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Governance Gaps Emerge as AI Agents Drive 76% Increase in Non-Human Identities

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Governance Gaps Emerge as AI Agents Drive 76% Increase in Non-Human Identities

The rapid adoption of AI agents in enterprise workflows is outpacing security efforts, according to a new report from the SANS Institute. The organization’s 2026 State of Identity Threats & Defenses Survey, based on interviews with over 500 security professionals worldwide, reveals that non-human identities (NHIs)—such as service accounts, API keys, and automation bots—have surged by 76% across most organizations. This growth is largely driven by agentic AI, with 74% of companies already deploying AI agents that require credentials. However, the study warns that AI agents governance gaps are leaving enterprises vulnerable to new security risks.

The Rise of Non-Human Identities and Agentic AI

Non-human identities are quietly multiplying within organizations, often doubling or tripling in number. This explosion is tied to the increasing use of agentic AI systems, which operate autonomously and need access permissions to interact with critical infrastructure. Unlike traditional NHIs that follow fixed logic, agentic AI interprets instructions and can take unpredictable actions. This makes them behave like over-privileged insiders, but at machine speed—a scenario that introduces risks like hallucinations and unauthorized data access.

As a result, the SANS Institute highlights a pressing need for NHI governance frameworks. Without proper controls, these identities can become vectors for breaches. Forrester Research warned last year that an agentic AI deployment will cause a publicly disclosed data breach by the end of 2026, urging organizations to adopt a “minimum viable security” approach.

Credential Hygiene Failures Expose Weaknesses

One of the most alarming findings from the survey is the widespread credential hygiene failures in managing NHIs. A staggering 92% of organizations fail to rotate machine credentials on a 90-day cycle, fearing that this might disrupt service accounts. Most (59%) rotate fewer than half of their NHI credentials quarterly, while 15% don’t even know their rotation rate. Additionally, 5% of respondents are unaware if their organization is running agentic AI at all.

These gaps are compounded by reliance on manual processes. Many organizations still use ticket-based provisioning and periodic access reviews, which simply cannot scale when environments have large volumes of NHIs operating across DevOps, cloud, and SaaS systems. Effective NHI security strategies require automation and centralized oversight.

AI Governance Lags Behind Deployment

The SANS study underscores that most organizations lack a coordinated security-first approach to AI deployment. Richard Greene, a certified instructor at SANS Institute, warns: “We’ve already seen what happens when non-human identities scale without guardrails, and agentic AI is moving even faster.” He notes that while some progress is visible—nearly 40% of organizations now use human-in-the-loop approvals for AI agent actions—the real challenge is staying ahead as these systems shift from pilots to core operations.

To bridge these AI agents governance gaps, the SANS Institute recommends adopting secrets vaults, automated credential rotation, and scoped least-privilege access. However, scaling these measures to match the continued growth of NHIs is critical. Zero-trust principles for NHIs can help mitigate risks by limiting permissions and enforcing continuous monitoring.

Recommendations for Closing the Governance Gap

Building on these findings, organizations must prioritize several actions to address NHI governance challenges. First, implement automated credential management to eliminate manual rotation failures. Second, enforce least-privilege access for all AI agents, ensuring they only have permissions necessary for their tasks. Third, establish human oversight mechanisms, such as approval workflows for high-risk actions. Finally, conduct regular audits to detect unknown NHIs and assess their behavior.

As agentic AI continues to evolve, the need for robust governance frameworks becomes urgent. Without them, the 76% increase in NHIs could translate into a proportional rise in security incidents. Building a comprehensive AI security framework is no longer optional—it’s a business imperative.

CyberSecurity

Two Scattered Spider Hackers Sentenced to 5.5 Years Each for £29 Million TfL Hack

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Scattered Spider hackers

Two Young Hackers Face Justice for Crippling London’s Transport Network

Owen Flowers, 18, and Thalha Jubair, 20, stood in the dock at Woolwich Crown Court on Thursday, 16 July 2026, as the judge handed down five-and-a-half-year sentences for their roles in the devastating 2024 cyberattack on Transport for London (TfL). The pair, linked to the notorious Scattered Spider hacking group, brought the capital’s transport authority to its knees.

