The AI Fix #27: Why is AI full of real-life Bond villains?

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In episode 27 of The AI Fix, robots catch a ball, lead a revolt, and enjoy a juicy steak. Or do they? Graham struggles with a Micro USB cable, a student struggles with a school’s anti-AI rules, and OpenAI’s Sora video generation AI is leaked by hacktivists.

Graham circles back into an outside-the-box deep-dive where he synergises the low-hanging paradigm shift on a Zoom call with himself, and Mark wonders why we’re suddenly awash with real-life Bond villains.

All this and much more is discussed in the latest edition of “The AI Fix” podcast by Graham Cluley and Mark Stockley.

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Why Phishers Love New TLDs Like .shop, .top and .xyz

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Phishing attacks increased nearly 40 percent in the year ending August 2024, with much of that growth concentrated at a small number of new generic top-level domains (gTLDs) — such as .shop, .top, .xyz — that attract scammers with rock-bottom prices and no meaningful registration requirements, new research finds. Meanwhile, the nonprofit entity that oversees the domain name industry is moving forward with plans to introduce a slew of new gTLDs.

Image: Shutterstock.

A study on phishing data released by Interisle Consulting finds that new gTLDs introduced in the last few years command just 11 percent of the market for new domains, but accounted for roughly 37 percent of cybercrime domains reported between September 2023 and August 2024.

Interisle sources data about cybercrime domains from anti-spam organizations, including the Anti-Phishing Working Group (APWG), the Coalition Against Unsolicited Commercial Email (CAUCE), and the Messaging, Malware, and Mobile Anti-Abuse Working Group (M3AAWG).

The study finds that while .com and .net domains made up approximately half of all domains registered in the past year (more than all of the other TLDs combined) they accounted for just over 40 percent of all cybercrime domains. Interisle says an almost equal share — 37 percent — of cybercrime domains were registered through new gTLDs.

Spammers and scammers gravitate toward domains in the new gTLDs because these registrars tend to offer cheap or free registration with little to no account or identity verification requirements. For example, among the gTLDs with the highest cybercrime domain scores in this year’s study, nine offered registration fees for less than $1, and nearly two dozen offered fees of less than $2.00. By comparison, the cheapest price identified for a .com domain was $5.91.

Currently, there are around 2,500 registrars authorized to sell domains by the Internet Corporation for Assigned Names and Numbers (ICANN), the California nonprofit that oversees the domain industry.

The top 5 new gTLDs, ranked by cybercrime domains reported. Image: Interisle Cybercrime Supply Chain 2014.

Incredibly, despite years of these reports showing phishers heavily abusing new gTLDs, ICANN is shuffling forward on a plan to introduce even more of them. ICANN’s proposed next round envisions accepting applications for new gTLDs in 2026.

John Levine is author of the book “The Internet for Dummies” and president of CAUCE. Levine said adding more TLDs without a much stricter registration policy will likely further expand an already plentiful greenfield for cybercriminals.

“The problem is that ICANN can’t make up their mind whether they are the neutral nonprofit regulator or just the domain speculator trade association,” Levine told KrebsOnSecurity. “But they act a lot more like the latter.”

Levine said the vast majority of new gTLDs have a few thousand domains — a far cry from the number of registrations they would need just to cover the up-front costs of operating a new gTLD (~$180,000-$300,000). New gTLD registrars can quickly attract customers by selling domains cheaply to customers who buy domains in bulk, but that tends to be a losing strategy.

“Selling to criminals and spammers turns out to be lousy business,” Levine said. “You can charge whatever you want on the first year, but you have to charge list price on domain renewals. And criminals and spammers never renew. So if it sounds like the economics makes no sense it’s because the economics makes no sense.”

In virtually all previous spam reports, Interisle found the top brands referenced in phishing attacks were the largest technology companies, including Apple, Facebook, Google and PayPal. But this past year, Interisle found the U.S. Postal Service was by far the most-phished entity, with more than four times the number of phishing domains as the second most-frequent target (Apple).

At least some of that increase is likely from a prolific cybercriminal using the nickname Chenlun, who has been selling phishing kits targeting domestic postal services in the United States and at least a dozen other countries.

