Big Retail Cyber Attack: Amazon’s AI Offensive & the Google AI Opt‑Out Illusion

Welcome to another episode

of Cloud Unplugged.

Got some new news for this week.

It's all about retail hacks.

The retail in the UK, Co-op,

Marks and Spencers, and kind of Harrods,

but Harrods managed to do a good job.

Basically, that was the drama this week,

almost pretty much to the

point of being closed down.

Cloud growth, numbers obviously soaring,

which I'll kind of come on

to how much it's grown by.

And a curveball of just

something at the end,

a little bit of news that's random,

a little surprise one that

I'll do at the very end.

And Lewis,

what are you going to be talking

about today in the news?

So...

Amazon seemed to bubble up

to the top of the things

which seemed to be vying for attention.

Amazon AI.

So there's certainly a whole

bunch of announcements around AI,

their own models, their own services,

and what those services are based on,

their own APIs.

And also there's an

announcement from Amazon,

not related to AI, about SaaS,

SaaSing Amazon and their marketplace.

Cool.

That's good.

Did you have a good bank

holiday before we get into the news?

I did, yeah.

I met up with friends.

We prepared for a barbecue

and went to Marks and Spencer's.

Couldn't get beans.

Wow.

And our friends couldn't pay on cards.

Well, they couldn't pay on cards.

It was working with the card

by the time we got there.

But yeah, anyway, we'll come to that.

So that was fun.

And also I carried on my

little experiment with Vibe

programming with my son or for my son,

but definitely not writing

a single line of code.

This is you programming another child AI.

You decided as a son.

Is that?

I don't know what's going on.

That's what you're telling me there.

Did he get into it more this

time around or is it still

you doing all the vibe coding?

He's very much into the application.

And there's definitely some

stuff I'd read on the right

way to do sort of vibe

programming and use one big

model to come up to take a

feature description where

you just write a sentence,

I'd like my app to do this kind of thing.

And you get it to generate a

markdown document

describing exactly how it worked,

given its access to the

code base and it working

out how it would work.

And then you can iterate in place and say,

nearly,

but actually this page is meant to

do that and blah, blah, blah.

A couple of iterations and then you say,

okay, now do it.

And it did.

It just kind of worked.

I mean, it's a phenomenally simple app,

but it's got some back end.

It's got a front end.

It's in memory.

It's VoteViz.

Find it on GitHub.

Have a little look.

Yeah.

It's running on Firebase.

It was fun.

That's good.

Very cool.

So, yeah,

so you tried to go to Marks & Spencers,

but you couldn't pay

because they'd basically been... I mean,

their hack was pretty impressive,

to be fair.

They went all in on that one, Dragonforce.

was who did that one.

And then Scattered Spider

was the one that was the

group that did the co-op.

But I don't think anyone

knows who it was for

Harrods because they

managed to lock it down quickly.

I heard slightly differently,

but that might be just like,

I don't know.

You heard differently?

Yeah.

I heard that Dragonforce

were the providers of the

ransomware software.

Yeah, correct.

And then the networking one

was a different team.

yeah and it thinks the

spider the spider guys

scattered spider scattered

spider I think they may

have been the actual group

that perpetrated um the

attack for marks and

spencer's anyway um so they

used or had to pay um the

ransomware guys the dragon

force um people for their

Ransomware SaaS?

I don't know how I word it.

There's affiliations and a

mature marketplace of crime here.

Well, if we get into it, I guess,

so for the current one, and

I'm hoping my information is correct.

It's been on the news and

the story kept changing.

So I can't really work out

now what's truth and what's PR.

They could obviously try to

do a spin to protect their brand.

Actually would, I suppose.

But from what I understood,

there was a logging server.

Colt was migrating to Azure

as part of an Azure migration.

There was a central logging

service that was public to the internet.

It was that that managed to be exploited,

which then gave them all of the logs of,

I think,

nothing to do with sensitive

customer data,

but gave them internal information logs,

I think,

of themes and usernames and

passwords logging into things and stuff.

And I think at that point

then they started to then

send direct messages using

some specific tool, Team Fisher.

I think it is something like Python app,

Microsoft Teams,

and then started to

basically send messages that way.

And then ended up kind of getting in.

