ChatGPT Security Issues: Key Risks & How To Stay Protected

GenAI Security
Blog

Key Takeaways

Don’t assume ChatGPT is secure by default: Risks usually come from what employees paste into prompts or how tools are connected, not from model flaws. Clear internal rules and guardrails are essential.
Limit sensitive data in prompts: Oversharing of internal docs, customer info, or code is the top cause of real-world leakage and can trigger legal, contractual, and compliance issues.
Review and restrict integrations: Custom GPTs, plugins, and API connections expand the attack surface; misconfigured keys, excessive permissions, and prompt injection can push or pull data into the wrong systems.
Verify outputs before use: Hallucinations, nondeterministic answers, and limited explainability mean teams must review AI-generated content, especially in regulated or high-impact workflows.
Recognize the security implications of custom GPTs: When employees create custom GPTs or agentic workflows connected to internal data sources, they introduce a new, often invisible attack surface. Without centralized oversight, these autonomous agents may access or move sensitive data in ways security teams fail to detect.

What Is ChatGPT Security?

ChatGPT security refers to the practices and controls that protect users and businesses from risks that arise during interactions with ChatGPT. ChatGPT processes user inputs to generate responses and may log certain activity for reliability and abuse detection. Enterprise offerings such as ChatGPT Business and ChatGPT Enterprise include security features like encryption, admin controls, and a guarantee that prompts and company data are not used to train models, which reduces but does not eliminate risk.

Despite those built-in security functions, ChatGPT security concerns emerge when employees share internal documents, customer data, code, or regulated information inside prompts, or when ChatGPT is connected to other systems without proper oversight. These interactions can lead to data leakage, compliance gaps, or inaccurate outputs that influence business decisions.

ChatGPT security also extends beyond individual prompts to the growing use of custom GPTs and agentic tools that employees can create without formal approval. These autonomous components can connect to internal systems, access sensitive data, and perform actions without centralized visibility or governance, introducing an expanded and often hidden risk.

A common misconception is that ChatGPT is “secure by default.” In reality, some of the biggest risks come from how people use the tool, not from model-level flaws. Another misconception is that all ChatGPT data is used for training. OpenAI clarifies that this depends on the account type and settings. Ultimately, ChatGPT security entails managing safe prompting, controlled integrations, and responsible data use across teams.

Key Security Risks Associated With ChatGPT

When teams talk about “ChatGPT security issues,” they’re usually referring to how end users interact with the system, such as: what they type in, what they copy out, and which systems they connect ChatGPT to. Even with OpenAI’s security features, such as encryption, compliance controls, and usage policies, unsafe interactions and integrations can still pose significant risk. The following table outlines the key security issues associated with ChatGPT:

Risk Category Core Issue Business Impact
Data Privacy Concerns Prompts may contain personal data, client information, or regulated content. US state data breach notification law triggers; potential data privacy law/regulation (e.g., GDPR, HIPAA) violations.
Sensitive Information Leakage Employees may attach internal docs or paste source code, financial data, and other confidential info into prompts. Leakage of IP, confidential plans, or customer data; long-term compliance and reputational risk.
Prompt Injection Attacks Malicious inputs attempt to override instructions or extract unintended info. Compromised workflows, unauthorized data disclosure, or manipulated system behavior in integrated environments.
Unmanaged Custom GPTs / Agentic Workflows These entities may connect to internal drives, APIs, or document stores, and then execute actions or retrieve data unmonitored. Shadow automations, increased attack surface, potential unauthorized data access, and inability to audit or control agent behavior.
Jailbreaking and Misuse of AI Outputs Attempts to bypass safety filters to elicit restricted or risky content. Policy violations, unsafe content generation, and unmonitored misuse that can harm customers' trust.
Model Exploits Through Malicious Inputs Hidden instructions or payloads embedded in prompts target downstream systems. Compromised automations, workflow corruption, or misuse of internal tools connected to ChatGPT.
Incorrect or Manipulated Responses AI-generated outputs may be inaccurate, biased, or fabricated. Poor decision-making, compliance failures, or financial/legal risk when outputs are used without review.

Security Issues for Businesses Using ChatGPT

For enterprises, ChatGPT security issues extend beyond individual user behavior. Once ChatGPT becomes part of everyday workflows, including content creation, data analysis, customer responses, coding assistance, or internal decision-making, its risks intersect with organizational policies, regulatory obligations, and access controls. The following subsections outline the business-specific challenges that arise when ChatGPT is deployed across business units.

