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<div class="image-container float_right" style="width:399px"><div class="image"></div><keyword id="1782624" type="UNKNOWN" weightage="60" keywordseo="Shuman-Ghosemajumder">Shuman Ghosemajumder</keyword> / <keyword id="1782623" type="UNKNOWN" weightage="60" keywordseo="Shape-Security">Shape Security</keyword>Shuman Ghosemajumder brought buzz to Shape <keyword id="6355300" type="CITY" weightage="60" keywordseo="security">Security</keyword> when he left Google to join the startup.</div>The list of investors backing stealthy startup <a href="http://shapesecurity.com/">Shape Security</a> already reads like a Who's Who of Silicon Valley—and that's before the company announced another $20 million round today.
Shape was cofounded by ex-Googler <keyword id="840892" type="PERSON" weightage="60" keywordseo="Sumit-Agarwal">Sumit Agarwal</keyword>, who was head of Google’s mobile product management until he joined the Obama administration in 2010 as Deputy Assistant Secretary of Defense. He founded Shape shortly after he left Washington in 2011.
This round, Shape's second, was lead by Venrock, the venture-capital arm of the Rockefeller family. Other investors include Kleiner Perkins Caufield &amp; Byers; Allegis Capital; Google Ventures; TomorrowVentures, a firm backed by Google chairman Eric Schmidt; and former Symantec CEO Enrique Salem.
The financing brings Shape's total raised to $26 million, including previous investments from Kleiner Perkins and executives at Dropbox, Facebook, LinkedIn, and Twitter, the company says.
Shape got tongues wagging in March when Google's Shuman Ghosemajumder joined. He had been working on click-fraud detection.
The company has been somewhat tight-lipped about its technology, <a href="%20http://www.businessinsider.com/shape-security-zeus-malware-2012-12%20">but Business Insider recently got Ghosemajumder to spill a few beans</a> about Shape. It's working on a technology that makes it harder for hackers to trick people into visiting malware-laced websites.
"Instead of trying to detect the attack, we provide deflection," Ghosemajumder told us. "We sit between the website and the users."
Stay tuned. We'll be talking to Agarwal later today and hope to hear more about this startup's cool new security tech.
Don't miss: <a href="http://www.businessinsider.com/shape-security-zeus-malware-2012-12">Silicon Valley Insiders Love This Stealthy Security Startup—Here's What You Need To Know</a>

