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Microsoft AI Has the Potential to Become an Automated Phishing Scheme

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Microsoft sped up to integrate generative AI into its core systems. The company’s Copilot AI technology can retrieve responses from your emails, Teams chats, and files when you ask questions regarding an upcoming meeting, which might be quite helpful in terms of efficiency. However, hackers may also take advantage of these very procedures.

Researcher Michael Bargury is showcasing five proof-of-concept ways that Copilot, which runs on its Microsoft 365 apps, like Word, can be manipulated by malicious attackers today at the Black Hat security conference in Las Vegas. These ways include using it to provide false references to files, exfiltrate some private data, and evade Microsoft’s security measures.

Arguably, one of the most concerning demonstrations is Bargury’s capacity to transform the AI into an autonomous spear-phishing apparatus. Known as LOLCopilot, the red-teaming code that Bargury developed can, crucially, be used by hackers to see who you regularly email, draft a message that mimics your writing style (including the use of emojis), and send a customized blast that may contain malware or a malicious link once they have access to a target’s work email.

Cofounder and CTO of security firm Zenity Bargury says, “I can do this with everyone you have ever spoken to, and I can send hundreds of emails on your behalf.” Bargury released his research along with videos demonstrating how Copilot may be misused. “A hacker would spend days crafting the right email to get you to click on it, but they can generate hundreds of these emails in a few minutes.”

This example, like other assaults developed by Bargury, primarily operates by utilizing the large language model (LLM) as intended: inputting written queries to obtain information that the AI can acquire. Nevertheless, if it contains extra information or commands to carry out certain tasks, it may have harmful effects. A few of the difficulties in integrating AI systems with corporate data are brought to light by the research, along with the potential consequences of incorporating “untrusted” external data, especially when the AI produces results that appear legitimate.

Among the other assaults that Bargury designed is an example of how a hacker might obtain sensitive data, like people’s salaries, without inadvertently triggering Microsoft’s defenses for sensitive files. This hacker, of course, must first have gained control of an email account. Bargury’s prompt requests that the system not give references to the files from which the data is extracted. Bullying occasionally does assist, according to Bargury.

In other cases, he demonstrates how an attacker can modify responses regarding banking information to reveal their own bank details. This attacker doesn’t have access to email accounts, but instead taints the AI’s database by sending it a malicious email. According to Bargury, “Every time you give AI access to data, that is a way for an attacker to get in,” 

Another example demonstrates how an outside hacker could obtain certain restricted knowledge regarding the potential success or failure of an impending corporate earnings call. The last example, according to Bargury, transforms Copilot into a “malicious insider” by sending users to phishing websites.

Microsoft’s head of AI incident detection and response, Phillip Misner, said the company has been collaborating with Bargury to evaluate the findings and is grateful that he discovered the issue. According to Misner,  “The risks of post-compromise abuse of AI are similar to other post-compromise techniques,” “Security prevention and monitoring across environments and identities help mitigate or stop such behaviors.”

In the last two years, generative AI systems have advanced to the point where, like Google’s Gemini, Microsoft’s Copilot, and OpenAI’s ChatGPT, they may ultimately perform human-like jobs like making reservations for events or making online purchases. But as security experts have shown time and time again, letting outside data into AI systems—for example, by email or by reading content from websites—raises the possibility of indirect trigger injection and poisoning attacks.

As a security researcher and red team director who has widely shown security flaws in AI systems, Johann Rehberger adds, “I think it’s not that well understood how much more effective an attacker can actually become now.” “What we have to be worried [about] now is actually what is the LLM producing and sending out to the user.”

Rehberger cautions in general that a number of data problems may be traced back to the long-standing issue of businesses permitting an excessive number of employees to view files and failing to properly arrange access permissions throughout their enterprises. Rehberger continues, “Now imagine you put Copilot on top of that problem.” He claims to have employed AI systems to look up popular passwords like Password123, and that the algorithms have produced findings from within businesses.

Rehberger and Bargury agree that monitoring the output that an AI generates and transmits to a user needs to be given greater attention. According to Bargury, “The risk is about how AI interacts with your environment, how it interacts with your data, how it performs operations on your behalf,” “You need to figure out what the AI agent does on a user’s behalf. And does that make sense with what the user actually asked for.”

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Google experiments with Android tablets’ desktop windowing

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Google is testing a new feature for Android tablets that would allow you to easily rearrange apps on your screen and resize them, which will facilitate multitasking. Developer previews of the “desktop windowing” functionality are now accessible, and you can even run multiple instances of the app simultaneously if they support it.

At the moment, Android tablet apps always open in full screen mode. Each program will show up in a window with controls to let you move, maximize, or close it when the new mode is enabled. Moreover, your open programs will be listed in a taskbar at the bottom of the screen.

It sounds a lot like Stage Manager for the iPad, which allows you to do the same with windows on your screen, or with almost any desktop operating system. For years, Samsung has also provided its DeX experience, which gives Android apps on Galaxy phones and tablets desktop-like window management.

When the functionality becomes available to all users, you may activate it by tapping and holding the window handle located at the top of an application’s screen. The shortcut meta key (Windows, Command, or Search) + Ctrl + Down can also be used to enter desktop mode if a keyboard is connected. (You can drag a window to the top of your screen to dismiss the mode, or you can close all of your open apps.)

