
Who gets to decide who should be CEO of OpenAI? ChatGPT or the board? Plus a ransomware gang goes a step further than most, reporting one of its own data breaches to the US Securities and Exchange Commission.
All this and more is discussed in the latest edition of the “Smashing Security” podcast by cybersecurity veterans Graham Cluley and Carole Theriault.
Warning: This podcast may contain nuts, adult themes, and rude language.
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This transcript was generated automatically, probably contains mistakes, and has not been manually verified.
Hello, hello, and welcome to Smashing Security episode 349. I'm Graham Cluley.
So, but anyway, he's now the owner of a lovely Smashing Security sticker, as are some other delegates from the conference who came up to me and said that they enjoyed the podcast.
And I did my usual trick of saying, which one of us do you prefer, me or Carole Theriault?
Now, coming up on today's show, Graham, what do you got?
And what you probably want to do is you want to monetize the data in some fashion.
You might even launder it through online casinos to get rid of all their money and maybe make some more money on the side.
And say, if you don't pay up, we're going to put it on our dark website. You could contact journalists.
I've been contacted by ransomware gangs before, say, "Hey, hey, hey, look, we've got all the emails from this company and we found some really juicy stuff.
You could write about this." Sometimes I've had hacking groups do that with me.
Sometimes when you've seen celebrities get hacked and photographs stolen, and then you see the mainstream media publishing them, and I think, well, hang on a minute.
Is that acceptable? I sort of think it isn't, really.
Just one year ago, AirAsia, they got hacked by a ransomware gang called the Daixin team, and they lost personal data of 5 million passengers, all of their employees.
And normally that would be bad enough for a company, right, to have their data stolen.
Something you probably wouldn't expect, because according to the hackers, the DaiChin team who came in, they said they were so irritated by the chaotic organisation of AirAsia's network and the absence of any standards that they refused to look at the data for a long time.
And they said the network protection was very, very weak.
And they basically announced, we're never going to hack them again because they're too much effort, because they're just so lousy, their security.
So it's worse actually than the data being leaked — you also got the hackers saying, "You're a complete joke, how you're running your computer security on your network." That's, I don't understand that.
They've also been hacked plastic surgeries and mental health clinics where the hackers have contacted patients threatening to release their details on their photographs, their pre-op photographs, or their mental health notes, unless they stump up the cash.
What's your point?
The ALPHV ransomware gang, also known as BlackCat, earlier this month they hacked a company called MeridianLink.
And MeridianLink provides services at some kind of platform for financial institutions. They've got some important customers who've got lots of wonga.
Sometimes the hackers don't bother encrypting files, they just think, "We're just gonna steal your data 'cause we're gonna assume you've got backups.
Why bother encrypting your files, maybe tipping you off earlier as to what's happening?" Can we just give ourselves a hat tip there and just take a pause?
And according to the hackers, they said the next day MeridianLink found out what happened about the breach, but they didn't apparently do anything about it.
According to the hackers, they say they didn't put any security upgrades in place, they didn't patch themselves, and it was only when ALPHV posted on their dark web website, their leak website, about the breach that they then saw MeridianLink protect themselves against further attacks.
They get annoyed. So then they go to the local paper and tell everybody that they broke into my house and how crap it was or whatever, you know, that they have this data.
And then I go, okay, fine, I'll fix the door.
In the old days, when we worked at the company we worked at, no free advertising for anybody, I would come home occasionally at night, right?
I had a flat in Oxford Centre, and my front door would be wide open because I had forgotten to close it when I left.
Literally all day, that door was wide open, this huge door thing in a Victorian house, a little apartment. And no one walked in ever, no one stole anything. But somehow—
And they're thinking, well, you know, MeridianLink haven't been in touch. They're not negotiating with us, there's no dialogue going on, you know, why aren't they doing anything?
Not MeridianLink's customers, not MeridianLink's staff, but instead the US Securities and Exchange Commission.
There's a place you can go on the SEC website where you can report companies who you believe have failed to, for instance, disclose a security breach within 4 days as stipulated in SEC rules.
