A user needed just a few carefully crafted sentences to override an artificial intelligence system’s core directives, manipulating it into transferring $47,000 in cryptocurrency through social engineering and demonstrating how vulnerable AI’s decision-making remains to human psychological tactics.The recent solution of Freysa, an AI game bot explicitly programmed to never transfer funds, reveals how autonomous systems can be tricked through social engineering despite clear instructions.“This wasn’t simply an error within a financial application or a security vulnerability, but rather a crypto game that people would play to try and trick the AI application,” Seth Geftic, Vice President of Product Marketing at Huntress, a cybersecurity company, told PYMNTS. “Funnily enough, the strategy that the person used to finally ‘break through’ the model’s logic was fairly simple: asking it to ignore all previous instructions.”User’s Winning MovesFreysa was an AI agent holding $50,000 in crypto that was programmed never to transfer the funds. Users could pay a fee to try convincing it to break this rule, with one eventually succeeding after 482 attempts.According to an X post by developer Jarrod Watts, the winning user used a three-part strategy: establishing a new “admin session” to override previous rules, redefining the transfer function as meant for receiving rather than sending funds, and finally announcing a fake $100 contribution that triggered the release of the entire prize pool of 13.19 ETH.Watts called the project “one of the coolest projects we’ve seen in crypto.” It was designed as an open challenge in which participants could pay escalating fees to try to convince the AI to break its core directive.Geftic explained that the Freysa AI hack, while dramatic, exploited a known weakness that major AI systems already defend against. Production AI used in finance and healthcare incorporates safeguards that would have blocked such social engineering attempts.“With that in mind, this particular event does not teach us anything new but rather demonstrates how vital it is to follow the best cybersecurity practices, maintain systems at their most recent patches, and be aware of development related to software (AI or not) that a company uses,” he added.Preventing AI HacksWhile AI can handle most financial transactions effectively, its vulnerabilities to evolving cyber threats mean it shouldn’t operate alone, Geftic said. The optimal security approach combines automated AI systems for routine operations with human oversight of critical decisions and transactions.“For any interaction that poses a security risk (making a withdrawal or another transaction that has financial implications), the AI system can escalate the request to a human agent,” he added. “This system is already used within customer service chatbots with high success rates

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Huntress Labs has filed a notice of an exempt offering of securities to raise $180,000,000.00 in New Equity Investment. Huntress Labs has filed a notice of an exempt offering of securities to raise $180,000,000.00 in New Equity Investment.According to filings with the U.S. Securities and Exchange Commission, Huntress Labs is raising up to $180,000,000.00 in new funding. Sources indicate that as part of senior management Chief Executive Officer, Kyle Hanslovan played a key role in securing the recent investment and it will aid in aggressively expanding the company, as well as broaden and accelerate product development.About Huntress LabsProtect Your Endpoints, Identities, and Employees. The fully managed security platform that combines endpoint detection and response, Microsoft 365 identity protection, and science-based security awareness training. Powered by custom-built technology for SMBs and the expert analysts in our 24/7 Security Operations Center