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In this episode of IT SPARC Cast – CVE of the Week, John Barger and Lou Schmidt unravel the truth behind PromptLocker — the so-called first “AI-powered ransomware.” Initially flagged by ESET and widely misunderstood as an active cyber threat, PromptLocker was actually part of a controlled academic research project from NYU’s Tandon School of Engineering, known as “Ransomware 3.0.”
We break down how this proof-of-concept malware used LLMs to dynamically generate malicious code, how it slipped into threat databases, and why this isn’t a crisis — but rather, a warning. With the ability to generate malware instructions on-the-fly without any static payload, this project forces a rethink of traditional security detection methods. The cost? About 70 cents using commercial APIs — or virtually free with open-source models. Join us for a grounded, insightful conversation about what’s real, what’s hype, and what you should be doing next.
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Lou Schmidt
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