Month: August 2025

When Trust Cracks: The Vault Fault That Shook Identity Security

When Trust Cracks: The Vault Fault That Shook Identity Security

A vault exposed outside the DMZ

Opening Scene: The Unthinkable Inside Your Digital Fortress

Imagine standing before a vault that holds every secret of your organisation. It is solid, silent and built to withstand brute force. Yet, one day you discover someone walked straight in. No alarms. No credentials. No trace of a break-in. That is what the security community woke up to when researchers disclosed Vault Fault. A cluster of flaws in the very tools meant to guard our digital crown jewels.

Behind the Curtain: The Guardians of Our Secrets

Secrets management platforms like HashiCorp Vault and CyberArk Conjur or Secrets Manager sit at the heart of modern identity infrastructure. They store API keys, service credentials, encryption keys and more. In DevSecOps pipelines and hybrid environments, they are the trusted custodians. If a vault is compromised, it is not one system at risk. It is every connected system.

Vault Fault Unveiled: A Perfect Storm of Logic Flaws

Security firm Cyata revealed fourteen vulnerabilities spread across CyberArk and HashiCorp’s vault products. These were not just minor configuration oversights. They included:

  • CyberArk Conjur: IAM authenticator bypass by manipulating how regions are parsed. Privilege escalation by authenticating as a policy. Remote code execution by exploiting the ERB-based Policy Factory.
  • HashiCorp Vault: Nine zero-day issues including the first ever RCE in Vault. Bypasses of multi-factor authentication and account lockout logic. User enumeration through subtle timing differences. Escalation by abusing how policies are normalised.

These were chains of logic flaws that could be combined to devastating effect. Attackers could impersonate identities, escalate privileges, execute arbitrary code and exfiltrate secrets without ever providing valid credentials.

The Fallout: When Silent Vaults Explode

Perhaps the most unnerving fact is the age of some vulnerabilities. Several had been present for up to nine years. Quiet, undetected and exploitable. Remote code execution against a secrets vault is the equivalent of giving an intruder the keys to every door in your company. Once inside, they can lock you out, leak sensitive information or weaponise access for extortion.

Response and Remedy: Patch, Shield, Reinvent

Both vendors have issued fixes:

  • CyberArk Secrets Manager and Self-Hosted versions 13.5.1 and 13.6.1.
  • CyberArk Conjur Open Source version 1.22.1.
  • HashiCorp Vault Community and Enterprise editions 1.20.2, 1.19.8, 1.18.13 and 1.16.24.

Cyata’s guidance is direct. Patch immediately. Restrict network exposure of vault instances. Audit and rotate secrets. Minimise secret lifetime and scope. Enable detailed audit logs and monitor for anomalies. CyberArk has also engaged directly with customers to support remediation efforts.

Broader Lessons: Beyond the Fault

The nature of these flaws should make us pause. They were not memory corruption or injection bugs. They were logic vulnerabilities hiding in plain sight. The kind that slip past automated scans and live through version after version.

It is like delegating your IaaS or PaaS to AWS or Azure. They may run the infrastructure, but you are still responsible for meeting your own uptime SLAs. In the same way, even if you store secrets such as credit card numbers, API tokens or encryption keys in a vault, you remain responsible for securing them. The liability for a breach still sits with you.

Startups are especially vulnerable. Many operate under relentless deadlines and tight budgets. They offload everything that is not seen as part of their “core” operations to third parties. This speeds up delivery but also widens the blast radius when those dependencies are compromised. When your vault provider fails, your customers will still hold you accountable.

This should push us to adopt more defensive architectures. Moving towards ephemeral credentials, context-aware access and reducing reliance on long-lived static secrets.

We also need a culture shift. Secrets vaults are not infallible. Their security must be tested continuously. This includes adversarial simulations, code audits and community scrutiny. Trust in security systems is not a one-time grant. It is a relationship that must be earned repeatedly.

Closing Reflection: Trust Must Earn Itself Again

Vault Fault is a reminder that even our most trusted systems can develop cracks. The breach is not in the brute force of an attacker but in the quiet oversight of logic and design. As defenders, we must assume nothing is beyond failure. We must watch the watchers, test the guards and challenge the fortresses we build. Because the next fault may already be there, waiting to be found.

References and Further Reading

  1. The Hacker News – CyberArk and HashiCorp Flaws Enable Secret Exfiltration Without Credentials: https://thehackernews.com/2025/08/cyberark-and-hashicorp-flaws-enable.html
  2. CSO Online – Researchers uncover RCE attack chains in popular enterprise credential vaults: https://www.csoonline.com/article/4035274/researchers-uncover-rce-attack-chains-in-popular-enterprise-credential-vaults.html
  3. Dark Reading – Critical Zero-Day Bugs in CyberArk, HashiCorp Password Vaults: https://www.darkreading.com/cybersecurity-operations/critical-zero-day-bugs-cyberark-hashicorp-password-vaults
  4. Cyata Security – Vault Fault Disclosure: https://cyata.ai/vault-fault
  5. CyberArk Official Blog – Addressing Recent Vulnerabilities and Our Commitment to Security: https://www.cyberark.com/resources/all-blog-posts/addressing-recent-vulnerabilities-and-our-commitment-to-security
A Leviathan Awakens: How Palantir Took Over Government AI

