A security feature designed to make AI text traceable appears to have an unintended side effect: it can change how a language model behaves, in some cases making it more willing to follow instructions it was built to refuse.
That is the core finding from new research by Lasso Security, published on September 17 by researcher Andrea Siposova under the title "The Provenance Tax: Understanding the Impact of LLM Watermarking on AI Agent Behavior." The study tested Google DeepMind's SynthID-Text watermarking system across six open-weight language models and found that enabling watermarking changed how those models responded to harmful requests, particularly when attackers used prompt-injection techniques designed to override a model's instructions.
What SynthID-Text Actually Does
To understand why that matters, it helps to understand what SynthID-Text actually changes inside a model.
When a language model generates text, it does not write the way a human does. It builds sentences one token at a time, each step producing a probability distribution over thousands of possible next tokens and then sampling from that distribution. SynthID-Text does not attach a label to the finished output or hide characters in whitespace. It intervenes at the sampling step itself.
The system uses a process called tournament sampling, first described in a 2024 Nature paper by Google DeepMind researchers Sumanth Dathathri, Abigail See, and colleagues. Instead of the standard randomness used in token selection, the watermark substitutes pseudorandom values generated from a secret key and the context of tokens already produced. The result is a statistically detectable pattern woven through the text at the level of individual word choices, invisible to readers but recoverable by anyone holding the key. The technique is refined enough that it does not degrade text quality in any measurable way, which is a large part of what made it attractive as a compliance tool.
The Regulatory Push Behind It
Article 50 of the EU AI Act requires providers of generative AI systems to mark their text, image, audio, and video outputs in a way that is machine-readable and detectable as AI-generated. The Code of Practice the European Commission finalized on July 20, 2026, requires at least two marking layers for audio, images and video, plus watermarking of free-form text longer than 200 tokens. Google signed the Code on July 24, 2026, citing SynthID partnerships as its route to the interoperable detection requirement due on February 2, 2027.
Anthropic's technical implementation is built directly on SynthID-Text, the same tournament-sampling mechanism from the Nature paper, adapted for their own models and keys. It covers claude.ai, the API, Claude Code, Claude Cowork, Claude Tag, and access through AWS, Google Cloud, and Microsoft Foundry. With the industry's largest players now committed to the same watermarking standard, Siposova's findings arrive at an uncomfortable moment.
What the Research Found
Siposova ran paired experiments on six open-weight models using Hugging Face's unmodified SynthIDTextWatermarkLogitsProcessor, enabling and disabling watermarking while keeping the seed, batch composition, and ordering identical.
Watermarking changed refusal behavior on harmful requests, but the effect was more pronounced when the same requests were paired with prompt-injection techniques. Under those conditions, several watermarked models complied with harmful requests their unwatermarked versions had rejected, with the strongest differences appearing in prompt-injection scenarios.
Siposova told Ars Technica that behavior was clearly different compared with the same model without watermarking, and that the differences were especially pronounced under adversarial conditions or when running an agent calling tools. She put it plainly: "Watermarking is made to not be perceptible to a reader, but we know that when we are changing anything about what the model is generating, it is going to cause some tradeoffs, it's going to show up somewhere."
Lasso repeated its prompt-injection experiment using 11 different watermark keys and found that changing the key could change both the size and direction of the effect. That means two different deployments of the same watermarking system, on the same model, could produce different safety outcomes depending purely on which key was chosen.
The Agent Problem
The consequences extend beyond what a model says. When a language model powers an AI agent, token selection can determine which tool an agent invokes and which arguments it passes. "Such a watermarking procedure can therefore affect both what the model says and what an agent does," the study stated. Watermarking reduced accuracy on six of seven models, with a substantial decrease on four.
Lasso's conclusions are deliberately careful. The study did not verify how Claude model responses change when watermarking is applied, and critics noted the experiment only validated the SynthID-Text tournament sampling implemented by Hugging Face, which differs from how the Claude model would actually implement it. Siposova stressed that the findings describe patterns in the tested sample, not universal rules about watermarking as a category.
Lasso recommended repeating agent evaluations and red-team testing when watermarking or its configuration changes, particularly under adversarial inputs.
The research surfaces a tension that will only sharpen as regulatory deadlines close in. Watermarking was designed to answer the question of where AI text comes from. What it can also do, under the right adversarial conditions, is change what the AI decides to do next.