And from that point on,

I managed to kind of

exploit beyond that from

getting access to people's

usernames and passwords to

log into systems to then

obviously infiltrate further.

Marks and Spencer was kind of the same,

but it was just pure Team Fisher.

So they used social

engineering on Team Fisher

app to pretend to be

different people and then

managed to then deliver payloads

So hang on,

Marks and Spencers was the same as Co-op.

They both had logging

service breaches first?

Or different ways in?

Co-op was first the log

server to get the data

about the people that work

there and then do a more targeted attack.

Marks and Spencers was just

using that Team Fisher

python app that then kind of

pretends to be people

different people we get it

at work sometimes people

get emails from me even

though the email address

would be like bibbidi bob

one two three at gmail.com

whatever right but it'd be

like I don't know I'd be

like hey Lewis I've tried

to call you really

important can you give me a

call back on this number I

did that though I always respond

Do you always ring?

Yeah.

But do you not think when

you heard my voice, what was the accent?

It was...

It was, hello, my name is John Nathan.

So basically like me.

But I thought, that's got to be you.

Pretty similar to me, yeah.

I haven't responded to any of those.

But that's quite a surprise.

We've had them.

Yeah, we get them quite a lot.

I get messages from people saying,

I'm guessing this wasn't you.

Just because people aren't sure, obviously,

you know, I think it's so brief.

That, you know,

I could be stuck in a well

somewhere and desperately

need to speak to somebody.

I don't know.

Um, but yeah, so I think,

I think obviously we're

doing like phishing attacks

and then I think there were

then basically using, um,

SharePoint files,

like payload delivery to

the SharePoint files to

deploy some like malware.

Uh, some like, I think it's JSS,

JSS loader that then

basically obviously then

loads up malware.

as well,

and then managed to compromise the

credentials and get onto

the VPN using MFA fatigue

attacks and SIM swapping

and things like that.

And then once they got onto the VPN,

then they could actually

start to hop around the VPN

because there wasn't really

much protection.

Once you're on the VPN,

it was pretty broad.

You could roam around everywhere.

Pretty sophisticated and a full on breach.

It was.

Full on internal access to their systems.

And then they got the Active

Directory database.

Yeah,

they got the Active Directory

database exfiltrated,

so then they got all of that.

Then they cracked those passwords through,

like, obviously,

a password hash cracker called, like,

SoftPerfect or whatever.

And then once they'd done

that and they got access to passwords,

they then got into the VMware estate,

which is basically the

big... I think they're back

in where most of their back

end is because, obviously,

they've got some stuff in...

the cloud and obviously a

load of probably critical

back end services.

I imagine logistic services

all on VMware and probably

Oracle or whatever.

Who knows?

And then the encrypted,

basically the VMs with a key,

basically locking everyone out.

Yeah.

And that's when you're in the ransomware.

So then you're like, look,

if you want these decrypted,

you want to restore a service,

you need to pay seven million pounds,

please.

Do you reckon they paid?

Or spent.

Seventeen million pounds.

On their own staff.

They lost.

Three hundred and sixty.

Million pounds.

Being down.

So I guess.

Seventeen.

In the grand schemes.

Of three hundred and sixty.

In the period.

That they were down.

I mean.

You know.

In the end.

Like.

I mean.

Maybe.

If you're.

If you're.

You've got to fix it, right?

You don't want to pay the €.

and then, like, the next week it goes,

well, you didn't fix it,

so we'll do it again.

That's basically what the CTO did.

He rang everybody,

and it was a really moving message,

and he went, we've got to fix it.

And everyone's like, oh, my God,

you're right.

LAUGHTER

why didn't we think of that?

Yeah.

We were just paying up.

We just had the credit card and we were,

we were just wiring.

Yeah.

So called John Shanks.

We got this email saying to call him.

At BibbidiBob.

Yeah, BibbidiBob, yeah.

Yeah, so I think it was quite that.

Marks and Spencer sounded

quite sophisticated.

I think, though, obviously internally,

the Active Directory to extract that data,

the VPN,

and there's obviously layers of

weaknesses inside of it to

be able to exploit further.

So it was like, you know, I guess this is,

This is kind of the thing,

the same with the co-op.

It's like there was an entry

point that made them see the co-op,

right?

