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When AI quietly breaks things, who pays?
Reed Smith partner David Halbreich explains how AI companies can avoid D&O/E&O coverage gaps around mergers, governance warranties, and claims timing.
In an interview, insurance recovery partner David Halbreich of Reed Smith outlines insurance pitfalls for AI companies under claims-made D&O and E&O policies. He highlights 'straddle' claims after mergers that fall between tail coverage and go-forward policies, potentially leaving policyholders with no coverage. He also warns that governance artifacts submitted in insurance applications, such as bias testing records and model cards, can become warranties carriers use to deny claims, and discusses who should answer AI-use questions and how business interruption coverage applies to cloud and compute vendor outages.
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When scanners miss the attack: how Cloudflare Client-Side Security protects storefronts
Cloudflare's Page Shield ML uncovered four malicious JavaScript campaigns on storefronts, including affiliate fraud and a remote-backdoor script, that VirusTotal and URLScan missed.
Cloudflare's Page Shield ML detected four client-side JavaScript operations (eight payloads) in live traffic on online storefronts, enabling affiliate commission hijacking, clickless affiliate theft via hidden iframes, user tracking with a remote-code backdoor, and cloaking of paid mobile visitors. Seven of the eight payloads were absent from VirusTotal and URLScan returned no malicious verdict for any, including a Lnkr-family payload indexed unclassified for roughly 2.5 years. Detection relies on a graph neural network over JavaScript syntax trees, an LLM second opinion on Workers AI, and a frontier-model ensemble voting across benign, magecart, other malware, and cryptomining labels.
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I've factored the RSA keys of a Certificate Authority from the 90s
Security researcher factored two 512-bit RSA root CA keys from defunct 1990s certificate authority E-Certify using CADO-NFS on a desktop in roughly 30 hours each.
A researcher extracted legacy root certificates from archived Netscape and Internet Explorer installers, identifying two 512-bit RSA roots shipped with Netscape 4.51 in 1999 by the defunct Canadian CA E-Certify. Using CADO-NFS on a Ryzen 9 5950X desktop, the keys were factored in 32 and 29 hours respectively, allowing private key reconstruction. The work comes shortly after RSA-260 (862-bit) was factored, the largest known factorization to date. The researcher also built a legacy TLS server and published keys and tools on GitHub.
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Claude Fable 5.1 Solves the Cyphral Distich, a 370-year-old cipher
Claude Fable 5.1 solved Sir Thomas Urquhart's 370-year-old Cyphral Distich cipher, recovering a hidden royalist prayer for Charles II.
Vals AI reports that Claude Fable 5.1 solved the Cyphral Distich, a 64-number cryptogram from Sir Thomas Urquhart's Logopandecteision unsolved since 1653, in 44 minutes using 176k tokens with no human hints. The key insight was that the cipher's key was the book itself: each number indexes a word in the corresponding Proquiritation, taking the first letter, yielding 'O GOD UPHOLD KING CHARLS THE SECOND AND MAKE HIM THE SUPREME RULER OF THIS LAND'. The model also deciphered the larger Cyphral Octastich (285 numbers) from The Jewel (1652) using page-based word indexing, recovering all but nine letters of a royalist prayer. The puzzle had been listed among Klaus Schmeh's Top 50 unsolved encrypted messages.
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SloppyRAT: A New Tool For Ransomware Attacks
Zscaler details SloppyRAT, a new DLL backdoor delivered via ClickFix lures that stages CastleLoader and CastleRAT ahead of ransomware attacks.
Zscaler ThreatLabz analyzed SloppyRAT, a DLL-based backdoor distributed via ClickFix lures that abuses finger.exe over TCP port 79 to download a batch script. The malware copies curl.exe to download IronPython 3.4.2 from GitHub and executes zlib-compressed Base64-encoded Python to deploy CastleLoader and CastleRAT, then reflectively loads SloppyRAT in memory. It hinders analysis using XOR stack-string obfuscation, a modified affine cipher with modulus 127, and 13 runtime-decrypted code blocks, while communicating with C2 over a reverse SOCKS channel.
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