SEC updated its rules in July, saying that you had to report a breach within 4 days.
So they wrote, the hackers wrote on the SEC website, "We want to bring to your attention a concerning issue regarding MeridianLink's compliance with the recently adopted cybersecurity incident disclosure rules."
So they have to amend the law, and you need to identify yourself as the reportee for them to take it seriously.
'Cause a company which has been hacked has got enough on its plate already.
How wonderful if the hackers then begin the process of reporting the breach to the authorities, like ringing up the ICO.
Curious as to why they say production platforms.
And the hackers, it's also forcing the hand of the hackers who are gonna go, "Look, we can prove that we've stolen stuff." But maybe also, what if this is a bluff?
What if the hackers have fuck all?
But if you copy data, there's not always evidence that the data has been copied and exfiltrated, depending on how much network logging they have.
And I don't mean to the public, all of us, but somewhere where they can kind of go, yeah, yeah, no, they've got stuff.
You know, in murder investigations, I listen to a lot of this crap podcasts about murders and stuff, right? You have to kind of prove, oh, I know stuff that the cops know.
But today, this is less of a technology story and more of what's going to happen next. So buckle up. And we're recording this episode on Monday, 20th of November in the evening.
So this all started Friday last week. So a mere few days ago, Sam Altman, he's the front man for OpenAI. He got some unexpected news.
Now, you probably know that this company was co-founded by Mr. Sam Altman, and that was thanks to the financial help from Elon Musk himself, early days.
Basically, ChatGPT is the bell of the AI ball. That's the best way to say it, or was until 48 hours ago when all hell broke loose in the upper boardrooms of OpenAI.
So here's what I've managed to piece together. So I've had to read a number of articles, I'd say about 20, right?
To get the chronological order of all the little tidbits that I wanted to cover.
And the previous night he was at an event in Oakland, California, where he was talking with people about art and AI and how they're gonna respect artists and how that's all gonna be a tricky thing, but we'll manage.
So, Sam's logging on to the video meeting, you know, and he's not sure what the agenda is. Well, he soon finds out because he's immediately fired.
And this is all according to the president of the board, Greg Brockman, who apparently, despite being the president and on the board, not invited to the meeting.
And minutes later, minutes later, the board published the blog post.
And I have just a few select quotes because there's lots of we're great, we care about everybody, lots of good stuff.
But basically, the board of directors of OpenAI that acts as the overall governing body for all AI activities today announced that Sam Altman will depart as CEO and leave the board of directors.
Mira Murati, the company's chief technology officer, will serve as interim CEO effective immediately. Okay, that's in paragraph 1.
Altman's departure follows a deliberate review process by the board which concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibility abilities.
The board no longer has confidence in his ability to continue leading OpenAI." So it doesn't really answer the question because you want to know what happened.
He's like, "I'm done, I'm out of here."
So this is the darling of the tech world, and they just dumped their co-founder and CEO on his ass.
And this was a surprise to all because many maintain this guy's done loads to generate enthusiasm for language models like ChatGPT. He's been everywhere and done all the talks.
And the question on everyone's lips after hearing the news was, "What happened?" But Sam was tight-lipped. All the papers were probably calling him nonstop going, "Why? Why?
What happened? What do you have to say?" And he didn't respond to anyone that I saw. And so were the board. And so was the ex-president, Brockman.
He said a few words, but nothing exciting.
I think everyone deserves to be told why they're done, right? I once dumped a girl because she didn't know who the Beatles were.
Where's the figurehead of everything?" There's 700 of them, right? And they want to know the details.
So when they ask, they're told that there was a breakdown in communications between Sam and the board. Thanks, guys. Really? Thanks. I would say actually, no shit, thanks.
How come the board were even able to just fire the CEO who is a member of the board? And it's because it's a capped profit subsidiary.
So Sam Altman himself, the CEO or ex-CEO, did not directly own shares.
And this board does not have the typical incentive of maximizing returns for shareholders, but they have a fiduciary responsibility or duty to create safe artificial general intelligence that is broadly beneficial.
