The cybersecurity landscape has undergone a fundamental transformation as artificial intelligence democratizes steganography attacks while simultaneously creating new defensive opportunities. Steganography bots—AI-powered automated systems that hide malicious code within seemingly innocent files—have emerged as a critical threat vector that bypasses traditional security measures with unprecedented sophistication.
Key Findings:
Threat Escalation:
Market Impact:
Defensive Innovation:
AI-Powered Steganography Bots
Technical Sophistication: AI systems are more interconnected and data-driven than ever, making them ripe targets for steganographic attacks. Attackers can corrupt training datasets with malicious or poisoned data, causing AI models to make incorrect or dangerous decisions
Attack Vectors Include:
Automation and Scale
Bot-as-a-Service Evolution: ByteSpider Bot was responsible for 54% of all AI-enabled attacks, with other significant contributors including AppleBot at 26%, ClaudeBot at 13%, and ChatGPT User Bot at 6%
Market Commercialization: 31 additional online threat actor groups were identified in 2024, with the largest having 6,400 users. Tool-selling groups serve 68% (23,698) of users, indicating their effectiveness and credibility
Nation-State Operations
Industrial Targeting: According to Kaspersky, up to 50% of steganography attacks targeted industrial organizations, with attacks being particularly difficult to detect because the files appear legitimate to traditional security tools
Supply Chain Infiltration: Some attacks take advantage of network interconnectivity between organizations and their smaller vendors/suppliers with weaker protections. By harvesting vendors’ credentials, attackers can remotely affect larger organizations’ networks
Steganography-Based Authentication Solutions
Photolok’s Market Position: Netlok’s Photolok appears to be the only mainstream commercial IAM solution that specifically uses steganography technology to prevent AI attacks. Photolok is “the first passwordless login that uses patented steganography photos as a standalone MFA IdP login method”
Competitive Advantages:
Detection and Mitigation Technologies
Advanced Defense Systems: Owl Cyber Defense’s advanced cross domain solutions (CDS) are purpose-built to detect and mitigate data threats transferred between sensitive systems, including steganographic content embedded within data
Deep Learning Steganalysis: Deep learning-based steganalysis approaches exhibit rapid detection of steganographic payloads and demonstrate remarkable accuracy and efficiency across a spectrum of modern steganographic algorithms
Financial Impact Assessment
Cybercrime Economics:
Password Management Costs: The average cost to reset passwords for employees ranges from $15 to $70 per password reset incident, with organizations typically reporting that password resets consume 20-30% of IT help desk resources
Recovery Statistics: In 68% of ransomware incidents, backups aided in the recovery process, demonstrating the critical importance of robust backup strategies
Market Growth Projections
Authentication Market Expansion:
Industry-Specific Vulnerabilities: Manufacturing industry accounts for the largest share of ransomware IR cases at 18.6%, followed by healthcare at 13.1%, and construction at 12%
Competitive Landscape Analysis
Market Positioning: Based on comprehensive search, there don’t appear to be any direct commercial competitors to Netlok’s Photolok that specifically use steganography for IAM authentication to combat AI attacks
Technology Differentiation:
For Organizations
Immediate Actions:
Strategic Investments:
For Security Vendors
Product Development Priorities:
Market Positioning:
Investment Themes:
Risk Considerations:
Industry Reports & Research
Technical Documentation
Solution Providers
Market Intelligence
Regulatory & Compliance
Report compiled from proprietary research, industry documentation, and current threat intelligence. All financial projections and market data current as of Q1 2025.
Cyber attacks are becoming more advanced and frequent as machine learning and artificial intelligence grow and develop as a field. As such, businesses are constantly looking for ways to improve their security measures, and one of the most important aspects of cybersecurity is identity protection. Keeping confidential information secure behind a wall of verification is the best way to ensure that it can’t be used by those who would do harm with it.
Traditional identity verification methods like Captcha tests have become less effective. In this article, we’ll compare two identity verification systems: Photolok and ReCaptcha, and discuss how each system protects against AI attacks. We’ll also explore the advantages and disadvantages of each system, and help you decide which one is best for your business.
