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Cybersecurity Tokenomics: Denial of Wallet Attacks and the Cost of SOC Operations | Kaspersky official blog

7 October 2026 at 21:13

We recently published a post on “tokenomics” and “denial of wallet” attacks — a new type of DDoS attack aimed at overspending AI tokens. But before security specialists begin protecting their colleagues’ AI processes from this new threat, they should remember that the work of the information security department itself can become a target for such an attack. Since security teams are now actively testing and implementing various types of AI-based automation, the threat of external interference aimed at paralyzing the defense system directly affects their own processes and technologies.

Elastic has estimated that, depending on the “agent-based SOC” architecture, triaging a single alert from a host can cost $0.69 for an ensemble of highly specialized agents or $3.42 for a general-purpose agent with 14 different skills.

However, these averages mask a huge range of variation. At any given moment, the basic processing of a simple alert (say, a thousand tokens) can turn into a cascading investigation involving processing millions of log entries, API calls, and other related data — which amounts to millions of tokens in a matter of minutes.

Elastic itself acknowledges that it uses the Claude Sonnet 4.6 model in its SOC. This immediately raises the question: what happens when the budget is exhausted or the model’s security filters are triggered? In the worst-case scenario, the following occurs: the AI SOC launches an “orchestra of agents” to investigate suspicious events that resembles lateral movement in the infrastructure. The agent calls the Anthropic API, but the department’s monthly budget has been exhausted, and the API returns errors. The investigation grinds to a halt, and people find out about it half a day later. Moreover, if the constantly changing “security filters” of a major AI provider flag the SOC’s requests as malicious, the same effect is possible even without the budget being exhausted — as demonstrated by Hugging Face’s experience investigating the breach of their infrastructure by OpenAI.

Of course, an attacker has a vested interest in such an outcome. They can directly influence the defenders’ costs by injecting malicious prompts into the data available to them (DNS TXT records, HTTP headers, code comments, filenames, and so on), counting on the fact that these prompts will be processed by information security systems. For example, in the GhostJacking attack case, WAF logs serve as the vector for prompt injection, and in academic study, another method was proposed: researchers managed to attack the LLM security guardrails themselves, causing their requests to increase latency by 148 and the number of tokens consumed by 63. In other words, the system theoretically continues to function correctly, but the latency in processing alerts and the associated costs increase significantly.

Dangerous silent failure

In agent-based scenarios, budget exhaustion doesn’t always manifest as an explicit error with a “request limit exceeded” message and an immediate alert to the responsible parties. Under certain configurations, “guerrilla” scenarios can arise: a request to the model times out, the system automatically switches to a cheaper model, and as a result the quality of its outputs drops, and subagents and periodic tasks stop running. Meanwhile, the security team may continue to believe for hours on end that everything is working as before.

How to control AI costs in cybersecurity

The task of managing expenses, of course, isn’t simply a matter of “preventing overspending”. The industry has already fallen into this trap when implementing SIEM: when companies had to pay based on the volume of telemetry collected, they began to selectively — and not always effectively — limit log collection. As a result, they ended up with detection blind spots. The same situation could arise with tokens — but faster and on a larger scale. A poorly designed cost-cutting policy could compromise the depth of investigations and the quality of responses. And in the absence of such a policy, the decision to cut something will be made not by the architect or the CISO during the system design phase, but by the analyst on duty at 3am. Or it may be an automatic limiter set by the system vendor.

A few simple principles can help avoid predictable cost overruns, and better manage situations that are truly unpredictable.

Don’t feed the AI model anything that can be verified with a standard query. Everything that’s repetitive and known in advance should be handled the old-fashioned way — with rules and data queries. These can be developed using AI, but they must operate deterministically. The model should only be used where an assessment of an ambiguous situation is truly needed.

Use strict limits and aggressively alert users when they are exceeded. Limits should be combined: a limit per task, a daily limit, and so on. Alerts about limit exceedances must immediately reach both on-duty analysts and those responsible for the system as a whole.

Decide in advance what happens when a limit is reached. Whether to stop and save money — while losing some control — or to continue and pay, is a decision that must be made before an incident occurs.

