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Hackers Use DNS Records to Hide Malware and AI Prompt Injections

 

Cybercriminals are increasingly leveraging an unexpected and largely unmonitored part of the internet’s infrastructure—the Domain Name System (DNS)—to hide malicious code and exploit security weaknesses. Security researchers at DomainTools have uncovered a campaign in which attackers embedded malware directly into DNS records, a method that helps them avoid traditional detection systems. 

DNS records are typically used to translate website names into IP addresses, allowing users to access websites without memorizing numerical codes. However, they can also include TXT records, which are designed to hold arbitrary text. These records are often used for legitimate purposes, such as domain verification for services like Google Workspace. Unfortunately, they can also be misused to store and distribute malicious scripts. 

In a recent case, attackers converted a binary file of the Joke Screenmate malware into hexadecimal code and split it into hundreds of fragments. These fragments were stored across multiple subdomains of a single domain, with each piece placed inside a TXT record. Once an attacker gains access to a system, they can quietly retrieve these fragments through DNS queries, reconstruct the binary code, and deploy the malware. Since DNS traffic often escapes close scrutiny—especially when encrypted via DNS over HTTPS (DOH) or DNS over TLS (DOT)—this method is particularly stealthy. 

Ian Campbell, a senior security engineer at DomainTools, noted that even companies with their own internal DNS resolvers often struggle to distinguish between normal and suspicious DNS requests. The rise of encrypted DNS traffic only makes it harder to detect such activity, as the actual content of DNS queries remains hidden from most monitoring tools. This isn’t a new tactic. Security researchers have observed similar methods in the past, including the use of DNS records to host PowerShell scripts. 

However, the specific use of hexadecimal-encoded binaries in TXT records, as described in DomainTools’ latest findings, adds a new layer of sophistication. Beyond malware, the research also revealed that TXT records are being used to launch prompt injection attacks against AI chatbots. These injections involve embedding deceptive or malicious prompts into files or documents processed by AI models. 

In one instance, TXT records were found to contain commands instructing a chatbot to delete its training data, return nonsensical information, or ignore future instructions entirely. This discovery highlights how the DNS system—an essential but often overlooked component of the internet—can be weaponized in creative and potentially damaging ways. 

As encryption becomes more widespread, organizations need to enhance their DNS monitoring capabilities and adopt more robust defensive strategies to close this blind spot before it’s further exploited.

Why Running AI Locally with an NPU Offers Better Privacy, Speed, and Reliability

 

Running AI applications locally offers a compelling alternative to relying on cloud-based chatbots like ChatGPT, Gemini, or Deepseek, especially for those concerned about data privacy, internet dependency, and speed. Though cloud services promise protections through subscription terms, the reality remains uncertain. In contrast, using AI locally means your data never leaves your device, which is particularly advantageous for professionals handling sensitive customer information or individuals wary of sharing personal data with third parties. 

Local AI eliminates the need for a constant, high-speed internet connection. This reliable offline capability means that even in areas with spotty coverage or during network outages, tools for voice control, image recognition, and text generation remain functional. Lower latency also translates to near-instantaneous responses, unlike cloud AI that may lag due to network round-trip times. 

A powerful hardware component is essential here: the Neural Processing Unit (NPU). Typical CPUs and GPUs can struggle with AI workloads like large language models and image processing, leading to slowdowns, heat, noise, and shortened battery life. NPUs are specifically designed for handling matrix-heavy computations—vital for AI—and they allow these models to run efficiently right on your laptop, without burdening the main processor. 

Currently, consumer devices such as Intel Core Ultra, Qualcomm Snapdragon X Elite, and Apple’s M-series chips (M1–M4) come equipped with NPUs built for this purpose. With one of these devices, you can run open-source AI models like DeepSeek‑R1, Qwen 3, or LLaMA 3.3 using tools such as Ollama, which supports Windows, macOS, and Linux. By pairing Ollama with a user-friendly interface like OpenWeb UI, you can replicate the experience of cloud chatbots entirely offline.  