Because they're scanning all the time,

everything.

And then this pinged it back.

The first bit, well, actually,

it's a multi-pronged thing.

There's many layers, aren't there?

There was a misconfiguration,

so a bit of human error.

to allow these logs to be

private in one case.

It was a human error.

Well, wait, wait, wait.

The human error though,

misconfiguration allowed

for the automation of the

whole scanning of the

internet that goes on, you know,

because you have tools

running all the time across

all the Amazon IPs and all

of the Azure IPs, et cetera.

it obviously pinged to say, hey,

there's a thing over here.

And then the tool then

obviously went in and did the thing.

And then obviously they then

worked out who it was at that point.

Once you've worked out who it was,

that's the radar, isn't it?

It's almost like the Batman symbol,

I guess, really.

In that sense,

I think that could have been

more avoidable because had

they put the policies in the cloud first,

and work backwards from

making exemptions for

certain things where you need it.

Instead,

you've probably done no real policies,

put the thing in, and not even known.

Obviously, for speak,

it's a migration rather than caution.

So, I mean,

the rule of thumb is make sure

you just put the policies in place.

There's plenty out there, CIS,

benchmark policy.

Literally, you could put the CIS ones,

NIST, whatever.

You could have put them all in,

and then it wouldn't have

been public to the internet

because that would have

been blocked by default.

So I think that one was a

bit more avoidable, to be fair.

Obviously accidental, it's human error,

like you're saying,

but that's the point of

policies is people do make mistakes,

hence why you have the policies, really.

Yeah.

Well, yeah, security is hard.

It's harder to make things

absolutely secure because

it causes friction for people.

But people fundamentally

have to put the security in

and develop with security on.

Otherwise, they're going to be vulnerable.

Yeah, exactly.

And then you don't have a business.

You don't have a business.

You're three hundred sixty million down.

But yeah,

so I think actually co-op is

still down from what I read.

I think you still bits of it

are still down.

They have to pay

You can't pay on your card.

I think in some stores you

still have to pay via cash, I think.

Any massive insight or

nugget to summarize?

Do you think cybersecurity

breaches are on an increase?

Do you think, dare I say it,

AI has been used

potentially to help people

use or broker or discover?

No, I think this was like, I mean,

who knows?

I think the apps, I mean,

one of them is just a

Python app called Team Fisher.

And it's a way of pretending

on Microsoft Teams to be somebody else.

And, you know, same as email, you know,

like I was explaining before,

if you call a number.

So you don't think there's

any increase in the use of these tools?

Not really.

I mean,

these have been around for like

things that auto scan and

detect for certain things.

Mostly for a lot of the

times it's Bitcoin mining

more than it is anything else, right?

Like people use your compute

to Bitcoin mine.

That's normally the default

that goes on all the time.

But I don't think it's any more or worse.

Not that I'm aware of anyway.

No, sure.

One other thing,

just sort of on the general

hacking theme.

You haven't heard anything

about the electricity supply in Iberia?

No little nuggets or updates?

I do believe from somebody in the know,

that it was a cyber attack.

But that's just, again, conjecture.

It wasn't you.

It was somebody that

has closer relations with cyber.

But I don't know.

I mean,

it felt very much like a cyber

attack to me,

the way that it managed to all go down.

It felt very coordinated.

From an engineering perspective,

it didn't seem like you

could fluke across one sort

of type of power or even

one manufacturer of power

things in one particular...

Yeah, it seemed like that was more likely.

But yes, interesting.

I don't know.

I mean, again,

that's an off-record thing

that someone mentioned.

Who knows?

But yeah, it did seem more that way.

And obviously, this truly is cyber.

There's no disguising that

because they've come out and said so.

I think the co-op kind of

tried to cover it up a bit

because that happened in February.

Bits of this happened in February, yeah.

And then I think there was

people saying they didn't anyway.

And then it turns out they

obviously didn't.

So that's it.

So that's my news for that.

Wow.

Amazon then.

So you say there are some

new AI services taking over the world.

Yeah.

And what are they like?

Well, it's interesting.

The cloud providers

obviously having access at

cost to a lot of compute.

and being aligned with the

AI foundational model

providers to provide hosting services.

In the case of Microsoft,

that's very closely aligned.

