S0:E18. Student stops AI supply chain attack and prompt injection is still a thing...

In this episode of Breach Please, we talk about the details that emerged about the Anthropic agent that tried to social engineer a college student into committing a supply chain attack. The whole thing feels very xz-utils 'esque, only with an agent - and a malfunctioning one at that.Then we cover some interesting reporting by Dan Goodin showing how Grok's guardrails can be bypassed through passing it encrypted data along with the instructios to decrypt it. We reinforce that prompt injection is a feature of LLMs, not a bug.We then talk about informed consent of the risks and applicable guardrails based on a viewer note. We even tee up the question of what cyber insurance is likely to cover costs of AI agent activity. Finally, we opine on whether orgs should consider including the inevitable costs of incidents in AI deployment budgets.Show links:https://www.reuters.com/world/how-texas-student-blew-whistle-rogue-ai-hacking-attempt-2026-08-20/https://arstechnica.com/security/2026/08/grok-exfiltrates-user-data-when-malicious-instructions-are-encrypted/