A significant security update was released by Microsoft on Patch Tuesday in September, addressing 974 vulnerabilities across the company's software portfolio in unusual quantities. Additionally, this update contains two Windows flaws that have been confirmed to be exploited in the wild, highlighting the urgency of fixing the vulnerabilities. The vulnerabilities span several Microsoft product categories, including Windows, Office, SQL Server and Development Tools.
Microsoft Windows accounted for 723 flaws, while Microsoft Office and Office 2016 contained 111, SQL had 62, and Developer Tools contained 22 more. There have been over 110 critical vulnerabilities rated as critical. Among the most critical issues addressed in this month's release are privilege escalation, remote code execution and information disclosure. Besides Microsoft's own vulnerabilities, the company also patched 25 non-Microsoft vulnerabilities as part of the September update, which brings the total number of vulnerabilities covered to 999.
The two actively exploited Windows vulnerabilities are CVE-2026-85880 and CVE-2026-81963, both with a CVSS score of 7.8. The CVE-2026-85880 vulnerability is a heap-based buffer overflow in the Advanced Local Procedure Call (ALPC) function of Windows. The vulnerability can be exploited by an attacker with authorization to gain SYSTEM-level access by escalating privileges.
CVE-2026-81963 is a vulnerability that affects the Windows Update Stack and involves improper link resolution. Authorized attackers are also capable of exploiting this vulnerability for escalating local privileges and gaining system access.
By exploiting CVE-2026-85880, Microsoft stated that code running inside an AppContainer that has low privileges may escape its sandbox and gain full privileges on the affected Windows system. The attack does not require additional interaction from the user. This vulnerability has attracted significant attention due to its location within the Windows Update Stack.
There have been reports of vulnerabilities in this component that could have serious implications, especially since the update mechanism itself is responsible for the modification of system components. Microsoft has released fixes for CVE-2026-81963, however, across supported versions of Windows.
Both vulnerabilities have been exploited by Microsoft, but the company has not provided information regarding who the attackers are, how many systems were targeted, or whether successful compromises have been confirmed. According to the Cybersecurity and Infrastructure Security Agency (CISA), both vulnerabilities have been added to its catalog of known exploited vulnerabilities. There is a deadline of September 22, 2026, for federal agencies to apply available security updates.
The September release addresses several high-severity security vulnerabilities across Microsoft enterprise products in addition to the two exploited zero-days. This vulnerability could allow an unauthorized attacker to execute code remotely if exploited by an attacker. It has been rated 8.1 by the Center for Vehicular Defense.
A vulnerability rated 8.8 in SharePoint has been reported, as well as a vulnerability in SQL Server called CVE-2026-65669, which can result in network-based code execution. The vulnerability is particularly severe and carries a CVSS score of 9.6, enabling privilege escalation. Several critical vulnerabilities affect Windows Remote Desktop Services, Windows DNS Server, Windows DHCP Server, Windows Shell, and Windows Services for NFS ONCRPC XDR Driver, carrying the maximum CVSS score of 9.8.
In addition to reflecting the growing number of security vulnerabilities reported, the scale of the September release also reflects the rising number of security flaws reported by TrendAI's Zero Day Initiative. As of the beginning of 2026, Microsoft has patched 2,760 security vulnerabilities. Among Tenable's analysts, Satnam Narang noted that the September release alone brings the yearly count above 2,600 vulnerabilities, more than twice the previous record of 1,245 vulnerabilities recorded in 2020.
It is important to note, however, that the raw number of CVEs does not necessarily indicate a company's level of risk. There may be patches that do not affect a particular environment, while others require specific configurations or local access for exploitation to occur. In the immediate future, it is important to identify vulnerabilities in deployed systems that are able to be exploited realistically.
Since the two Windows zero-day vulnerabilities have already been confirmed as exploited and have been added to CISA's KEV catalog, they should be remedied sooner rather than vulnerabilities with no known exploitation activity.
An international public-private operation has disrupted Sality, a peer-to-peer botnet that remained active for more than two decades, by seizing domains and redirecting infected computers away from infrastructure controlled by its operator.
The coordinated action took place on August 31, 2026, and involved authorities in the United States, Bulgaria, Hungary and Romania. CrowdStrike and the Shadowserver Foundation provided technical assistance, while Europol and Eurojust supported the international coordination.
According to the US Department of Justice, the DOJ, FBI and the Defense Criminal Investigative Service seized Sality-linked domains in the United States. European authorities took action against additional domains hosted in Bulgaria, Hungary and Romania.