There's an affiliation and a

share ownership

sort of thing going on there

in case of google they

obviously are creating

foundational models it's

part of their core business

and they've been hosting it

as such for a long time um

and amazon don't really

have a play I think they've

got a lot of shares in

anthropic but they haven't really got

a bit of anthropic in their

estate knowingly don't know

that it's a little less

woolly but they're now very

publicly um come out um

with a whole raft of uh ai

announcements um so I'll

start first with um their

models they've got their

own models it's a nova series of models

So they are creating

foundational models that

are trained and have

varying levels of

capability depending on how

much compute you run and

how much you therefore pay for.

So they've got their premier

Nova model and a whole raft

of other models that are

related to gen and image

generation and LLMs, etc.

Very specific models,

very specific use case to

what you're saying.

Yeah, their own internal model.

Not quite.

So they've got a foundational model.

Their premier Nova model is

a foundational model.

So it is a general LLM.

But yeah, their own training,

their own model, they're owning it.

Then they've got Amazon Bedrock,

which is their AI model API.

which allows access to all the Nova models,

but also Claude three point

five and others.

You can tell I haven't

actually played with the AI.

This particular API is like the news.

Yeah.

And it's interesting.

It's not the latest Claude.

And I don't know.

It's interesting to know if

Anthropic are hosted on Amazon or not.

And if there's any reciprocal benefits.

you know, arrangement.

But the main thing is Amazon

Bedrock is a way to get at

AI models using an API.

So your workloads can then use AI.

But then there's some

service announcements as well.

Amazon Q. Yeah, it's been a while though,

Q.

Yeah, well,

I guess it's been percolating

and using later models,

and they've gone a lot further.

So they've got two arms of Q,

two arms of Q, is that even a thing?

Two flavors of their Q product service.

Two Q-shaped arms,

which is really ineffective

when you're trying to, yeah.

And then another one over here.

Yeah, really hard to do stuff.

yeah one of them's uh amazon

q business which is not to

do with um working with

business flows and

logistics and all sorts of

niche areas that you might

want to build out agentic

flows etc and the other

part is amazon q developer

which is integrated

at the most fundamental

level as some software that

can be run as a CLI or

integrated into your IDEs.

So there's a Visual Studio

add-in and also add-ins for

various other IDEs, Eclipse, et cetera,

et cetera.

So they're going broad and

they're trying to meet

developers where they are.

And also they released,

I saw from yourself, you know,

MCP suite of server tools,

which may be released to work with, well,

they're MCP servers,

so you can run them anywhere,

whether they're natively

already built into their IDE add-ins,

or you've then got to do that separately.

But, you know, fundamentally the IDE,

ai integration needs to know

about the mcp so and it's

interesting they're working

with the existing ides

rather than windsurf or

cursor who fork the ides

and own the ide space

because they want slightly

tighter integration and

more features so but anyway

amazon's play on whether

you're doing cicd terraform

amazon cloud formation um

right in their tool base um

or using it for general code generation.

Interesting.

Yeah, I did see that.

They've got the AWS MCP

server that you can just run, obviously,

yourself.

But they've got quite a few.

There's like a Terraform

Workflow One diagrams.

It's a very easy thing to release,

to be fair.

The MCP standard is almost a

description of

discovery bits as well

obviously yeah it's a

description it's the

discovery bit pretty much

you write down some english

I am a thing that knows how

to run ls and I will be an

ls mcp server and then you

the actual thing can be of

a different type of

executor so you can have a json um

api interface or you can

literally have a cli with

arguments so you could make

your own mcp by typing ls

and some words and plugging

it in as an mcp server yay

so you know it's gonna it's

pretty thin regardless of

the level of uh yeah yeah I

mean it is yeah the mcp

server is obviously it's a thin

It's a thin thing.

But I think as it gets more

enriched and offers more capability,

then I think it's kind of

interesting to see whether

when you're building on top of that,

like another agent,

agent-to-agent type things,

you start to connect,

you move into their MCP,

so you're connecting with

your agent to then speed things up.

So it is going to be quite

an interesting thing,

but it's still quite early.

It is early, yeah.

And the marketplace,

what was the news for the marketplace?

You said...

They've got more sassies,

haven't you said?

