TL;DR: LLMs create new security challenges because they generate unpredictable outputs, can absorb sensitive data during use, and are exposed to prompt injection, shadow AI, and risky third-party integrations, according to Proofpoint. Traditional access controls and monitoring models do not fully account for how language models are used, so governance now has to cover data handling, verification, and abuse prevention.
Editorial analysis by NHI Mgmt Group, based on content published by Proofpoint: “LLM Security: Risks, Best Practices, Solutions”.
Key questions
Q: What fails when employees use LLMs without sanctioned controls?
A: The failure is usually not the model alone but the absence of governed use paths, logging, and data restrictions.
Q: Why do LLM applications create new data leakage risks for identity teams?
A: LLM applications can expose sensitive data when users paste secrets, when agents retrieve privileged context, or when responses echo internal material back to users.
Q: How do teams know whether AI prompt controls are actually working?
A: Look for whether the control is operating at the moment of prompt entry and whether it can distinguish data classes, account type, and destination.
Practitioner guidance
- Enforce sanctioned AI usage paths Publish approved LLM use cases, block or restrict unsanctioned public AI tools, and make the approved path easier to access than shadow AI alternatives.
- Restrict sensitive data sent to LLMs Apply minimum necessary data rules to prompts, attachments, shared files, and model inputs so confidential material is never exposed without a clear need.
- Filter prompts and outputs continuously Inspect inbound prompts and model responses for sensitive content, policy bypass attempts, and suspicious language that may indicate prompt injection or misuse.
Bottom line: LLM use changes the security problem from static application access to dynamic runtime trust across prompts, outputs, and connected tools.
Explore further
View Full Forum → | NHI Foundation Course → | Our Services → | Read the full analysis →
LLM security governance fails when organisations treat model access as the control problem. The deeper issue is runtime trust, because the model sits between people, data, and connected tools and can reshape all three in a single session. Access controls still matter, but they do not by themselves govern what the model ingests, how it responds, or which integrations inherit that trust. Practitioners need to think in terms of interaction control, not just application login.
A few things that frame the scale:
- AI-related credential leaks surged 81.5% year-over-year in 2025, with the surrounding AI infrastructure leaking 5x faster than core LLM providers, according to the State of Secrets Sprawl 2026.
A question worth separating out:
Q: How should organisations govern third-party plugins and copilots connected to LLMs?
A: Treat every plugin, API, and copilot integration as a privileged pathway that can expand data access or move content outside the original boundary. Define what each connection may read, write, or forward, then monitor usage and revoke anything that no longer has a clear business need.
👉 Read our full editorial: LLM security risks are outpacing traditional controls in enterprise AI