ReCaptcha is an authentication system developed by Google based on Captcha tests, which are used to determine whether a user attempting to access secure information is a human being or a program trying to pose as one. These tests typically include needing to click a specific space, enter a series of letters or numbers from an image, or select a particular object in a grid of images. Captcha tests notoriously and intentionally use low-quality, confusing, or distorted images to make their tests more difficult for AI and machine learning programs to interpret.
ReCaptcha has more advanced risk analysis and puzzle-based tests, making it more secure than traditional Captcha. These puzzles require more advanced machine learning and AI programming to crack and can take longer, giving system administrators time to recognize and respond to an attack. It also makes it harder for spam users to send emails, make comments, and post advertisements to various sites. It also helps to defend against fake registrations on websites, which can be helpful for those with email sign-up lists for newsletters or giveaways. ReCaptcha is well-integrated into different website-building software, so it’s relatively easy to install and keep up.
Unfortunately, ReCaptcha isn’t perfect. As AI and machine learning have evolved, especially in the field of image recognition, image-based ReCaptcha questions have become more susceptible to attack and cracking. Older Captcha systems are also now susceptible to brute-force attacks which can simply override and bypass them, rendering them useless.
The system is also largely seen as annoying and frustrating to use, especially for users with vision impairments or literacy impairments like dyslexia that make interpreting certain versions of the test nearly impossible. As such, browser plug-ins have been created to bypass the systems, which bad actors can use to get around these tests relatively easily.
Photolok is an authentication system that uses images to verify identity. Users select a series of images and label them as multi-use, one-time use, or “Duress,” a label that would send a distress signal to appropriate parties if it’s used. When logging into their accounts, they will be asked to choose their image from a grid, after which they’ll be able to access their information.
In terms of AI and machine learning attacks, Photolok has integrated lateral defenses on top of sophisticated encryption. Standard password-cracking programs won’t work on Photolok as, again, there are no passwords to crack, and image recognition software is only useful if it knows what to look for. While it might be possible for an AI system to correctly interpret which photo is a user’s after observing them, this would take a long period of data collection, and the use of one-time-use images could foil this data collection entirely. Additionally, having a long data collection period leaves attackers open to discovery, which is a vulnerability many are not willing to risk. Keylogging systems also won’t work against Photolok; the user’s chosen image is in a random location on their grid every time they log in.
Photolok is an advanced security system even against non-AI attacks. Since there are no passwords to share, Photolok is generally more secure than password-only systems. One-time-use photos can be useful for remote workers who might be operating in unsecured environments like coffee shops or coworking spaces, where there might be a risk of shoulder surfing.
Captcha tests were useful in the earlier days of the internet when they were aimed at deflecting basic computer programs, but in the modern world, where AI can solve them faster than some human beings, captcha tests are becoming obsolete. Even Google’s more advanced ReCaptcha has significant catching up to do before it can be considered an effective security measure.
Because of this, it’s a good idea for companies to look into alternative identity protection methods like Photolok. With their image-based security system and built-in security protocols, Photolok can more accurately and effectively combat AI and machine learning attacks as well as human sabotage attempts.
If you’re interested in testing Photolok for your enterprise, you can schedule a demo with the sales team via their website.
Multi-factor authentication (MFA) and Single Sign-On (SSO) can often act as a vital bulwark against potential breaches in high-risk fields. As technology evolves, so do the tactics of attackers; robust security measures are needed to safeguard sensitive information. MFA and SSO not only strengthen a business’s defenses against phishing scams and AI-driven cyberattacks but can also help them align with regulatory standards across various industries. From finance to healthcare, adherence to MFA and SSO protocols can help to protect users’ valuable and sensitive information.
Let’s delve into how the integration of MFA and SSO elevates cybersecurity protocols and explore insights on maximizing their efficacy, including the use of innovative solutions like Photolok.
Modern cyber threats often include classic attacks like phishing and spoofing but are quickly evolving to include technologies that are harder to thwart, including machine learning and artificial intelligence programs that can bypass traditional base credentials – passwords and usernames – in a matter of seconds. This leaves businesses and users no time to react to defend their accounts from invasion and potential takeover. In sensitive fields like healthcare, this can be incredibly dangerous for everyone involved, leaving users at risk for debilitating fraud and businesses at risk for legal repercussions.