1. Exposure of Proprietary or Confidential Data

Even when employees understand general safe-prompting guidelines, businesses face ongoing exposure risks at scale. Teams may unintentionally include strategic plans, product roadmaps, customer information, contract excerpts, or internal troubleshooting notes in prompts. While this type of oversharing has already been introduced in earlier sections, its business impact merits closer attention.

Organizations risk the loss of intellectual property, leakage of sensitive operational information, and inadvertent disclosure of regulated data. These exposures, in turn, complicate legal holds, incident response, and contractual confidentiality obligations with clients and partners.

When ChatGPT chats or custom GPTs use web-browsing capabilities, parts of a user’s prompt may be incorporated into the external search request, sending sensitive information beyond the enterprise tenant. While this data is not made public, it can be processed and logged by external search and browsing services, creating an additional exposure path that does not exist when all interactions remain contained within the organization’s environment.

2. Compliance Challenges (GDPR, HIPAA, SOC 2, etc.)

Enterprises often operate under multiple regulatory regimes. When employees use ChatGPT without the appropriate safeguards, organizations must consider whether prompts, generated outputs, or data passed through integrations contain information governed by GDPR, HIPAA, US state privacy statutes, PCI DSS, or other industry-specific mandates.

The challenge is not only preventing improper data sharing but also ensuring auditability, retention alignment, and policy enforcement across distributed teams. Businesses must verify that internal ChatGPT usage aligns with their existing compliance frameworks and that they can document how AI-assisted workflows handle sensitive data.

3. Third-Party Integrations and API Vulnerabilities

Businesses increasingly integrate ChatGPT into internal applications, Slack channels, ticketing systems, and custom workflows. These integrations typically involve custom GPTs and agents, which often connect to internal knowledge bases, APIs, or enterprise systems. 

These integrations introduce additional attack surfaces and vulnerabilities, such as misconfigured API keys, excessive permissions, insecure data flows, or actions that pull or push information across systems. 

If not properly governed, these extended AI components can expose sensitive data to unintended environments or allow malicious prompts to influence downstream systems. As ChatGPT becomes embedded into enterprise architecture, securing these integrations becomes just as important as securing individual user prompts.

Real-World Examples of ChatGPT Security Incidents

The risks outlined above aren’t theoretical. Organizations have already experienced real incidents where unsafe prompting, flawed integrations, or unmonitored AI usage led to exposure. These examples demonstrate how quickly ChatGPT-related risks can materialize in practical business settings.

Documented Prompt Injection Attacks

Tenable’s 2025 “HackedGPT” research disclosed multiple vulnerabilities enabling novel prompt-injection attacks against ChatGPT. These flaws allowed attackers to craft inputs that manipulated system behavior, bypassed guardrails, or extracted private data. 

Some attacks worked by embedding hidden instructions inside user-generated content or external data sources that ChatGPT processed, causing the model to reveal sensitive information or execute unauthorized actions. 

Because the prompts looked benign to users, the injected instructions operated silently, making them difficult to detect. The findings show how prompt injection can exploit integrations, plugins, or context ingestion, turning seemingly harmless text into a vector for data leakage and misuse.

Data Breach Reports and Known Vulnerabilities

A recurring pattern in real-world incidents involves employees unintentionally exposing confidential information through AI prompts. Samsung’s 2023 leak remains the most well-known example: engineers pasted proprietary source code and internal notes into ChatGPT, prompting the company to restrict generative-AI use across business units. 

However, similar events continue today. A 2025 LayerX report found that 77% of employees using AI tools shared sensitive company data, often from unmanaged or personal accounts,  creating untracked exposure paths and compliance gaps. These cases show that data leakage frequently stems not from system compromise but from everyday workflows that lack AI-specific governance.

Case Studies: Misuse of AI in Social Engineering

A 2025 Reuters investigation demonstrated how generative AI can significantly increase the effectiveness of social-engineering attacks. In a controlled experiment, researchers used tools including ChatGPT, Grok, Meta AI, and DeepSeek to generate phishing-style emails impersonating major U.S. banks and the IRS. 

These messages were then sent to volunteer test subjects (not real customers) to evaluate how convincing AI-crafted scams could be. The results showed that recipients were more likely to click on links or respond to the AI-generated messages than to traditional phishing emails. Although no real victims were targeted, the study highlights how generative AI lowers the skill barrier and can amplify the sophistication and scalability of phishing campaigns.

How OpenAI Mitigates ChatGPT Security Issues

OpenAI implements multiple security, privacy, and safety controls to reduce the risks associated with ChatGPT use. While these controls do not eliminate the organizational challenges described earlier, they provide guardrails that help minimize accidental data exposure, model misuse, and unauthorized access.