Limit agents’ permissions and the set of tools available to them. The fewer actions the system has access to, the more effectively it works on a narrow task, the fewer opportunities it has to inflate costs, and the less likely it is to be “exploited” by an outsider.

Strictly scan external, untrusted data. Incoming requests, inquiries, messages, and comments, as well as various technical fields capable of containing arbitrary text (DNS records, HTTP headers, file names) can not only lead to prompt injection, but also deliberately inflate the workload. Limit their size, and monitor the load they generate.

To avoid service outages from external providers and maintain full control over your organization’s data, evaluate the possibility of using local models deployed on-premises at least for information security needs. While these models may not be state-of-the-art, their narrow specialization and fine-tuning with company data will deliver decent performance without unexpected failures.

In a more complex architecture, the use of LLMs can be divided into several levels. The first line of defense (routing, noise filtering, data enrichment) is handled by compact on-premise models. This significantly reduces budget volatility. The second level consists of a large local model that handles the substantive work: linking events, testing hypotheses, and piecing together the picture of an incident. It’s also not billed per request, but its throughput is limited; therefore, instead of budget overruns, overloads and event queues may occur. Only isolated, truly difficult cases are forwarded to advanced cloud-based models — preferably with the explicit approval of a human analyst. In this scheme, variable costs remain, but they’re limited to a small number of cases, and each one represents a conscious choice rather than a side effect of a script running overnight.

Essentially, all of this replicates the classic multi-tiered SOC model — where the first line filters, and the third line investigates — only the roles are played by models rather than people.

Google pauses open source bug bounty program after rise in AI submissions

5 October 2026 at 17:00

Companies like Google and Microsoft are finding much bigger numbers of vulnerabilities in their own products as a result of AI. But the same technology is leading to public reporting programs becoming overwhelmed by the mass submission of speculative, duplicated, or hallucinated findings.

Now, Google’s announced it has temporarily stopped accepting submissions to its open source bug bounty program, OSS VRP.

“Why is this happening? This pause is due to a significant rise in automated submissions, the vast majority of which are not valid.”

We’ve seen this happen before. In early 2026, curl ended its HackerOne bounty program after low-quality, often AI-generated submissions overwhelmed its small security team.

Intel also launched a new bug bounty program on Intigriti but there are no longer bounties available, reportedly in order to stop a flood of AI generated reports.

Pros and cons

Bounties can be an incentive for mass-submitting behavior when generative AI lowers the cost of producing polished-looking submissions. So, it’s understandable that companies want to limit the number of incoming reports.

If most automated submissions are invalid, a temporary pause prevents Google engineers and open-source maintainers from spending disproportionate time disproving reports rather than fixing real issues.

A pause gives Google the time and chance to introduce better controls, such as mandatory proof-of-concept requirements, evidence thresholds, and rate limits without letting the current queue keep growing.

On the other hand, it may discourage legitimate researchers and make it harder for them to submit actual issues they’ve found.

It is hard to draw a line of what you will accept, because an AI-assisted report can be valid, just like a low-quality report is not necessarily AI-generated.

And as companies like Google and Microsoft have proven, AI assisted vulnerability discovery can also support real vulnerability discovery if it is coupled with validation, deduplication, and proof.

What about the future?

If we have learned anything it is that AI is not “breaking” vulnerability disclosure. It is exposing an older weakness in disclosure economics: the cost of filing a plausible report has fallen sharply, while the cost of proving or disproving it remains human-intensive.

The solution seems obvious. Let AI handle the submissions and only hand over those it can validate to the engineering teams. This will definitely frustrate some bug bounty hunters, because it will be like convincing a chatbot that you have a valid point and want to “talk to a human,” but hopefully it will bring down the number of less serious bug bounty hunters and create more room for those who know what they are doing.

Google has only promised an update in Q1 2027, so any redesign details would be speculative, but we do hope they find a way for responsible bug hunters to submit their findings.


From reporting threats to removing them.

