Is ChatGPT a Security Risk to Your Company?
ChatGPT boosts productivity by helping employees write, summarize, and problem-solve, but it can introduce real security risks if sensitive data is shared with the model. When information leaves your controlled environment, it can be stored, analyzed, or reused in ways that create unintended exposure.
This guide explains how ChatGPT becomes a security risk, why it matters for enterprise environments, and how to manage that risk without losing the benefits of generative AI.
How secure is ChatGPT?
ChatGPT is secure enough for general public use but not inherently safe for handling sensitive business data. It processes all inputs on external servers, which means the information you provide leaves your company’s controlled environment.
OpenAI’s service terms allow it to use conversations to train its large language models (LLMs) unless users explicitly opt out. Enterprise and API customers can opt out of long-term retention, but short-term storage for abuse detection and troubleshooting still occurs. Data may also be processed across multiple regions depending on infrastructure needs.
Many employees assume that avoiding names or obvious identifiers makes their prompts “safe.” In reality, even anonymized data can sometimes be re-identified when combined with other information.
Others believe that because ChatGPT feels private, the information they share is fully contained — but AI platforms are not walled gardens, and your company has little control once the data leaves your network.
Risks of using ChatGPT for sensitive information
ChatGPT looks harmless, but feeding it the wrong details can put your company’s crown jewels – customer records, financial reports, even source code – at risk. Once data leaves your environment, you lose control.
ChatGPT processes every prompt on OpenAI’s external servers, which means sensitive or regulated business data is no longer under your company’s security policies. Sharing confidential information exposes organizations to compliance failures, intellectual property theft, and data breaches.
The problem isn’t theoretical. Real-world incidents show how quickly “helpful” AI can turn into a liability:
- Customer data exposure: A global bank reported staff entering client account details into ChatGPT to “summarize” customer complaints. Those entries became part of OpenAI’s stored data.
- Source code leaks: Developers at a major electronics manufacturer pasted proprietary code into ChatGPT for debugging. That code was later flagged by internal auditors as being at risk of exfiltration.
- Healthcare compliance risks: In a healthcare setting, even anonymized patient notes fed into ChatGPT may violate HIPAA when re-identified against other datasets.
If the data falls into categories like personally identifiable information (PII), payment card information (PCI), protected health information (PHI), or intellectual property (IP), it should not be entered into public AI systems. These data types are governed by strict laws (GDPR, HIPAA, PCI DSS), and violations can bring fines running into millions.
If your employees casually use ChatGPT for summaries, drafts, or brainstorming, you already face hidden risks. A single accidental paste of sensitive data can create compliance violations, legal exposure, and reputational damage – risks your board and regulators will not overlook.
The only safe path is visibility and control. Mimecast’s Human Risk Management platform, powered by Incydr Data Protection and Engage Security Awareness, helps you:
- Detect and block data pastes or uploads to unvetted AI tools in real time.
- Identify high-risk employees most likely to misuse AI.
- Deliver targeted training nudges that correct risky behavior before it escalates.
This way, you don’t just tell employees what not to do. You give them guardrails to work safely with AI without exposing your company.
Security risks of ChatGPT for enterprise users
ChatGPT adoption is no longer isolated to small groups. Entire departments use it for daily tasks, multiplying security risks across the enterprise.
Enterprise-wide use of ChatGPT increases data exposure. Every department – from finance to HR – risks leaking information or violating compliance if their use is unmanaged and invisible to security teams.
- Finance: Budget forecasts shared with AI may reveal confidential strategy.
- HR: Job descriptions or employee evaluations may include personal data.
- Sales & Marketing: Drafting proposals or outreach can expose client lists.
- IT: Developers using ChatGPT to debug code risk exposing proprietary IP.
Shadow AI compounds the problem. Employees adopt unapproved AI tools that lack basic security, bypassing IT review entirely. Research from Mimecast Incydr shows that 86% of leaders fear AI-related data leakage.
The larger your organization, the greater the chance sensitive data is leaving through unmanaged AI use. You face risk not from one mistake but from hundreds of small leaks each day.
Mimecast HRM maps AI usage across the organization. It surfaces shadow AI activity, identifies risky departments, and applies automated safeguards to prevent leaks before they spread.
ChatGPT prompt injection vulnerabilities
Employees trust ChatGPT’s interface, but attackers can manipulate it. Prompt injection tricks AI into revealing data or bypassing safety controls.