  • Built-In Guardrails and Safety Layers: ChatGPT includes safety systems designed to limit harmful, unsafe, or policy-violating outputs. These include refusal behaviors for disallowed content, content filtering, and protective system instructions that guide how the model responds. OpenAI also applies automated checks to reduce the likelihood of the model generating harmful instructions. These guardrails reduce, but do not fully prevent, the possibility of jailbreak attempts or manipulated responses.
  • Model Red-Teaming and Continuous Testing: OpenAI maintains ongoing red-team testing programs to evaluate how the model behaves under adversarial conditions. According to OpenAI, internal researchers, external partners, and trusted security teams regularly stress-test the model for prompt injection, misuse scenarios, harmful outputs, and failure cases. These findings inform model updates, refinements to safety constraints, and improvements to system-level protections.
  • Encryption, Logging, and API Security Policies: OpenAI documents that ChatGPT uses encryption at rest and in transit to protect user data. API access requires authenticated keys, and enterprise features offer additional administrative controls - such as domain verification, SSO, role-based permissions, and usage management, to help organizations govern how ChatGPT is used internally. For ChatGPT Business and ChatGPT Enterprise, OpenAI states that prompts and company data are not used to train the model, helping reduce unintended data exposure. Logging practices can also be configured to support compliance and monitoring needs.

ChatGPT Security Best Practices for Enterprise Teams

To reduce the risks outlined earlier, enterprise teams need consistent controls that guide how employees interact with ChatGPT across departments. The following best practices focus on preventing avoidable exposure, strengthening day-to-day usage patterns, and building governance structures that scale with AI adoption.

Best Practice What It Involves Why It Matters for Security
Redaction and Input Scrubbing for Sensitive Information Removing personal data, client identifiers, regulated content, financial details, or unnecessary internal materials before prompting. Using automated scrubbing or pre-prompt review workflows when possible. Reduces the risk of sensitive information entering ChatGPT, limits exposure during routine tasks, and enforces consistent data hygiene.
Safe Prompting Guidelines for Regulated Teams Providing role-specific rules for phrasing prompts, structuring prompts so regulated or identifiable data is not included, and validating outputs, tailored for GDPR, HIPAA, PCI DSS, and similar requirements. Helps prevent accidental disclosure of regulated data, reduces compliance risk, and gives employees clear boundaries for safe day-to-day prompting.
Policy Templates for Enterprise AI Usage Governance Defining acceptable use, prohibited content, data-handling requirements, review steps for integrations, and escalation paths; providing standardized templates for different business functions. Ensures AI usage aligns with existing security and compliance frameworks, supports audit requirements, and enables consistent oversight across distributed teams.

Technical Limitations That Amplify ChatGPT Security Issues

Even with strong security practices, certain technical characteristics of large language models introduce risks that organizations must anticipate. These limitations do not indicate flaws in ChatGPT itself, they are inherent to how generative AI systems operate. 

Understanding these constraints helps teams design safer workflows and avoid relying on the model in ways that create downstream exposure.

1. Hallucinations Leading to Incorrect Decision-Making

ChatGPT can generate outputs that are inaccurate, incomplete, or entirely fabricated, often presented with an air of confidence. In regulated, financial, or operational settings, these hallucinations can influence decision-making, produce misleading summaries, or introduce errors into customer communications or reports.

When employees assume 100% correctness or fail to apply verification steps, the resulting mistakes may create compliance issues, propagate misinformation, or affect business judgment.

2. Non-Deterministic Outputs That Complicate Audits

Because ChatGPT responses vary across sessions, users, and prompt phrasing, teams cannot always reproduce prior outputs exactly. This non-deterministic behavior complicates auditability when organizations must demonstrate how a decision was generated or show consistent reasoning across cases. 

In environments with strict controls (e.g., legal or healthcare), this variability can create documentation gaps or challenge the ability to trace how an AI-assisted workflow influenced an outcome.

3. Limited Transparency Around Model Reasoning

ChatGPT generates responses without exposing its internal reasoning or decision pathways. As a result, teams cannot always determine why the model produced a specific answer, whether external information influenced its output, or how it interpreted the prompt. 

This opacity contributes to challenges in risk assessment and makes it harder to detect when prompts were manipulated, when instructions were implicitly overridden, or when the model integrated context in unintended ways. The lack of explainability increases the need for human oversight, validation, and controlled usage patterns.