Cybersecurity risks should never spread beyond a headline. Keep threats off your devices by downloading Malwarebytes today.

Google pauses open source bug bounty program after rise in AI submissions

5 October 2026 at 17:00

Companies like Google and Microsoft are finding much bigger numbers of vulnerabilities in their own products as a result of AI. But the same technology is leading to public reporting programs becoming overwhelmed by the mass submission of speculative, duplicated, or hallucinated findings.

Now, Google’s announced it has temporarily stopped accepting submissions to its open source bug bounty program, OSS VRP.

“Why is this happening? This pause is due to a significant rise in automated submissions, the vast majority of which are not valid.”

We’ve seen this happen before. In early 2026, curl ended its HackerOne bounty program after low-quality, often AI-generated submissions overwhelmed its small security team.

Intel also launched a new bug bounty program on Intigriti but there are no longer bounties available, reportedly in order to stop a flood of AI generated reports.

Pros and cons

Bounties can be an incentive for mass-submitting behavior when generative AI lowers the cost of producing polished-looking submissions. So, it’s understandable that companies want to limit the number of incoming reports.

If most automated submissions are invalid, a temporary pause prevents Google engineers and open-source maintainers from spending disproportionate time disproving reports rather than fixing real issues.

A pause gives Google the time and chance to introduce better controls, such as mandatory proof-of-concept requirements, evidence thresholds, and rate limits without letting the current queue keep growing.

On the other hand, it may discourage legitimate researchers and make it harder for them to submit actual issues they’ve found.

It is hard to draw a line of what you will accept, because an AI-assisted report can be valid, just like a low-quality report is not necessarily AI-generated.

And as companies like Google and Microsoft have proven, AI assisted vulnerability discovery can also support real vulnerability discovery if it is coupled with validation, deduplication, and proof.

What about the future?

If we have learned anything it is that AI is not “breaking” vulnerability disclosure. It is exposing an older weakness in disclosure economics: the cost of filing a plausible report has fallen sharply, while the cost of proving or disproving it remains human-intensive.

The solution seems obvious. Let AI handle the submissions and only hand over those it can validate to the engineering teams. This will definitely frustrate some bug bounty hunters, because it will be like convincing a chatbot that you have a valid point and want to “talk to a human,” but hopefully it will bring down the number of less serious bug bounty hunters and create more room for those who know what they are doing.

Google has only promised an update in Q1 2027, so any redesign details would be speculative, but we do hope they find a way for responsible bug hunters to submit their findings.


From reporting threats to removing them.

Cybersecurity risks should never spread beyond a headline. Keep threats off your devices by downloading Malwarebytes today.

Data Center Physical Security: Mitigating FPV Drone Threats

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Data Center Physical Security: Mitigating FPV Drone Threats

In this post, we explore how shifting online sentiment and low-cost First-Person View (FPV) technology are creating an unprecedented airborne threat vector for critical data center infrastructure.

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August 10, 2026

Data centers have become a driving force in the modern digital economy—powering cloud services, global enterprise operations, and the explosive growth of artificial intelligence (AI). However, due to growing negative public discourse, data centers are facing a new physical threat vector: low-cost, payload-capable drones.

According to Flashpoint research, shifting public sentiment surrounding AI development, combined with the extreme accessibility of First-Person View (FPV) drone technology, is creating an unprecedented hybrid threat to physical critical infrastructure.

Here is what you need to know about this emerging threat landscape and what it means for physical security teams protecting critical assets.

Growing Online Sentiment and Anti-AI Hostility

Organizations tasked with protecting critical data infrastructure need to understand that this growing threat is not developing in a vacuum. Across both clearnet and Deep and Dark Web (DDW) forums, online discussions regarding data center expansion have intensified, with a significant portion bordering on hostility. Key drivers of negative sentiment include:

  • Environmental & Local Concerns: Debates over massive energy consumption, water usage, noise, and localized quality-of-life impacts.
  • Backlash against AI: Discontent directed at tech companies driving the rapid deployment of AI infrastructure.
  • Perceived Regulatory Inaction: Frustration among activists who feel local and state governments are failing to halt or regulate new construction.