The scale of the damage was staggering. The attack left 148 TfL systems completely inoperable. Every single one of the authority’s 27,000 employees had to physically report to an office just to get their passwords reset. No remote workarounds. No shortcuts. Just thousands of people queueing up in person because the digital infrastructure had been so thoroughly compromised.

Both the National Crime Agency (NCA) and the Crown Prosecution Service (CPS) put TfL’s total losses and recovery costs at a staggering £29 million. That figure covers everything from emergency IT repairs to lost revenue during the service disruptions that followed.

Who Are the Scattered Spider Hackers Behind the TfL Attack?

Scattered Spider has earned a fearsome reputation in cybersecurity circles. Unlike many ransomware gangs that rely on automated tools, this group is known for sophisticated social engineering — tricking employees into handing over credentials rather than brute-forcing their way in.

For the TfL breach, Flowers and Jubair exploited weak points in the authority’s digital defenses. Once inside, they moved laterally across the network, disabling systems and demanding ransom payments. The attack disrupted travel for millions of Londoners and exposed sensitive employee data.

The sentencing marks one of the most significant cybercrime prosecutions in UK legal history. It sends a clear message: even young offenders with sophisticated technical skills will face serious prison time.

How the NCA and CPS Built Their Case

The investigation was a marathon effort. The NCA’s cybercrime unit worked alongside TfL’s security teams to trace the digital footprints left by the attackers. Digital forensics played a pivotal role — recovering deleted logs, analyzing network traffic, and piecing together the timeline of the intrusion.

The CPS then had to prove not just that the hack happened, but that Flowers and Jubair were the individuals responsible. That meant tying them to specific IP addresses, communication records, and financial transactions linked to the ransom demands.

Both defendants pleaded guilty, sparing victims a lengthy trial. But the judge made clear that their age did not mitigate the seriousness of the crime. The sentence reflects the massive financial damage and the disruption to a critical public service.

What the TfL Hack Means for UK Cybersecurity

This case is a wake-up call for every public sector organization in the UK. Transport for London — an authority that moves millions of people daily — was brought to its knees by two young hackers. If TfL can be breached, so can any organization.

Experts have long warned that public sector IT systems are underfunded and outdated. The TfL hack exposed exactly those vulnerabilities. Password reset procedures, network segmentation, and employee training all came under scrutiny in the aftermath.

For businesses and government agencies alike, the lesson is clear: invest in cybersecurity before an attack, not after. The £29 million TfL spent on recovery could have funded years of proactive defense.

The Human Cost of the Attack

Beyond the financial figures, there’s a human story. Thousands of employees faced the chaos of manual password resets. Commuters dealt with delayed trains and buses. And the psychological toll on TfL’s IT staff — the ones who had to rebuild everything from scratch — shouldn’t be underestimated.

The sentencing brings a degree of closure. But for those who lived through the aftermath, the memory of those disrupted weeks will linger.

What Happens Next for Flowers and Jubair?

Both young men will serve their sentences in youth detention facilities before transitioning to adult prisons. Their criminal records will follow them for life, likely barring them from legitimate careers in technology — the very field where their talents could have been put to positive use.

There’s also the question of compensation. The court could pursue confiscation orders to recover some of the £29 million in damages. Whether the pair have significant assets to seize remains unclear.

For the broader hacking community, the message is unambiguous. The NCA has made cybercrime a priority, and this prosecution shows they’re willing to pursue offenders across borders and through complex digital evidence. The days of anonymous hackers operating with impunity are ending.

If you’re interested in how similar attacks unfold, you might want to read about ransomware attack prevention strategies or explore how cybercriminals use social engineering to breach corporate defenses. Understanding the tactics is the first step to building better protection.