4. Limited Visibility Into Custom GPT and Agentic Behaviors

Custom GPTs and agentic workflows can retrieve data or execute actions autonomously, yet their underlying system prompts, permissions, and connections are rarely documented or centrally tracked. 

As a result, security teams can’t reliably audit what these agents accessed, why they made certain decisions, or how their behavior evolved over time. This lack of visibility creates shadow-IT-like blind spots, but with automation capabilities that can amplify data exposure, misconfiguration, or misuse.

Real-Time Governance and Oversight for ChatGPT Usage with Opsin

While OpenAI provides foundational safeguards, organizations still need visibility, governance, and controls that operate across their own data, workforce, and AI workflows. Opsin adds this missing layer by continuously monitoring AI usage, enforcing policy, and preventing data exposure before it occurs. 

The following capabilities address the enterprise risks discussed throughout this article and help teams deploy ChatGPT safely.

  • Real-Time Monitoring and Risk Classification Across All Prompts: Opsin analyzes every prompt and response in real time to identify sensitive data, regulated content, proprietary information, and potential oversharing. Its AI Readiness Assessment and ongoing Oversharing Protection solutions classify risks across departments and applications, giving security and compliance teams a unified view of where exposure may occur. This visibility helps organizations understand how employees actually use ChatGPT and where additional guardrails are needed.
  • Discovery and Governance of Custom GPTs and Agentic Workflows: Opsin automatically discovers employee-created custom GPTs and agentic workflows. It identifies which of these are business-critical, flags posture issues such as excessive permissions or ungoverned data access, and evaluates configuration gaps that increase exposure. Opsin then monitors these autonomous components for risky or suspicious behavior, such as unusual data movement or insider-risk-like patterns, giving teams full visibility and governance over AI automations operating across the organization.
  • Automated Detection and Blocking of Unsafe or Non-Compliant Requests: When users attempt to submit prompts containing sensitive information, regulated records, or confidential operational data, Opsin automatically flags or blocks the interaction before it leaves the organization’s boundary. Its Oversharing Protection system focuses specifically on real-time interception of high-risk content, preventing user mistakes that could result in data loss or compliance violations. This proactive control closes one of the largest gaps in enterprise ChatGPT usage: the reliance on employees to manually judge what is safe to share.
  • Governance Controls for Policies, Permissions, and Usage Rules: Opsin centralizes governance for enterprise AI tools by allowing organizations to define and enforce usage rules aligned with internal policies and regulatory requirements. Security and compliance teams can create policies that restrict specific data categories, govern how certain user groups may interact with ChatGPT and related AI tools, and apply consistent controls across ChatGPT applications. This centralized policy enforcement helps ensure safeguards are applied uniformly rather than relying on team-by-team interpretation.
  • Compliance-Ready Audit Trails and Reporting for AI Interactions: Opsin maintains detailed logs of AI activity, including prompts, detected risks, policy actions, and user behavior patterns, creating an audit-ready record for incident response, compliance assessments, and regulatory reviews. These reports help organizations demonstrate how AI interactions are monitored, governed, and controlled, which is particularly valuable in regulated industries such as healthcare, finance, and manufacturing. By consolidating this data, Opsin gives enterprises the traceability they need to safely adopt ChatGPT.

Conclusion

ChatGPT offers powerful capabilities for accelerating work across the enterprise, but its benefits come with meaningful security, privacy, and compliance risks. As this article shows, many of the most significant issues arise not from the model itself, but from how employees interact with it, how AI tools integrate into existing systems, and how organizations govern sensitive data.

Addressing these challenges requires a combination of safe-use practices, clear policies, and technical controls that extend beyond the protections built into ChatGPT. With the right safeguards in place, enterprises can unlock the value of generative AI while maintaining the level of security, oversight, and accountability their environments demand.

Table of Contents

LinkedIn Bio >

FAQ

Does using ChatGPT Enterprise eliminate all data-security risk for my organization?

No, Enterprise reduces risk but cannot control what employees type or upload.

  • Treat Enterprise as a privacy improvement, not a full governance layer.
  • Assign owners who regularly inspect usage patterns across business units.
  • Educate users that “private” doesn’t mean “unrestricted.”
  • Pair technical controls with org-wide policy so misuse doesn’t slip through.

Learn more about AI Security Blind Spots.

How can enterprises defend against prompt-injection attacks in custom GPT or agentic workflows?

The most effective control is isolating untrusted input and applying multi-layer validation before execution.

  • Treat all retrieved or user-generated text as untrusted, regardless of source.
  • Implement content-sanitization pipelines that strip hidden instructions or system-level cues.
  • Add allow-lists for actions your agents are permitted to execute.
  • Log and analyze injection attempts to detect early patterns of adversarial testing.

