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AI labs have a data trust problem that their policies haven't solved
Nvidia, Palantir, and Booz Allen restrict Anthropic's Fable over data-retention distrust, exposing gaps in AI labs' customer data policies.
Nvidia limits Anthropic's Fable to non-sensitive work and runs its own Nemotron models for internal tasks, while Palantir blocks Fable deployment until Anthropic grants irrevocable zero-data-retention guarantees, and Booz Allen bans it for proprietary cybersecurity work. John Schulman and researcher Sarah Hooker explain that labs can still extract customer IP from metadata, user traces, and synthetic data even under zero data retention. The trust crisis crystallized around Tristan Buckmaster's accusation that OpenAI's Codex absorbed his Navier-Stokes drafts, though OpenAI later stated his prompts could not have influenced its model.
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New CISO appointments 2026
Companies including Mistral AI, Trellix, Marriott, and ANZ appointed new CISOs in July-September 2026 amid high security-leadership turnover.
CSO Online's rolling column tracks senior security appointments, noting many companies are hiring a CSO/CISO for the first time. Notable moves include Thomas Coudray leaving Ledger to become Mistral AI's CISO, David Soto joining Trellix from Amazon, and Daniel Dubowski becoming Marriott International's SVP and CISO. Other appointments span ANZ, Gigamon, Axonius, Tricentis, Remitly, Allied Universal, and the State of California.
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Risky Bulletin: BEC campaign steals €35 million from French notaries
Hackers stole over €35 million from 500+ French notary offices in a four-year BEC campaign; ANSSI spent two years helping evict the attackers.
A business email compromise campaign breached more than 500 French notary offices — about 7% of all French notaries per the Conseil Supérieur du Notariat — over four years, stealing more than €35 million by phishing initial access and silently modifying wire transfer details. France's cybersecurity agency ANSSI worked for two years behind the scenes to help notaries remove the persistent attackers, who had deep access; officials also feared hackers could issue fake notarized acts such as marriage certificates or forged real estate deals. No forged documents have been found so far, but notaries have added two-factor authentication and in-person requirements for banking details, and banks added extra checks in 2024. The newsletter also notes other incidents, including a $320 million Bitcoin extraction from Blockstream's Liquid Network and a JetBrains Cadence breach via TeamCity servers.
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HiddenLayer nabs $100M as enterprises rush to secure their AI deployments
AI security startup HiddenLayer raised a $100 million Series B led by Delta-v Capital as enterprise spending on securing AI deployments accelerates.
HiddenLayer, which protects AI models, agents, and workflows from adversarial attacks, vulnerabilities, and code injections, raised a $100 million Series B led by Delta-v Capital with participation from Ten Eleven Ventures, Morgan Stanley, Microsoft's M12, and Booz Allen Hamilton. The company says annual recurring revenue grew more than 10x to the tens of millions of dollars, with customers including the Department of Defense, the intelligence community, and a frontier model provider with over 700 million weekly users. Gartner estimates enterprise spending on AI security products will reach $2.83 billion in 2026, up 83% from 2025, and nearly $4.78 billion next year.
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Bisonal Malware Used in Attacks Against Russia and South Korea
Unit 42 details a Bisonal malware variant, active since 2014, targeting Russian and South Korean defense organizations via PDF-disguised spearphishing emails.
In early May, Unit 42 discovered a campaign delivering a Bisonal malware variant against at least one Russian communications security and cryptography company and one unidentified organization in South Korea. The variant, in the wild since at least 2014, introduces a new C2 cipher and rewritten networking and persistence code, with only 14 samples collected to date. Attackers spoofed Russian state corporation Rostec in spearphishing emails carrying an executable disguised with a PDF icon; the dropper decrypts an RC4-encrypted DLL and establishes persistence via a registry Run key. Bisonal has been used since 2013 against government, military, and defense targets in South Korea, Russia, Japan, and India, alongside successors Bioazih and Dexbia.
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Week in review: Microsoft fixes exploited Office zero-day, Fortinet patches FortiCloud SSO flaw
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