Big Names Keep Throwing Money At Shape Security, A Stealthy Startup

<h1></h1><ul class="summary-list"><li>Facebook, Twitter, and TikTok recently announced plans to tackle the spread of "deepfake" videos on their platforms as the new form of misinformation gains momentum.</li><li>For now, deepfakes still look artificial and creating one requires as much effort as "Hollywood-level art," F5 Networks AI chief Shuman Ghosemajumder told Business Insider.</li><li>But "perfectly realistic" deepfakes aren't far off, and as our brains get used to them, that "purely false information" will simply become our new reality, he said.</li><li>The vast amount of fake news that already exists foreshadows what could happen as deepfakes become easier to create at scale.</li><li><a href="https://www.businessinsider.com/">Visit Business Insider's homepage for more stories. </a></li></ul>In recent weeks, <a href="https://www.businessinsider.com/facebook-just-banned-deepfakes-but-the-policy-has-loopholes-2020-1">Facebook</a>, <a href="https://www.businessinsider.com/twitter-solicits-user-input-to-shape-deepfake-policy-2019-11">Twitter</a>, and <a href="https://www.businessinsider.com/bytedances-video-app-tiktok-bans-misleading-information-2020-1">TikTok</a> have all found themselves scrambling to tackle a new form of disinformation: deepfake videos.Deepfakes are videos manipulated using artificial intelligence to make it look like someone is saying something they actually haven't, and as they become more realistic and easier to create, everyone from social media companies to lawmakers are trying to sort out the possible implications.Shuman Ghosemajumder, the new global head of artificial intelligence for F5 Networks and Google's former "click-fraud czar," is one of the people working to understand what companies are up against. While he was CTO of Shape Security (recently acquired by F5), Ghosemajumder dealt with fraud such as fake accounts and credential stuffing, he developed a framework to think about the future of deepfakes, which he said are a "societal concern."Ghosemajumder believes that deepfakes will evolve and spread in three distinct stages, which he says society needs to understand as it prepares to address the challenge posed by the new technology.The first stage, which he says we've already reached, is where one person can produce one piece of convincing fake content. Take, for example, <a href="https://www.businessinsider.com/obama-deepfake-video-insulting-trump-2018-4">a viral video</a> released in 2018 by Buzzfeed that appeared to show former US President Barack Obama cursing and calling President Trump names, but had actually been voiced by director and actor Jordan Peele and manipulated using deepfake software.Making a video like that "would be very time consuming, it'd be like creating Hollywood-level art," Ghosemajumder said.However, the machine learning tools behind deepfakes are getting easier to use. As that happens, Ghosemajumder warned, we're headed toward stage two, where one million people are each able to create one convincing deepfake.Doctored videos of Facebook CEO Mark Zuckerberg, "Game of Thrones" actor Kit Harington, and "Wonder Woman actress Gal Gadot have all <a href="https://www.businessinsider.com/deepfakes-explained-the-rise-of-fake-realistic-videos-online-2019-6#in-may-2019-a-slowed-down-video-of-nancy-pelosi-got-millions-of-views-and-inspired-online-speculation-that-she-was-drunk-facebook-publicly-refused-to-take-it-down-8">popped up in the last year</a> - a sign that one-off deepfakes are increasingly common.But the real danger, according to Ghosemajumder, comes at stage three, when those tools become accurate and efficient enough to enable one million people to produce one million deepfakes."Now all of a sudden, you can put that in the hands of a million relatively talented creators and they'll create things that look perfectly realistic," he said.We've already reached this stage with text- and image-based disinformation, such as content produced by the Internet Research Agency, the <a href="https://www.businessinsider.com/leaked-documents-on-internet-research-agency-trolling-operation-disinformation-campaign-2018-3">Russian "troll farm"</a> that sought to influence the 2016 US presidential election. We're not quite at that level of sophistication when it comes to deepfake videos, Ghosemajumder said, but new research is quickly getting us there. Some experts have even predicted that "perfectly realistic" deepfakes are <a href="https://www.businessinsider.com/perfectly-real-deepfake-videos-6-months-away-deepfake-pioneer-says-2019-9">less than a year away</a>.<h2>The real danger comes when the novelty wears off</h2>"The problem is once the technology gets advanced enough that it's perfect, that you actually can't tell the difference anymore, it doesn't look that remarkable," Ghosemajumder said.He gave the example of riding in a self-driving car for the first time. At first, the experience is "unnerving enough" that it sets off alarm bells for the passenger, causing them to worry about what could go wrong. Then, after being in the car for awhile, "it's just boring," he said.As convincing deepfakes become the norm, Ghosemajumder is concerned our brains will similarly stop ringing those alarm bells."There's nothing unusual to see there, your mind has gotten accustomed to it and it's just the new reality at that point," Ghosemajumder said, adding that "now it's just purely false information."Social media companies continue to wrestle with the best approach toward deepfakes, unsure of whether and how to police them or if they might actually be an entertaining feature for users.A <a href="https://www.businessinsider.com/what-is-chinese-deepfake-app-zao-2019-9">Chinese app called Zao</a> that took off last September lets people superimpose their faces onto celebrities like Leonardo di Caprio, and while the results are noticeably artificial, they hint at the impact deepfakes could have once the tools to create them are made more widely accessible. TikTok and parent company ByteDance have also <a href="https://techcrunch.com/2020/01/03/tiktok-deepfakes-face-swap/">reportedly experimented with a deepfake feature</a>.At the same time, lawmakers have <a href="https://www.businessinsider.com/facebook-just-banned-deepfakes-but-the-policy-has-loopholes-2020-1">hammered Facebook</a>, Twitter, and other social media companies, who they feel haven't taken a strong enough stance on preventing misinformation - of all types - from spreading on their platforms.

