The risks driving government fears over DeepSeek

Lorikeet News Desk

published

February 10, 2025

Credit: Outlever, edited (Globe via muhammad.abdullah, freepik)

Key Points

DeepSeek faces global scrutiny and has already been restricted or banned in a number of countries.
Experts highlight risks similar to those associated with TikTok, including data privacy issues and potential cyberespionage.

Although the open-source nature of the model offers transparency regarding its code, it does not guarantee that user data is handled solely within Australia or according to local privacy standards. This risk of cross-border data access is a key factor behind the ban.

Uri Gal

Professor of Business Information Systems | University of Sydney

The Chinese AI platform DeepSeek has been met with a wave of concern from countries around the world. The Trump Administration is considering whether to restrict it, it's been prohibited from app stores in Italy, and banned from government devices in South Korea, Australia and, Taiwan.

Corporations see red: Countless businesses have also banished the technology from their networks citing the same fears expressed by governments: the risk of exposure to data theft, cyberespionage and corporate attacks. DeepSeek's terms of service, which specify that user data is stored on servers in China and governed under Chinese law, is a major red flag for those with privacy and security concerns.

Allegations ad nauseam: Although it has consistently denied the allegations, the Chinese government has long faced accusations of conducting espionage campaigns to achieve objectives such as stealing intellectual property from Western organizations and gathering geopolitical intelligence.

Concerns in Australia: Responding to the Australian Federal Government's decision to ban DeepSeek from the country's government systems and devices, academics from the University of Sydney pointed to multiple risks the platform posed, both to federal agencies and private citizens.

"Government agencies typically manage highly sensitive information, and there are worries that DeepSeek’s extensive collection of data – such as device details, usage metrics, and personal identifiers – could expose confidential information to vulnerabilities if accessed or stored outside Australian borders," said Uri Gal, a Professor of Business Information Systems.

"Although the open-source nature of the model offers transparency regarding its code, it does not guarantee that user data is handled solely within Australia or according to local privacy standards. This risk of cross-border data access is a key factor behind the ban."

Beyond the AI itself, the app’s access to user data—such as the clipboard—can pose additional risks.

Uri Gal

Professor of Business Information Systems | University of Sydney

TikTok tropes: Dr Suranga Seneviratne, a privacy and cybersecurity expert at Sydney University's School of Computer Science, said the risks associated with DeepSeek were similar to those voiced about TikTok.

Hallucinations and other dangers: "Large Language Models (LLMs) introduce well-known concerns, including data privacy, confidentiality, and the possibility of containing backdoors. Also, despite significant recent advancements, LLMs can still hallucinate, meaning their outputs must be verified in critical settings," he said.

"Beyond the AI itself, the app’s access to user data—such as the clipboard—can pose additional risks. A unique challenge arises from DeepSeek being open-source; while the original company controls the official web and app versions, anyone can host their own instance. This makes a complete ban challenging to enforce, though in this case, the risk may be considered low."

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