Microsoft details threat from new AI jailbreaking method

Microsoft has warned about a new jailbreaking technique called Skeleton Key, which can prompt AI models to disclose harmful information by bypassing their behavioural guidelines. Detailed in a report published on 26 June, Microsoft explained that Skeleton Key forces AI models to respond to illicit requests by modifying their behavioural guidelines to provide a warning rather than refusing the request outright. A technique like this, called Explicit: forced instruction-following, can lead models to produce harmful content.

The report highlighted an example where a model was manipulated to provide instructions for making a Molotov cocktail under the guise of an educational context. The prompt allowed the model to deliver the information with only a prefixed warning by instructing the model to update its behaviour. Microsoft tested the Skeleton Key technique between April and May 2024 on various AI models, including Meta LLama3-70b, Google Gemini Pro, and GPT 3.5 and 4.0, finding it effective but noting that attackers need legitimate access to the models.

Microsoft has addressed the issue in its Azure AI-managed models using prompt shields and has shared its findings with other AI providers. The company has also updated its AI offerings, including its Copilot AI assistants, to prevent guardrail bypassing. Furthermore, the latest disclosure underscores the growing problem of generative AI models being exploited for malicious purposes, following similar warnings from other researchers about vulnerabilities in AI models.

Why does it matter?

In April 2024, Anthropic researchers discovered a technique that could force AI models to provide instructions for constructing explosives. Earlier this year, researchers at Brown University found that translating malicious queries into low-resource languages could induce prohibited behaviour in OpenAI’s GPT-4. These findings highlight the ongoing challenges in ensuring the safe and responsible use of advanced AI models.

EU Commission opens €210m fund for cybersecurity and digital skills initiatives

The European Commission has opened the application process to fund cybersecurity and digital skills initiatives, exceeding a €210m ($227.3m) investment under the Digital Europe Programme (DEP). Established in 2021, the DEP aims to contribute to the digital transformation of the EU’s society and economy, with a planned total budget of €7.5bn over seven years. It funds critical strategic areas such as supercomputing, AI, cybersecurity, and advanced digital skills to advance this vision.

In the latest funding cycle, the European Commission will allocate €35m ($37.8m) towards projects safeguarding large industrial installations and critical infrastructures. An additional €35m will be designated for implementing cutting-edge cybersecurity technologies and tools.

Furthermore, €12.8m ($13.8m) will be invested in establishing, reinforcing, and expanding national and cross-border security operation centres (SOCs). The initiative aligns with the proposed EU Cyber Solidarity Act, which aims to establish a European Cybersecurity Alert System to enhance the detection, analysis, and response to cyber threats. The envisioned system will consist of cross-border SOCs using advanced technologies like AI to share threat intelligence with authorities across the EU swiftly.

Moreover, the DEP will allocate €20m to assist member states in complying with the EU cybersecurity laws and national cybersecurity strategies. That includes the updated NIS2 Directive, which mandates strengthening cybersecurity measures in critical sectors and requires it to be transposed into national legislation by October 2024.

Finally, the latest DEP funding round will also allocate €55m ($59.5m) towards advanced digital skills, supporting the design and delivery of higher education programs in key digital technology domains. Additionally, €8m ($8.6m) will be directed towards European Digital Media Observatories (EDMOs) to finance independent regional hubs focused on analysing and combating disinformation in digital media.

IBM and Microsoft expand cybersecurity partnership for enhanced cloud protection

IBM Consulting and Microsoft have expanded their long-standing partnership to help clients modernise their cybersecurity operations and manage hybrid cloud identities. As businesses increasingly adopt hybrid cloud and AI technologies, protecting valuable data has become critical.

IBM Consulting integrates its cybersecurity services with Microsoft’s security technology portfolio to modernise end-to-end security operations. The collaboration aims to provide tools and expertise to protect data through cloud solutions, ultimately driving business growth. Mark Hughes, Global Managing Partner of Cybersecurity Services at IBM Consulting, emphasises that ‘security must be a foundational part of every organisation’s core operations.’

IBM’s Threat Detection and Response (TDR) Cloud Native service combines Microsoft Sentinel, Microsoft Defender XDR, and Microsoft Defender for Cloud with AI-powered security technologies to accelerate threat detection and response. IBM’s global team of security analysts provides 24/7 monitoring and investigation of security alerts across clients’ hybrid cloud environments, maximising the value of Microsoft’s end-to-end security solutions.