Opsin’s Magic Trick of Prompt Injection analysis provides additional threat-model detail.

What’s the best way to make GenAI-assisted workflows auditable despite non-deterministic model outputs?

You need structured capture of inputs, outputs, policy decisions, and context sources.

  • Record prompt metadata (who, what system, what risk category).
  • Store versioned context or RAG sources used for each generation.
  • Establish deterministic fallbacks for regulated workflows (e.g., templated text + human approval).
  • Continuously test your prompts to confirm drift hasn’t created new compliance risks.

How does Opsin prevent oversharing before risky content ever reaches ChatGPT?

Opsin intercepts high-risk prompts in real time and blocks them at the boundary.

  • Identify sensitive entities (PHI, contracts, source code, client data) automatically.
  • Classify prompt risk by user, department, and application.
  • Block or redact unsafe content instead of relying on users to self-judge.
  • Apply a consistent policy across Copilot, ChatGPT, Gemini, and other AI tools.

See a real customer example of oversharing reduction in action.

How does Opsin help CISOs demonstrate compliance for AI usage during audits?

Opsin provides full, exportable audit trails covering prompts, detected risks, and enforced policies.

  • Capture every AI interaction with granular metadata.
  • Generate reports filtered by team, user, system, or policy outcome.
  • Maintain tamper-resistant logs for regulatory review.
  • Map observed AI behavior to internal security and data-handling rules.

For industries with strict regulatory requirements, learn more about our healthcare & life sciences solution.

About the Author
James Pham
James Pham is the Co-Founder and CEO of Opsin, with a background in machine learning, data security, and product development. He previously led ML-driven security products at Abnormal Security and holds an MBA from MIT, where he focused on data analytics and AI.
LinkedIn Bio >

ChatGPT Security Issues: Key Risks & How To Stay Protected

What Is ChatGPT Security?

ChatGPT security refers to the practices and controls that protect users and businesses from risks that arise during interactions with ChatGPT. ChatGPT processes user inputs to generate responses and may log certain activity for reliability and abuse detection. Enterprise offerings such as ChatGPT Business and ChatGPT Enterprise include security features like encryption, admin controls, and a guarantee that prompts and company data are not used to train models, which reduces but does not eliminate risk.

Despite those built-in security functions, ChatGPT security concerns emerge when employees share internal documents, customer data, code, or regulated information inside prompts, or when ChatGPT is connected to other systems without proper oversight. These interactions can lead to data leakage, compliance gaps, or inaccurate outputs that influence business decisions.

ChatGPT security also extends beyond individual prompts to the growing use of custom GPTs and agentic tools that employees can create without formal approval. These autonomous components can connect to internal systems, access sensitive data, and perform actions without centralized visibility or governance, introducing an expanded and often hidden risk.

A common misconception is that ChatGPT is “secure by default.” In reality, some of the biggest risks come from how people use the tool, not from model-level flaws. Another misconception is that all ChatGPT data is used for training. OpenAI clarifies that this depends on the account type and settings. Ultimately, ChatGPT security entails managing safe prompting, controlled integrations, and responsible data use across teams.

Key Security Risks Associated With ChatGPT

When teams talk about “ChatGPT security issues,” they’re usually referring to how end users interact with the system, such as: what they type in, what they copy out, and which systems they connect ChatGPT to. Even with OpenAI’s security features, such as encryption, compliance controls, and usage policies, unsafe interactions and integrations can still pose significant risk. The following table outlines the key security issues associated with ChatGPT:

Risk Category Core Issue Business Impact
Data Privacy Concerns Prompts may contain personal data, client information, or regulated content. US state data breach notification law triggers; potential data privacy law/regulation (e.g., GDPR, HIPAA) violations.
Sensitive Information Leakage Employees may attach internal docs or paste source code, financial data, and other confidential info into prompts. Leakage of IP, confidential plans, or customer data; long-term compliance and reputational risk.
Prompt Injection Attacks Malicious inputs attempt to override instructions or extract unintended info. Compromised workflows, unauthorized data disclosure, or manipulated system behavior in integrated environments.
Unmanaged Custom GPTs / Agentic Workflows These entities may connect to internal drives, APIs, or document stores, and then execute actions or retrieve data unmonitored. Shadow automations, increased attack surface, potential unauthorized data access, and inability to audit or control agent behavior.
Jailbreaking and Misuse of AI Outputs Attempts to bypass safety filters to elicit restricted or risky content. Policy violations, unsafe content generation, and unmonitored misuse that can harm customers' trust.
Model Exploits Through Malicious Inputs Hidden instructions or payloads embedded in prompts target downstream systems. Compromised automations, workflow corruption, or misuse of internal tools connected to ChatGPT.
Incorrect or Manipulated Responses AI-generated outputs may be inaccurate, biased, or fabricated. Poor decision-making, compliance failures, or financial/legal risk when outputs are used without review.