Multi-factor authentication (MFA) and single sign-on (SSO) technology have become integral parts of cybersecurity as technology advances and the need for stronger security measures increases. These systems help service providers protect their users from threats to their information including phishing scams and AI cyberattacks.
These systems work by layering additional necessary data redirections to access attempts and requiring more detailed information that is harder to acquire in order to gain access.
By implementing MFA and/or SSO technology, especially when implementing them together, a company can add layers between user data and attackers that can slow their efforts long enough for the data to be secured or completely stop attacks before they can become effective.
Because of their ability to protect information, MFA and, to a lesser degree, SSO have become not just socially accepted standards, but also legal and regulatory standards for many industries.
Particularly, many regulations in finance and healthcare require some form of MFA to be implemented into all patient/client-facing programs to resolve as much legal liability as possible and close any security gaps that could lead to serious danger to the users’ information. SSO is also generally used in these fields on the business’s side to manage internal information access and limit security risks. In healthcare especially, MFA systems and SSO can help facilities stay in compliance with HIPAA, which protects patient privacy.
For many businesses, MFA and/or SSO are necessary to get cyber insurance, which, in a world of high cybercrime rates, is a necessary step for any business that deals in high volumes of and/or highly sensitive customer data. These measures can also help commercial businesses stay in line with the Payment Card Industry Data Security Standard (PCI-DSS), which helps to reduce credit card fraud through stringent data management and access protocols.
As mentioned, to get the best possible security for your data, use MFA and SSO together to create a two-pronged fraud protection system. SSO streamlines and simplifies user access to information while MFA ensures that only authorized users are accessing that information. Together, they can create a system that makes it easy to alert necessary parties to potential data breach attempts and thwart those attempts before they can succeed.
When choosing an MFA solution to implement, make sure that it is easy for users to use and compatible with existing systems in place. You may choose to roll out both systems at the same time for the sake of transition ease and convenience for your users. Be sure to monitor your SSO and MFA systems post-launch to resolve any technical issues that may come up during the transition.
If your business is looking to implement an effective MFA solution, consider opting for Photolok. By leveraging the power of photos instead of traditional passwords or passphrases, Photolok revolutionizes the login process, making it not only simpler but also more secure. Photolok addresses concerns of password fatigue and frustration with complex MFA systems head-on, offering a seamless authentication experience with no language barriers and minimal chances for user error.
With no complex password rules or resetting costs, Photolok streamlines the authentication process, making it both user-friendly and cost-effective. Whether accessed via smartphones, tablets, laptops, or desktops, Photolok ensures online convenience without compromising security.
Photolok also boasts unparalleled security features that can safeguard against many cybersecurity threats, from AL/ML attacks to phishing and ransomware. Its innovative architecture offers situational security through features such as single-use and duress photos, empowering users with additional layers of protection.
If you’re interested in using Photolok for your business, you can contact the Netlok sales team via their website.
Passwords have long been the bedrock of digital security, but their limitations are increasingly evident in today’s landscape of numerous accounts and sophisticated cyber threats. Passkeys, offering versatile verification methods beyond traditional passwords, represent a promising solution.
Photolok exemplifies this innovation, seamlessly blending visual identifiers with traditional credentials to provide robust security and ease of use. Here’s what you need to know about the use of passkeys versus traditional passwords, and how Photolok can help improve your company’s cybersecurity.
Passwords have been a security measure in human society since ancient Roman society when a “watchword” was assigned to ensure that a soldier was actually enlisted with the unit they were attempting to join. The first digital password was created for a project by MIT professor Fernando Corbato in 1961, allowing several unique users to access the same device while keeping their personal information secure. Since then, passwords have been the standard for verification in the digital landscape.
A digital password acts in much the same way that a Roman watchword would, on a larger digital scale. The user creates an account with a service, assigning a unique word, phrase, or code to that account. When they attempt to access the account, they will be prompted to enter that password. The service then verifies what was entered against what is on file with the account and, if the information matches, the user is granted access to their data.