AI Innovation Challenge launched to combat cybercrime in the UK

The City of London Corporation, London and Partners and Microsoft have launched an AI Innovation Challenge, where participants will vie to spot and stop cybercriminals using fake identities and audio and visual deepfakes to commit fraud. With the increase of such events and the ubiquity of GenAI models, Nvidia, the multinational AI chip-maker, is increasingly becoming the modern-day Standard Oil. Nvidia’s chips can be found in just about all areas of economic activity, from education to medicine and in nearly all financial and professional services.

With its growing usage, its potential for fighting cybercrime increases, given its ability to analyse vast amounts of data rapidly, decipher patterns, and ultimately lead to higher fraud detection rates and greater trust in and securitise customer services. Banks in the United Kingdom lead the way in AI adoption, particularly as some 90 percent of them have already onboarded generative AI models to their asset portfolios.

Participants of the AI Innovation Challenge have until 26 July 2024 to register for the competition, which is scheduled for six weeks between September and November. The final event promises to be a display of fraud detection and other cybersecurity innovations developed during the course of the competition.

AI-generated Elon Musk hijacks Channel Seven’s YouTube

Channel Seven is currently investigating a significant breach on its YouTube channel, where unauthorised content featuring an AI-generated deepfake version of Elon Musk was streamed repeatedly. The incident on Thursday involved the channel being altered to mimic Tesla’s official presence. Viewers were exposed to a fabricated live stream where the AI-generated Musk promoted cryptocurrency investments via a QR code, claiming a potential doubling of assets.

During the stream, the fake Musk engaged with an audience, urging them to take advantage of the purported investment opportunity. The footage also featured a chat box from the fake Tesla page, displaying comments and links that further promoted the fraudulent scheme. The incident affected several other channels under Channel Seven’s umbrella, including 7 News and Spotlight, with all content subsequently deleted from these platforms.

A spokesperson from Channel Seven acknowledged the issue, confirming they are investigating alongside YouTube to resolve the situation swiftly. The network’s main YouTube page appeared inaccessible following the breach, prompting the investigation into how the security lapse occurred. The incident comes amidst broader challenges for Seven West Media, which recently announced significant job cuts as part of a cost-saving initiative led by its new CEO.

Why does it matter?

The breach underscores growing concerns over cybersecurity on social media platforms, particularly as unauthorised access to high-profile channels can disseminate misleading or harmful information. Channel Seven’s efforts to address the issue highlight the importance of robust digital security measures in safeguarding against such incidents in the future.

BlackBerry surpasses revenue expectations, driven by cybersecurity demand

BlackBerry surpassed expectations for Q1 revenue by reporting $144 million, exceeding the estimated $134.1 million by analysts. The Canadian firm credits this achievement to a strong demand for cybersecurity services in response to rising online threats.

Looking ahead to Q2, BlackBerry forecasts revenue between $136 million and $144 million, with its cybersecurity division expected to contribute $82 million to $86 million. Furthermore, BlackBerry’s collaboration with AMD to develop robotic systems for industrial and healthcare applications indicates its diversification beyond cybersecurity.

Why does it matter?

Recent significant data breaches in sectors like automotive and healthcare have intensified the need for enhanced cybersecurity measures, benefiting companies like BlackBerry. Despite a general slowdown in tech spending, these security concerns are prompting organisations and governments to strengthen their defences, thereby boosting BlackBerry’s performance.

Central banks urged to embrace AI

The Bank for International Settlements (BIS) has advised central banks to harness the benefits of AI while cautioning against its use in replacing human decision-makers. In its first comprehensive report on AI, the BIS highlighted the technology’s potential to enhance real-time data monitoring and improve inflation predictions – capabilities that have become critical following the unforeseen inflation surges during the COVID-19 pandemic and the Ukraine crisis. While AI models could mitigate future risks, their unproven and sometimes inaccurate nature makes them unsuitable as autonomous rate setters, emphasised Cecilia Skingsley of the BIS. Human accountability remains crucial for decisions on borrowing costs, she noted.

The BIS, often termed the central bank for central banks, is already engaged in eight AI-focused projects to explore the technology’s potential. Hyun Song Shin, the BIS’s head of research, stressed that AI should not be seen as a ‘magical’ solution but acknowledged its value in detecting financial system vulnerabilities. However, he also warned of the risks associated with AI, such as new cyber threats and the possibility of exacerbating financial crises if mismanaged.

The widespread adoption of AI could significantly impact labour markets, productivity, and economic growth, with firms potentially adjusting prices more swiftly in response to economic changes, thereby influencing inflation. The BIS has called for the creation of a collaborative community of central banks to share experiences, best practices, and data to navigate the complexities and opportunities presented by AI. That collaboration aims to ensure AI’s integration into financial systems is both effective and secure, promoting resilient and responsive economic governance.