Security Issues for Businesses Using ChatGPT

For enterprises, ChatGPT security issues extend beyond individual user behavior. Once ChatGPT becomes part of everyday workflows, including content creation, data analysis, customer responses, coding assistance, or internal decision-making, its risks intersect with organizational policies, regulatory obligations, and access controls. The following subsections outline the business-specific challenges that arise when ChatGPT is deployed across business units.

1. Exposure of Proprietary or Confidential Data

Even when employees understand general safe-prompting guidelines, businesses face ongoing exposure risks at scale. Teams may unintentionally include strategic plans, product roadmaps, customer information, contract excerpts, or internal troubleshooting notes in prompts. While this type of oversharing has already been introduced in earlier sections, its business impact merits closer attention.

Organizations risk the loss of intellectual property, leakage of sensitive operational information, and inadvertent disclosure of regulated data. These exposures, in turn, complicate legal holds, incident response, and contractual confidentiality obligations with clients and partners.

When ChatGPT chats or custom GPTs use web-browsing capabilities, parts of a user’s prompt may be incorporated into the external search request, sending sensitive information beyond the enterprise tenant. While this data is not made public, it can be processed and logged by external search and browsing services, creating an additional exposure path that does not exist when all interactions remain contained within the organization’s environment.

2. Compliance Challenges (GDPR, HIPAA, SOC 2, etc.)

Enterprises often operate under multiple regulatory regimes. When employees use ChatGPT without the appropriate safeguards, organizations must consider whether prompts, generated outputs, or data passed through integrations contain information governed by GDPR, HIPAA, US state privacy statutes, PCI DSS, or other industry-specific mandates.

The challenge is not only preventing improper data sharing but also ensuring auditability, retention alignment, and policy enforcement across distributed teams. Businesses must verify that internal ChatGPT usage aligns with their existing compliance frameworks and that they can document how AI-assisted workflows handle sensitive data.

3. Third-Party Integrations and API Vulnerabilities

Businesses increasingly integrate ChatGPT into internal applications, Slack channels, ticketing systems, and custom workflows. These integrations typically involve custom GPTs and agents, which often connect to internal knowledge bases, APIs, or enterprise systems. 

These integrations introduce additional attack surfaces and vulnerabilities, such as misconfigured API keys, excessive permissions, insecure data flows, or actions that pull or push information across systems. 

If not properly governed, these extended AI components can expose sensitive data to unintended environments or allow malicious prompts to influence downstream systems. As ChatGPT becomes embedded into enterprise architecture, securing these integrations becomes just as important as securing individual user prompts.

Real-World Examples of ChatGPT Security Incidents

The risks outlined above aren’t theoretical. Organizations have already experienced real incidents where unsafe prompting, flawed integrations, or unmonitored AI usage led to exposure. These examples demonstrate how quickly ChatGPT-related risks can materialize in practical business settings.

Documented Prompt Injection Attacks

Tenable’s 2025 “HackedGPT” research disclosed multiple vulnerabilities enabling novel prompt-injection attacks against ChatGPT. These flaws allowed attackers to craft inputs that manipulated system behavior, bypassed guardrails, or extracted private data. 

Some attacks worked by embedding hidden instructions inside user-generated content or external data sources that ChatGPT processed, causing the model to reveal sensitive information or execute unauthorized actions. 

Because the prompts looked benign to users, the injected instructions operated silently, making them difficult to detect. The findings show how prompt injection can exploit integrations, plugins, or context ingestion, turning seemingly harmless text into a vector for data leakage and misuse.

Data Breach Reports and Known Vulnerabilities

A recurring pattern in real-world incidents involves employees unintentionally exposing confidential information through AI prompts. Samsung’s 2023 leak remains the most well-known example: engineers pasted proprietary source code and internal notes into ChatGPT, prompting the company to restrict generative-AI use across business units. 

However, similar events continue today. A 2025 LayerX report found that 77% of employees using AI tools shared sensitive company data, often from unmanaged or personal accounts,  creating untracked exposure paths and compliance gaps. These cases show that data leakage frequently stems not from system compromise but from everyday workflows that lack AI-specific governance.

