Generative AI-powered chatbots, utilizing Large Language Models (LLMs), are transforming technology interactions but also introducing significant security vulnerabilities such as data leakage, prompt injection, phishing, malware, and misinformation. These chatbots, while beneficial, require robust safeguards to protect sensitive data and maintain user trust. Key security measures include encryption, authentication, and authorization, alongside regular security audits and penetration testing. Organizations are urged to educate users about potential threats and maintain compliance with data protection regulations like GDPR and HIPAA, alongside adhering to AI ethics principles. Advanced security solutions, such as behavioral analytics, help detect unusual activities, while user education plays a crucial role in preventing phishing and other scams. By prioritizing security alongside the capabilities of LLM-powered chatbots, organizations can foster trusted and reliable AI interactions.