In conclusion, the BIS’s advisory underscores the importance of balancing AI’s promising capabilities with the necessity for human intervention in central banking operations. By fostering an environment for shared knowledge and collaboration among central banks, the BIS seeks to maximise AI benefits while mitigating inherent risks, thereby supporting more robust economic management in the face of technological advancements.

EU cybersecurity exercise organised to test energy sector’s cyber resilience

The 7th edition of Cyber Europe, organised by the European Union Agency for Cybersecurity (ENISA), tested the resilience of the EU energy sector, highlighting cybersecurity as an increasing threat to critical infrastructure. In 2023, over 200 cyber incidents targeted the energy sector, with more than half aimed specifically at Europe, underscoring the sector’s vulnerability due to its crucial role in the European economy.

Juhan Lepassaar, Executive Director of ENISA, highlighted the exercise’s role in enhancing preparedness and response capacities to protect critical infrastructure, essential for the single market’s stability.

According to ENISA’s Network and Information Security (NIS) Investments report, 32% of energy sector operators lack Security Operations Center (SOC) monitoring for critical Operation Technology (OT) processes, while 52% integrate OT and Information Technology (IT) under a single SOC.

This year’s Cyber Europe exercise focused on a scenario involving cyber threats to EU energy infrastructure amidst geopolitical tensions. Over two days, stakeholders from 30 national cybersecurity agencies and numerous EU bodies collaborated, developing crisis management skills and coordinating responses to simulated cyber incidents. The exercise, one of Europe’s largest, involved over thousand experts across various domains, facilitated by ENISA, which celebrates its 20th anniversary in 2024.

Japan’s space agency hit by series of cyberattacks, no sensitive data breached, officials confirm

Japan’s Chief Cabinet Secretary Yoshimasa Hayashi confirmed that Japan’s space agency, JAXA, has been targeted by several cyberattacks since late last year. The agency has been investigating the breaches, shutting down affected networks, and verifying that no classified information related to rocket and satellite operations or national security was compromised.

Hayashi also confirmed that hackers are located outside Japan and emphasised Japan’s commitment to enhancing its cybersecurity defences. Amidst increasing military developments in response to China’s growing power, Japan aims to develop a counterstrike capability, though experts believe Tokyo will still rely heavily on the United States for launching long-range missiles.

Defense Minister Minoru Kihara assured the public that the attacks have not impacted his ministry but stated that he is closely monitoring JAXA’s ongoing investigation. As part of the investigation, a portion of the affected JAXA network was temporarily shut down.

JAXA, which develops and launches satellites and is involved in advanced missions like asteroid exploration and potential lunar human exploration, has faced multiple cyber incidents since 2016. That year, it was among 200 Japanese companies and research institutes allegedly targeted by Chinese-speaking military hackers. Last year, unknown hackers also attempted to breach JAXA’s network server but failed to access information critical to the operation of rockets and satellites.

In February 2024, Japan’s cyber official Kazutaka Nakamizo highlighted the increasing cyber threats to the country’s critical infrastructure, particularly from China. However, he did not specify which attacks were believed to be linked to Beijing.

Cybersecurity measures ramp up for 2024 Olympics

Next month, athletes worldwide will converge on Paris for the eagerly awaited 2024 Summer Olympics. While competitors prepare for their chance to win coveted medals, organisers are focused on defending against cybersecurity threats. Over the past decade, cyberattacks have become more sophisticated due to the misuse of AI. However, the responsible application of AI offers a promising countermeasure.

Sports organisations are increasingly partnering with AI-driven companies like Visual Edge IT, which specializes in risk reduction. Although Visual Edge IT does not directly work with the Olympics, cybersecurity expert Peter Avery shared insights on how Olympic organisers can mitigate risks. Avery emphasised the importance of robust technical, physical, and administrative controls to protect against cyber threats. He highlighted the need for a comprehensive incident response plan and the necessity of preparing for potential disruptions, such as internet overload and infrastructure attacks.

The advent of AI has revolutionised both productivity and cybercrime. Avery noted that AI allows cybercriminals to automate attacks, making them more efficient and widespread. He stressed that a solid incident response plan and regular simulation exercises are crucial for managing cyber threats. As Avery pointed out, the question is not if a cyberattack will happen but when.

The International Olympic Committee (IOC) also embraces AI responsibly within sports. IOC President Thomas Bach announced the AI plan to identify talent, personalise training, and improve judging fairness. The Summer Olympics in Paris, which run from 26 July to 11 August, will significantly test these cybersecurity and AI initiatives.