While much of the current online chatter currently revolves around organized protests and aspirational threats, Flashpoint analysts note a troubling uptick in rhetoric targeting corporate tech executives and data center infrastructure.

The Evolving Data Center Threat Landscape

Data centers across the United States are seeing a rapid increase in physical and operational threats. Vandalism and property destruction have become common topics in illicit online spaces when discussing data centers and their impact on everyday life. Flashpoint research highlights two primary force multipliers driving this threat:

DIY Drones & Low Barriers to Entry

Historically, kinetic airborne strikes required specialized equipment and advanced training. Today, that barrier to entry has virtually collapsed. Rapid improvements in drone manufacturing have made payload-capable aircraft extraordinarily accessible. In today’s market, an individual can purchase an off-the-shelf system or assemble a customized drone for under $1,000 USD.

Inspiration for these tactics is also readily available; widespread footage of FPV drones operating in conflict zones like Ukraine has demonstrated to online audiences how easily and effectively low-cost aircrafts can be weaponized. Threat actors view this as a high-yield investment, especially given the capability to deploy multiple drones in quick succession.

Protests as Cover for Physical Operations

Organized protests to stop data center development remain prevalent, and large crowds can easily overwhelm contracted security personnel, diminishing the effectiveness of a response to an aerial threat. A malicious actor could use a protest at a data center as cover to cause physical damage to the facility while security resources are spread thin. For example, on July 19, 2026, activists threw balloons filled with acetic acid at a data center construction site in Amsterdam. In its aftermath, Flashpoint analysts captured individuals online discussing the use of drones to deliver similar payloads.

Regulatory and Defense Measure Challenges

Current federal regulations limit the ability to effectively deter or stop an incoming drone threat because the US Federal Aviation Administration (FAA) classifies drones as aircraft. Therefore, organizations specializing in the physical security of data centers will likely need to increase their operational capabilities and advise companies on potential hardening to deter attacks.

Traditional foot patrols and monitoring perimeter access control points will be insufficient in mitigating overhead threats. The majority of data centers are currently not equipped with the specialized Counter-Unmanned Aircraft Systems (C-UAS) equipment, specialized training, or legal authorization needed to respond effectively to airborne incursions.

Protect Critical Infrastructure Using Flashpoint

Defending against aerial incursions requires moving from reactive security to proactive, intelligence-led physical protection. Physical security teams cannot afford to rely solely on ground-level surveillance when threat actors are leveraging open-source hardware and coordinating online.

Flashpoint Physical Security Intelligence (PSI) equips security teams and executive protection units with real-time visibility into emerging physical threats before they reach your perimeter:

  • Early Warning Indicator Tracking: Monitor chatter across mainstream social platforms, fringe networks, and illicit DDW forums to identify probe attempts or the targeting of specific data center facilities and executives.
  • Geospatial Threat Mapping: Overlay real-time intelligence onto physical assets using customizable geofencing to detect active incidents, protest activity, and drone-related discussions near sensitive sites.
  • Actionable Counter-UAS Insights: Receive finished intelligence and analyst support to benchmark threat actor TTPs (Tactics, Techniques, and Procedures), enabling your organization to harden physical structures and justify operational investments.

To learn more about how Flashpoint helps safeguard critical infrastructure, executives, and high-value assets against physical and cyber threats, request a demo today.

See Flashpoint in Action

The post Data Center Physical Security: Mitigating FPV Drone Threats appeared first on Flashpoint.

How American Political Campaigns Are Using AI—and What They’re Spending on the Tools

2 October 2026 at 13:02

This essay was written with Nathan E. Sanders, and originally appeared in The Guardian.

New campaign finance disclosure data shines a light on which US political campaigns are using AI tools and how much they are spending on them.

Candidates’, parties’ and committees’ spending reveals that AI is fast becoming an essential tool of politics. The candidates themselves are quiet about how they are using the technology in their own campaigns. It’s a sensitive issue that we have been tracking closely since we started writing our book, Rewiring Democracy, which examined how AI is beginning to influence politics. A September 2025 Pew survey of Americans found that more than 70% would think less of a candidate if they used AI to help write a speech.