Other local tools like GPT4All and Jan.ai also provide convenient interfaces for running AI models locally. However, be aware that model files can be quite large (often 20 GB or more), and without NPU support, performance may be sluggish and battery life will suffer.  

Using AI locally comes with several key advantages. You gain full control over your data, knowing it’s never sent to external servers. Offline compatibility ensures uninterrupted use, even in remote or unstable network environments. In terms of responsiveness, local AI often outperforms cloud models due to the absence of network latency. Many tools are open source, making experimentation and customization financially accessible. Lastly, NPUs offer energy-efficient performance, enabling richer AI experiences on everyday devices. 

In summary, if you’re looking for a faster, more private, and reliable AI workflow that doesn’t depend on the internet, equipping your laptop with an NPU and installing tools like Ollama, OpenWeb UI, GPT4All, or Jan.ai is a smart move. Not only will your interactions be quick and seamless, but they’ll also remain securely under your control.

AI and the Rise of Service-as-a-Service: Why Products Are Becoming Invisible

 

The software world is undergoing a fundamental shift. Thanks to AI, product development has become faster, easier, and more scalable than ever before. Tools like Cursor and Lovable—along with countless “co-pilot” clones—have turned coding into prompt engineering, dramatically reducing development time and enhancing productivity. 

This boom has naturally caught the attention of venture capitalists. Funding for software companies hit $80 billion in Q1 2025, with investors eager to back niche SaaS solutions that follow the familiar playbook: identify a pain point, build a narrow tool, and scale aggressively. Y Combinator’s recent cohort was full of “Cursor for X” startups, reflecting the prevailing appetite for micro-products. 

But beneath this surge of point solutions lies a deeper transformation: the shift from product-led growth to outcome-driven service delivery. This evolution isn’t just about branding—it’s a structural redefinition of how software creates and delivers value. Historically, the SaaS revolution gave rise to subscription-based models, but the tools themselves remained hands-on. For example, when Adobe moved Creative Suite to the cloud, the billing changed—not the user experience. Users still needed to operate the software. SaaS, in that sense, was product-heavy and service-light. 

Now, AI is dissolving the product layer itself. The software is still there, but it’s receding into the background. The real value lies in what it does, not how it’s used. Glide co-founder Gautam Ajjarapu captures this perfectly: “The product gets us in the door, but what keeps us there is delivering results.” Take Glide’s AI for banks. It began as a tool to streamline onboarding but quickly evolved into something more transformative. Banks now rely on Glide to improve retention, automate workflows, and enhance customer outcomes. 

The interface is still a product, but the substance is service. The same trend is visible across leading AI startups. Zendesk markets “automated customer service,” where AI handles tickets end-to-end. Amplitude’s AI agents now generate product insights and implement changes. These offerings blur the line between tool and outcome—more service than software. This shift is grounded in economic logic. Services account for over 70% of U.S. GDP, and Nobel laureate Bengt Holmström’s contract theory helps explain why: businesses ultimately want results, not just tools. 

They don’t want a CRM—they want more sales. They don’t want analytics—they want better decisions. With agentic AI, it’s now possible to deliver on that promise. Instead of selling a dashboard, companies can sell growth. Instead of building an LMS, they offer complete onboarding services powered by AI agents. This evolution is especially relevant in sectors like healthcare. Corti’s CEO Andreas Cleve emphasizes that doctors don’t want more interfaces—they want more time. AI that saves time becomes invisible, and its value lies in what it enables, not how it looks. 

The implication is clear: software is becoming outcome-first. Users care less about tools and more about what those tools accomplish. Many companies—Glean, ElevenLabs, Corpora—are already moving toward this model, delivering answers, brand voices, or research synthesis rather than just access. This isn’t the death of the product—it’s its natural evolution. The best AI companies are becoming “services in a product wrapper,” where software is the delivery mechanism, but the value lies in what gets done. 