As social media platforms brace for the incoming wave of deepfakes, Google's former 'fraud czar' predicts the biggest danger is that deepfakes will eventually become boring

Reuters<ul class="summary-list"><li>The world of artificial intelligence startups has been an amusement park of innovation and investment during the economy's long bull run, but the roller coaster market threatens to go off its rails and crash down on the fun. </li><li>Another obstacle for startups fighting to break through is the clamp down on data posed by regulation from Europe's General Data Protection Regulation and other statutes. </li><li>Acquisition or extinction are the crossroads facing many small companies, say AI exec Tom Siebel and investors in the space. </li><li>Getting bought by a big firm with plenty of data, such as Google and Amazon, often depends on a startup's success in a niche, such as AI's application to fish farming. </li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>Perhaps no area of tech has been more buzzy in recent years than the shiny sector of artificial intelligence startups. That happy innovation workshop may have just hit hard times. AI execs and investors say market volatility and regulations clamping down on data may soon lead to AI startups getting gobbled up by companies with cash and data to burn. The market intelligence firm CB Insights said in a report this year that the <a href="https://www.cbinsights.com/research/artificial-intelligence-top-startups/">100 best-funded startups</a> in artificial intelligence have raised over $7.4B in funding across 300 deals from 600 unique investors.Now as the market skyrockets, then plummets in extreme volatility amid the coronavirus crisis, that may be endangered. Near the top of the heap is Tom Siebel's Silicon Valley firm C3.ai, which builds AI programs that companies can plug into their own computer operations and is backed by some $365 million in venture capital.A tech veteran from Oracle and then his customer relationship management firm Siebel Systems, Siebel says the heady days of AI investing are over on Northen California's version of Hollywood's Rodeo Drive. Gone are the days when "venture capitalists are running up and down University Avenue in Palo Alto in pink Cadillac convertibles throwing out Bitcoin on both sides of the street." The sector will change dramatically "when the music stops" and the market declines as it is now. "I don't know whether it will happen this year or it'll happen in two years, but 19 out of 20 of these companies will not exist in two years," Siebel says. "Get acquired or go out of business," Siebel says. "That's just expected. I mean, that's what will happen."<h2>Who's buying AI startups?</h2>Who acquires AI startups? Very big companies with lots of money and lots of data that AI applications can work with, according to recent research by RS Components, a distributor of industrial and electronic components that conducts market research on tech companies. This chart shows the top AI acquirers in the business:Ruobing Su/Business Insider"There are going to be a lot of acquisitions, and there should be a lot of acquisitions because there is so much noise in the market," says Shuman Ghosemajumder, the global head of AI at F5, a Silicon Valley firm that works on application security. "The first thing I ask is, 'How long does it take to undeploy your technology?' Because you never know when companies will disappear." <h2>GDPR is putting pressure on startups</h2>Another reason for big companies to acquire AI startups is regulation such as Europe's General Data Protection Regulation, which has made it much harder for small companies to get consumer data, which companies like Google and Amazon already have from their users. Data is what makes AI go. AI researchers build models - computer programs - that "learn" from huge data dumps that reflect patterns of repetition. Those patterns can be used to create algorithms, which apply the data patterns to future situations with predictive analytics. On Amazon that might look like you being presented with a product because of what you and people with similarities to you have looked at in the past. "AI is all about data, and to have a really good solution, you need a lot of data. Regulation is making things more difficult," says Zohar Rozenberg, vice president of Cyber Investments at Elron, an Israeli holding company that focuses on tech startups. "Startups have to find a niche solution to prove themselves, then they often get acquired."Courtesy of AquabyteAquabyte's AI camera scans salmon to count sea lice, which fish farmers must keep to a minimum."There's no way a startup could create, say, a note-taking app right now," says John Cowgill of Costonoa Ventures, a Palo Alto VC firm that invests in AI startups. "To do that right requires too much data. Getting value out of machine learning and AI requires more customer input than startups typically have." Data "accrues to the incumbents," Cowgill says. The big companies keep it, and buy startups to use it. Cowgill agrees with Rozenberg that AI startups must explore niches where they can find a pocket of data in one area. He points to one of his investments as an example. <a href="https://www.aquabyte.no/index.html">Aquabyte</a> is a machine learning company concentrating on one (very) small niche: Sea lice. Aquabyte scans the waters of fish farms with cameras that know how to count the tiny parasites and help farmers keep fish healthy. "Aquabyte's solution to a real-world problem is well on its way to transforming an industry," says Greg Sands, founder of Costanoa. "The team at Aquabyte is demonstrating what it means to lead an industry."There's something to be said for being a big fish in a very small pond. But the warm waters of AI startups may be about to get much more stormy and inhospitable. <h3>NOW WATCH: <a href="https://www.businessinsider.com/what-its-like-travel-during-coronavirus-outbreak-planes-airports-virus-2020-3">Here's what it's like to travel during the coronavirus outbreak</a></h3>

