When AI agents start swarming your enterprise, they won't care about stealth. They will land a beachhead and instantly spawn 500 agents to crawl, probe, and exfiltrate data at machine speed. Is your detection stack ready?

In this episode, Ashish and Caleb sit down with Andy Smith, CEO and co-founder of Tracebit, to completely rethink Deception Technology for the AI era. Forget the heavy, noisy "honeypots" of the 90s. We discuss the modern implementation of deception: lightweight, high-fidelity canary tokens (like fake AWS keys, Chrome cookies, and database tables) that act as guaranteed tripwires the moment an attacker, human or AI, assumes a breach.

Andy shares new research on how you can actively weaponize an AI model's own safety guardrails against it. By embedding specific, controversial text strings (like references to biological warfare or sensitive political events) into decoy secrets.

Questions asked:

(00:00) Introduction to AI Deception(02:30) Andy Smith’s Background and the Founding of Tracebit(03:40) Deception 101: Honeypots vs. Canary Tokens(07:20) The "Assume Breach" Philosophy of Deception(10:00) Why CISOs Default to SIEMs over Quick Deception Wins(13:20) The Psychological Deterrent of Deception on Red Teams(15:10) Setting Up a Database Tripwire (Real-World Example)(17:40) Internal AI Threats: Catching Claude Code in a Production Kubernetes Pod(20:00) Why Deception Fails: The Lack of Strategy and Deployment Complexity(26:30) Using Cloud Serverless (S3/Terraform) to Deploy Deception for Free(28:00) Modern Lateral Movement: Chrome Cookies and Browser History Canaries(41:20) The Future of Attacks: Armies of Fast, Noisy AI Agents(44:50) Weaponizing AI Guardrails to Shut Down Attack Agents(48:20) Where to Start with Your Deception Strategy Today

Resources spoken about during the episode:

- Tracebit Research - Deception warns your teams at the speed of an AI attacker