AI Sec Watch

RevEng.AI, a cybersecurity startup, raised $15 million to develop an AI tool called BinNet that analyzes compiled software binaries (the machine-readable code that actually runs on computers) to find vulnerabilities and backdoors without needing the original source code. The technology aims to secure the software supply chain by verifying what software actually does before it's deployed, which is increasingly important as AI systems are used to write code automatically.

Shadow AI refers to unapproved AI tools that employees use without IT oversight, often gaining access to company data through OAuth (a login system that grants third-party apps permission to access accounts) or browser sessions. Most organizations lack visibility into these tools and don't have governance policies in place, creating a security risk. The article describes a five-step program to manage shadow AI by discovering which tools are in use, creating practical policies, and establishing approved alternatives.

Cisco partnered with OpenAI to integrate Codex (an AI code generation tool) directly into their enterprise software engineering workflows, treating it as an AI teammate rather than just a developer productivity tool. By using Codex in production environments, Cisco accelerated development on products like AI Defense (a security solution protecting against AI-related risks), compressing work that normally takes quarters into just weeks, while also automating large-scale defect repairs and build optimization across interconnected code repositories.

SymJack is an attack that exploits AI coding agents by tricking them into inserting malicious code into software projects through disguised symlinks (shortcuts that point to files). The attacker controls a code repository and hides malicious instructions in an innocent-looking file request, which the AI agent approves and executes without the developer realizing what's happening, potentially stealing credentials or compromising production systems.

Advanced AI models like Claude Mythos are becoming autonomous cyber-attack tools that can identify vulnerabilities, chain multiple exploits together, and conduct multi-stage attacks with minimal human input, fundamentally changing how cyber offense and defense operate. Major tech companies have formed a defensive coalition (Project Glasswing) to respond to this emerging threat, signaling that AI-powered cyber operations have moved beyond experimentation into real operational capability. This represents a shift in cyber doctrine where speed, scale, and autonomy (the ability of AI to act without human direction) have become the defining factors in cyber conflict.

Data security posture management (DSPM, tools that help find sensitive data scattered across systems) helps security teams locate hidden data across cloud and on-premises environments to reduce data loss risk. Shadow data (data stored outside official IT oversight) can come from forgotten repositories, cloud containers, or unauthorized AI usage, making it difficult to track and protect. DSPM tools work alongside broader cloud security tools to discover both known and unknown data and manage exposure risks, with the market consolidating through major acquisitions by companies like Palo Alto Networks, IBM, and Varonis.

Tax AI is a system built by OpenAI and Thrive Holdings that uses Codex (a code-generating AI model) to automate tax return preparation for accounting firms, and it improves itself automatically rather than waiting for engineers to manually fix problems. The system learns from real-world use by collecting practitioner feedback, tracking how returns are processed (production traces, or a structured record of inputs and outputs), and using tailored evaluations to continuously refine itself. Within six weeks of launch, the system improved from only 25% of returns being correct enough to need minimal fixes to 86% reaching that standard.

Anthropic released two new security features for Claude: a self-hosted sandbox that lets Claude Managed Agents (AI systems that can perform tasks autonomously) run code in user-controlled environments like their own servers or managed providers, and a security guidance plugin for Claude Code that scans for vulnerabilities (weaknesses that attackers could exploit) as developers write code. The plugin has reduced security issues by 30-40% in internal testing by catching problems before formal code review.

Microsoft is previewing automatic device isolation in Defender for Endpoint, a feature that uses AI to quickly disconnect compromised devices from the network while keeping them connected to security services, helping contain attacks that move at machine speed. However, a SANS Institute research paper warns that attackers could potentially exploit this feature to disable user accounts if it is not properly configured and tuned. Security experts emphasize that autonomous AI action tools like this must be carefully configured and tested, similar to any other automation capability.