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Technology
31 January 2025

DeepSeek AI Faces Scrutiny Over Security Breach And Global Restrictions

Governments worldwide grapple with the repercussions of data exposure from the Chinese AI startup DeepSeek.

DeepSeek, the Chinese artificial intelligence startup, has found itself at the center of significant security concerns following the exposure of sensitive data and growing international restrictions against its services. Renowned for its competitive AI models, DeepSeek has stirred controversy, especially after researchers from Wiz discovered a major security breach—a publicly accessible database which potentially compromised the information of millions.

During routine security assessments, Wiz found DeepSeek's ClickHouse database unprotected and available to anyone with internet access. The significance of this discovery cannot be overstated; not only was the database directly accessible, it granted full control over stored information, allowing malicious actors the opportunity to manipulate or extract data without restriction. This database, linked to several subdomains, contained API keys, chat histories, and backend service details illustrating internal operations of DeepSeek’s AI tools.

Wiz's analysis revealed the database had logged over one million entries, showcasing detailed logs of internal activities within DeepSeek. One might ask, what was actually at risk? The answer lies within the data itself: user-generated information could have included sensitive personal details, potentially putting users at risk of privacy violations. API keys left exposed could enable unauthorized access to DeepSeek's services, raising alarms among cybersecurity experts.

Once notified, DeepSeek acted swiftly to secure the database, restricting public access. Yet, the timeline for when the exposure occurred remains murky, leading to fears it might have been exploited prior to its rectification. Beyond the data exposure, the company's Chinese ownership exacerbates concerns among Western governments, particularly related to privacy and data collection practices. Critics argue DeepSeek's data policies may violate user privacy, as the company stores user data under Chinese law—mandated cooperation with intelligence agencies.

The ripple effects of these concerns reached the U.S. Department of Defense this past week. According to reports, some Defense Department workers had connected their work computers to DeepSeek's servers, utilizing the service unwittingly for at least two days before measures were initiated to block access. Citing ethical and security concerns, the Pentagon has begun restricting access to DeepSeek, with the U.S. Navy also issuing directives against its use.

This situation grows even more alarming as Italy's Data Protection Authority took decisive action this week, blocking DeepSeek to protect the data of its citizens. The authority mandated DeepSeek's firms immediately cease data processing of Italian users, following assessments of inadequate justifications for collecting personal data. Such action reinforces the trend of international scrutiny aimed at AI companies handling user data, underscoring global privacy concerns.

Many entities are now moving to limit access to DeepSeek's tools, with cybersecurity firms noting "hundreds" of companies, particularly ones tied to government agencies, are blocking access due to suspicions concerning their privacy measures. Nadir Izrael, Chief Technology Officer of Armis, stated, "The biggest concern is the AI model’s potential data leakage to the Chinese government. You don’t know where your information goes." This sentiment has rippled through organizations and businesses, reinforcing calls for greater regulatory measures.

Gunter Ollmann, the CTO at Cobalt, emphasized how DeepSeek’s breach highlights recurring issues within rapidly innovated organizations where the push to deliver products eclipses security measures. This compromise emphasizes the pressing need for proactive testing, particularly with the expansion of attack surfaces presented by cloud infrastructures.

The rapid ascent of DeepSeek's AI model which was developed for less than $6 million, ignited fervent interest among tech executives and users alike, leading to it soaring to the top of app store downloads. Yet, this interests and innovation did not come without its critics. DeepSeek’s privacy terms raised red flags primarily due to how data is processed and governed. The increasing scrutiny around DeepSeek reflects intrinsic anxieties over how generative AI tools are utilized and governed globally.

Interventions by various military branches add another layer of complexity. Internal communications indicate differing approaches among services; for example, the Navy instituted outright bans, citing security risks, whereas other branches seek to establish governing processes for AI usage without outright prohibitive measures. The Defense Department is still investigating the extent of exposure among its employees and the actual mechanics of DeepSeek's system accessed through web browsers.

Moving forward, the challenge remains for regulators and organizations to balance technological innovation with safeguards against potential data misuse. Meanwhile, as governments diligently strategize ways to mitigate such risks associated with platforms like DeepSeek, the tech world watches nervously on how this narrative evolves, particularly as similar concerns mount for other prominent tech companies facing scrutiny of their privacy practices.