Case Studies: Misuse of AI in Social Engineering

A 2025 Reuters investigation demonstrated how generative AI can significantly increase the effectiveness of social-engineering attacks. In a controlled experiment, researchers used tools including ChatGPT, Grok, Meta AI, and DeepSeek to generate phishing-style emails impersonating major U.S. banks and the IRS. 

These messages were then sent to volunteer test subjects (not real customers) to evaluate how convincing AI-crafted scams could be. The results showed that recipients were more likely to click on links or respond to the AI-generated messages than to traditional phishing emails. Although no real victims were targeted, the study highlights how generative AI lowers the skill barrier and can amplify the sophistication and scalability of phishing campaigns.

How OpenAI Mitigates ChatGPT Security Issues

OpenAI implements multiple security, privacy, and safety controls to reduce the risks associated with ChatGPT use. While these controls do not eliminate the organizational challenges described earlier, they provide guardrails that help minimize accidental data exposure, model misuse, and unauthorized access.

  • Built-In Guardrails and Safety Layers: ChatGPT includes safety systems designed to limit harmful, unsafe, or policy-violating outputs. These include refusal behaviors for disallowed content, content filtering, and protective system instructions that guide how the model responds. OpenAI also applies automated checks to reduce the likelihood of the model generating harmful instructions. These guardrails reduce, but do not fully prevent, the possibility of jailbreak attempts or manipulated responses.
  • Model Red-Teaming and Continuous Testing: OpenAI maintains ongoing red-team testing programs to evaluate how the model behaves under adversarial conditions. According to OpenAI, internal researchers, external partners, and trusted security teams regularly stress-test the model for prompt injection, misuse scenarios, harmful outputs, and failure cases. These findings inform model updates, refinements to safety constraints, and improvements to system-level protections.
  • Encryption, Logging, and API Security Policies: OpenAI documents that ChatGPT uses encryption at rest and in transit to protect user data. API access requires authenticated keys, and enterprise features offer additional administrative controls - such as domain verification, SSO, role-based permissions, and usage management, to help organizations govern how ChatGPT is used internally. For ChatGPT Business and ChatGPT Enterprise, OpenAI states that prompts and company data are not used to train the model, helping reduce unintended data exposure. Logging practices can also be configured to support compliance and monitoring needs.

ChatGPT Security Best Practices for Enterprise Teams

To reduce the risks outlined earlier, enterprise teams need consistent controls that guide how employees interact with ChatGPT across departments. The following best practices focus on preventing avoidable exposure, strengthening day-to-day usage patterns, and building governance structures that scale with AI adoption.

Best Practice What It Involves Why It Matters for Security
Redaction and Input Scrubbing for Sensitive Information Removing personal data, client identifiers, regulated content, financial details, or unnecessary internal materials before prompting. Using automated scrubbing or pre-prompt review workflows when possible. Reduces the risk of sensitive information entering ChatGPT, limits exposure during routine tasks, and enforces consistent data hygiene.
Safe Prompting Guidelines for Regulated Teams Providing role-specific rules for phrasing prompts, structuring prompts so regulated or identifiable data is not included, and validating outputs, tailored for GDPR, HIPAA, PCI DSS, and similar requirements. Helps prevent accidental disclosure of regulated data, reduces compliance risk, and gives employees clear boundaries for safe day-to-day prompting.
Policy Templates for Enterprise AI Usage Governance Defining acceptable use, prohibited content, data-handling requirements, review steps for integrations, and escalation paths; providing standardized templates for different business functions. Ensures AI usage aligns with existing security and compliance frameworks, supports audit requirements, and enables consistent oversight across distributed teams.

Technical Limitations That Amplify ChatGPT Security Issues

Even with strong security practices, certain technical characteristics of large language models introduce risks that organizations must anticipate. These limitations do not indicate flaws in ChatGPT itself, they are inherent to how generative AI systems operate. 

Understanding these constraints helps teams design safer workflows and avoid relying on the model in ways that create downstream exposure.

1. Hallucinations Leading to Incorrect Decision-Making

ChatGPT can generate outputs that are inaccurate, incomplete, or entirely fabricated, often presented with an air of confidence. In regulated, financial, or operational settings, these hallucinations can influence decision-making, produce misleading summaries, or introduce errors into customer communications or reports.

When employees assume 100% correctness or fail to apply verification steps, the resulting mistakes may create compliance issues, propagate misinformation, or affect business judgment.

2. Non-Deterministic Outputs That Complicate Audits

Because ChatGPT responses vary across sessions, users, and prompt phrasing, teams cannot always reproduce prior outputs exactly. This non-deterministic behavior complicates auditability when organizations must demonstrate how a decision was generated or show consistent reasoning across cases. 