For builders, the question is no longer how to scale a product. It’s how to scale outcomes. The companies that succeed in this new era will be those that understand: users don’t want features—they want results. Call it what you want—AI-as-a-service, agentic delivery, or outcome-led software. But the trend is unmistakable. Service-as-a-Service isn’t just the next step for SaaS. It may be the future of software itself.

Security Teams Struggle to Keep Up With Generative AI Threats, Cobalt Warns

 

A growing number of cybersecurity professionals are expressing concern that generative AI is evolving too rapidly for their teams to manage. 

According to new research by penetration testing company Cobalt, over one-third of security leaders and practitioners admit that the pace of genAI development has outstripped their ability to respond. Nearly half of those surveyed (48%) said they wish they could pause and reassess their defense strategies in light of these emerging threats—though they acknowledge that such a break isn’t realistic. 

In fact, 72% of respondents listed generative AI-related attacks as their top IT security risk. Despite this, one in three organizations still isn’t conducting regular security evaluations of their large language model (LLM) deployments, including basic penetration testing. 

Cobalt CTO Gunter Ollmann warned that the security landscape is shifting, and the foundational controls many organizations rely on are quickly becoming outdated. “Our research shows that while generative AI is transforming how businesses operate, it’s also exposing them to risks they’re not prepared for,” said Ollmann. 
“Security frameworks must evolve or risk falling behind.” The study revealed a divide between leadership and practitioners. Executives such as CISOs and VPs are more concerned about long-term threats like adversarial AI attacks, with 76% listing them as a top issue. Meanwhile, 45% of practitioners are more focused on immediate operational challenges such as model inaccuracies, compared to 36% of executives. 

A majority of leaders—52%—are open to rethinking their cybersecurity strategies to address genAI threats. Among practitioners, only 43% shared this view. The top genAI-related concerns identified by the survey included the risk of sensitive information disclosure (46%), model poisoning or theft (42%), data inaccuracies (40%), and leakage of training data (37%). Around half of respondents also expressed a desire for more transparency from software vendors about how vulnerabilities are identified and patched, highlighting a widening trust gap in the AI supply chain. 

Cobalt’s internal pentest data shows a worrying trend: while 69% of high-risk vulnerabilities are typically fixed across all test types, only 21% of critical flaws found in LLM tests are resolved. This is especially alarming considering that nearly one-third of LLM vulnerabilities are classified as serious. Interestingly, the average time to resolve these LLM-specific vulnerabilities is just 19 days—the fastest across all categories. 

However, researchers noted this may be because organizations prioritize easier, low-effort fixes rather than tackling more complex threats embedded in foundational AI models. Ollmann compared the current scenario to the early days of cloud adoption, where innovation outpaced security readiness. He emphasized that traditional controls aren’t enough in the age of LLMs. “Security teams can’t afford to be reactive anymore,” he concluded. “They must move toward continuous, programmatic AI testing if they want to keep up.”

Hackers Can Spy on Screens Using HDMI Radiation and AI Models

 

You may feel safe behind your screen, but it turns out that privacy might be more of an illusion than a fact. New research reveals that hackers have found an alarming way to peek at what’s happening on your display—without ever touching your computer. By tapping into the faint electromagnetic radiation that HDMI cables emit, they can now “listen in” on your screen and reconstruct what’s being shown with startling accuracy. 

Here’s how it works: when digital signals travel through HDMI cables from your computer to a monitor, they unintentionally give off tiny bursts of radiation. These signals, invisible to the naked eye, can be picked up using radio antennas or small, discreet devices planted nearby. Once captured, advanced AI tools get to work, decoding the radiation into readable screen content. 

The results? Up to 70% accuracy in reconstructing text—meaning everything from passwords and emails to private messages could be exposed. This new technique represents a serious leap in digital espionage. It doesn’t rely on malware or breaking into a network. Instead, it simply listens to the electronic “whispers” your hardware makes. It’s silent, stealthy, and completely undetectable to the average user. 

