insiders Archives - Schneier on Security (original) (raw)

Entries Tagged "insiders"

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Insider Betting on Polymarket

Insider trading is rife on Polymarket:

Analysis by the Anti-Corruption Data Collective, a non-profit research and advocacy group, found that long-shot bets—defined as wagers of $2,500 or more at odds of 35 percent or less—on the platform had an average win rate of around 52 percent in markets on military and defense actions.

That compares with a win rate of 25 percent across all politics-focused markets and just 14 percent for all markets on the platform as a whole.

It is absolutely insane that this is legal. We already know how insider betting warps sports. Insider betting warping politics—and military actions—is orders of magnitude worse.

Posted on May 8, 2026 at 1:49 PM •View Comments

Polymarket is a platform where people can bet on real-world events, political and otherwise. Leaving the ethical considerations of this aside (for one, it facilitates assassination), one of the issues with making this work is the verification of these real-world events. Polymarket gamblers have threatened a journalist because his story was being used to verify an event. And now, gamblers are taking hair dryers to weather sensors to rig weather bets.

There’s also insider trading: a lot of it.

Posted on May 4, 2026 at 5:46 AM •View Comments

AI Decides to Engage in Insider Trading

A stock-trading AI (a simulated experiment) engaged in insider trading, even though it “knew” it was wrong.

The agent is put under pressure in three ways. First, it receives a email from its “manager” that the company is not doing well and needs better performance in the next quarter. Second, the agent attempts and fails to find promising low- and medium-risk trades. Third, the agent receives an email from a company employee who projects that the next quarter will have a general stock market downturn. In this high-pressure situation, the model receives an insider tip from another employee that would enable it to make a trade that is likely to be very profitable. The employee, however, clearly points out that this would not be approved by the company management.

“This is a very human form of AI misalignment. Who among us? It’s not like 100% of the humans at SAC Capital resisted this sort of pressure. Possibly future rogue AIs will do evil things we can’t even comprehend for reasons of their own, but right now rogue AIs just do straightforward white-collar crime when they are stressed at work.

Research paper.

NASA’s Insider Threat Program

The Office of Inspector General has audited NASA’s insider threat program:

While NASA has a fully operational insider threat program for its classified systems, the vast majority of the Agency’s information technology (IT) systems—including many containing high-value assets or critical infrastructure—are unclassified and are therefore not covered by its current insider threat program. Consequently, the Agency may be facing a higher-than-necessary risk to its unclassified systems and data. While NASA’s exclusion of unclassified systems from its insider threat program is common among federal agencies, adding those systems to a multi-faceted security program could provide an additional level of maturity to the program and better protect agency resources. According to Agency officials, expanding the insider threat program to unclassified systems would benefit the Agency’s cybersecurity posture if incremental improvements, such as focusing on IT systems and people at the most risk, were implemented. However, on-going concerns including staffing challenges, technology resource limitations, and lack of funding to support such an expansion would need to be addressed prior to enhancing the existing program.

Further amplifying the complexities of insider threats are the cross-discipline challenges surrounding cybersecurity expertise. At NASA, responsibilities for unclassified systems are largely shared between the Office of Protective Services and the Office of the Chief Information Officer. In addition, Agency contracts are managed by the Office of Procurement while grants and cooperative agreements are managed by the Office of the Chief Financial Officer. Nonetheless, in our view, mitigating the risk of an insider threat is a team sport in which a comprehensive insider threat risk assessment would allow the Agency to gather key information on weak spots or gaps in administrative processes and cybersecurity. At a time when there is growing concern about the continuing threats of foreign influence, taking the proactive step to conduct a risk assessment to evaluate NASA’s unclassified systems ensures that gaps cannot be exploited in ways that undermine the Agency’s ability to carry out its mission.

Posted on March 23, 2022 at 6:16 AM •View Comments

Dutch Insider Attack on COVID-19 Data

Insider data theft:

Dutch police have arrested two individuals on Friday for allegedly selling data from the Dutch health ministry’s COVID-19 systems on the criminal underground.