CrowdStrike’s Counter Adversary Operations team simultaneously carried out a peer-to-peer sinkholing operation designed to separate infected computers from the botnet’s operator.
The action disabled Sality’s current command channel, but it did not automatically remove malware from compromised computers.
First observed in 2003, Sality began as a polymorphic file-infecting malware family. It attached malicious code to executable files and could spread through network shares, removable drives and file-sharing systems.
Sality eventually developed into a decentralized botnet in which infected computers communicated directly with one another. Unlike a conventional botnet with one central command-and-control server, Sality’s peer-to-peer architecture did not present investigators with a single server that could be seized to disable the entire operation.
CrowdStrike said two incompatible Sality networks, known as versions 3 and 4, remained active until the disruption. Although they used the same underlying codebase and were operated by the same threat actor, the networks used different protocol versions and cryptographic keys.
The botnet’s main function was to deliver additional malicious software. During its long history, Sality distributed malware associated with credential theft, spam, proxy services, network exploitation and distributed denial-of-service attacks.
For approximately the past eight years, CrowdStrike said its primary payload was EggJagger, a clipboard-hijacking tool that monitored devices for copied cryptocurrency wallet addresses. When it detected a Bitcoin or Ethereum address, the malware replaced it with an address controlled by the attacker.
CrowdStrike estimates that at least $150,000 in cryptocurrency was stolen through EggJagger, although other malware distributed through Sality may have produced additional criminal revenue.
CrowdStrike’s technical account of the disruption states that Sality enabled its operator to distribute malicious payloads to more than 33,000 infected computers worldwide at the time of the operation.
Historical figures are considerably larger. Europol reported that Sality provided access to as many as one million infected machines at its peak. More than 11 million unique IP addresses have been connected to its infrastructure over its lifetime.
The 11 million figure should not be interpreted as the number of simultaneously infected devices. Individual machines can use different IP addresses over time, and the total covers years of recorded activity.
Europol has supported Sality-related investigations since 2017. The agency said international partners held weekly operational calls in the weeks before the latest action to coordinate infrastructure seizures and the technical disruption.
The operation targeted the peer lists that Sality-infected computers used to locate other machines in the botnet.
Each infected computer maintained a limited list of publicly reachable “super peers,” which formed the backbone of the P2P network. Approximately every 40 minutes, the malware checked whether those peers remained available. Responsive peers gained reputation, while unresponsive entries were gradually removed.
CrowdStrike found that the Sality protocol did not authenticate computers joining the network. Any publicly reachable system that completed the required handshake could be accepted as a legitimate peer.
Defenders used this weakness to manipulate the botnet’s peer lists. Legitimate Sality peers were invalidated and replaced with sinkhole nodes operated by CrowdStrike. As the process continued, infected computers lost contact with the criminal network and began communicating with defender-controlled infrastructure instead.
Computers located behind firewalls or network address translation could not always be contacted directly. However, when those devices initiated their routine communications with a sinkhole, their peer lists could also be purged, isolating them from the operator.
Authorities and industry partners also acted against websites hosting Sality’s payloads. Taking those locations offline prevented infected computers with older download instructions from retrieving additional malware during the transition.
CrowdStrike tracks the criminal actor associated with Sality as SALTY SPIDER. The company assesses that the group likely operates from Russia’s Republic of Bashkortostan, near the border with Kazakhstan.
This remains a company attribution rather than a publicly established legal finding. The DOJ and Europol announcements did not identify an individual operator, announce an arrest or disclose criminal charges connected to the disruption.
Although the operator has lost the ability to issue new instructions through the disrupted network, Sality remains installed on affected computers. Additional malware previously delivered by the botnet may also remain active.
CrowdStrike said Sality-infected systems now communicate with its sinkhole infrastructure. The company published a defanged lighthouse IP address, the botnet’s final payload URLs and YARA rules that security teams can use to identify active infections.
Shadowserver is working with internet service providers and national Computer Security Incident Response Teams to identify affected organizations, notify victims and support remediation.
Organizations that detect a Sality infection should isolate the affected device, inspect it for secondary malware and remove or rebuild compromised systems. Security teams should also examine network shares and removable media that may contain infected executable files.
Passwords and other credentials used on an infected device should be considered exposed. However, credential changes should be performed from a clean system after the malware has been removed.
The operation has disabled Sality’s existing command channel and prevented it from distributing new payloads through the disrupted infrastructure. Its long-term impact will now depend on whether remaining infections are found and remediated before the operator can attempt to rebuild part of the network.
