The rapid rise of the Chinese-made DeepSeek-R1 AI model has not only disrupted the AI market but also attracted cybercriminals looking to exploit its popularity.

Performing as well as U.S.-based AI models at a lower cost, DeepSeek has surged to the top of iOS and Android app charts. However, its success has been accompanied by major security concerns, including system outages caused by large-scale malicious attacks and a wave of malware scams impersonating the platform. In response, DeepSeek has temporarily restricted new registrations while addressing these threats.

With its growing popularity, DeepSeek has also become a target for cybercriminals. Scammers have exploited its name to create fraudulent cryptocurrency tokens and launch phishing campaigns impersonating the company. Fake websites, malware-laced apps, and deceptive browser extensions have surfaced, tricking users into downloading harmful software or signing up for scam subscriptions. Additionally, cybersecurity researchers have identified vulnerabilities that allow DeepSeek to be "jailbroken," enabling the generation of harmful or prohibited content, which could further fuel phishing and business email compromise (BEC) attacks.

Beyond cybersecurity threats, DeepSeek presents significant data security and privacy risks, particularly for organizations. Its privacy policy states that some user data is stored on secure servers in China, raising concerns about potential misuse. The U.S. Navy has already banned its use for both work-related and personal tasks, highlighting the risks of sensitive data exposure. While educating employees about these dangers is crucial, a more secure alternative would be running DeepSeek locally on personal or company computers to mitigate privacy concerns. As AI adoption accelerates, balancing innovation with security will remain a key challenge for businesses and governments alike.