January 2025 Newsletter
Posted By: Mark Tuesday 18th February 2025 Tags: AI, Artificial Intelligence, Cloudflare, cyber attacks, cyber crime, Cyber Fraud, Cyber Security, Data Breach, Data Leak, Data Protection, DDoS, dodgy software, Google, job vacancy, Newsletter, ransomware, softwareThis month: DeepSeek AI makes a noise; latest LaneSystems news; the dangers posed by dodgy software; latest Cloudflare report about DDoS attacks; is AI software good for job recruitment?
DeepSeek AI: A Game-Changer in Artificial Intelligence?
In the rapidly evolving world of artificial intelligence, few names have made such a rapid and significant impact as DeepSeek AI. Founded in 2023, this Chinese startup has quickly risen to prominence, challenging established AI giants with its innovative and cost-effective models. DeepSeek’s emergence has not only disrupted the AI landscape but also sent shockwaves through the stock market, leading to significant fluctuations in tech shares.
DeepSeek AI’s Impact on the AI Markets
DeepSeek AI’s rise to fame can be attributed to its ground-breaking AI models, which have demonstrated superior performance at a fraction of the cost compared to their Western counterparts. The company’s flagship model, DeepSeek-R1, has been hailed for its efficiency and effectiveness, outperforming established models like OpenAI’s ChatGPT in several benchmarks. This has led to a re-evaluation of the AI market, with investors and companies alike recognising the potential of more affordable and accessible AI solutions.
DeepSeek AI Generates Stock Market turmoil
The introduction of DeepSeek AI has had a profound impact on the stock market, particularly on tech shares. The company’s innovative approach and cost-effective models have raised questions about the sustainability of high-cost AI development. As a result, shares of major tech companies, including Nvidia, Microsoft, and Alphabet, experienced significant declines. Nvidia, in particular, saw its market value drop by nearly $600 billion, marking the largest single-day loss in US stock market history. While, at time of writing, tech shares are recovering, this market turbulence reflects the growing uncertainty about the future of AI investments and the potential for more efficient models to disrupt the status quo.
Cyber Attack and Data Exposure
Despite its meteoric rise, DeepSeek AI has not been without its challenges. In late January 2025, the company reported a large-scale cyber-attack that temporarily disrupted its services. The attack, which originated from US-based IP addresses, forced DeepSeek to pause new registrations and implement security measures to protect its infrastructure.
Adding to the company’s woes, a significant data exposure was discovered shortly after the cyber attack. Security researchers found an unprotected database belonging to DeepSeek, which contained over a million log entries, including chat histories, API keys, and backend operational data. This breach raised serious concerns about data privacy and security, as sensitive user information was left accessible to potential malicious actors.
While not necessarily unique to DeepSeek AI, these incidents highlight vulnerabilities that even the most advanced AI companies face in the digital age. The hack and data exposure underscore the importance of robust security measures in the AI industry, particularly as companies handle vast amounts of user data.
Allegations of Intellectual Property Theft
DeepSeek AI has faced significant scrutiny from U.S. officials and tech giants like Microsoft and OpenAI, with allegations of unauthorised data access and intellectual property theft. Microsoft and OpenAI have launched investigations into data collection by individuals allegedly connected to DeepSeek. These individuals are believed to have extracted large amounts of data through OpenAI’s API, violating OpenAI’s terms of service.
The Future of AI Development
DeepSeek AI’s impact on the artificial intelligence markets has been nothing short of transformative. Its cost-effective and efficient open-source models have challenged the dominance of established AI giants, prompting a re-evaluation of AI investments and development strategies. Experts believe that DeepSeek’s approach has ignited new debates on the future directions of AI, emphasising quicker and lower-cost innovation.
However, the success of DeepSeek AI has also highlighted geopolitical tensions, particularly between the US and China. With scrutiny over security and privacy issues, concerns about the potential misuse of user data, and the implications of storing data on servers located in China. These concerns have led to calls for stronger oversight and regulation of AI technologies. Is it a game-changer in the world of AI chatbots? Watch this space.