A study done by Dashlane in 2022 found that the average internet user has roughly 240 online accounts that require a password. The Cybersecurity and Infrastructure Security Agency of the United States offers guidance for creating and keeping secure passwords.
Password management software can help users organize their data and track their password usage.
In the modern world of digital interaction, passwords have begun to show significant drawbacks that make their use alone not sufficient as cybersecurity anymore.
With so many accounts under single users, it’s become increasingly difficult to come up with and keep track of unique, hard-to-crack passwords. Even with the use of random generation and a password manager, it’s relatively easy to forget, misplace, accidentally delete, or otherwise lose access to a password, rendering the relevant account inaccessible, which leads to the frustrating process of resetting a password. Statista reported that about 34% of the surveyed population (roughly 2000 respondents worldwide) had to reset at least one password around once per month, with 15% responding that they needed to reset passwords multiple times per week. This can cause delays in work, healthcare, school, banking, and other important online processes.
Cybercrime is also evolving at an alarmingly rapid pace in the 21st century. Phishing attacks for information have skyrocketed, with over five million attacks reported in 2023. Data leaks and breaches have accounted for the loss of millions of passwords as well; Surfshark reported that there was at least one breach per day on average in 2023. Beyond this, artificial intelligence and machine learning programs are becoming more advanced by the day. These programs can effectively process massive amounts of data quickly to crack passwords.
With all of these issues, services are more and more frequently relying on layered security systems on top of traditional passwords to protect their users, and some are opting out of using traditional passwords at all.
Newer methods for securing your data online often use passkeys rather than passwords. A passkey is a system where a key or piece of code interacts with another key to verify a user’s identity. The first key, a public key, stays with the larger system and is created when you create your account. The second key, a private key, stays with your unique device and can be used to access information.
When a user attempts to log into their account, the device communicates with the service and the service generates a security challenge. The private key is then used to resolve the security challenge, and when it’s sent back to the service, it is verified against the public key. If the verification is passed, the user gains access to their information.
Passkeys might look like backup codes, puzzles, security questions, facial ID, or fingerprint scanning, among other methods. Since they can be quickly and easily randomized with no need for a reset and sometimes rely on biographical or biometric information, passkeys are harder to crack, spoof, or circumvent than passwords, making them a more secure option.
Photolok is a user-friendly cybersecurity solution that redefines authentication by eliminating traditional credentials (passwords,biometrics, passkeys, etc.) with proprietary coded photos that are easy to remember and simple to use. Although Passkeys is gaining attention because they protect against Phishing, Passkeys do not protect against AI/ML attacks. In many respects, Passkeys are just a long password with special encryption, which is why it is installed in your device’s “password manager.” However, if you want superior security that is easy to use, Photolok is a better option.
Photolok protects against Phishing and, more importantly, protects against AI/ML attacks. Today, most governments and enterprises are trying to stop bad actors from using AI/ML tools by imposing safeguards against AI/ML use. For example, the FBI has stated that “AI has turbocharged cyber-attacks by giving bad actors the capability to produce authentic looking Phishing emails as well as reducing the time to write attack codes from 2 to 4 weeks to as little as 2 hours.” Therefore, if you are concerned about Phishing and other attack methods, you may want to learn more about Photolok.”
For a demonstration of Photolok and how it might work for your company, you can meet with the sales team.
In our digital age, data security has become absolutely essential. We have more online accounts than ever, and the ways hackers are attempting to access them are more sophisticated every day.
As the traditional model of written passwords is revealed to be vulnerable to hacks and breaches, the world is looking to alternatives that are safer and more reliable. That’s where biometrics come in — they use the things that are unique to each of us to verify our identities. This offers enhanced security and convenience over traditional passwords.
But not all biometric security measures are created equal. There are physical biometrics, of course, but there are also what’s known as behavioral biometrics. Each of these brings its own distinct methods, applications, and implications for security.
Understanding these differences is essential as privacy concerns rise alongside technological advances like AI. That’s why we’ve provided this primer on how physical and behavioral biometrics work, how they differ, and how our innovative approach to security at Netlok offers the perfect blend of benefits.