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Cl0p Ransomware Affiliate Exploits Critical PTC Windchill Flaw in Active Campaign

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PTC Windchill vulnerability

Critical PTC Windchill Vulnerability Now Under Active Exploitation

A ransomware affiliate linked to the Cl0p group has been caught exploiting a critical remote code execution (RCE) flaw in PTC‘s Windchill and FlexPLM product lifecycle management (PLM) platforms. The attacks, which began around July 20, have targeted organizations in aerospace, automotive, manufacturing, and retail/apparel sectors.

The vulnerability, tracked as CVE-2026-12569, carries a CVSS score of 9.3. It’s a deserialization of untrusted data issue that can be exploited without any authentication. That’s a dangerous combination — no credentials needed, and full remote code execution on the other end.

PTC released a patch on June 17. The very next day, the company flagged the bug as exploited in the wild and published indicators of compromise (IoCs). By the end of June, the flaw had been added to CISA’s Known Exploited Vulnerabilities (KEV) catalog.

How the Attack Chain Works

Researchers at ReliaQuest and Ransom-ISAC, working with eCrime.ch and Defused, have now detailed how the attackers are chaining multiple flaws together. The initial access isn’t a single exploit — it’s a combination.

According to a Ransom-ISAC advisory, the attackers are using a pre-authentication information disclosure in the FlexPLM WSDL endpoint. They then pair that with a server-side flaw in the Windchill login servlet. The end result? Remote code execution and the deployment of JSP webshells on compromised systems.

What Happens After Initial Access

Once inside, the threat actors don’t waste time. ReliaQuest’s analysis shows they immediately begin:

  • Enumerating filesystem structures
  • Staging sensitive data for theft
  • Exfiltrating data for extortion purposes

The campaign is notable for its speed and organization. Starting July 20, the attackers have been systematically working through their target list across multiple industries.

Extortion Emails Sent to Hundreds of Users

The social engineering component is just as aggressive as the technical exploitation. The threat actor has been sending extortion emails with the subject line “Windchill PDMLink module serious data leak” to hundreds of users within impacted organizations.

As of July 22, Cl0p had not yet listed victims of this campaign on its dark web data leak site, nor had it publicly claimed credit. That silence is typical — the group often waits to maximize pressure during negotiations.

Who’s Behind the Attacks?

Attribution remains unconfirmed, but the tradecraft tells a story. “The actor behind these attacks remains unconfirmed. However, the observed tradecraft shares characteristics with previous Cl0p campaigns targeting enterprise applications and high-value data repositories,” ReliaQuest noted in its advisory.

Cl0p has a well-documented history of going after file transfer and enterprise software. Previous campaigns have targeted everything from MOVEit Transfer to GoAnywhere MFT. The group’s playbook is consistent: find a critical flaw, exploit it at scale, and extort victims with stolen data.

Mitigation Steps for Organizations

If your organization runs PTC Windchill or FlexPLM, the message from researchers is clear: patch immediately if you haven’t already. The June 17 update addresses CVE-2026-12569, and there’s no excuse for running unpatched systems at this point.

Beyond patching, security teams should take these steps:

  • Review PTC’s published IoCs and hunt for any matches in your environment
  • Check for unexpected JSP files on Windchill servers — webshells are the primary payload here
  • Monitor outbound network traffic for unusual data transfers, especially to unfamiliar IPs
  • Audit login logs for the Windchill servlet and FlexPLM WSDL endpoint for suspicious activity
  • Follow PTC’s remediation guidance, which includes checking for indicators of webshell deployment

The window between patch release and active exploitation is shrinking across the industry. This case — patched June 17, exploited in the wild June 18 — is another reminder that attackers are monitoring vendor disclosures as closely as defenders are.

For more on how threat actors are targeting enterprise software, check out our coverage of Iranian hackers targeting Siemens and Schneider Electric ICS devices and the broader discussion on whether patching is dead in the post-Mythos era.

