In the very first week of January 2026, the “Scattered Lapsus$ Hunters,” a collaboration between prolific cybercrime collectives Lapsus$, ShinyHunters, and Scattered Spider, were making noise in the cybercrime world…


They boasted about stealing large amounts of data by hacking cybersecurity firm Resecurity on their Telegram channel, only to learn that they had stepped into a trap. It turns out that Resecurity had planted a “honeypot” in an emulated environment, with the data mimicking a business application, right down to financial transactions. Resecurity had been preparing for months to make the lure attractive, and the hackers took the bait, with the firm identifying the threat actors and sharing their information with law enforcement.

What’s being seen as a historic win for cybersecurity is also bringing to fore the term “honeypot.” Its origins might be in the world of espionage, but its digital version honeypot is making waves in the world of cybersecurity. It might be confusing; after all, it’s always been the hackers who are out to “honeypot” the public, like the 2024 Dubai Marina incident, where many cafés were hosting fake networks to mimic public Wi-fi and steal travellers’ data.

However, honeypots are now being used in counter-attacks, or rather, to prevent them. They’re basically decoy computing systems mimicking real environments to trick hackers and cybercriminals into interacting with them. They not only entice hackers to reveal their tools and methods, but also occupy attacker resources, augmenting security proactively. Can artificial intelligence (AI) possibly enhance this honeypot deception and strengthen cybersecurity?

How Do Honeypots Work?

In many ways, honeypots could be mistaken for genuine computer systems. Basically, they contain all the data and applications that cybercriminals use to identify ideal targets. In the Resecurity case, the honeypot pretended to be a business system containing sensitive data and even financial transactions.

Essentially, honeypot systems are populated with decoy data that lure hackers looking to steal and sell or use it. When attackers break into the honeypots by leveraging supposed “security vulnerabilities,” IT and network security teams observe how they proceed, noting the techniques they deploy and whether or not their system defences hold up. When these hackers go after ports left open deliberately, weak network entry points, and the like, IT teams use this opportunity to strengthen their overall defences to protect the enterprise network.

What sets honeypotting apart from other kinds of security measures is that it’s not designed to directly prevent cyberattacks. Rather, its objective is to refine an organisation’s threat response and IDS (intrusion detection system), so it can prevent and manage attacks better.

Honeypots can be of two major kinds: production and research. The former focus on identifying compromises in the organisation network, as well as fooling the threat actors. They work alongside the enterprise’s genuine production servers, running the same kinds of services. Meanwhile, the research ones collect all information regarding the attacks, focusing on not just on how these malicious factors act within the organisation’s environments but also outside it. This helps organisations’ security teams design stronger defense systems with up-to-date security and defence measures.

The Evolution of Honeypots

In the traditional sense, honeypots have always served as passive traps within networks, designed to attract hackers and cybercriminals and gather intelligence about their tools and methods. While these classic honeypots are valuable, their static nature limits their efficacy, especially since they can be bypassed and avoided once hackers recognise their patterns.

However, we’ve entered a new era where cyberthreats are growing sophisticated by the minute, and so are honeypots. The introduction of AI marks a significant shift in the evolution of honeypots, where AI breathes life into these newer, digital decoys, transforming them into intelligent and dynamic adversaries that can beat even the craftiest of hackers. Imagine networks that not only trap attackers in real time but even learn from, adapt to, and evolve too. Moreover, these modern, AI-generated honeypots aren’t fixed targets, but dynamically adjust their behaviour by analysing incoming threats and learning from interactions, having incorporated Gen-AI models and ML (machine learning) algorithms. It’s their adaptability that makes them far more effective at extracting actionable intelligence and deceiving sophisticated attackers.

How AI-Generated Honeypots Work

So, what’s the hullabaloo about AI-generated honeypots? Firstly, they operate via a combination of advanced technologies, including GAN (Generative Artificial Intelligence), reinforcement learning, and ML. They often leverage LLMs (large language models) fine-tuned on extensive datasets of attacker behaviours, system commands, and network logs, with the models being trained to mimic system outputs, user interactions, and server responses high fidelity.

For instance, GAN systems can weave ever-changing and realistic digital environments that are akin to real networks, data, and services. Meanwhile, reinforcement learning and ML techniques help honeypots analyse every attack attempt and learn which strategies are most effective at ensnaring and deceiving hackers, refining its approach over time to become all the more convincing. Moreover, these systems can modify their behaviour on the fly, even going as far as predicting the cybercriminals’ next moves.

Did we mention that some advanced models can even perform intent analysis and interpret the attack’s intentions to gather even deeper insights into the hackers’ methods and goals? Yep.

These next-gen honeypots are definitely rewriting the rules of cybersecurity. As a new era dawns in cybersecurity, these AI-generated honeypots could become powerful and indispensable tools in the defence arsenal of enterprises across the world, even as the cybersecurity honeypot market is all set to supposedly grow thrice in size by 2032.

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Malavika Madgula is a writer and coffee lover from Mumbai, India, with a post-graduate degree in finance and an interest in the world. She can usually be found reading dystopian fiction cover to cover. Currently, she works as a travel content writer and hopes to write her own dystopian novel one day.

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