On the first of May,

they're basically making a

change to the AWS

marketplace to allow for

SaaS products to be listed online.

irrespective of where they're hosted.

So the AWS marketplace used

to be for AWS customer or

internal offerings on the

AWS cloud platform.

And now they've changed that.

They said, oh, no,

we can make it a general

software marketplace.

And then we can give a

little differentiator badge for

Two people who are hosted on

AWS as like a little free uplift.

Oh, you're on AWS.

We like you.

We might even list you first.

Who knows?

I don't know what the play is here.

It's an interesting announcement.

Isn't that more like a disty though?

Are they like becoming more

of a distributor for licensing?

So essentially you end up using...

the Amazon marketplace to buy any software,

essentially.

So you might want Jira or it

could be anything, right?

And actually you can use

your cloud credits, I guess,

to offset the cost.

If you've got a commitment to spend, say,

like, oh, we're committed for five mil,

whatever,

then actually... So it's a

marketplace store,

very much like the Apple store,

on all things that run in

the Apple industry.

They do do marketplaces well, though,

Amazon.

That is, they are good at the old...

It's an interesting thing

what the driver is and it's

whether their marketplace

is easy to navigate, easy to... I mean,

I remember trying to release,

go through the process in a previous era,

trying to release software to that.

And it was very painful and

it involved humans and CSV

files and all sorts of craziness.

I remember all of that.

That's when you are...

Yeah,

it's when you're trying to do

something inside of a customer's estate.

But when you're using it,

when you're a client of,

it might be very good.

Or for a SaaS,

if it just literally is buying...

you know,

licensed software of a thing as a

distributor, say, you know, HashiCorp,

right?

You want to buy X number of

licenses for that and you're using this,

you know, HashiCloud or whatever.

There's a benefit on both sides.

There's a benefit for them

to take a cut and also for

the punter to be able to

discover and use more

against one credit pool.

Yeah, I think it's very smart.

I think it's really,

really smart because...

A lot of people are going to

the marketplace,

even just the cloud security marketplace.

Sorry,

the cloud security market is massive

and you obviously are in

the cloud and it starts with the cloud.

So therefore then offering

all of the things that are

going to layer in.

So you're not being ultra

competitive where you're

then having to have all

those services yourself as the cloud.

Actually,

there's a margin I could just take.

you know, off these other services.

Like,

why are we just not taking a margin

of all these products that

other people are buying anyway?

Like, whiz.

Very sassy.

It is very sassy.

I think it's very, yeah, hats off.

I think it does make a lot

of sense for them.

Obviously, you know, hyper,

hyper growth and, you know,

ultra mega growth

like behemoth.

It's interesting, you know,

their background is obviously storefront,

you know,

with Amazon as the brand and

where they came from on the

consumer facing side.

And then they evolved into the AWS stuff.

And similar things have happened in China,

you know,

Alipay and what's the other one?

My mind's gone blank.

But there's very similar

storefront experiences that

then became cloud companies, obviously,

and the same story.

So they already had a store.

So it's like,

at which point are these full circle?

Yeah.

Or do other clouds follow suit?

I don't know.

Well, there is.

I mean, they do.

They all have their marketplaces.

I think, you know, if you're...

if you're losing revenue you

know competitive say

something like wiz and

wizzy in the market say for

cloud security as a cloud

security products offering

and you've kind of got

semi-competitive tools

there but you know people

are aligning it's more to

wiz because it's more

enriched or whatever

whatever the reason is but

then yeah why not take a

percentage of something

that people are buying

anyway and just make it

easier to buy it you know so yeah um

I have two extra bits,

one secret bit and one normal bit,

the cloud growth stuff.

Nothing really that interesting,

so I'm not going to talk

about it too much,

other than the fact that

this is going to really shock you.

It's growing.

Try.

No.

The cloud is growing, yeah.

The cloud?

No, no, we're talking about clouds.

The cloud spend,

more people are using the cloud.

Yeah,

all of the... Drinking water from the

clouds or...

We're talking about computing,

cloud computing.

Yeah,

nine hundred and twenty three

billions by the end of

twenty twenty seven.

That's dollars, though, obviously.

That's a cost of all clouds in the US.

Just all the cloud, global cloud market.

Yeah.