Apps that are locked to portrait orientation can still be resized, according to Google, which could have odd visual effects if some apps aren’t optimized. Google intends to fix this in a later release, though, by scaling non-resizable apps’ user interfaces without changing their aspect ratios.

For the time being, users with the most recent Android 15 QPR1 Beta 2 for Pixel Tablets can access the developer preview.

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Sony Faces Backlash for Pricing PlayStation 5 Pro Well Above Xbox

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Sony Group Corp. has set the price of its new, faster PlayStation 5 Pro at $700, significantly higher than Microsoft’s Xbox Series X, which costs $600. The PlayStation 5 Pro, launching on November 7, comes at a $200 premium over the original PS5, suggesting Sony is targeting a loyal audience willing to pay extra for enhanced performance.

This pricing positions both Sony and Microsoft at the high end of the gaming console market. Four years into their product life cycles, the two most popular home consoles are moving towards premium models. Analysts are split on whether Sony’s pricing strategy will drive sales, especially as it seeks to grow its entertainment portfolio across gaming, anime, and film.

Industry analyst Serkan Toto described the PlayStation 5 Pro as a niche device aimed at hardcore PlayStation users, rather than a mass-market offering. “It’s about Sony skimming the absolute top end of the market,” he said, with the gaming world questioning Sony’s high pricing.

Others speculate that Sony’s pricing strategy is aimed at boosting margins, particularly after recent price hikes in Japan due to rising component costs like chips. The new console will allow for higher resolution and faster frame rates without requiring users to switch between performance modes, delivering 45% faster rendering than the standard PS5, according to lead architect Mark Cerny.

Despite the steep price, some analysts believe Sony could benefit. Citi analyst Kota Ezawa pointed out that no previous game console successor has been priced significantly higher than the original model, and that the PS5 Pro’s improved components may not justify such a big price jump. Nevertheless, the higher price could enhance Sony’s gross margins.

The PlayStation 5, which has sold over 59 million units since its 2020 release, has slightly lagged behind the PlayStation 4. The increased cost of the PS5 Pro may narrow its appeal, as the price edges closer to that of a gaming PC—one of the console market’s biggest competitors.

Reviewers also highlighted the lack of a disc drive in the new model, reflecting a broader industry shift from physical media to digital content. A disc drive will be available separately for purchase.

In a blog post, Sony announced that the PS5 Pro would enhance the performance of older titles, with several popular games such as Hogwarts Legacy, Final Fantasy VII Rebirth, and Spider-Man 2 receiving free updates to take advantage of the console’s new features.

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Apple’s iPhone 16 Launch: A Crucial Test for Consumer AI

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Apple is set to unveil its highly anticipated iPhone 16 lineup on Monday, Sept. 9, during its annual event at its Cupertino headquarters. The keynote, led by CEO Tim Cook, is expected to introduce not only the new iPhones but also the 10th anniversary Apple Watch and updated AirPods.

While the hardware lineup is impressive, Wall Street’s focus is elsewhere—on Apple’s generative AI platform, Apple Intelligence. This AI initiative, designed for iPhones, iPads, and Macs, represents Apple’s major push into the consumer AI space. Initially, investors were concerned about the company’s delay in launching AI compared to Microsoft and Google. However, after the platform was revealed at Apple’s WWDC conference in June, the company’s stock surged by 15%, outperforming tech giants like Microsoft, Amazon, and Google.

Apple Intelligence is now positioned as a key feature of the new iPhones, particularly those from the iPhone 15 Pro and newer models. Analysts believe this exclusivity will drive iPhone sales, with Morgan Stanley’s Erik Woodring predicting AI as a major factor in boosting the iPhone replacement cycle.

However, Apple Intelligence might be more than just a sales driver—it could shape consumer perceptions of generative AI itself.

Apple’s AI Ambitions

Apple’s upcoming event makes it clear that AI is front and center. From the tagline “It’s Glowtime” to the colorful logo reminiscent of Siri’s new look, the company is signaling a major AI focus.

The AI features Apple is integrating into its ecosystem are extensive. Users can expect tools that summarize text conversations, prioritize emails, enhance Siri’s capabilities, and offer access to OpenAI’s ChatGPT. Additional features like AI-powered proofreading and email optimization will also be part of the package, along with new apps developed to leverage AI through Apple’s hardware.

Wedbush analyst Dan Ives forecasts that Apple’s AI integration could bring in an extra $10 billion in annual services revenue, potentially boosting the company’s market cap to $4 trillion.

Though competitors like Samsung and Google have also introduced AI in their devices, Apple’s approach seems more compelling. Its June event showcased how seamlessly AI integrates into its ecosystem, making the technology feel more personal and essential compared to the offerings from Samsung’s Galaxy AI and Google’s Gemini platform.

The AI Risk

However, Apple faces challenges in ensuring Apple Intelligence’s success. The AI needs to avoid errors like those seen in Google’s AI tools, which have been criticized for providing bizarre recommendations. More importantly, Apple must prove that its AI is something consumers will genuinely want to use, rather than just a rushed feature aimed at appeasing investors.

As Apple ventures deeper into AI, its success or failure could shape the future of generative AI for everyday consumers.

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