryptographically, not just inferred from behavior after the fact. The framework sets the accountability rules. The next step is making them enforceable within the software itself.”

This is a good start. But more needs to be done to make something like KYA useful. Let’s hope it gets useful in a hurry.

Finite State Brings Leading-Edge Product Security Insights and AI-Assisted Testing Strategies to Embedded World North America 2026

Posted in Commentary with tags on September 12, 2026 by itnerd

Finite State today announced its participation in Embedded World North America 2026, taking place September 22–24 at the Anaheim Convention Center in Anaheim, California. Finite State experts will lead three technical sessions examining how manufacturers can build defensible regulatory evidence, determine the impact of newly disclosed vulnerabilities across product portfolios, and apply AI-assisted penetration testing to embedded firmware.

Finite State’s Embedded World 2026 kicks off on September 9 with an IoT M2M Council (IMC) pre-event webinar featuring Sharon Hagi, Chief Security Officer at Finite State. The company will also participate in on-site IMC programs during Embedded World North America, with final program details to be announced separately.

Finite State Program: Embedded World North America 2026

Tuesday, September 22, 2026, 11:25-11:50 a.m. PT – Safety & Security: Vulnerability and Compliance Workflows

Session: Show Your Work: The Engineering Behind Credible Regulatory Documentation

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

McConnell will explain how product security teams can move beyond documentation that reflects design intent alone. The session will cover binary-grounded SBOMs, threat models tied to execution evidence, evidence-backed VEX, and continuous evidence generation for regulatory review.

Tuesday, September 22, 2026, 11:50 a.m.-12:15 p.m. PT – Safety & Security: Vulnerability and Compliance Workflows

Session: When a CVE Drops: Portfolio-Scale Impact Analysis for Embedded Device Manufacturers

Speaker: Sharon Hagi, Chief Security Officer, Finite State

Hagi will outline an architecture for identifying affected products across large firmware portfolios when a new CVE is disclosed. The session will address normalized binary-derived component inventories, reachability analysis across product variants, evidence-backed VEX and PSIRT operations under compressed reporting deadlines.

Wednesday, September 23, 2026, 1:55-2:45 p.m. PT – Embedded AI: Generative and Agentic AI for Embedded Devices

When the Bug Hunter Is an Agent: AI-Assisted Pen Testing for Embedded Firmware

Speaker: Roland Lindsey, Lead Solutions Engineer, Finite State

Lindsey will examine how AI agents are changing offensive testing of embedded firmware. Drawing on a real-world device assessment, the session will address embedded-specific test-harness design, binary and control-flow analysis, hardware-tied execution context, operational guardrails, and the approach’s current limitations.

During Embedded World North America | On-site IMC program

Additional IoT M2M Council Engagement

Finite State participant, title, time, and location to be announced

Finite State will also participate in an on-site opportunity with the IoT M2M Council. Additional details will be announced when the program is finalized.

Meet Finite State at Booth 6110-F

Throughout the conference, attendees can visit Booth 6110-F for personalized demonstrations of Finite State’s product security capabilities, including visibility into firmware and binaries, exploitability-based vulnerability prioritization, and the generation of traceable security and compliance evidence across product releases.

Also, on Wednesday, September 9, 2026, 11:00 a.m. ET – Finite State participated in a pre-event webinar

Multi-Mode IoT Connectivity Revolution Opens Embedded Doors

Panelist: Sharon Hagi, Chief Security Officer, Finite State

Hosted by the IoT M2M Council as part of its Embedded IoT Summit, the panel examined how cellular, satellite, low-power, and hybrid connectivity are reshaping embedded-device design. Hagi will join representatives from emnify, Digi, and Giesecke+Devrient to discuss the security and lifecycle implications of multi-mode connectivity, dynamic switching, and SIM, eSIM, and iSIM architectures.

To view the webinar, visit: Multi-Mode IoT Connectivity Revolution Opens Embedded Doors

To schedule a meeting with Finite State, visit: Finite State at Embedded World North America 2026

Conference information and registration: Embedded World North America 2026