The AI startup industry may be heading for consolidation and bigger problems as the economy gets tougher: 'Get acquired or go out of business'

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">REUTERS/Kacper Pempel</div></div></div>LONDON (AP) - As investors and investigators weigh the damage of Yahoo's massive breach to the internet icon, information security experts worry that the record-breaking haul of password data could be used to open locks up and down the web.While it's unknown to what extent the stolen data has been or will be circulating, giant breaches can send ripples of insecurity across the internet."Data breaches on the scale of Yahoo are the security equivalent of ecological disasters," said Matt Blaze, a security researcher who directs the Distributed Systems Lab at the University of Pennsylvania, in <a href="https://twitter.com/mattblaze/status/779124613276053504">a message posted to Twitter</a> .A big worry is a cybercriminal technique known as "credential stuffing," which works by throwing leaked username and password combinations at a series of websites in an effort to break in, a bit like a thief finding a ring of keys in an apartment lobby and trying them, one after the other, in every door in the building. <a href="http://engineering.shapesecurity.com/2016/03/a-look-at-sentry-mba.html">Software</a>makes the trial-and-error process practically instantaneous.Credential stuffing typically succeeds between 0.1 percent and 2 percent of the time, according to Shuman Ghosemajumder, the chief technology officer of Mountain View, California-based Shape Security. That means cybercriminals wielding 500 million passwords could conceivably hijack tens of thousands of other accounts."It becomes a numbers game for them," Ghosemajumder said in a telephone interview.So will the big Yahoo breach mean an explosion of smaller breaches elsewhere, like the aftershocks that follow a big quake?Ghosemajumder doesn't think so. He said he didn't see a surge in new breaches so much as a steady increase in attempts as cybercriminals replenish their stock of freshly hacked passwords. It's conceivable as well that Yahoopasswords have already been used to hack other services; the company <a href="https://yahoo.tumblr.com/post/150781911849/an-important-message-about-yahoo-user-security">said</a> the theft occurred in late 2014, meaning that the data has been compromised for as long as two years."It is like an ecological disaster," Ghosemajumder said in a telephone interview. "But pick the right disaster. It's more like global warming than it is an earthquake. ... It builds up gradually."The first hint that something was wrong at Yahoo came when Motherboard journalist Joseph Cox started receiving supposed samples of credentials hacked from the company in early July. Several weeks later, a cybercriminal using the handle "Peace" came forward with 5,000 samples - and the startling claim to be selling 200 million more.On Aug. 1 Cox published <a href="http://motherboard.vice.com/read/yahoo-supposed-data-breach-200-million-credentials-dark-web">a story on the sale</a> , but the journalist said he never established with any certainty where Peace's credentials came from. He noted that Yahoo said most of its passwords were secured with one encryption protocol, while Peace's sample used a second. Either Peace drew his sample from a minority of Yahoodata or he was dealing with a different set of data altogether."With the information available at the moment, it's more likely to be the latter," Cox said in an email Tuesday.The Associated Press has been unable to locate Peace. The darknet market where the seller has been active in the past has been inaccessible for days, purportedly due to cyberattacks.At the moment it's not known who holds the passwords or whether a state-sponsored actor, which Yahoo has blamed for the breach, would <a href="https://apnews.com/f3b807d296d24d529bc0e2efa0af0db3/In-Yahoo-breach,-hackers-may-seek-intelligence,-not-riches">ever have an interest in passing its data to people like Peace</a> .Even if the hack was a straightforward espionage operation, Gartner security analyst Avivah Litan said that wouldn't be a reason to relax. Spies <a href="http://blogs.gartner.com/avivah-litan/2015/07/01/where-has-all-the-stolen-data-gone-and-who-the-heck-is-king-s/">can mine trivial-seeming data from apparently random citizens</a> to tease out their real targets' secrets."That's how intelligence works," Litan said in a phone call.Meanwhile Yahoo users who recycle the same password across the internet may still be at risk. While people can always change the passwords across all the sites they use, Yahoo's announcement that some security questions were compromised too means that the risks associated with the breach are likely to linger.A password can be changed, after all, but how do you reset your mother's maiden name?___Online:Raphael Satter can be reached at: <a href="http://raphaelsatter.com/">http://raphaelsatter.com</a> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/nasa-explain-harvest-moon-2016-9">The last harvest moon eclipse of the decade has come and gone - here's what a harvest moon actually is</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="R5azR4NTE672sougZCqjax_ft6MHxrHf" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

