Storm Watch | Cyber Podcast | When AI Attacks: Taxpayer Data, Beijing's Chatbots & LLM Hallucinations

Summary: This episode of GreyNoise Storm Watch reports that the Department of Government Efficiency, led by Elon Musk, accessed sensitive federal systems including Treasury databases and Education Department records through AI-driven analysis, with vendor Inventry.ai processing taxpayer information without FedRAMP authorization. It also covers Chinese startup DeepSeek's models refusing 88% of sensitive questions about Tiananmen Square or Taiwan and facing bans in Australia, South Korea, and U.S. agencies like NASA, plus Splunk's DECEIVE AI honeypot and its LLM hallucination risks.
Why it matters: Taxpayer information was processed by a vendor without FedRAMP authorization, and the resulting bipartisan calls for stricter AI procurement rules put the burden of unvetted API integrations and data security risk on the agencies that hold that data.

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