Itemized expenditure disclosure data from the US Federal Election Commission, dating back to 2020, reveals at least $17m in disclosed spending on AI technology vendors across 523 federal candidates and campaigns. Data from four states, California, Colorado, Massachusetts and Washington, provides a more localized picture going back to 2022.

Beginning with the AI behemoths, at least 80 federal campaigns and committees have reported spending with OpenAI since 2024. The total spending is not huge: only about $50,000 reported, skewing slightly more Republican than Democratic. The Republican National Committee is the largest overall buyer, with nearly $10,000 in reported expenses. Top individual users include the campaigns of Republicans Mike Lawler, John Kennedy and Bill Cassidy, as well as the California Democrats Ro Khanna and Ted Lieu. Most of these expenses are listed as office expenses, subscriptions to ChatGPT for staff, or research tools, rather than as specific political services. The company’s policies prohibit some political uses of their ChatGPT tool.

OpenAI’s biggest competitor, Anthropic, has rapidly built a similar level of usage, but with a different split. At least 65 candidates or committees now report paying the Claude maker in 2026, up from essentially zero in previous years, with a nearly two-to-one Democrat-to-Republican ratio. However, the largest individual user is the campaign of Tom Cotton, a Republican senator from Arkansas, who reported more than $4,000 in spend on Anthropic software in his June filing. Other major users are the Montana independent Senate candidate Seth Bodnar and Jason Knapp, who lost a Democratic House primary in Virginia, and the Democratic Alaska Senate candidate Mary Peltola.

Candidates use either Claude or ChatGPT, rarely both, according to the disclosures. Only about 12% of campaigns or committees using either tool reported expenditures to both vendors. The Democratic lean of Anthropic usage may reflect the company’s alleged liberal skew and clashes with the Trump administration.

In contrast, Elon Musk’s xAI caters to Republican interests and, accordingly, its meager usage comes almost entirely from the political right. Just seven federal and two state-level candidates or committees have reported paying xAI, a total of about $5,000, the majority of which was spent by the presidential campaign of RFK Jr in 2024, but also includes Republicans Dave McCormick and Thomas Massie.

More dollars go to the vendors specializing in political campaign applications of AI. For years, AmplifAI, which provides automated text messaging, essentially a new iteration on robocalling technology, was a dominant target of spending, soaking up $4.7m in campaign spending in the 2022 cycle alone. It was used heavily by Democratic candidates including Mark Kelly, Joe Biden, Bernie Sanders and Adam Schiff. Spending on AmplifAI, now owned by the troubled media conglomerate Triller, seems to have tapered off in the years since 2022.

The new rising Democratic solution for AI-powered text messaging is Daisychain, which has so far garnered about $300,000 in reported candidate spend in the 2026 cycle—up from only about $50,000 reported in 2024. More than half of this year’s spending comes from the Senate campaign of Democrat Abdul El-Sayed in Michigan.

The closest equivalent on the Republican side has been Campaign Nucleus, associated with former Trump campaign manager Brad Parscale. The AI-powered voter engagement tool has attracted six-figure spending from the Republican National Committee, multiple PACs aligned with Donald Trump, and five-figure investments from Mike Johnson, Kari Lake and other candidates. It is displacing the legacy Republican-serving texting vendor Prompt.io, which has retained about $375,000 in 2026 spending to date, down from more than $500,000 in the 2022 cycle. But it continues to be used: the A More Affordable California PAC sponsored by Uber has single-handedly spent more than $1m on Prompt.io in 2026. The Republican Massachusetts gubernatorial nominee Michael Minogue has been a recurring customer, as has the failed Republican California gubernatorial candidate Ché Ahn and Republican-aligned Super PAC Neighbors for a Better Colorado.

At the state level

At the state level, the AI spending is smaller but growing fast. Across the four states studied, we found a total of at least $92,000 in spending confidently attributable to modern generative AI vendors since 2022. The spending is spread across at least 108 candidates and committees. The growth has been explosive; there has already been about 10 times the amount of state-level AI spending reported in 2026 as there was in all of 2024.

