What If AI Got Hacked by an Insider?

Manish Bhaskar Fortanix
Manish Bhaskar
Updated:Mar 28, 2025
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ai got hacked

There’s no shortage of AI solutions designed to operate within your data center or cloud environment. Some AI vendors even offer to deploy an entire AI pipeline directly into your infrastructure. Sounds secure, right? 

Well, not so fast. 

I’ve spoken with many organizations, especially in the financial and healthcare sectors—where data security isn’t just important, it’s non-negotiable. These companies are so cautious about data privacy that even internal sharing among employees is tightly restricted. 

Here's an example of a financial firm involved in stock trading. These companies deal with highly sensitive data: PII like names, birth dates, Social Security numbers, bank details, and more.  

They’re hesitant to use SaaS-based AI products simply because they don’t want this critical data leaving their data centers. So, imagine they opt for an on-prem AI system that runs entirely inside their secure environment.  

Is that enough? 

Can you really trust that your data is safe just because the AI system is physically inside your data center? 

Here’s the catch: many recent data breaches didn’t happen because of weaknesses in encryption during transit or at rest. Those are often well protected. The real risk is in-memory data, the data actively being processed by the AI system.  

If a malicious user gains access to system memory, they could potentially see everything: raw, unencrypted sensitive data. 

Now here’s the uncomfortable truth—most threats come from within the organization.  

It’s often someone with legitimate access who knows just enough to cause damage. If such a person is part of your team, and they have access to this AI system, what’s stopping them from doing a simple memory dump?  

They could bypass most defenses with the right access.  

So, what’s the solution? 

Organizations need AI platform that:  

  • Encrypts data at rest, in transit, and during processing  
  • Runs inside a Confidential Computing environment, with secure enclaves 
  • Has built-in AI guardrails to detect and prevent misuse 
  • It is deployable entirely within your data center 

Something like what this picture depicts:

secure ai system

A system like this would be a relief to industries where privacy and compliance are imperative. The focus should not be about where the AI runs—it’s about how it’s built to protect the data throughout its entire lifecycle. 

So... does something like this exist? 

Is there an end-to-end, turnkey AI system that runs in a Confidential Computing secure enclave? 

Am I dreaming? 

Stay tuned... 

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