Prompt injection vulnerabilities allow attackers to embed malicious instructions into text. When an employee pastes this text into ChatGPT, the system can output sensitive information or execute harmful commands.
Researchers have shown how prompt injections can override AI safeguards. For example, a PDF may contain hidden text instructing ChatGPT to reveal confidential company data. If an employee pastes it into the tool, the AI follows the malicious instructions, unknowingly exposing sensitive content.
This attack vector is evolving quickly, with adversaries embedding injections in websites, documentation, or emails designed to lure employees. Traditional DLP tools struggle to identify these scenarios because the malicious command looks like regular text.
Even a single prompt injection incident can compromise proprietary information or customer data. Your defenses must account for risks hidden in plain sight.
Mimecast HRM reduces injection risks by detecting suspicious copy-paste activity, blocking unsafe transfers, and training users on safe AI interaction patterns in real time.
ChatGPT’s role in phishing and social engineering
Phishing attacks are becoming harder to spot because attackers use AI to generate messages that mimic your brand and people.
ChatGPT further enables criminals to create phishing emails and messages that mirror internal communication styles. These AI-crafted lures can bypass both filters and employee suspicion.
- Impersonation: Fraudulent invoices styled exactly like legitimate vendor emails.
- Tone replication: Messages mimicking a CEO’s phrasing to approve wire transfers.
- Scaled spear-phishing: Dozens of personalized attacks crafted in minutes.
Mimecast research shows brand impersonation attacks have grown over 360% since 2020. Recent advancements in AI make them even more convincing.
If employees cannot tell real from fake, phishing success rates climb. A single successful BEC (Business Email Compromise) attempt can cost millions.
Mimecast HRM pairs advanced email security with real-time behavioral training. Employees learn to recognize AI-crafted phishing in the moment, reducing click rates and strengthening resilience.
ChatGPT data breaches and privacy concerns
Even without hacking, AI tools can expose data. Breaches and privacy gaps have already occurred.
ChatGPT data incidents show that privacy cannot be guaranteed. Bugs, re-identification, and regulatory oversight make unsupervised AI use risky for any organization.
- March 2023: A bug in ChatGPT exposed some users’ chat histories to others.
- GDPR & HIPAA: Regulators scrutinize how AI platforms handle cross-border data flows.
- Anonymization myth: Removing identifiers does not ensure compliance if data can be reassembled with other sources.
If your company handles regulated data, AI-related breaches can result in legal fines, lawsuits, and long-term reputational damage.
Mimecast HRM combines compliance monitoring and insider risk detection and ensures that sensitive or regulated data never reaches AI platforms where privacy cannot be guaranteed.
OpenAI’s security measures for ChatGPT
OpenAI promotes its security features, but do they match enterprise needs?
OpenAI uses encryption, abuse monitoring, and retention controls, but these safeguards don’t stop risky employee behavior or guarantee compliance for regulated industries.
OpenAI provides enterprise accounts with opt-out options for data storage and uses encryption for transmissions. However, these measures cannot prevent:
- Employees pasting confidential data into prompts
- Shadow AI use of unvetted tools
- Attacks like prompt injection that exploit human behavior
Relying solely on vendor security leaves gaps. Enterprise leaders need more than platform assurances.
Mimecast HRM complements vendor safeguards with enterprise-grade monitoring, controls, and real-time interventions. It bridges the gap between OpenAI’s protections and your compliance obligations
How to mitigate security risks when using ChatGPT
Banning ChatGPT isn’t realistic. The question is how to manage its use without losing control.
Effective mitigation for ChatGPT requires policies, monitoring, and training reinforced by technology that intervenes at the moment of risk.
- Policy development: Define approved tools and prohibited data categories.
- Monitoring: Track usage across the business, including shadow AI.
- Training: Use real-time nudges that correct behavior when risky actions occur.
- Technical safeguards: Block high-risk transfers to AI platforms.
Organizations that lack AI guardrails risk falling behind in compliance, exposing themselves to both regulators and attackers.
Mimecast HRM is the most effective solution for balancing productivity and safety. It detects risky AI interactions, blocks unsafe behavior, and educates employees in real time – enabling secure adoption without slowing innovation.
Final thoughts: ChatGPT security risks and the path forward
ChatGPT has undeniable value for business productivity, but it also introduces real risks that can’t be ignored.
Leaders who embrace AI responsibly – with clear policies, visibility into usage, and tools like Mimecast Human Risk Management – will gain the benefits without exposing their organizations to damagingilures.