Much of the state spending mirrors federal patterns. Daisychain again has the highest overall spend, and OpenAI and Claude dominate among the general-purpose AI vendors. DonorAtlas—the AI-powered prospect research tool—sticks out for its usage in these states, sitting behind only Daisychain and OpenAI and buoyed up by nearly $4,000 in spending by the California Democratic party.

Even though it has dominated so much media conversation, few candidates seem to be reporting spending on AI tools designed specifically to create synthetic audio and video, also known as “deepfakes”. We found just six federal candidates or committees reporting spending on the popular AI audio generator tool from ElevenLabs, with total spending of about $1,400 led by independent candidate for Colorado’s sixth congressional district Samir Witta. The AI image generator service Midjourney has five reported federal campaign or committee users reporting about $1,600, led by Sholdon Daniels, the Republican primary runner-up in the Texas 30th district. Combined, those two firms had less than $100 in reported spend across the four states.

However, recent data from the Wesleyan Media Project shows that at least 164 political ads in this cycle have included AI-generated media, supported by at least $80m in ad spending. What this illustrates is that candidate and committee disclosure reports are just the tip of the iceberg. They don’t cover spending on AI by political consultants, media firms and other vendors hired by the campaigns or by PACs, or independent committees raising and spending money aimed at boosting candidates’ campaigns. Those entities aren’t required to disclose detailed expenditure reports, and are very likely where the bulk of campaign AI usage is happening.

Since a large fraction of all spending in the campaign cycle will happen in the final weeks leading to November, much remains to be seen about the totality of how campaigns will leverage AI and what impact its use will have on voters’ decisions.

Shadow AI explained: The work shortcut that could leak your company’s secrets

1 October 2026 at 16:05

Using an AI chatbot, assistant, or browser to speed up your work is tempting, but doing it without your employer’s knowledge can put sensitive data at risk.

You’re swamped, so you paste a long email thread into a free chatbot and ask for a summary. It works, it saves an hour, and nobody notices. But the thread may contain customer details or confidential plans you’ve just shared with an outside service.

If your employer hasn’t approved that tool or how you’re using it, that’s shadow AI.

The UK’s National Cyber Security Centre (NCSC) defines shadow AI as:

“the use of AI technology which isn’t captured in an organisation’s approved systems and processes.”

A Microsoft study published in 2025 found that 71% of UK employees surveyed said they had used AI tools at work their employer hadn’t approved. Most people aren’t doing this to cause trouble. They want to get their work done faster, and the tools are right there.

Shadow AI isn’t limited to chatbots. It can also be:

  • A browser extension that “improves your writing.”
  • A meeting-notes bot that joins your calls.
  • An AI feature quietly switched on inside an app you already use.
  • A small automation you built yourself that sends data to an AI service.

AI features are appearing in search engines, email apps, and phones. Instead of a helpful list of links, Google now tries to answer your question. Microsoft’s Copilot drafts replies to your boss before you’ve had coffee. Your phone summarizes conversations you don’t even remember having. That makes it easy to start using one without checking whether it’s approved for work.

Why it worries IT and security teams

When you enter data into a public AI tool, it leaves your company’s control. The service may keep that data or use it to improve its models, unless specific privacy controls are in place. That can lead to data breaches, lost intellectual property, and regulatory problems.

There is also a security angle. AI assistants and agents—tools that can take actions on your behalf—are complex software and can have serious vulnerabilities. If an attacker exploits one, they may gain access to the data and services the tool has.

IBM’s 2025 Cost of a Data Breach research found that one in five organizations reported a breach linked to shadow AI. Only 37% had policies to manage AI or detect shadow AI. Organizations with a lot of shadow AI paid roughly $670,000 more per breach.

In a survey of our newsletter readers, 90% of respondents said they were worried about AI using their data without consent. Company data deserves the same care as your own.