Worryingly, this method is already reportedly in use against high-profile targets like government agencies and critical infrastructure sites. These organizations often store and manage sensitive data that, if leaked, could cause major damage. While some have implemented shielding to block these emissions, not all are fully protected. And because this form of surveillance leaves virtually no trace, many attacks could be flying under the radar entirely. 

Hackers can go about this in two main ways: one, by sneaking a signal-collecting device into a location; or two, by using specialized antennas from nearby—like the building next door. Either way, they can eavesdrop on what’s displayed without ever getting physically close to the device. This new threat underscores the need for stronger physical and digital protections. 

As cyberattacks become more innovative, simply securing your data with passwords and firewalls isn’t enough. Shielding cables and securing workspaces might soon be as important as having good antivirus software. The digital age has brought us many conveniences—but with it comes a new breed of invisible spies.

DeepSeek AI Raises Data Security Concerns Amid Ties to China

 

The launch of DeepSeek AI has created waves in the tech world, offering powerful artificial intelligence models at a fraction of the cost compared to established players like OpenAI and Google. 

However, its rapid rise in popularity has also sparked serious concerns about data security, with critics drawing comparisons to TikTok and its ties to China. Government officials and cybersecurity experts warn that the open-source AI assistant could pose a significant risk to American users. 

On Thursday, two U.S. lawmakers announced plans to introduce legislation banning DeepSeek from all government devices, citing fears that the Chinese Communist Party (CCP) could access sensitive data collected by the app. This move follows similar actions in Australia and several U.S. states, with New York recently enacting a statewide ban on government systems. 

The growing concern stems from China’s data laws, which require companies to share user information with the government upon request. Like TikTok, DeepSeek’s data could be mined for intelligence purposes or even used to push disinformation campaigns. Although the AI app is the current focus of security conversations, experts say that the risks extend beyond any single model, and users should exercise caution with all AI systems. 

Unlike social media platforms that users can consciously avoid, AI models like DeepSeek are more difficult to track. Dimitri Sirota, CEO of BigID, a cybersecurity company specializing in AI security compliance, points out that many companies already use multiple AI models, often switching between them without users’ knowledge. This fluidity makes it challenging to control where sensitive data might end up. 

Kelcey Morgan, senior manager of product management at Rapid7, emphasizes that businesses and individuals should take a broad approach to AI security. Instead of focusing solely on DeepSeek, companies should develop comprehensive practices to protect their data, regardless of the latest AI trend. The potential for China to use DeepSeek’s data for intelligence is not far-fetched, according to cybersecurity experts. 

With significant computing power and data processing capabilities, the CCP could combine information from multiple sources to create detailed profiles of American users. Though this might not seem urgent now, experts warn that today’s young, casual users could grow into influential figures worth targeting in the future. 

To stay safe, experts advise treating AI interactions with the same caution as any online activity. Users should avoid sharing sensitive information, be skeptical of unusual questions, and thoroughly review an app’s terms and conditions. Ultimately, staying informed and vigilant about where and how data is shared will be critical as AI technologies continue to evolve and become more integrated into everyday life.

AI Models at Risk from TPUXtract Exploit

 


A team of researchers has demonstrated that it is possible to steal an artificial intelligence (AI) model without actually gaining access to the device that is running the model. The uniqueness of the technique lies in the fact that it works efficiently even if the thief may not have any prior knowledge as to how the AI works in the first place, or how the computer is structured. 

According to North Carolina State University's Department of Electrical and Computer Engineering, the method is known as TPUXtract, and it is a product of their department. With the help of a team of four scientists, who used high-end equipment and a technique known as "online template-building", they were able to deduce the hyperparameters of a convolutional neural network (CNN) running on Google Edge Tensor Processing Unit (TPU), which is the settings that define its structure and behaviour, with a 99.91% accuracy rate. 