Yahoo's massive password breach is the 'security equivalent of ecological disasters'

<div class="image-container float_right click-to-enlarge"><div class="image"><a title_source="" title_caption="iPhone 5S fingerprint scanner" class="zoomin" href="http://static4.businessinsider.com/image/522f72b76bb3f7a44243acb2-960/iphone-5c-fingerprint.png"></a><a href="http://www.apple.com/iphone-5s/videos/#video-touch">Apple</a><keyword id="1460952" type="UNKNOWN" weightage="60" keywordseo="iPhone-5S">iPhone 5S</keyword> fingerprint scanner</div></div>After months of rumors, <keyword id="6354427" type="CITY" weightage="60" keywordseo="Apple">Apple</keyword> today confirmed that the new iPhone 5S will include a<a href="http://www.businessinsider.com/apple-announces-iphone-5s-2013-9"> fingerprint scanner</a>.
You can use your fingerprint to unlock your phone simply by placing your finger on top of the home button. You can also use your fingerprint with the iTunes store instead of entering a password every time you want to make a purchase.
Is trusting Apple with your fingerprint safe? What could go wrong? We turned to security expert Shuman Ghosemajumder, a former Google security guru who is now working at buzzy, stealthy security startup <a href="http://www.businessinsider.com/shape-security-raises-financing-2013-1">Shape Security</a> to find out.
Ghosemajumder said the fingerprint scanner sounds safe to use and that he, himself, would probably use it, once he found out some details about it.
The good news is that <keyword id="81872" type="UNKNOWN" weightage="60" keywordseo="Fingerprints">fingerprints</keyword> will only be stored on the phone, not in the cloud, and that's really important.
"Having a central database of fingerprints in the cloud would be incredibly dangerous," Ghosemajumder told us. "But you would expect Apple has world class security experts advising and working with them on this."
Still, he cautioned, there are a few things that would make the fingerprint scanner unsafe.
1. It must be a hardware-only device. The scanner must not be activated by software or pass the fingerprint information to software. If it can be activated by software than there will be bad guys that can write malicious code for it. A hardware-only device will tell the software "yes, this fingerprint is ok" or "no, this fingerprint is not ok" but it will not share the fingerprint, or data about the fingerprint, with the software.
2. It must store the photograph of the fingerprint in a super-safe location on the device. This location has to be blocked off and not accessible by software. Otherwise, hackers will be able to get the fingerprint that way.
3. Apple needs to explain how it will use the scanner with iTunes. Will it temporarily store the fingerprint or information about it, the way Siri temporarily stores requests? Even temporary storage of a fingerprint in a cloud server could give hackers an "in."
Ghosemajumder said that the security community will be asking Apple all of these questions.
Failing that, we'll also find all of this out "as soon as ios 7 is jailbroken," he laughed. Jailbreaking a phone means to hack into the software and poke around. Tech experts usually jailbreak a new iPhone within a hours or days after it hits the shelves.
If it turns out that this gadget isn't as safe as it sounds, you'll be able to turn it off. That's good news, too.