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Inside GPT-Red: How OpenAI Automates Prompt Injection Testing to Harden GPT-5.6

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GPT-Red prompt injection

OpenAI’s New Red-Teaming Weapon

OpenAI has pulled back the curtain on GPT-Red, an internal automated red-teaming model designed to scale prompt injection vulnerability discovery. The goal? Fix security holes before tools like GPT-5.6 reach the public.

The company didn’t mince words about its own creation’s potency. “GPT-Red is a strong red-teamer, and our previous models are highly vulnerable to its prompt injection attacks,” OpenAI stated. That admission is telling—it underscores how quickly the attack surface has grown.

Instead of relying solely on human testers, OpenAI now uses GPT-Red to adversarially train its models. This isn’t a side project. It’s a core part of the development pipeline for GPT-5.6 and beyond.

Why Prompt Injection Testing Needs Automation

Prompt injection attacks work by sneaking malicious instructions into inputs that a model processes. A seemingly harmless query can carry hidden commands that override system rules. The result? Data leaks, unauthorized actions, or outright manipulation.

Manual red-teaming has limits. Human testers are creative, but they’re slow. They can’t probe every edge case across thousands of model iterations. GPT-Red changes that equation. It generates attacks at machine speed, testing vulnerabilities that would take teams weeks to uncover.

OpenAI’s approach mirrors a broader industry shift. Automated red-teaming is becoming a standard practice, not a luxury. Companies like Anthropic and DeepMind have explored similar avenues, but OpenAI’s disclosure offers rare transparency into the nuts and bolts.

The Mechanics of GPT-Red

GPT-Red isn’t a single-purpose script. It’s a model trained specifically to think like an attacker. It learns from past vulnerabilities and adapts its strategies. Each successful attack feeds back into the training loop, making it smarter over time.

This creates a virtuous cycle. The red-teamer gets better at breaking things. The main model gets better at resisting. The arms race is deliberate, and it’s working—at least according to OpenAI’s internal metrics.

How Adversarial Training Hardens GPT-5.6

Adversarial training isn’t new. Researchers have used it for years in computer vision and natural language processing. But applying it to prompt injection is a distinct challenge. The attack space is linguistic, not pixel-based. It requires understanding nuance, context, and intent.

GPT-Red excels at this. It generates thousands of attack variations, then scores the main model’s responses. Weaknesses get flagged. The model gets retrained. Repeat.

For GPT-5.6, this means a defense that’s baked in from the start. Security isn’t a patch applied after launch. It’s part of the model’s DNA. OpenAI says this approach has already reduced successful injection rates significantly in internal tests.

What This Means for Developers

If you’re building on OpenAI’s platform, this matters. A hardened model means fewer surprises in production. Your prompts are less likely to be hijacked, and your data is safer.

But don’t get complacent. GPT-Red is a tool, not a silver bullet. Developers still need to follow best practices: validate inputs, limit permissions, and monitor outputs. Defense in depth remains the rule.

For a deeper dive into securing your AI workflows, check out our guide on AI security best practices for developers.

The Road Ahead for AI Red-Teaming

OpenAI’s disclosure is a signal. Automated red-teaming is here to stay. As models grow more capable, the attack surface expands exponentially. Human oversight alone can’t keep pace.

We’re likely to see more tools like GPT-Red emerge—both from OpenAI and competitors. The bar for what counts as “secure” is rising. That’s good news for everyone who relies on AI systems.

Still, questions linger. How transparent will OpenAI be about GPT-Red’s limitations? Will it share the model externally? For now, it’s an internal asset, but the potential for broader use is obvious.

One thing is certain: the cat-and-mouse game between attackers and defenders is accelerating. GPT-Red is OpenAI’s answer, and it’s a formidable one. The next generation of models will be tougher to crack—and that’s a win for the entire ecosystem.

Curious about how these vulnerabilities surface in real-world apps? Read our analysis on common prompt injection attack vectors.

And if you’re weighing your options, our comparison of OpenAI vs. Anthropic security features offers practical insights.

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