Further Reading
To find out more about DeepSeek AI visit the following:
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Experts Share: What Impact Does DeepSeek Have On The AI Startup Scene? – TechRound
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DeepSeek: A Chinese AI startup that wiped $2T off US stock market cap | Daily Sabah
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DeepSeek hit by cyberattack as users flock to Chinese AI startup | Reuters
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DeepSeek AI Database Exposed: Over 1 Million Log Lines, Secret Keys Leaked – The Hacker News
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Be careful with DeepSeek, Australia says – so is it safe to use? – BBC
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DeepSeek Data Exposure a Warning for AI Security in 2025 – SecureWorld
LaneSystems News
Welcome Matthew Midgley to our Team
We are delighted to announce a new addition to our amazing IT team. Matthew is an experienced Service Desk Technician with a BSc in Networking, specialising in providing technical support and troubleshooting to ensure smooth IT operations for businesses. With a solid background in networking and IT systems, Matthew is dedicated to resolving issues efficiently and ensuring end-users have the tools they need to succeed in their roles.
Outside of work, Matthew is a proud father and enjoys spending time with his family. He is also passionate about travelling and exploring new places, always seeking fresh experiences and adventures.
With a blend of technical expertise, a love for adventure, and a commitment to balancing family and career, Matt enjoys the thrill and challenge of tackling new obstacles, always seeking to push his limits and embrace new experiences.
LaneSystems Charity News
This month, as part of our own ongoing charity work, we are aiding St Teresa’s Hospice in Darlington with improvements to their Cyber Security. We have so far donated £300 of support, with more to come. A very worthy cause deserving of all the help they can get. If you’d like to donate to a wonderful organisation, please visit their website.
Malware Dangers from Fake Software & Dodgy Downloads
In today’s digital age, the allure of free software and cracked applications can be tempting. However, the risks associated with downloading from untrusted sources far outweigh the benefits. Cybercriminals exploit this temptation by distributing malware disguised as legitimate software, leading to severe consequences for unsuspecting users.
One common tactic involves sharing download links for fake installers on platforms like YouTube and social media. These links often lead to reputable file hosting services such as Mediafire and Mega.nz, which conceal the origin of the malware and make detection challenging. Once downloaded, these malicious files are typically password-protected and encoded, further complicating analysis and allowing the malware to evade early detection.
Identity Theft & Financial Fraud
Upon infection, the malware collects sensitive data from web browsers, including credentials and personal information. The consequences of falling victim to such schemes are dire. This data can be used for identity theft, financial fraud, and other malicious activities. Additionally, the malware can compromise the security of the infected device, making it vulnerable to further attacks.
To protect against these threats, users should exercise caution when downloading software from the internet. It is crucial to verify the legitimacy of the source and avoid downloading from untrusted websites. Implementing a multi-layered defence approach, including antivirus software and regular system updates, can also help mitigate the risks.
The dangers of malware infections from fake software and download websites are significant. By staying vigilant and adopting best practices for online security, users can protect themselves from falling victim to these malicious schemes.
For a more detailed analysis, visit Trend Micro.
Cloudflare Releases Latest DDoS Report
Cloudflare’s latest quarterly DDoS trends report reveals a significant increase in distributed denial of service (DDoS) attacks in 2024. The company blocked 21.3 million DDoS attacks last year, marking a 53% increase compared to 2023. Notably, Cloudflare thwarted the largest-ever DDoS attack – a Mirai-variant botnet that targeted an internet service provider in Eastern Asia, which reached a staggering 5.6 terabits per second (Tbps) during an 80-second attack.
Interestingly, the report highlights that most DDoS attacks are launched by competitors, with 40% of Cloudflare’s customers identifying their rivals as the culprits. State-sponsored groups and disgruntled users or customers were also significant sources of attacks. The report also notes a rise in ransom-related DDoS attacks, with 12% of customers experiencing extortion demands alongside the traffic-flooding assaults.
The report emphasises the growing trend of shorter, more intense DDoS attacks, making it challenging for humans to respond manually. In the fourth quarter of 2024 alone, Cloudflare mitigated 6.9 million DDoS attacks, with a significant increase in hyper-volumetric attacks exceeding 1 billion packets per second and 1Tbps.
In an ever-evolving threat landscape, DDoS attacks are still an important consideration for businesses staying cyber secure.
Read more about the report at Cloudflare’s Blog.
Is Recruitment AI Software Finding The Best Candidates?
David TC Davies, a former cabinet minister under Rishi Sunak, who lost his seat in the general election, claims that AI software has automatically rejected his job applications because he does not have a degree.
The former Welsh secretary argues that many companies use AI software to sift and grade CVs and warns that employers may miss out on good, diverse, talent by relying on systems which tend to filter out candidates based on too rigid a criteria.
He has called on employers to rethink the role of AI in recruitment.
Read more about this at the BBC.