The TPUXtract is an advanced side-channel attack technique devised by researchers at the North Carolina State University, designed to protect servers from attacks. A convolutional neural network (CNN) running on a Google Edge Tensor Processing Unit (TPU) is targeted in the attack, and electromagnetic signals are exploited to extract hyperparameters and configurations of the model without the need for previous knowledge of its architecture and software. 

A significant risk to the security of AI models and the integrity of intellectual property is posed by these types of attacks, which manifest themselves across three distinct phases, each of which is based on advanced methods to compromise the AI models' integrity. Attackers in the Profiling Phase observe and capture side-channel emissions produced by the target TPU as it processes known input data as part of the Profiling Phase. As a result, they have been able to decode unique patterns which correspond to specific operations such as convolutional layers and activation functions by using advanced methods like Differential Power Analysis (DPA) and Cache Timing Analysis. 

The Reconstruction Phase begins with the extraction and analysis of these patterns, and they are meticulously matched to known processing behaviours This enables adversaries to make an inference about the architecture of the AI model, including the layers that have been configured, the connections made, and the parameters that are relevant such as weight and bias. Through a series of repeated simulations and output comparisons, they can refine their understanding of the model in a way that enables precise reconstruction of the original model. 

Finally, the Validation Phase ensures that the replicated model is accurate. During the testing process, it is subject to rigorous testing with fresh inputs to ensure that it performs similarly to that of the original, thus providing reliable proof of its success. The threat that TPUXtract poses to intellectual property (IP) is composed of the fact that it enables attackers to steal and duplicate artificial intelligence models, bypassing the significant resources that are needed to develop them.

The competition could recreate and mimic models such as ChatGPT without having to invest in costly infrastructure or train their employees. In addition to IP theft, TPUXtract exposed cybersecurity risks by revealing an AI model's structure that provided visibility into its development and capabilities. This information could be used to identify vulnerabilities and enable cyberattacks, as well as expose sensitive data from a variety of industries, including healthcare and automotive.

Further, the attack requires specific equipment, such as a Riscure Electromagnetic Probe Station, high-sensitivity probes, and Picoscope oscilloscope, so only well-funded groups, for example, corporate competitors or state-sponsored actors, can execute it. As a result of the technical and financial requirements for the attack, it can only be executed by well-funded groups. With the understanding that any electronic device will emit electromagnetic radiation as a byproduct of its operations, the nature and composition of that radiation will be affected by what the device does. 

To conduct their experiments, the researchers placed an EM probe on top of the TPU after removing any obstructions such as cooling fans and centring it over the part of the chip emitting the strongest electromagnetic signals. The machine then emitted signals as a result of input data, and the signals were recorded. The researchers used the Google Edge TPU for this demonstration because it is a commercially available chip that is widely used to run AI models on edge devices meaning devices utilized by end users in the field, as opposed to AI systems that are used for database applications. During the demonstration, electromagnetic signals were monitored as a part of the technique used to conduct the demonstration.

A TPU chip was placed on top of a probe that was used by researchers to determine the structure and layer details of an AI model by recording changes in the electromagnetic field of the TPU during AI processing. The probe provided real-time data about changes in the electromagnetic field of the TPU during AI processing. To verify the model's electromagnetic signature, the researchers compared it to other signatures made by AI models made on a similar device - in this case, another Google Edge TPU. Using this technique, Kurian says, AI models can be stolen from a variety of different devices, including smartphones, tablets and computers. 

The attacker should be able to use this technique as long as they know the device from which they want to steal, have access to it while it is running an AI model, and have access to another device with similar specifications According to Kurian, the electromagnetic data from the sensor is essentially a ‘signature’ of the way AI processes information. There is a lot of work that goes into pulling off TPUXtract. The process not only requires a great deal of technical expertise, but it also requires a great deal of expensive and niche equipment as well. To scan the chip's surface, NCSU researchers used a Riscure EM probe station equipped with a motorized XYZ table, and a high-sensitivity electromagnetic probe to capture the weak signals emanating from it. 