In environments with strict controls (e.g., legal or healthcare), this variability can create documentation gaps or challenge the ability to trace how an AI-assisted workflow influenced an outcome.

3. Limited Transparency Around Model Reasoning

ChatGPT generates responses without exposing its internal reasoning or decision pathways. As a result, teams cannot always determine why the model produced a specific answer, whether external information influenced its output, or how it interpreted the prompt. 

This opacity contributes to challenges in risk assessment and makes it harder to detect when prompts were manipulated, when instructions were implicitly overridden, or when the model integrated context in unintended ways. The lack of explainability increases the need for human oversight, validation, and controlled usage patterns.

4. Limited Visibility Into Custom GPT and Agentic Behaviors

Custom GPTs and agentic workflows can retrieve data or execute actions autonomously, yet their underlying system prompts, permissions, and connections are rarely documented or centrally tracked. 

As a result, security teams can’t reliably audit what these agents accessed, why they made certain decisions, or how their behavior evolved over time. This lack of visibility creates shadow-IT-like blind spots, but with automation capabilities that can amplify data exposure, misconfiguration, or misuse.

Real-Time Governance and Oversight for ChatGPT Usage with Opsin

While OpenAI provides foundational safeguards, organizations still need visibility, governance, and controls that operate across their own data, workforce, and AI workflows. Opsin adds this missing layer by continuously monitoring AI usage, enforcing policy, and preventing data exposure before it occurs. 

The following capabilities address the enterprise risks discussed throughout this article and help teams deploy ChatGPT safely.

  • Real-Time Monitoring and Risk Classification Across All Prompts: Opsin analyzes every prompt and response in real time to identify sensitive data, regulated content, proprietary information, and potential oversharing. Its AI Readiness Assessment and ongoing Oversharing Protection solutions classify risks across departments and applications, giving security and compliance teams a unified view of where exposure may occur. This visibility helps organizations understand how employees actually use ChatGPT and where additional guardrails are needed.
  • Discovery and Governance of Custom GPTs and Agentic Workflows: Opsin automatically discovers employee-created custom GPTs and agentic workflows. It identifies which of these are business-critical, flags posture issues such as excessive permissions or ungoverned data access, and evaluates configuration gaps that increase exposure. Opsin then monitors these autonomous components for risky or suspicious behavior, such as unusual data movement or insider-risk-like patterns, giving teams full visibility and governance over AI automations operating across the organization.
  • Automated Detection and Blocking of Unsafe or Non-Compliant Requests: When users attempt to submit prompts containing sensitive information, regulated records, or confidential operational data, Opsin automatically flags or blocks the interaction before it leaves the organization’s boundary. Its Oversharing Protection system focuses specifically on real-time interception of high-risk content, preventing user mistakes that could result in data loss or compliance violations. This proactive control closes one of the largest gaps in enterprise ChatGPT usage: the reliance on employees to manually judge what is safe to share.
  • Governance Controls for Policies, Permissions, and Usage Rules: Opsin centralizes governance for enterprise AI tools by allowing organizations to define and enforce usage rules aligned with internal policies and regulatory requirements. Security and compliance teams can create policies that restrict specific data categories, govern how certain user groups may interact with ChatGPT and related AI tools, and apply consistent controls across ChatGPT applications. This centralized policy enforcement helps ensure safeguards are applied uniformly rather than relying on team-by-team interpretation.
  • Compliance-Ready Audit Trails and Reporting for AI Interactions: Opsin maintains detailed logs of AI activity, including prompts, detected risks, policy actions, and user behavior patterns, creating an audit-ready record for incident response, compliance assessments, and regulatory reviews. These reports help organizations demonstrate how AI interactions are monitored, governed, and controlled, which is particularly valuable in regulated industries such as healthcare, finance, and manufacturing. By consolidating this data, Opsin gives enterprises the traceability they need to safely adopt ChatGPT.

Conclusion

ChatGPT offers powerful capabilities for accelerating work across the enterprise, but its benefits come with meaningful security, privacy, and compliance risks. As this article shows, many of the most significant issues arise not from the model itself, but from how employees interact with it, how AI tools integrate into existing systems, and how organizations govern sensitive data.

Addressing these challenges requires a combination of safe-use practices, clear policies, and technical controls that extend beyond the protections built into ChatGPT. With the right safeguards in place, enterprises can unlock the value of generative AI while maintaining the level of security, oversight, and accountability their environments demand.

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