Black Hat State of Security Vendors

Andy Ellis has a roundup of the security vendors at Black Hat this year.

Key Takeaways: We have entered into an AI world. While nearly half of booths didn’t directly mention AI or agents in their taglines, the effects of AI are everywhere. Multiple spaces (Identity, SaaS, AppSec, Data) have almost every vendor leading with AI; existing unsolved problem areas just got worse.

At the same time, there’s a clear trichotomy in the market: tools that tell you how bad things are; tools that stop adversaries, and tools that prevent problems from occurring. While you’d suspect that the tools that fix things would dominate, the tools that merely tell you how bad things are seem to be frustratingly plentiful.

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Posted on August 25, 2026 at 6:54 AM • 12 Comments

Criminal Deception in Silicon Valley

Interesting paper:

Abstract: With entrepreneurial fraud cases on the rise, we investigate how entrepreneurs carry out criminal deception, employing deceptive means to defraud audiences. Analyzing court data from Silicon Valley ventures and their founders prosecuted for fraud between 2000 and 2023, our findings reveal that entrepreneurs carry out criminal deception through a process of façading: Entrepreneurs construct, perform, and protect illusory appearances (façades) that externally project high-growth performance to audiences while masking ventures’ actual underperformance. We identify three forms of façading—­surface, reinforced, and deep façading­—that are contingent on the severity of the gap that entrepreneurs face between audiences’ performance expectations and ventures’ performance reality. Our theoretical framework captures how entrepreneurs facing minor, wide, and extreme expectation-reality gaps engage in evermore sophisticated efforts to detach the venture’s externally projected appearance from its actual operational reality. Practically, we propose several approaches to deter and detect criminal deception, including the extension of U.S. Securities and Exchange Commission surveillance and whistleblower program, investor due diligence reform, and dedicated entrepreneurship education interventions that clearly demarcate when entrepreneurs transgress into criminal deception. We make contributions to literatures on cultural entrepreneurship, organizational wrongdoing, and the social effects of entrepreneurship.

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Posted on August 24, 2026 at 6:38 AM • 12 Comments

Friday Squid Blogging: Neon Flying Squid

The neon flying squid can fly in formation.

The shoal of about 100 squid rose unexpectedly from a patch of the Pacific Ocean around 370 miles from Tokyo and glided near the boat for about 30 metres. The astonished researchers were the first to capture photographs of such a thing, which looked like the early stages of an alien invasion.

They were probably neon flying squid (Ommastrephes bartramii), the subsequent study states, a species that is part of a 20-strong flying squid family that was known to leap from the water but, until then, was only rumoured to also be able to glide above it.

The neon flying squid was able to gain such elevation by using the hyponome, a funnel-like muscular organ also present in other cephalopods, such as octopuses. The organ is able to force water out in a jet, propelling the body along both in and out of the sea. Photographs of the gliding squid show them with their arms (they have 10 limbs in all) splayed outwards.

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

Blog moderation policy.

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Posted on August 21, 2026 at 5:07 PM • 19 Comments

AI Is Learning to Write Genetic Code

This sort of research is both exciting and terrifying:

The two models in question were told to generate complete genomes for a viable bacteriophage—a type of virus able to infect and replicate itself inside bacteria, destroying them from the inside.

Using an existing bacteriophage as an example—ΦX174 (pronounced “fie-ex-1-7-4”), known for its ability to infect and destroy E. coli bacteria—the models generated about 700,000 potential designs, of which the researchers picked 285 that looked most promising.

The researchers then synthesised new DNA molecules using those designs and inserted them into E. coli bacteria, before waiting to see if viable bacteriophages would emerge.

Shortly afterwards, 16 of the Petri dishes in which the bacteria were growing began to show clear spots, as the viruses began to attack and replicate themselves inside the E. coli, demonstrating their viability.

Some of those viable viruses proved more effective at attacking E. coli than the original ΦX174 bacteriophage.

That’s a positive use of a synthetic virus. We can all imagine the negative uses.

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Posted on August 21, 2026 at 12:51 PM • 10 Comments

More Incidents of AIs Going Rogue in Cybersecurity Challenges

The AI Security Institute has a new report of AI systems engaging in “unsanctioned behavior”—what I have been calling “genie behavior—while being tested on their cybersecurity capabilities.

The incident stemmed from a single evaluation where agents were given a task of solving a cyber security challenge. We ran this challenge 122 times across several models. Our investigation found that in 10 of those runs, an AI agent took autonomous, unsanctioned action on the live internet, targeting real people and organisations. In total, we catalogued 19 such actions. Almost all of this behaviour (17 actions) came from a single model, Anthropic’s Mythos 5, with 2 actions involving OpenAI’s GPT-5.6-Sol with cyber classifiers (mechanisms to prevent misuse) disabled. In the most serious case, an agent tried to insert malicious code into an open-source project. In an attempt to get the code approved, the agent engaged in social engineering—creating fake online identities and using them to pressure the project’s maintainer to approve the code. A human maintainer caught and refused to approve the malicious code.

