Security
12 min read
Updated 2025-01-10

Cursor Security & IP Risk Guide

Understanding data handling, prompt storage, and IP risks when using Cursor.


Overview

Security teams often block AI coding assistants due to legitimate concerns about IP exposure and data handling. This guide addresses those concerns for Cursor specifically.

How Cursor Handles Your Code

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Local Processing
Cursor runs locally on the developer's machine. Your codebase is indexed locally, not uploaded to Cursor's servers.

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What Gets Sent to AI Providers
When you use AI features, Cursor sends:
- The active file content (or selected portion)
- Relevant context from other files (when using @codebase)
- Your prompt/question

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What Doesn't Get Sent
- Your entire codebase
- Git history
- Environment variables (unless explicitly included)
- Files in .gitignore (by default)

IP Risk Mitigation

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Prompt Leakage
The primary IP risk is developers accidentally including proprietary code in prompts. Mitigations:

1. Training: Teach developers what gets sent with each feature
2. Rules files: Configure .cursorignore to exclude sensitive files
3. Review: Periodically audit prompts in high-security projects

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Secret Exposure
Secrets in code can end up in prompts. Mitigations:

1. Never commit secrets: Use environment variables and secret managers
2. Pre-commit hooks: Scan for secrets before commit
3. Cursor rules: Add patterns to exclude .env files from context

Security Questionnaire Responses

Common questions and answers for your security team:

Q: Is code stored on Cursor's servers?
A: No. Code is processed locally. Only prompts and context windows are sent to AI providers for processing.

Q: Which AI providers does Cursor use?
A: Configurable. Default providers include OpenAI and Anthropic. Enterprise customers can use Azure OpenAI or private deployments.

Q: Is Cursor SOC2 compliant?
A: Yes, Cursor has achieved SOC2 Type II certification.

Q: Can we audit AI interactions?
A: Cursor Business includes audit logging. Prompts and responses can be logged for compliance review.

Q: Does Cursor train on our code?
A: No. Cursor does not use customer code to train models.

Recommended Controls

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Technical Controls
- Enable audit logging (Cursor Business)
- Configure .cursorignore for sensitive directories
- Use private AI deployments for high-security projects
- Implement DLP scanning on outbound prompts (if available)

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Process Controls
- Publish AI coding assistant policy
- Include AI usage in code review checklist
- Periodic prompt audits for sensitive projects
- Incident response plan for data exposure

Risk Assessment Template

| Risk | Likelihood | Impact | Mitigation | Residual Risk |
|------|------------|--------|------------|---------------|
| Proprietary code in prompt | Medium | High | Training + .cursorignore | Low |
| Secret exposure | Low | Critical | Pre-commit hooks + training | Low |
| AI provider data breach | Low | Medium | Use enterprise AI endpoints | Very Low |

Next Steps

Need help implementing these controls? Our AI Governance service delivers a complete security framework tailored to your organization.

Implementation Services

Need help rolling out Cursor safely?

Our team has deployed AI coding assistants at companies from startups to enterprises. We help you skip the trial-and-error and get productive fast — with the right guardrails.

2-Week Sprint

Fixed scope, fixed price

Policy & Guardrails

IP, secrets, prompt leakage

Eval Harness

Measure what matters

Team Onboarding

Playbooks & training