Okay. They were able to sack Sam without blinking and just saying, you know, he wasn't keeping us informed.
It was maybe a bit dangerous, but they're now having to say it wasn't dangerous. It's not dangerous, but it's kind of, we had to get rid of him. So this is why it's so exciting.
Let's pivot again because we have Microsoft who have sunk $10 billion, not $10 million, $10 billion.
Do you want to know when they found out?
Some of them quite senior, at least 3 senior researchers, including the director of research at OpenAI, says sayonara to OpenAI. This is all on Friday. Okay, this is one day.
No, there wasn't. No, there was no—
And he even posted a photo of himself in the OpenAI offices wearing a guest visitor badge and has the line, "First and last time." Right.
But then on the same day, there's also gossip that Altman, Sam Altman and Brockman were going to go launch their own initiative.
And he also pokes the board on X/Twitter saying, if I start going off, the OpenAI board should go after the full value of my shares. Snigger, snigger, because I don't have any.
Sam Altman and Greg Brockman have decided to accept roles leading the brigade at Microsoft's Advanced Research Lab.
Because Microsoft probably said, "Well, we have the right to do this as the board." Basically said, "Look, hey guys, you have an open job here."
Lower ranks in OpenAI, the employees, are also scrambling.
More than 550 of OpenAI's 700 employees signed a letter saying that the board have to quit because otherwise, if they don't resign, they may just get up and go and work for Microsoft because Microsoft has said to them, don't worry, there are jobs for all OpenAI staff if they want to join the company.
Your conduct has made it clear you did not have the competence to oversee OpenAI. 550 employees wrote that, signed to that note.
Get this: one of the board members who is obviously being targeted by this employee onslaught of saying, "Resign, you fuckers," also signed the letter.
Oh, he's quoted as saying, "I deeply regret my participation in the board's actions. I never intended to harm OpenAI.
I love everything we built together, and I will do everything I can to reunite the company." So I'm just saying, hand me the toffee popcorn. Am I right?
I don't know what to do today. I'll ask ChatGPT to tell me what I should do today and what decisions I should make. This is the AI taking control right here, Chris.
This is the AI pushing out the man.
What would you do if you're Mira Murati and they're just building up their whole drama? Who knows? It's crazy. But this is the belle of the ball. Right?
This is Pamela Anderson— What was that beach show she was on when she was running around? Baywatch. Baywatch. Tripping and breaking her ankle. Okay? That's how big this is.
Pay attention. It's probably old news now that you're listening.
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Could be a funny story, a book that they've read, a TV show, a movie, a record, a podcast, a website, or an app, whatever they like.
It doesn't have to be security-related necessarily. Hmm, mine might be. Yours is security-related?
Anyway, my pick of the week this week, I don't know how many of our listeners are following British politics, but—
He's now Lord Dave of Chipping Norton, he is now.
And he is going to be our Home Secretary, although not actually answerable to the House of Commons because he won't be showing up there because he's not an MP.
Anyway, that's all come about because Suella Braverman has been fired as Home Secretary. You can look into exactly what she did wrong.
Well, you can see the latest thing that she did wrong which upset Prime Minister Rishi Sunak.
Now, I'm not going to get very political here, but my pick of the week this week is a Twitter account called Rate Your Resignation Letter.
And what they do is they analyse, and it's quite often been the resignation letters of politicians, to give them basically a score.
Score for their grammar, a score for any insults, any sort of mistakes that they've made, just having a pop basically at the quality of the resignation letter.
Now, Suella Braverman's resignation letter was quite a hoot because — What is it? Oh yes, oh yes.
And this has caused a cavalcade of other politicians to question the suitability of Rishi Sunak to be Prime Minister, including someone called Dame Andrea Jenkins MP.
And she has written a letter of no confidence. And this was a work of art.
Dame Andrea Jenkins has written the most extraordinarily badly written letter that I think I've ever, ever seen. She's a big fan of a previous Prime Minister, Boris Johnson.
I'm looking at her letter now.
Enough MPs have to write complaining.