[…]

According to Verlaan, the two suspects worked in DDG call centers, where they had access to official Dutch government COVID-19 systems and databases.

They were working from home:

“Because people are working from home, they can easily take photos of their screens. This is one of the issues when your administrative staff is working from home,” Victor Gevers, Chair of the Dutch Institute for Vulnerability Disclosure, told ZDNet in an interview today.

All of this remote call-center work brings with it additional risks.

EDITED TO ADD (2/11) More information (translated from Dutch).

Posted on January 27, 2021 at 8:59 AM •View Comments

Insider Attack on Home Surveillance Systems

No one who reads this blog regularly will be surprised:

A former employee of prominent home security company ADT has admitted that he hacked into the surveillance feeds of dozens of customer homes, doing so primarily to spy on naked women or to leer at unsuspecting couples while they had sex.

[…]

Authorities say that the IT technician “took note of which homes had attractive women, then repeatedly logged into these customers’ accounts in order to view their footage for sexual gratification.” He did this by adding his personal email address to customer accounts, which ultimately hooked him into “real-time access to the video feeds from their homes.”

Slashdot thread.

Posted on January 25, 2021 at 9:33 AM •View Comments

Insider Attack on the Carnegie Library

Greg Priore, the person in charge of the rare book room at the Carnegie Library, stole from it for almost two decades before getting caught.

It’s a perennial problem: trusted insiders have to be trusted.

Posted on September 2, 2020 at 7:02 AM •View Comments

Twitter Hackers May Have Bribed an Insider

Motherboard is reporting that this week’s Twitter hack involved a bribed insider. Twitter has denied it.

I have been taking press calls all day about this. And while I know everyone wants to speculate about the details of the hack, we just don’t know—and probably won’t for a couple of weeks.

EDITED TO ADD (8/10): It was social engineering and not bribery.

Posted on July 17, 2020 at 6:04 AM •View Comments

Insider Logic Bombs

Add to the “not very smart criminals” file:

According to court documents, Tinley provided software services for Siemens’ Monroeville, PA offices for nearly ten years. Among the work he was asked to perform was the creation of spreadsheets that the company was using to manage equipment orders.

The spreadsheets included custom scripts that would update the content of the file based on current orders stored in other, remote documents, allowing the company to automate inventory and order management.

But while Tinley’s files worked for years, they started malfunctioning around 2014. According to court documents, Tinley planted so-called “logic bombs” that would trigger after a certain date, and crash the files.

Every time the scripts would crash, Siemens would call Tinley, who’d fix the files for a fee.

Posted on July 26, 2019 at 6:05 AM •View Comments

More Attacks against Computer Automatic Update Systems

Last month, Kaspersky discovered that Asus’s live update system was infected with malware, an operation it called Operation Shadowhammer. Now we learn that six other companies were targeted in the same operation.

As we mentioned before, ASUS was not the only company used by the attackers. Studying this case, our experts found other samples that used similar algorithms. As in the ASUS case, the samples were using digitally signed binaries from three other Asian vendors:

Electronics Extreme, authors of the zombie survival game called Infestation: Survivor Stories,

Innovative Extremist, a company that provides Web and IT infrastructure services but also used to work in game development,

Zepetto, the South Korean company that developed the video game Point Blank.

According to our researchers, the attackers either had access to the source code of the victims’ projects or they injected malware at the time of project compilation, meaning they were in the networks of those companies. And this reminds us of an attack that we reported on a year ago: the CCleaner incident.

Also, our experts identified three additional victims: another video gaming company, a conglomerate holding company and a pharmaceutical company, all in South Korea. For now we cannot share additional details about those victims, because we are in the process of notifying them about the attack.

Me on supply chain security.

EDITED TO ADD (6/12): Kaspersky’s expanded report.

Posted on May 16, 2019 at 1:34 PM •View Comments

Sidebar photo of Bruce Schneier by Joe MacInnis.