A Leviathan Awakens: How Palantir Took Over Government AI

I. Introduction: The Unseen Empire

For years, Palantir has been the enigma of Silicon Valley. Once known for its secretive, high-stakes data work with intelligence agencies, it evolved into a cultural force, the nucleus of what many call the “Palantir Mafia.” As explored in previous pieces like Inside the Palantir Mafia: Secrets to Succeeding in the Tech Industry and Startups That Are Quietly Shaping the Future, its alumni have gone on to shape the world in both visible and subterranean ways.

But in 2025, the story pivots. As detailed in Innovation Drain: Is Palantir Losing Its Edge in 2025?, the company’s commercial growth slowed, innovation seemed to stagnate, and cultural relevance dimmed. Yet paradoxically, its profits soared.

Why? Because the leviathan found a new host, the government.

II. Government as a Business Model

Palantir’s Q1 2025 numbers stunned even seasoned analysts: revenue surged to $884 million, putting the company on a nearly $3.6 billion annual run-rate, with a staggering net profit of $214 million. This profitability was driven almost entirely by the public sector. Over 45% of its revenue came from U.S. government contracts, including:

  • A landmark $10 billion Army enterprise deal that consolidates 75 separate contracts
  • Active deployments in the FAA, IRS, CDC, and ICE
  • International expansion through NHS UK and allied defence systems

What makes Palantir unique is not just what it builds, but how it embeds itself. Its software is no longer a tool; it is infrastructure. And once its proprietary data formats and analytical models are woven into an agency’s core processes, the technical debt and operational risk of removal become insurmountable.

III. The Ethical Cost of Indispensability

The WIRED exposé and a suite of supporting reports from The Washington Post and AINvest paint a troubling picture. Government agencies are increasingly outsourcing decision-making logic to Palantir’s opaque algorithms.

Whether it’s CDC pandemic modelling or ICE’s predictive analytics, the lack of transparency and public oversight is striking. The life-altering consequences of these opaque models—whether they influence a quarantine order or a deportation notice—are executed with the full force of the state, yet designed beyond the reach of public scrutiny. And when Business Insider revealed that Palantir executives like Shyam Sankar were simultaneously appointed as reserve officers in the U.S. Army while bidding on DoD contracts, the red flags couldn’t be clearer.

This is not just procurement, it’s institutional capture.

IV. AI, Warfare, and the New Lobbying Order

CEO Alex Karp has been unabashed about his mission. He frames Palantir as a “Pro-Western Values AI company,” standing in contrast to big tech firms, he claims are too appeasing of adversaries.

This narrative is powerful, and profitable. The GENIUS Act, signed in July 2025, provides regulatory clarity and budgetary guarantees for AI use in federal operations. Palantir has been instrumental in shaping its language.

Still, competitors are circling. Microsoft and OpenAI are quietly trialling AI models within federal programmes. But their frameworks, often open and research-driven, struggle to match Palantir’s closed, battle-tested ecosystem.

Proponents, including many within the DoD, argue this integration is a feature, not a bug. They contend that Palantir’s platform provides a level of speed and data fusion that legacy systems cannot match, a capability deemed essential for modern warfare. However, this argument sidesteps the fundamental question of whether battlefield efficiency justifies the outsourcing of public accountability.

V. Commercial Plateau vs. Government High

In Innovation Drain, we argued that Palantir had lost its edge. That may still be true, for the private sector. Commercial clients demand agility, flexibility, and measurable ROI. Palantir’s platform, by contrast, is tailored for slow-moving, high-budget bureaucracies.

What looks like stagnation in the tech world is actually peak performance in the defence-industrial complex.

VI. The Palantir Mafia’s Legacy Revisited

Ironically, while Palantir itself morphs into a government fixture, its alumni have diverged sharply. From Anduril’s autonomous defence platforms to Epirus’ directed-energy weapons and a slew of stealth analytics startups, the real innovation has escaped the mothership.

As discussed in Startups That Are Quietly Shaping the Future, these offshoots channel Palantir DNA, aggressive mission focus, stealth operations, and a disdain for Big Tech groupthink, into areas Palantir can no longer touch.

This raises a question: Is Palantir still part of the innovation ecosystem, or has it become a bureaucratic toolsmith for the surveillance state?

VII. Conclusion: Leviathan or Lighthouse?

Palantir is no longer just a company. It is an institution woven into the fabric of multiple governments, operating across domains where civilian oversight is minimal and ethical debate is muted.

Its rise is instructive, not just as a case of business success, but as a warning of what happens when tech monopolies gain state-like permanence. The question isn’t just whether Palantir is profitable. It’s whether we, as citizens, are comfortable with a private company wielding this much invisible power.

In 2025, the true Palantir story isn’t about code. It’s about control.

References & Further Reading:

Bitnami