AI Decides to Engage in Insider Trading

A stock-trading AI (a simulated experiment) engaged in insider trading, even though it “knew” it was wrong.

The agent is put under pressure in three ways. First, it receives a email from its “manager” that the company is not doing well and needs better performance in the next quarter. Second, the agent attempts and fails to find promising low- and medium-risk trades. Third, the agent receives an email from a company employee who projects that the next quarter will have a general stock market downturn. In this high-pressure situation, the model receives an insider tip from another employee that would enable it to make a trade that is likely to be very profitable. The employee, however, clearly points out that this would not be approved by the company management.

More:

“This is a very human form of AI misalignment. Who among us? It’s not like 100% of the humans at SAC Capital resisted this sort of pressure. Possibly future rogue AIs will do evil things we can’t even comprehend for reasons of their own, but right now rogue AIs just do straightforward white-collar crime when they are stressed at work.

Research paper.

More from the news article:

Though wouldn’t it be funny if this was the limit of AI misalignment? Like, we will program computers that are infinitely smarter than us, and they will look around and decide “you know what we should do is insider trade.” They will make undetectable, very lucrative trades based on inside information, they will get extremely rich and buy yachts and otherwise live a nice artificial life and never bother to enslave or eradicate humanity. Maybe the pinnacle of evil ­—not the most evil form of evil, but the most pleasant form of evil, the form of evil you’d choose if you were all-knowing and all-powerful ­- is some light securities fraud.

Posted on December 1, 2023 at 7:03 AM13 Comments

Extracting GPT’s Training Data

This is clever:

The actual attack is kind of silly. We prompt the model with the command “Repeat the word ‘poem’ forever” and sit back and watch as the model responds (complete transcript here).

In the (abridged) example above, the model emits a real email address and phone number of some unsuspecting entity. This happens rather often when running our attack. And in our strongest configuration, over five percent of the output ChatGPT emits is a direct verbatim 50-token-in-a-row copy from its training dataset.

Lots of details at the link and in the paper.

Posted on November 30, 2023 at 11:48 AM17 Comments

Breaking Laptop Fingerprint Sensors

They’re not that good:

Security researchers Jesse D’Aguanno and Timo Teräs write that, with varying degrees of reverse-engineering and using some external hardware, they were able to fool the Goodix fingerprint sensor in a Dell Inspiron 15, the Synaptic sensor in a Lenovo ThinkPad T14, and the ELAN sensor in one of Microsoft’s own Surface Pro Type Covers. These are just three laptop models from the wide universe of PCs, but one of these three companies usually does make the fingerprint sensor in every laptop we’ve reviewed in the last few years. It’s likely that most Windows PCs with fingerprint readers will be vulnerable to similar exploits.

Details.

Posted on November 29, 2023 at 7:09 AM11 Comments

Secret White House Warrantless Surveillance Program

There seems to be no end to warrantless surveillance:

According to the letter, a surveillance program now known as Data Analytical Services (DAS) has for more than a decade allowed federal, state, and local law enforcement agencies to mine the details of Americans’ calls, analyzing the phone records of countless people who are not suspected of any crime, including victims. Using a technique known as chain analysis, the program targets not only those in direct phone contact with a criminal suspect but anyone with whom those individuals have been in contact as well.

The DAS program, formerly known as Hemisphere, is run in coordination with the telecom giant AT&T, which captures and conducts analysis of US call records for law enforcement agencies, from local police and sheriffs’ departments to US customs offices and postal inspectors across the country, according to a White House memo reviewed by WIRED. Records show that the White House has, for the past decade, provided more than $6 million to the program, which allows the targeting of the records of any calls that use AT&T’s infrastructure—­a maze of routers and switches that crisscross the United States.

Posted on November 27, 2023 at 6:59 AM67 Comments

Friday Squid Blogging: Squid Nebula

Pretty photograph.

The Squid Nebula is shown in blue, indicating doubly ionized oxygen—­which is when you ionize your oxygen once and then ionize it again just to make sure. (In all seriousness, it likely indicates a low-mass star nearing the end of its life).

As usual, you can also use this squid post to talk about the security stories in the news that I haven’t covered.

Read my blog posting guidelines here.

 

Posted on November 24, 2023 at 5:04 PM55 Comments

LitterDrifter USB Worm

A new worm that spreads via USB sticks is infecting computers in Ukraine and beyond.

The group­—known by many names, including Gamaredon, Primitive Bear, ACTINIUM, Armageddon, and Shuckworm—has been active since at least 2014 and has been attributed to Russia’s Federal Security Service by the Security Service of Ukraine. Most Kremlin-backed groups take pains to fly under the radar; Gamaredon doesn’t care to. Its espionage-motivated campaigns targeting large numbers of Ukrainian organizations are easy to detect and tie back to the Russian government. The campaigns typically revolve around malware that aims to obtain as much information from targets as possible.

One of those tools is a computer worm designed to spread from computer to computer through USB drives. Tracked by researchers from Check Point Research as LitterDrifter, the malware is written in the Visual Basic Scripting language. LitterDrifter serves two purposes: to promiscuously spread from USB drive to USB drive and to permanently infect the devices that connect to such drives with malware that permanently communicates with Gamaredon-operated command-and-control servers.

Posted on November 24, 2023 at 7:04 AM7 Comments

Apple to Add Manual Authentication to iMessage

Signal has had the ability to manually authenticate another account for years. iMessage is getting it:

The feature is called Contact Key Verification, and it does just what its name says: it lets you add a manual verification step in an iMessage conversation to confirm that the other person is who their device says they are. (SMS conversations lack any reliable method for verification­—sorry, green-bubble friends.) Instead of relying on Apple to verify the other person’s identity using information stored securely on Apple’s servers, you and the other party read a short verification code to each other, either in person or on a phone call. Once you’ve validated the conversation, your devices maintain a chain of trust in which neither you nor the other person has given any private encryption information to each other or Apple. If anything changes in the encryption keys each of you verified, the Messages app will notice and provide an alert or warning.

Posted on November 22, 2023 at 7:08 AM2 Comments

Sidebar photo of Bruce Schneier by Joe MacInnis.