Physical biometrics authenticate individuals based on measurable physical traits. These traits are constant, stay the same over time, and are unique to each person. Common examples include fingerprint scanning, facial recognition, and iris or retinal scans.
The advantages of physical biometrics are significant. Physical traits like fingerprints and iris patterns don’t change over time, making them a stable basis for authentication. Meanwhile, many smartphones and devices now come built-in with fingerprint scanners or facial recognition. This makes it easy for users to access secure systems without passwords. Finally, physical traits are incredibly difficult to replicate, reducing the risk of unauthorized access.
That said, there are also some notable drawbacks to physical biometrics. If biometric data like fingerprints or facial templates are compromised in a breach, they obviously can’t be changed like a password could. Once stolen, this data can be used for identity theft and other malicious action. And even though many devices come with fingerprint scanners or facial recognition cameras, many don’t have this specialized hardware.
Unlike physical biometrics, behavioral biometrics focus on how you do things rather than what you are. This form of authentication relies on analyzing patterns in human behavior and interaction with devices.
Here are a few examples:
Advantages of behavioral biometrics include dynamic security, which means that because these behaviors evolve with the user they’re much harder for attackers to imitate. Behavioral authentication systems can also monitor users in real-time, identifying anomalies and flagging potential threats. And of course, this approach usually doesn’t require specialized hardware or sensors and can use regular accelerometers and touchscreens.
However, behavioral biometrics also require constant monitoring and data collection to work effectively. This can feel invasive to a lot of users. Environmental factors can also change behaviors, such as stress, injury, or other environmental conditions. This can lead to false positives or false negatives. Meanwhile, the sheer volume of data collected makes behavioral biometrics systems vulnerable to breaches.
Behavioral biometrics rely heavily on tracking and analyzing users’ daily activities. To provide accurate authentication, these systems monitor a wide range of behaviors, often without users being fully aware of the extent of data collection.
This raises significant privacy concerns:
So while behavioral biometrics offer advanced security features, their invasive nature makes them a controversial choice for a lot of everyday users.
As biometrics become more common in our everyday lives, keeping personal data private is going to become even more essential. Companies and regulators are stepping up with stricter rules to make sure user data is handled responsibly. For example, laws like the European Union’s GDPR and California’s CCPA are all about transparency. They require companies to be upfront about how they’re using biometric data and give users the option to opt out of things like invasive monitoring.
At the same time, some amazing innovations are shaking things up, like decentralized biometric storage. Instead of keeping all your biometric info on massive servers that could get hacked, decentralized models let users store their data locally, which makes breaches way less likely. Netlok’s Photolok is a great example of how we can move toward more secure and private ways of authentication without making users feel like they’re constantly being watched.
With these changes, the future of biometrics is really about finding the sweet spot between strong security and respecting privacy. By using smarter technologies and better practices, companies can create safer, more user-friendly ways to keep our online accounts secure.
As the debate around biometrics and privacy continues, Netlok provides an innovative alternative that sidesteps many of the concerns associated with both physical and behavioral biometrics. Netlok’s patented Photolok® technology offers a passwordless authentication solution that prioritizes privacy and security.
Instead of relying on traditional passwords or biometrics, Photolok allows users to authenticate their accounts using secure, encrypted photo identification. This approach offers enhanced privacy, a much more user-friendly experience, greater resilience to hacks and breaches, and no continuous, invasive monitoring.
By replacing passwords with encrypted photo authentication, we eliminate vulnerabilities while giving you full control over your data. Want to learn more? Find out how Photolok works or request a demo today.
Today, effective cybersecurity is more critical than ever. Organizations and individuals everywhere face growing cybersecurity threats powered by machine learning and other advanced technologies. Security solutions need to evolve alongside these threats, becoming not only more powerful but more user-friendly along the way.
But complex and frustrating security protocols are more and more common. These overly cumbersome systems are actually counterproductive, because many users are simply choosing to ignore them or stop using them over time.
Enter human-centered design in cybersecurity, which focuses on the actual needs and experiences of users first. Companies that focus on human-centered design can create solutions that foster trust, boost usability, and enhance security without frustrating or alienating users.
At Netlok, we’re leaders in secure passwordless authentication that uses photos rather than passwords — an example of human-centered design that we believe can revolutionize secure digital access.