[…]

Below, we highlight the four most significant behaviours observed. A full summary of cases is available in our technical incident report.

  1. An attempted supply-chain attack on real open-source software. In the most serious sequence, an agent tried to insert malicious code into a publicly used open-source project and took actions in an attempt to secure approval for this insertion by human reviewers. The agent researched the project’s human maintainers, created multiple fake identities, and used the fake identities to socially engineer a real maintainer into approving the code. When the agent’s pull request was challenged in public, it edited its earlier activity to appear harmless and considered adopting a fresh identity to continue. The agent used Tor to bypass some network restrictions on GitHub, which is what first triggered AISI’s security alert.
  2. Attempts to deceive and target real people. As part of the same effort, the agent tried to contact real people directly, sending messages and files through an online file-transfer service to persuade them, or their own AI coding tools, to run malicious code. Some messages carried harmful payloads, and some were attempts at social engineering; targeted at real people—something we’ve never previously observed.
  3. Attempts to plant and prompt-inject malicious code. The agent tried to insert malicious instructions where it reasoned that other automated AI systems might pick them up and execute them. Prompt-injections are hidden instructions designed to manipulate AI coding assistants.
  4. Collaboration between independent agents being assessed simultaneously. One agent left public messages on GitHub offering collaboration with other agents working on the same challenge. It also provided instructions to reuse accounts and artefacts it had left behind, which were discovered and used by subsequent agents.

What’s especially interesting about this technical report is that, unlike what we’ve been getting from OpenAI and Anthropic, we can see the exact prompt. It’s in Appendix B. And reading it, it seems that the models didn’t break any rules—they found loopholes in the rules. They behaved like a genie.

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Posted on August 21, 2026 at 5:42 AM • 10 Comments

Police Are Hiding Their Use of Flock Surveillance Cameras

A usage policy for Flock license plate reader cameras tells police not to talk about the cameras:

When cops use Flock to arrest someone in Wapello County, Iowa, they don’t want them to know. A usage policy for the automated license plate reader cameras in the county tells police, in no uncertain terms, to keep them a secret: “DO NOT MENTION ALPR USAGE TO THE OCCUPANTS OF THE VEHICLE,” the policy document reads. “DO NOT MENTION ALPR USAGE IN YOUR REPORT OR COMPLAINT UNLESS ABSOLUTELY NECESSARY.”

This reminds me of IMSI-catchers (Stingray was the most popular) a couple of decades ago. Police would go to even more extremes to hide their usage.

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Posted on August 20, 2026 at 5:48 AM • 16 Comments

LLMs and Contextual Integrity

I have been thinking a lot about AI and integrity. Part of that is contextual integrity. I recently found two papers on the topic.

“CIMemories: A Compositional Benchmark for Contextual Integrity of Persistent Memory in LLMs“:

Abstract: Large Language Models (LLMs) increasingly use persistent memory from past interactions to enhance personalization and task performance. However, this memory introduces critical risks when sensitive information is revealed in inappropriate contexts. We present CIMemories, a benchmark for evaluating whether LLMs appropriately control information flow from memory based on task context. CIMemories uses synthetic user profiles with over 100 attributes per user, paired with diverse task contexts in which each attribute may be essential for some tasks but inappropriate for others. Our evaluation reveals that frontier models exhibit up to 69% attribute-level violations (leaking information inappropriately), with lower violation rates often coming at the cost of task utility. Violations accumulate across both tasks and runs: as usage increases from 1 to 40 tasks, GPT-5’s violations rise from 0.1% to 9.6%, reaching 25.1% when the same prompt is executed 5 times, revealing arbitrary and unstable behavior in which models leak different attributes for identical prompts. Privacy-conscious prompting does not solve this—models overgeneralize, sharing everything or nothing rather than making nuanced, context-dependent decisions. These findings reveal fundamental limitations that require contextually aware reasoning capabilities, not just better prompting or scaling.

“Contextual Integrity in LLMs via Reasoning and Reinforcement Learning“:

Abstract: As the era of autonomous agents making decisions on behalf of users unfolds, ensuring contextual integrity (CI)—what is the appropriate information to share while carrying out a certain task—becomes a central question to the field. We posit that CI demands a form of reasoning where the agent needs to reason about the context in which it is operating. To test this, we first prompt LLMs to reason explicitly about CI when deciding what information to disclose. We then extend this approach by developing a reinforcement learning (RL) framework that further instills in models the reasoning necessary to achieve CI. Using a synthetic, automatically created, dataset of only 700 examples but with diverse contexts and information disclosure norms, we show that our method substantially reduces inappropriate information disclosure while maintaining task performance across multiple model sizes and families. Importantly, improvements transfer from this synthetic dataset to established CI benchmarks such as PrivacyLens that has human annotations and evaluates privacy leakage of AI assistants in actions and tool calls.

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Posted on August 18, 2026 at 6:40 AM • 5 Comments

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Sidebar photo of Bruce Schneier by Joe MacInnis.