Important Notice - Risks Associated with DeepSeek

Memo

Feb 11

Written By Studio Soph

We want to give you an update of the risks associated with the AI application DeepSeek. Based on these findings, we strongly recommend that you not use DeepSeek within your organization.

Security Concerns with DeepSeek:

Data Leakage Risks: Reports suggest that DeepSeek's data processing methods may inadvertently expose sensitive information. The presence of keystroke logging capabilities raises concerns, as it can capture every keystroke, thereby elevating the risks of password theft and unauthorized data access.
Very Unfavorable Privacy Policy: DeepSeek's privacy policy has raised significant concerns due to its data handling practices. The policy states that user data, including text inputs, uploaded files, and chat history, is stored on servers located in the People's Republic of China. This storage location subjects the data to Chinese laws, which may require companies to share information with government authorities upon request. Additionally, the policy allows DeepSeek to collect extensive user information, such as device details, IP addresses, and keystroke patterns, and to share this data with its corporate group and law enforcement agencies as mandated. It also states that it can use all inputs and responses to improve its model and has ownership rights to all outputs generated by the service.
Lack of Transparency in Data Collection: DeepSeek gathers and transmits sensitive end user system information, such as IP addresses, system models, language settings, and operating system details, without adequately disclosing this practice. This lack of transparency raises significant concerns regarding the confidentiality and integrity of your data.
Compliance Issues: Using tools that fail to comply with industry regulations—like GDPR, CCPA, and PCI DSS—can put your organization at risk of severe legal and financial repercussions. It is crucial to evaluate whether DeepSeek aligns with your compliance standards.

Recommendations:

Evaluate Alternatives: Consider exploring other AI tools with a stronger focus on security and compliance such as Microsoft 365 Copilot or ChatGPT.
Conduct a Risk Assessment: If you have already implemented DeepSeek, evaluate your current security measures and assess any potential risks it may pose to your data integrity.

Additional Resources

For further details on the risks associated with DeepSeek, please refer to the following resources:

If you have any questions or would like further guidance on mitigating risks associated with AI tools, please do not hesitate to reach out to our team.

Thank you for your attention to this important matter.

Best regards,

— Your HalcyonFT Team

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