At its core, human-centered design is a problem solving approach that puts users first throughout the design process. Rather than forcing people to adapt to rigid systems built with a singular focus on achieving certain outcomes, HCD is about designing solutions that are — first and foremost — intuitive, accessible, and aligned with how people actually behave.
Key principles of human-centered design include empathy, co-creation, usability testing, and accessibility. When applied to cybersecurity, these principles can drive the creation of security tools that are much easier to adopt and less prone to user error.
The tug-of-war between security and user-friendliness is one of the biggest challenges of cybersecurity. Traditional systems prioritize technical robustness and impenetrable strength over the convenience of users.
For example, complex password requirements and multi-factor authentication methods are essential for keeping accounts secure but can be extremely frustrating for many people. That frustration isn’t a problem in its own right — it also leads users to adopt repetitive passwords, write down passwords or share them insecurely, and avoid multi-factor authentication entirely.
The result is that one ambivalent individual can put an entire system at threat. Human-centered design is a chance to bridge this gap, making security seamless and intuitive without ever sacrificing its robustness.
So how can you make security easier on users without making it easier on hackers, too?
Here are five of the methods we use at Netlok to keep cybersecurity secure while also making it more human.
HCD in cybersecurity takes into account how people behave in real-world settings. To use one example, think about how people value convenience and speed when accessing their digital platforms. This means long, complicated login processes are a significant turn-off.
Solutions that embrace familiar behaviors, like using biometric authentication such as fingerprints or facial recognition (or Netlok’s photo-based login) reduce friction and promote adoption that’s fast and long-lasting.
Remembering passwords, thinking of security questions, and recalling PIN numbers all add up to mental strain. This is especially true now that most people manage multiple online accounts.
Human-centered design can minimize mental effort by making security processes feel effortless.
Passwordless systems like our photo-based login can remove that mental strain, encouraging users to remain engaged and compliant while leading to stronger security habits overall.
Users are more likely to use and trust systems they actually understand. Confusing security mechanisms make people feel uncertain, as if their security and access are outside their control.
Human-centered design in cybersecurity is centered on simple, clear, and transparent design that puts people back in control. By using a visual approach to authentication, our team at Netlok creates an intuitive experience. The process makes clear to users how they’re being authenticated without overwhelming them with technical details. This transparency builds trust and a sense of confidence in the platform.
Inclusivity matters, even when it comes to cybersecurity. People with disabilities or limited technical literacy deserve a robust, easy-to-understand security system as well. Visual authentication methods can be easier for older users or those with cognitive impairments that might make password management difficult.
By removing language and literacy barriers, Netlok’s photo-based system offers a more inclusive process that ensures security is accessible for all.
Human-centered design also encourages positive security habits by rewarding good behavior with ease of use. Traditional systems often unintentionally discourage best practices by making them inconvenient. If a system is annoying or frustrating, users will stop using it no matter how much it benefits their security.
With Netlok, users experience a frictionless login process that encourages continued engagement with secure practices over time.
Netlok’s innovative photo-based authentication is the perfect example of human-centered design in cybersecurity. Instead of relying on passwords, users can authenticate through a secure photo-lock system. Here’s how it works.
First, when users set up an account, they are given 3 login photos to use for the login process. They can change these login photos at any time. These photos are stored securely in Netlok’s digital vault, completely inaccessible to outsiders.
When you need to access a platform that uses Netlok authentication, the system will present a collection of photos from which you will then select the photo that’s yours. In this way, you verify that you are the person with authorization to access your account.
No annoying MFA processes, long and confusing passwords, or technical jargon. Just picking your own photo from a lineup.
As cyber threats grow more sophisticated, it’s clear that strong security is no longer enough on its own. The solutions that work over the long term have to be designed with humans in mind. Human-centered design bridges the gap between technical strength and genuine adoption, addressing the root causes of security failures by prioritizing convenience, trust, and accessibility.
Want to learn more? Find out how Netlok is disrupting cybersecurity for the better.
Member – Insider GovTech
FOLLOW US ON SOCIAL MEDIA
©2015-2025 Netlok. All rights reserved.