Here's What Could Go Wrong With Apple's New Fingerprint Tech, According To A Security Expert

<div class="KonaFilter image-container float_right"><div class="image"><a href="http://www.defense.gov/dodcmsshare/biography/hires_020410084056_Agarwal_S.JPG">U.S. Dept. of Defense</a>Sumit Agarwal, co-founder, Shape Security</div></div>Shape Security, one of the most talked-about stealth security startups in the Valley, is now open for business.
And on Day 1 it already has all hallmarks of a crazy-successful company: amazing tech, an impressive team and more than $1 million in sales.
Shape Security has created a new kind of computer security technology that uses hackers' tricks against them.
To understand how this works, you have to understand how a computer virus works. A computer virus can change itself every time it installs on a new computer. (In geek speak, that's called a "real-time polymorphism.") That makes it harder for antivirus software to discover and stop it. But, once it installs, the tasks it sets about doing are typically the same. For instance, it might install itself on a bank's website to capture passwords.
The malware uses a script that looks for code that says "username" or "password."
Shape has launched something called a ShapeShifter. The bank would put this device in front of the website. Every time a Web page is served up, ShapeShifter changes the site's software. The term "username" or "password" is replaced with something else the browser understands but the script won't.
There becomes no way to write a script to grab passwords, or scrape things from a website, or do a dozen things that malware writers must automate in order for their software to work.
This kind of thing has never been done before.
But Shape has amassed some strong evidence that it will work. It's beta-testing program involved more than 20 big website enterprises, such as Stubhub.
With those tests, the company has already sold over $1 million worth of software, vice president Shuman Ghosemajumder told Business Insider.
Shape has also snagged some of the biggest names in the security industry to join its 58-person team.
This includes Ghosemajumder, Google's former click fraud czar; a star engineer from Palo Alto Networks, Xinran Wang; and people from VMware, Cisco, Mozilla.
Shape Security was founded by ex-Googler Sumit Agarwal, who was head of mobile product at Google and is the former senior adviser for cyber innovation at the U.S. Department of Defense, as well as former deputy assistant secretary for the department. Plus he spent 14 years as an officer in the U.S. Air Force working on security and intelligence tech. Its other co-founders, Derek Smith, CEO, and Justin Call, CTO, hail from the Pentagon and a major defense contractor.
Shape created buzz a year ago <a href="http://www.businessinsider.com/shape-security-raises-financing-2013-1">when it raised $26 million from a bunch of A-list investors,</a> including Kleiner Perkins, Venrock (the venture-capital arm of the Rockefeller family), Google Ventures, Google Executive Chairman Eric Schmidt's TomorrowVentures, and former Symantec CEO Enrique Salem.

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