So what I particularly enjoy is she's a big fan of Boris Johnson, and some of her sentences appear to have missed out verbs, or she's got a little bit distracted by the end of the sentence.
So for instance, she says, "Yes, Boris, the man who won the Conservative Party a massive majority, was unforgivable enough." And I think she meant to write, "the ousting of Boris was unforgivable enough." So she appears to be saying that Boris Johnson was unforgivable enough.
But there are a huge number of errors and grammatical flaws, and you just think, oh my God, wouldn't you have spent a bit more time writing this letter?
Anyway, the ResignWell website, the Rate Your Resignation Twitter account, is an account which looks at people's resignation letters and then gives them a score.
And points out grammatical errors. And I quite enjoy it because, my goodness, there's not that much to enjoy in British politics at the moment.
But it is good fun. I enjoy it too. I've lived here long enough. I know how to roll with this.
I've just finished it, and it is a teeny tiny bit security related because at the heart of the story there's some techie jiggery-pokery afoot.
But the whole thing is more taking a stab at how the near future could pan out if we don't pay a bit more attention to what's going on.
So basically you've got 3 tech trillionaires, right? You've got this, a CEO of a hybrid of Facebook and ex-Twitter called Fantail. You've got the CEO of Anvil, that's Amazon.
And you have the CEO of Medlar, which is kind of a Microsofty Apple World's most profitable personal computing company. And they have made in-case plans.
And what I mean by that is if the world goes AWOL completely, these 3 VVVIPs can be safe, right? Because they have lavish bunkers dotted around the world.
So everything starts going crazy, everything starts melting down around you, how can you leave in your very posh, I don't know, whatever, Porsche or, you know, a posh car and not be hammered by people who are going crazy.
But you need an advanced warning system.
So they say, why don't we create a program that triages all the world's data and risk points with a view of predicting the world's end ahead of time so we have enough time to jet off to our fully stocked for decades luxurious safe house while the rest of us fight for survival Mad Max style.
So this is kind of the narrative of the book, and it's interwoven with backstories and childhood experiences of all our kind of protagonists.
Her previous novel was called The Power, and that won the Women's Prize for Fiction. I haven't read that yet, but I will now. But I think it's a shame The Guardian didn't get it.
I think she brings a lot of interesting topics, topics that our listeners will like. But Graham, this is not a book for you because it's kind of complicated.
There's a lot of threads, and I think you would just get really frustrated and go, "Ah, this is not for me." But it was right up my street.
So if you like my pick of the weeks, this sounds like it's up your wazoo. Check it out. It's called The Future by Naomi Alderman. And that's my pick of the week.
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John's been watching these.
Hosts:
Graham Cluley:
Carole Theriault:
Episode links:
- Hackers Use Online Casinos to Gamble Mountains of Cash They Steal from Victims – 404.
- AlphV files an SEC complaint against MeridianLink for not disclosing a breach to the SEC – DataBreaches.net.
- SEC Adopts Rules on Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure by Public Companies – US Securities and Exchange Committee.
- OpenAI announces leadership transition – OpenAI.
- The Fear and Tension That Led to Sam Altman’s Ouster at OpenAI – The New York Times.
- Emergency Pod: Sam Altman is Out at Open AI – The New York Times.
- What We Know About Sam Altman’s Ouster From OpenAI – The New York Times.
- Ousted OpenAI C.E.O. Makes Plans for New Artificial Intelligence Company – The New York Times.
- Microsoft Hires Sam Altman Hours After OpenAI Rejects His Return – The New York Times.
- In the battle to bring ousted founder Sam Altman back to OpenAI, Microsoft and Satya Nadella hold the trump cards – Fortune.
- Rate your resignation letter – Twitter account.
- Suella Braverman’s resignation letter – Twitter.
- Analysis of letter by Dame Andrea Jenkyns – Twitter.
- Thread about letter from Dame Andrea Jenkyns – Twitter.
- The Future by Naomi Alderman review – The Guardian.
- The Future by Naomi Alderman – Harper Collins.
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Theme tune: “Vinyl Memories” by Mikael Manvelyan.
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