diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index 510efe64f..f596da117 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -60,7 +60,6 @@ jobs:
         uv pip install -e ft_client/
         uv pip install -e .
 
-    - uses: pypa/gh-action-pip-audit@1220774d901786e6f652ae159f7b6bc8fea6d266 # v1.1.0
 
     - name: Check for version alignment
       run: |
diff --git a/requirements-dev.txt b/requirements-dev.txt
index 38a49f661..a59805e46 100644
--- a/requirements-dev.txt
+++ b/requirements-dev.txt
@@ -30,3 +30,4 @@ types-filelock==3.2.7
 types-requests==2.32.4.20250913
 types-tabulate==0.9.0.20241207
 types-python-dateutil==2.9.0.20251115
+pip-audit==2.10.0
diff --git a/tests/test_pip_audit.py b/tests/test_pip_audit.py
new file mode 100644
index 000000000..fca696193
--- /dev/null
+++ b/tests/test_pip_audit.py
@@ -0,0 +1,85 @@
+import subprocess
+import sys
+from pathlib import Path
+
+import pytest
+
+
+def test_pip_audit_no_vulnerabilities():
+    """
+    Run pip-audit to check for known security vulnerabilities.
+
+    This test will fail if any vulnerabilities are detected in the installed packages.
+
+    Note: CVE-2025-53000 (nbconvert Windows vulnerability) is ignored as it only affects
+    Windows platforms and is a known acceptable risk for this project.
+    """
+    # Get the project root directory
+    project_root = Path(__file__).parent.parent
+    command = [
+        sys.executable,
+        "-m",
+        "pip_audit",
+        # "--format=json",
+        "--progress-spinner=off",
+        "--ignore-vuln",
+        "CVE-2025-53000",
+        "--skip-editable",
+    ]
+
+    # Run pip-audit with JSON output for easier parsing
+    try:
+        result = subprocess.run(
+            command,
+            cwd=project_root,
+            capture_output=True,
+            text=True,
+            timeout=120,  # 2 minute timeout
+        )
+    except subprocess.TimeoutExpired:
+        pytest.fail("pip-audit command timed out after 120 seconds")
+    except FileNotFoundError:
+        pytest.fail("pip-audit not installed or not accessible")
+
+    # Check if pip-audit found any vulnerabilities
+    if result.returncode != 0:
+        # pip-audit returns non-zero when vulnerabilities are found
+        error_output = result.stdout + "\n" + result.stderr
+
+        # Check if it's an actual vulnerability vs an error
+        if "vulnerabilities found" in error_output.lower() or '"dependencies"' in result.stdout:
+            pytest.fail(
+                f"pip-audit detected security vulnerabilities!\n\n"
+                f"Output:\n{result.stdout}\n\n"
+                f"Please review and update vulnerable packages.\n"
+                f"Run manually with: {' '.join(command)}"
+            )
+        else:
+            # Some other error occurred
+            pytest.fail(
+                f"pip-audit failed to run properly:\n\nReturn code: {result.returncode}\nOutput: {error_output}\n"
+            )
+
+    # Success - no vulnerabilities found
+    assert result.returncode == 0, "pip-audit should return 0 when no vulnerabilities are found"
+
+
+def test_pip_audit_runs_successfully():
+    """
+    Verify that pip-audit can run successfully (even if vulnerabilities are found).
+
+    This is a smoke test to ensure pip-audit is properly installed and functional.
+    """
+    try:
+        result = subprocess.run(
+            [sys.executable, "-m", "pip_audit", "--version"],
+            capture_output=True,
+            text=True,
+            timeout=10,
+        )
+        assert result.returncode == 0, f"pip-audit --version failed: {result.stderr}"
+        assert "pip-audit" in result.stdout.lower(), "pip-audit version output unexpected"
+    except FileNotFoundError:
+        pytest.fail("pip-audit not installed")
+    except subprocess.TimeoutExpired:
+        pytest.fail("pip-audit --version timed out")