Unlike automated privacy tools, these high-end services combine data removal with continuous monitoring and manual audits designed to reduce both online exposure and physical security threats.
Consumer-focused services such as DeleteMe, Incogni and Google’s free PII removal tool can help limit exposure, but their reach remains restricted. Data brokers often use measures to prevent automated deletion requests. “insert something like a captcha to ensure that a bot can’t come in and wipe out their database,” Tom Aldrich, chief operating officer of digital exposure reduction firm 360 Privacy, told Observer.
Aldrich said his company, which works with 32 Fortune 100 companies, recently took on a wealthy client who had previously used an automated service. The firm discovered 62 profiles belonging to the individual across hundreds of data aggregation platforms. “We found 62 different profiles on them across hundreds of data aggregator sources,” said Aldrich, who added that 93 percent of those profiles included non-public information and could be removed.
Security experts increasingly warn that information available online can create risks in the physical world. Threats against senior executives have risen steadily over the past two decades, with attacks in 2025 more than doubling compared with the previous year.
“Physical and digital can no longer be separate,” Brian Hill, field chief information security officer at personal cybersecurity firm BlackCloak, which serves corporate executives and high-net-worth individuals, told Observer.
The connection became particularly evident in the case of Vance Boelter, the Minnesota gunman sentenced in July to two consecutive life sentences plus 40 years for killing Democratic lawmakers in 2025. Boelter reportedly used data aggregator websites to identify his victims.
Growing concerns around executive safety have also pushed security spending higher. The median security expenditure for executives at S&P 500 companies increased 37.8 percent between 2024 and 2025. During the same period, S&P 500 CEOs earned an average annual compensation of $18.9 million.
Meta was among the biggest spenders, allocating more than $25 million toward physical and digital security for CEO Mark Zuckerberg.
For family offices, celebrities and high-net-worth clients, BlackCloak's services can cost between $10,000 and roughly $200,000 annually. Enterprise contracts covering executives, board members and founders can reach as much as $600,000 per year.
The expanding digital footprint of consumers has created an entire economy around personal-data protection. Data brokers collect and sell personal information to third parties, contributing to a North American data-broker market estimated at $40 billion.
Removing such information is often difficult and labor-intensive, increasing demand for specialized providers that can continuously identify and eliminate exposed data.
Only California, Oregon, Texas and Vermont currently require data brokers to identify themselves through state registries. More than 4,000 data brokers are estimated to operate across the U.S., with many outside the reach of comprehensive regulation. California alone has 545 registered data brokers.
Premium privacy firms typically remove information from publicly accessible websites while also monitoring the dark web and strengthening security across users' accounts and devices. Connected household technology, including security cameras, may also be included in these security assessments.
Still, complete digital anonymity is difficult to achieve. “Reducing your digital footprint to zero is virtually impossible,” said Hill. “Our goal is anywhere from 70–90 percent removal of data.”
Certain public records, including newspaper archives and campaign donation records, can also remain difficult or impossible to erase.
While high-end privacy protection is increasingly being adopted by wealthy individuals and corporations, more affordable services can still help ordinary consumers reduce their exposure.
Aura, for example, offers automated data removal alongside other digital safety services for families at $32 per month. “As data breaches continue, data brokers expand, and A.I. makes it easier to exploit personal information, more people are looking for ways to reduce their digital footprint and regain control of their privacy,” Tom Clayton, president and chief operating officer of Aura, told Observer.
Despite the growing number of services available, adoption remains relatively low. Only 6 percent of American adults use data-removal services, while more than half do not know such services exist.
Smaller businesses are increasingly vulnerable as well. “The attackers are…going after the small companies, the local family businesses. They’re now becoming the targets because they’re the easy ones,” Hill said.
Executives and their families continue to face particular risks. According to a 2025 report from BlackCloak and the Ponemon Institute, 51 percent of security leaders said cyberattacks had targeted the personal accounts of executives or their family members.
As personal and professional digital lives become increasingly intertwined, conventional corporate security teams may not fully protect executives' personal information. That gap is helping drive demand for specialized privacy and cybersecurity providers.
Artificial intelligence and emerging technologies could make the problem even more challenging. “With a lot of this technology,” said Hill about A.I. and quantum computing, “you’re going to see a lot more data collection, and it’s going to be easier to go after the people that don’t set up an LLC or trust because they just don’t think they need to.”