Approve What, Exactly? Effect Binding and Trusted Rendering for Agent Step-Up Authorization
Sai Varun Kodathala, Prashanth Pollishetty, Jaylen Cargill
AI agents now pause for approval before they send money, delete files or email outsiders, and that approval is usually treated as a second factor. We argue it is one only when compromising the agent cannot produce it and when it names exactly what it approves, and we test both conditions. We define twelve attacks on the approval path, including decoy recipients, amount cancellation, card padding, label spoofing, enrollment squatting and threshold splitting, and run them against the Agent Payments Protocol (AP2), the Microsoft action-bound approval design and Model Context Protocol (MCP) elicitation. An audit of ten agent runtimes finds no third-party verifiable approval record, no flood limits where measurable, and post-approval argument changes in four of eight runtimes with measurable binding. As a reference defense we build ASU (Agent Step-Up), a gateway that renders the approval card from a canonical effect descriptor, has a passkey on the phone of the user sign its digest, and executes only the stored call. Tamarin proves its binding, single-use and key-level non-repudiation properties under three stated hypotheses (53 lemmas). Across 27,108 scripted trials and 609 AgentDojo…