AI Summary
5 min readThe Inside Job You Never Think About
In 2023, researchers at Stanford made a counterintuitive discovery: the smarter an AI model is, the easier it becomes to con. "The same cheap tricks that fool a distracted employee, the AI falls for it too," explains Todd Schiller, CEO of PixieBrix. "And then it acts on your behalf." That finding sits at the heart of a much larger problem Schiller has spent years trying to solve—the quiet, pervasive risk of insider fraud in contact centers, and how organizations are accidentally building the same vulnerabilities into their AI agents.
Schiller holds a PhD in computer science from the University of Washington and a master's degree in machine learning, but his path started with something simpler: modifying video games. "What I found more interesting than the computing games themselves was how could you modify them," he says. That curiosity led him through pre-med, a brief flirtation with computational neuroscience, and finally into programming full-time. Today, his company builds guardrails for contact centers and AI agents—platforms where the gap between convenience and security is widest.
The Three Flavors of Insider Fraud
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What you'll learn
- 1 (00:00) **Episode Introduction & The AI Paradox** - Host David Dean Morrow opens with a teaser about AI risk and introduces the guest.
- 2 (03:37) **Guest Background & Origin Story** - Todd Schiller explains his path into cybersecurity and why he focused on insider risk.
- 3 (07:57) **Defining Insider Risk in Contact Centers** - Todd breaks down the specific types of insider fraud he sees in business process outsourcing (BPO).
- 4 (11:32) **How Fraud Happens: The Gig Economy & Legacy Systems** - Todd explains which companies are most vulnerable and how attackers exploit system gaps.
- 5 (17:21) **Real-World Fraud Stories: Porch Pirates & Gift Cards** - Todd shares specific cases of insider fraud he has investigated.
- 6 (21:09) **How AI Changes the Threat Landscape** - AI has amplified both outsider and insider threats for contact centers.
- 7 (24:07) **The Right Mix: Humans vs. Bots** - Todd argues organizations must be strategic about which tasks to automate with AI.
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Show Notes
Todd Schiller is a co-founder and CEO of PixieBrix, (https://www.pixiebrix.com/) the AI platform for contact centers. It protects their revenue and data across the web applications their agents use to deliver support. We also cover Why So Many Companies ROLLED BACK AI and started over. He is great to learn from. Follow him here: https://www.linkedin.com/in/tschiller/
Learn how data leakage happens through customer support and how your household computer detection works. Secure your digital footprint.
CHAPTERS
0:00 Meet Todd Schiller, Founder of Pixybrix
1:25 Sim Mods to a PhD: Todd's Path Into Cybersecurity
4:11 Defining Insider Risk Inside the Contact Center
8:52 Gig Workers, Fast Growth and the Security Trade-Off
11:31 Legacy Systems and the Business Logic Abuse Problem
14:50 Real Fraud Cases: Porch Pirates and Address Fraud
17:50 AI Agents, Deepfakes and Chatbots That Bind Your Business Legally
23:26 Inside Pixybrix: Control Plane, Browser Extension, Policy Engine
26:19 The Espresso Pod Fraud Ring
32:20 Shadow AI, the Lethal Trifecta and Locking Down AI Agents
This breakdown explains the mechanisms behind data leakage risks originating from standard customer support interactions. If you have ever wondered how an organization tracks specific devices or why your browsing habits might be flagged, this analysis clarifies the technical connections between your home hardware and corporate databases.
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