How to use AI more safely at work

You don’t need to avoid AI altogether. Think carefully about which apps and services you use before you share data. Start by talking to your employer, then follow these steps:

  • Ask for an approved tool. Security leaders say the best way to reduce shadow AI is to offer something better and safer, such as an enterprise AI platform with guardrails.
  • Use your work account, not a personal one. Work accounts are the ones your IT team can protect and govern.
  • Find out what’s off-limits. Customer details, financial data, HR records, source code, and confidential meeting content may be restricted. Ask which kinds of data you may and may not use with AI.
  • Check the privacy settings. Look at whether the tool stores your inputs or uses them to train its models.
  • Register your use case. Many organizations keep a list of approved AI tools and uses. A quick approval process makes it easier to stay on the right side of the rules.
  • Be careful with agents and plug-ins. Tools that connect to your email, files, or calendar should be reviewed by your IT or security team first.
  • Speak up. If the approved tools aren’t meeting your needs, say so. The NCSC recommends open conversations about security to help reduce reliance on unapproved tools.

If you manage a team, remember that banning AI outright tends to push the use further out of sight. Find out why people are turning to unapproved tools. Providing useful, approved options and clear rules can help staff work faster while protecting company data.


Browse like no one’s watching. 

Malwarebytes Privacy VPN encrypts your connection and never logs what you do, so the next story you read doesn’t have to feel personal. Try it free → 

Shadow AI explained: The work shortcut that could leak your company’s secrets

1 October 2026 at 16:05

Using an AI chatbot, assistant, or browser to speed up your work is tempting, but doing it without your employer’s knowledge can put sensitive data at risk.

You’re swamped, so you paste a long email thread into a free chatbot and ask for a summary. It works, it saves an hour, and nobody notices. But the thread may contain customer details or confidential plans you’ve just shared with an outside service.

If your employer hasn’t approved that tool or how you’re using it, that’s shadow AI.

The UK’s National Cyber Security Centre (NCSC) defines shadow AI as:

“the use of AI technology which isn’t captured in an organisation’s approved systems and processes.”

A Microsoft study published in 2025 found that 71% of UK employees surveyed said they had used AI tools at work their employer hadn’t approved. Most people aren’t doing this to cause trouble. They want to get their work done faster, and the tools are right there.

Shadow AI isn’t limited to chatbots. It can also be:

  • A browser extension that “improves your writing.”
  • A meeting-notes bot that joins your calls.
  • An AI feature quietly switched on inside an app you already use.
  • A small automation you built yourself that sends data to an AI service.

AI features are appearing in search engines, email apps, and phones. Instead of a helpful list of links, Google now tries to answer your question. Microsoft’s Copilot drafts replies to your boss before you’ve had coffee. Your phone summarizes conversations you don’t even remember having. That makes it easy to start using one without checking whether it’s approved for work.

Why it worries IT and security teams

When you enter data into a public AI tool, it leaves your company’s control. The service may keep that data or use it to improve its models, unless specific privacy controls are in place. That can lead to data breaches, lost intellectual property, and regulatory problems.

There is also a security angle. AI assistants and agents—tools that can take actions on your behalf—are complex software and can have serious vulnerabilities. If an attacker exploits one, they may gain access to the data and services the tool has.

IBM’s 2025 Cost of a Data Breach research found that one in five organizations reported a breach linked to shadow AI. Only 37% had policies to manage AI or detect shadow AI. Organizations with a lot of shadow AI paid roughly $670,000 more per breach.

In a survey of our newsletter readers, 90% of respondents said they were worried about AI using their data without consent. Company data deserves the same care as your own.

How to use AI more safely at work

You don’t need to avoid AI altogether. Think carefully about which apps and services you use before you share data. Start by talking to your employer, then follow these steps:

  • Ask for an approved tool. Security leaders say the best way to reduce shadow AI is to offer something better and safer, such as an enterprise AI platform with guardrails.
  • Use your work account, not a personal one. Work accounts are the ones your IT team can protect and govern.
  • Find out what’s off-limits. Customer details, financial data, HR records, source code, and confidential meeting content may be restricted. Ask which kinds of data you may and may not use with AI.
  • Check the privacy settings. Look at whether the tool stores your inputs or uses them to train its models.
  • Register your use case. Many organizations keep a list of approved AI tools and uses. A quick approval process makes it easier to stay on the right side of the rules.
  • Be careful with agents and plug-ins. Tools that connect to your email, files, or calendar should be reviewed by your IT or security team first.
  • Speak up. If the approved tools aren’t meeting your needs, say so. The NCSC recommends open conversations about security to help reduce reliance on unapproved tools.

