2023 Year in Review: AI Arrives, Social Engineering Dominates, Supply Chains Break

2023 cybersecurity year in review AI and threats

2023 was the year AI entered cybersecurity, for better and worse. It was the year social engineering proved it could take down a $100 million casino operation with a phone call. And it was the year supply chain attacks through MOVEit exposed 60 million people's data.

The Big Three

AI Changed Everything

ChatGPT and generative AI eliminated the traditional markers of phishing: bad grammar, awkward phrasing, generic content. AI-generated phishing emails are indistinguishable from legitimate business communication. AI voice cloning enabled convincing vishing attacks. And AI-powered tools for automated vulnerability scanning lowered the barrier for attackers.

On defense, AI improved threat detection, automated response, and enabled better anomaly identification. But offense is ahead of defense. AI made attacks easier faster than it made defense better.

Social Engineering Dominated

MGM ($100M+ in damages) and Caesars ($15M ransom paid) were both compromised through social engineering calls to IT help desks. The technology was irrelevant. The human was the vulnerability. Seven years of writing about this, and it remains the most effective attack vector.

Supply Chain Attacks Scaled

MOVEit's compromise by Cl0p affected 2,500+ organizations and 60+ million individuals. One vulnerability in one file transfer tool, exploited once, cascading to thousands of victims through vendor relationships.

Industry-Specific Highlights

Healthcare: Record number of healthcare breaches. HHS increased enforcement. HIPAA penalties raised.
Legal: AI ethics guidance from multiple bar associations. Courts began requiring AI disclosure in filings.
Financial: SEC finalized cybersecurity disclosure rules. Wire fraud losses continued climbing.
Dental: OCR Right of Access enforcement continued against small practices.

Looking Ahead to 2024

AI-powered attacks will intensify. Deepfake video and voice will become standard tools. Supply chain scrutiny will increase. Regulatory requirements will expand across all industries. And the fundamentals, MFA, backups, patching, training, incident response, will remain the most effective defenses.

Eight years of writing. The tools change. The principles endure.