Interisle says an increasing number of phishers are eschewing domain registrations altogether, and instead taking advantage of subdomain providers like blogspot.com, pages.dev, and weebly.com. The report notes that cyberattacks hosted at subdomain provider services can be tough to mitigate, because only the subdomain provider can disable malicious accounts or take down malicious web pages.

“Any action upstream, such as blocking the second-level domain, would have an impact across the provider’s whole customer base,” the report observes.

Interisle tracked more than 1.18 million instances of subdomains used for phishing in the past year (a 114 percent increase), and found more than half of those were subdomains at blogspot.com and other services operated by Google.

“Many of these services allow the creation of large numbers of accounts at one time, which is highly exploited by criminals,” the report concludes. “Subdomain providers should limit the number of subdomains (user accounts) a customer can create at one time and suspend automated, high-volume automated account sign-ups – especially using free services.”

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Algorithms Are Coming for Democracy—but It’s Not All Bad

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In 2025, AI is poised to change every aspect of democratic politics—but it won’t necessarily be for the worse.

India’s prime minister, Narendra Modi, has used AI to translate his speeches for his multilingual electorate in real time, demonstrating how AI can help diverse democracies to be more inclusive. AI avatars were used by presidential candidates in South Korea in electioneering, enabling them to provide answers to thousands of voters’ questions simultaneously. We are also starting to see AI tools aid fundraising and get-out-the-vote efforts. AI techniques are starting to augment more traditional polling methods, helping campaigns get cheaper and faster data. And congressional candidates have started using AI robocallers to engage voters on issues. In 2025, these trends will continue. AI doesn’t need to be superior to human experts to augment the labor of an overworked canvasser, or to write ad copy similar to that of a junior campaign staffer or volunteer. Politics is competitive, and any technology that can bestow an advantage, or even just garner attention, will be used.

Most politics is local, and AI tools promise to make democracy more equitable. The typical candidate has few resources, so the choice may be between getting help from AI tools or getting no help at all. In 2024, a US presidential candidate with virtually zero name recognition, Jason Palmer, beat Joe Biden in a very small electorate, the American Samoan primary, by using AI-generated messaging and an online AI avatar.

At the national level, AI tools are more likely to make the already powerful even more powerful. Human + AI generally beats AI only: The more human talent you have, the more you can effectively make use of AI assistance. The richest campaigns will not put AIs in charge, but they will race to exploit AI where it can give them an advantage.

But while the promise of AI assistance will drive adoption, the risks are considerable. When computers get involved in any process, that process changes. Scalable automation, for example, can transform political advertising from one-size-fits-all into personalized demagoguing—candidates can tell each of us what they think we want to hear. Introducing new dependencies can also lead to brittleness: Exploiting gains from automation can mean dropping human oversight, and chaos results when critical computer systems go down.

Politics is adversarial. Any time AI is used by one candidate or party, it invites hacking by those associated with their opponents, perhaps to modify their behavior, eavesdrop on their output, or to simply shut them down. The kinds of disinformation weaponized by entities like Russia on social media will be increasingly targeted toward machines, too.

AI is different from traditional computer systems in that it tries to encode common sense and judgment that goes beyond simple rules; yet humans have no single ethical system, or even a single definition of fairness. We will see AI systems optimized for different parties and ideologies; for one faction not to trust the AIs of a rival faction; for everyone to have a healthy suspicion of corporate for-profit AI systems with hidden biases.

This is just the beginning of a trend that will spread through democracies around the world, and probably accelerate, for years to come. Everyone, especially AI skeptics and those concerned about its potential to exacerbate bias and discrimination, should recognize that AI is coming for every aspect of democracy. The transformations won’t come from the top down; they will come from the bottom up. Politicians and campaigns will start using AI tools when they are useful. So will lawyers, and political advocacy groups. Judges will use AI to help draft their decisions because it will save time. News organizations will use AI because it will justify budget cuts. Bureaucracies and regulators will add AI to their already algorithmic systems for determining all sorts of benefits and penalties.

Whether this results in a better democracy, or a more just world, remains to be seen. Keep watching how those in power uses these tools, and also how they empower the currently powerless. Those of us who are constituents of democracies should advocate tirelessly to ensure that we use AI systems to better democratize democracy, and not to further its worst tendencies.

This essay was written with Nathan Sanders, and originally appeared in Wired.

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