If you manage a team, remember that banning AI outright tends to push the use further out of sight. Find out why people are turning to unapproved tools. Providing useful, approved options and clear rules can help staff work faster while protecting company data.


Browse like no one’s watching. 

Malwarebytes Privacy VPN encrypts your connection and never logs what you do, so the next story you read doesn’t have to feel personal. Try it free → 

Losing gamblers pushed to bet more by DraftKings’ AI, report says

1 October 2026 at 10:53

Two separate investigations have raised concerns about betting site DraftKings’ marketing to target problem gamblers, including its use of AI. On September 19, the New York Times reported that the company’s machine learning model targeted people who were more likely to respond to betting promotions by gambling and losing more money.

The model crunched data on each customer, including how often they bet, how much they lost, and what their daily account balances were. According to the report, it used this information to send targeted advertising to lure those people back to the site with promotions. DraftKings uses promotions to entice users into betting more. These offers include profit boosts on winnings.

At news nonprofit ProPublica, journalist Jake Pearson made himself an experimental subject. He spent thousands of dollars betting on the DraftKings app in an experiment to see how the company’s marketing would play out. He reported receiving more promotions as his losses mounted.

After he lost nearly $1,800 betting on basketball in a single evening, DraftKings invited him to a VIP tryout. Full membership followed later.

DraftKings would occasionally send automated messages reminding him to bet responsibly, he said. But he found they were no match for the product design pushing him to do more gambling.

DraftKings denied unfair targeting of gambling customers, arguing instead that its promotions reward engagement rather than losses.

The company’s machine learning model, which former insiders say was developed starting in 2023, replaced a cruder system that crunched basic numbers to report on a user’s behavior.

The newer system dug through data on its own, assessing how much individuals would be likely to lose after receiving promotions. It created an “elasticity” score and used it to identify customers likely to lose more in response to offers, the Times said. This would help the company maximize its return on its promotional spending, said former employee Jayden Butts, who helped develop the system. Butts spoke to the Times as part of an investigation that included interviews with over 40 former employees, along with reviews of Slack communications, internal memos, and betting records.

Other employees attempted to get approval for another model at DraftKings. It would analyze gambling activity in a similar way, but with the opposite goal: to flag users whose gambling was getting out of hand and who were at risk of falling into crisis. According to the data scientists interviewed by the Times, the system showed promise at identifying customers who might need help with compulsive gambling, but DraftKings shut the project down after canceling a demo. Later attempts to develop similar systems within the company also failed.

Behavioral ads and gambling harm

Digital rights advocates warn that AI enables companies to process more data faster for digital advertising. The Electronic Frontier Foundation says this:

“supercharges the harms of online behavioral advertising.”

It’s particularly damaging when advertising encourages addictive behaviors such as gambling.

And online betting looks set to expand. Companies including DraftKings are now running online casino games in select jurisdictions, while prediction markets that allow people to trade forecasts on specific events are also flourishing.

The statistics on gambling are alarming. The World Health Organization estimates that 1.2% of the world’s adult population has a gambling disorder, and that people betting at harmful levels generate around 60% of gambling losses. People struggling with gambling might find it difficult enough to stay away from gambling venues, but mobile gambling apps with hard-to-ignore push notifications and emails can increase the temptation.

What users can do

If you gamble, monitor your gambling activity and set limits, avoid chasing losses, give yourself timeouts from gambling, and talk to someone if you’re struggling with compulsive gambling.

In the US, the National Problem Gambling Helpline connects people with support and local resources via phone and online chat. In the UK, GamCare’s National Gambling Helpline provides 24/7 phone support and other resources.


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