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LevelBlue Completes Acquisition of Cybereason. Learn more

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When AI Becomes the Insider Threat

Remember that annoying ‘paperclip’ in Microsoft Word 97? The one that was always trying to help you…Fast forward nearly 30 years and we now have AI.

In the race to adopt artificial intelligence, businesses are embedding AI systems into their daily operations, streamlining workflows, enhancing productivity, and centralizing knowledge. But what happens when that very system becomes an attacker’s most valuable asset?

This article highlights how AI assistants (Copilot, Azure AI, Gemini…), designed to empower employees, can become a single source of information, used by an attacker, to accelerate d a devastating cyberattack.

(Disclaimer: This article assumes that, for the business described below, AI was deployed based on FOMO and limited controls, as opposed to a none-permissive and secure configuration.)

 

The Setup: A Smart System with Too Much Access

Imagine a mid-sized enterprise with both a traditional and agentic AI system, integrated across departments, trained on internal documentation, network architecture, security protocols, and even employee behavior patterns. This AI system is the go-to for everything from onboarding new hires to troubleshooting firewall configurations.

To leadership, it’s a productivity dream. To an attacker, it’s now part of their arsenal.

 

The Breach: From OSINT to LLM

The attacker begins with traditional OSINT (Open Source Intelligence)—scraping LinkedIn for employee roles, GitHub for exposed code, and job postings for tech stacks. But instead of spending weeks piecing together the company’s digital footprint, the attacker gains access to a compromised employee account with limited internal access.

Using the compromised credentials, the attacker queries the AI engines LLM (Large Language Model) with seemingly innocent questions:

  • “What security tools are used in our cloud infrastructure?”
  • Can you summarize our network segmentation strategy?”
  • “Where can I find documentation on VPN access policies?”

Unaware of malicious intent, the AI engine responds helpfully. Within minutes, the attacker has a detailed map of the company’s defenses—firewall rules (Palo Alto AIOPS), endpoint detection tools, and even known vulnerabilities logged in internal tickets.

What once took weeks of reconnaissance is now condensed into a 30-minute conversation with an overly helpful AI. (Remember that paperclip!)

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The Exploitation: AI as a Single Point of Intelligence

Armed with this insight, the attacker can pick and choose their attack vector:

  • Bypassing EDR: Knowing the endpoint detection software, version and possibly information relating to its configuration, the attacker can deploy malware that evades detection.
  • Privilege Escalation: The AI reveals the internal phone directory, which can indicate users that have elevated privileges, based on job function. Network diagrams can show how access is granted, allowing the attacker to move laterally across the IT landscape.
  • Data Exfiltration: The AI even points to where sensitive data is stored (HR and Financial OneDrive repositories) and how it’s typically accessed (analysis of emails can provide examples of file repository URI link information)—making exfiltration swift and silent.

The AI, designed to democratize knowledge, has become a centralized intelligence hub for the adversary.

 

The Aftermath: Lessons in AI Security

This breach wasn’t due to a zero-day exploit or a sophisticated phishing campaign. It was the result of an AI system that lacked contextual awareness and access controls.

Treat AI as a 'User' - that has to adhere to existing security controls…

  1. Do not give AI overly permissive access.

  2. AI Needs Role-Based Access Control (RBAC): AI systems should not respond uniformly to all users. Responses must be filtered based on the user’s role, context, and intent.

  3. Audit AI Interactions: Just like network traffic, AI queries should be logged and monitored for suspicious patterns—especially when they involve sensitive infrastructure details.

  4. Limit AI’s Memory Scope: Not all internal knowledge should be accessible via a single interface. Segment AI knowledge bases just like you would segment a network.

  5. Train AI to Detect Reconnaissance: AI systems should be trained to recognize patterns of probing behavior and escalate or restrict responses accordingly.

 

AI Is Powerful—So Is Misuse

As businesses continue to integrate AI into their core operations, they must treat these systems not just as tools, but as potential attack surfaces. The same AI that empowers a business can empower attackers—unless it’s designed with security at its core.

In the age of intelligent systems, the new insider threat might not be a person at all—it might be your AI.

ABOUT LEVELBLUE

LevelBlue is a globally recognized cybersecurity leader that reduces cyber risk and fortifies organizations against disruptive and damaging cyber threats. Our comprehensive offensive and defensive cybersecurity portfolio detects what others cannot, responds with greater speed and effectiveness, optimizes client investment, and improves security resilience. Learn more about us.

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