It is said that the traces were recorded using a Picoscope 6000E oscilloscope, and Riscure's icWaves FPGA device aligned them in real-time, and the icWaves transceiver translated and filtered out the irrelevant signals using bandpass filters and AM/FM demodulation, respectively. While this may seem difficult and costly for a hacker to do on their own, Kurian explains, "It is possible for a rival company to do this within a couple of days, regardless of how difficult and expensive it will be. 

Taking the threat of TPUXtract into account, this model poses a formidable challenge to AI model security, highlighting the importance of proactive measures. As an organization, it is crucial to understand how such attacks work, implement robust defences, and ensure that they can safeguard their intellectual property while maintaining trust in their artificial intelligence systems. The AI and cybersecurity communities must learn continuously and collaborate to stay ahead of the changing threats as they arise.

The Role of Confidential Computing in AI and Web3

 

 
The rise of artificial intelligence (AI) has amplified the demand for privacy-focused computing technologies, ushering in a transformative era for confidential computing. At the forefront of this movement is the integration of these technologies within the AI and Web3 ecosystems, where maintaining privacy while enabling innovation has become a pressing challenge. A major event in this sphere, the DeCC x Shielding Summit in Bangkok, brought together more than 60 experts to discuss the future of confidential computing.

Pioneering Confidential Computing in Web3

Lisa Loud, Executive Director of the Secret Network Foundation, emphasized in her keynote that Secret Network has been pioneering confidential computing in Web3 since its launch in 2020. According to Loud, the focus now is to mainstream this technology alongside blockchain and decentralized AI, addressing concerns with centralized AI systems and ensuring data privacy.

Yannik Schrade, CEO of Arcium, highlighted the growing necessity for decentralized confidential computing, calling it the “missing link” for distributed systems. He stressed that as AI models play an increasingly central role in decision-making, conducting computations in encrypted environments is no longer optional but essential.

Schrade also noted the potential of confidential computing in improving applications like decentralized finance (DeFi) by integrating robust privacy measures while maintaining accessibility for end users. However, achieving a balance between privacy and scalability remains a significant hurdle. Schrade pointed out that privacy safeguards often compromise user experience, which can hinder broader adoption. He emphasized that for confidential computing to succeed, it must be seamlessly integrated so users remain unaware they are engaging with such technologies.

Shahaf Bar-Geffen, CEO of COTI, underscored the role of federated learning in training AI models on decentralized datasets without exposing raw data. This approach is particularly valuable in sensitive sectors like healthcare and finance, where confidentiality and compliance are critical.

Innovations in Privacy and Scalability

Henry de Valence, founder of Penumbra Labs, discussed the importance of aligning cryptographic systems with user expectations. Drawing parallels with secure messaging apps like Signal, he emphasized that cryptography should function invisibly, enabling users to interact with systems without technical expertise. De Valence stressed that privacy-first infrastructure is vital as AI’s capabilities to analyze and exploit data grow more advanced.

Other leaders in the field, such as Martin Leclerc of iEXEC, highlighted the complexity of achieving privacy, usability, and regulatory compliance. Innovative approaches like zero-knowledge proof technology, as demonstrated by Lasha Antadze of Rarimo, offer promising solutions. Antadze explained how this technology enables users to prove eligibility for actions like voting or purchasing age-restricted goods without exposing personal data, making blockchain interactions more accessible.

Dominik Schmidt, co-founder of Polygon Miden, reflected on lessons from legacy systems like Ethereum to address challenges in privacy and scalability. By leveraging zero-knowledge proofs and collaborating with decentralized storage providers, his team aims to enhance both developer and user experiences.

As confidential computing evolves, it is clear that privacy and usability must go hand in hand to address the needs of an increasingly data-driven world. Through innovation and collaboration, these technologies are set to redefine how privacy is maintained in AI and Web3 applications.