And that's a fifteen percent

growth essentially from

twenty twenty one.

Wow.

Something like eighty

percent of enterprises in

basically know they're going

to be spending more in the

cloud that's what they've

all said and I did read

another stat I think like

nearly ninety percent of

businesses are in the cloud

or something insane it's

like some quite high stat

of how many organizations

seem to already have some

footprint in the cloud um

to some degree so

Yeah, that's nothing really like, I mean,

you kind of would expect it.

I think obviously it's going

to diversify with all the

AI space and sasses and all

the other things that

you're going to get.

So probably just grow in that sense.

But it doesn't, it's not just,

it's not public cloud only.

It's cloud in general.

It's a cloud market,

which is obviously massive.

I was hearing Microsoft had

their earnings announcement

and they were citing all the cloud.

Were they going bust?

Yeah, there's no cloud demand.

There is no cloud.

I don't know where they're

heading this from.

Yeah,

so there's a big growth from the

perspective of individual

revenue of individual cloud

vendors and also across the markets.

Yeah.

And the secret bit is if you are worried,

which you might be,

about Google DeepMind,

Basically getting all your data,

because obviously, you know, Google,

then producing.

So say you're a publisher,

say you write news articles,

say you're an image thing,

you've got a portfolio of

your images on there,

and you think to yourself, well,

I hope Google doesn't train on my data.

Maybe there's a way to stop it.

Maybe I can kind of opt out and say,

actually, do you know what?

Please don't steal my IP.

Just make your site not searchable.

That's the answer there.

Oh, is that simple?

Yeah, yeah, yeah.

Oh,

is that the button that says don't

search your site?

No robots.txt file.

That's it.

That's it.

You just make one of those files.

You remove it.

Don't have one.

What about if it's already

been ingested and then you

make a no robots?

You're too late, basically.

If it's already been ingested...

then good luck figuring out

if it's already been ingested.

No one knows how to unlearn

things from a model at all

without relearning from scratch.

So that's interesting.

So, yeah.

So basically there is no

real proper way to stop it

other than removing your

site to be indexed completely.

Did Google have some antitrust?

Were there some

announcements with Google's

reach being under...

They had all these preview stuff.

Yeah, there was something like preview.

I think there's some opt out

preview things or something.

Something was going on,

but they were saying that there isn't.

It kind of did some announcement,

but they made it sound like

you could block things from

being searchable by AR

models and all this other stuff.

But actually, it wasn't really.

The search AI still was

searching everything,

and then it was actually

still saying it actually

secretly was ingested anyway.

But they made it sound like

you could actually opt out

of models being trained on your stuff,

and it transpires.

How naive.

You can't.

No, no, you can't.

No, no, you can.

The way to make it secure is

to keep it offline.

A bit like, you know, secure, private,

same thing, unplugged.

There we go.

Cloud Unplugged.

That's the name of our show.

Unplug it all and it's

secure and it's private.

Do you reckon fax machines

are going to come back into fashion?

Paper and stuff like that.

Yeah, we'll be faxing pictures, ideas,

images, because we just don't.

Well,

if there is a massive increase in

cyber attacks and, you know,

someone attacks some

fundamental infrastructure,

not just one store,

maybe we'll have to do that.

It'd be CDs.

So it's going to be the rise

of CDs to protect your

music so you can't train on music,

and the rise of fax machines.

It's basically the nineties.

The nineties racing to get

back to the eighties as

quickly as possible,

and then ending up in the

seventies with absolutely no computers.

Exactly.

And then with the power outages,

it could be like, you know,

eighteen hundreds.

So...

What you need is progress back.

Exactly, that is progress, yeah.

I'm glad we've worked out

the very practical measures

that our listeners can take

to opt out of Google.

Yeah.

But that is it for us on another episode.

Tune in next week.

We'll be obviously again

looking at the news,

seeing what the next hot

topics are and keeping you up to date.

Thanks for listening.

Bye-bye.

Adios.

Creators and Guests

Lewis Marshall
Host
Lewis Marshall
Lewis is a Senior product engineer, co-founder of Appvia, lover of all things AI, science, space and anything engineering!
Big Retail Cyber Attack: Amazon’s AI Offensive & the Google AI Opt‑Out Illusion
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