Deloitte report for N.L. healthcare contains likely AI-generated false citations
Newfoundland and Labrador's $1.6 million Health Human Resources Plan, authored by Deloitte, contains at least four citations to research papers that do not exist, likely generated by artificial intelligence. The errors were discovered after the report was published by the Department of Health and Community Services in May. Researchers named in the false citations confirmed their work was misattributed and the papers are nonexistent. The provincial government and Deloitte have not responded to questions about the report.
- Company involved
- Deloitte
- AI system involved
- Azure OpenAI
3 source articles · read the reporting →
Attorneys in three lawsuits aimed at Nebius AI Factory work to consolidate parts of cases - WVTM
The Nebius AI Factory data center construction produced noise, dust, vibrations and raised concerns about power and water use affecting nearby residents and the Greater Birmingham Humane Society.
- Company involved
- Nebius AI Factory
- AI system involved
- Nebius AI Factory
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SEC Charges Delphia and Global Predictions for False AI Claims
The SEC charged Delphia (USA) Inc. and Global Predictions Inc. for making false and misleading statements about their use of artificial intelligence. Delphia claimed from 2019 to 2023 that it used AI and machine learning to predict investments, while Global Predictions falsely claimed in 2023 to be the 'first regulated AI financial advisor'. Both firms settled the charges without admitting or denying the findings, agreeing to pay a total of $400,000 in civil penalties and to cease and desist from further violations.
- Company involved
- Delphia (USA) Inc. and Global Predictions Inc.
1 source article · read the reporting →
CFPB Acts Against Hello Digit for Faulty Savings Algorithm Causing Overdrafts
Hello Digit, a fintech company, used an automated savings algorithm that made transfers from consumers' checking accounts, falsely guaranteeing no overdrafts. The algorithm caused customers to incur overdraft fees, and the company often denied reimbursement requests. The CFPB found that Hello Digit engaged in deceptive practices and ordered the company to pay redress to harmed consumers and a $2.7 million fine.
- Company involved
- Hello Digit, LLC
- AI system involved
- Hello Digit app
1 source article · read the reporting →
McKinsey's Lilli AI Platform Hacked, Exposing 46 Million Chat Messages
Security researchers at CodeWall used an autonomous offensive agent to discover a SQL injection vulnerability in McKinsey's internal AI platform, Lilli. The vulnerability allowed unauthenticated access to the production database, exposing 46.5 million chat messages, 728,000 files, and 57,000 user accounts. The researchers responsibly disclosed the issue to McKinsey, who patched the endpoints within days. No data was exfiltrated or misused, and no disruption occurred.
- Company involved
- McKinsey & Company
- AI system involved
- Lilli
1 source article · read the reporting →
FACIL'iti sues accessibility consultant Julie Moynat over critical tweet
In November 2020, Julie Moynat, a web accessibility consultant, tweeted criticism of FACIL'iti, an accessibility product. FACIL'iti sent a formal notice to her employer and later subpoenaed her for denigration in May 2021. Moynat is raising funds for her legal defense. The case is ongoing at the Judiciary Tribunal of Paris.
- Company involved
- FACIL'iti
- AI system involved
- FACIL'iti
10 source articles · read the reporting →
Portland Water Bureau AI pilot offers discount to billionaire CEO
The Portland Water Bureau used a machine learning system in a randomised control trial to identify customers for its financial assistance programme. The system selected Columbia Sportswear CEO Tim Boyle, a billionaire and one of the city's largest residential water consumers, for a 40% water bill discount. Boyle declined the discount, stating it should go to someone who needs it. The bureau is testing whether the SERVUS algorithm can accurately identify customers' ability to pay.
- Company involved
- Portland Water Bureau
- AI system involved
- Smart Discount Program
1 source article · read the reporting →
LLMjacking Attack Leverages Stolen Credentials to Exploit Cloud LLMs
The Sysdig Threat Research Team observed an attack where stolen cloud credentials were used to access cloud-hosted large language model services. The attackers targeted a vulnerable Laravel system to obtain credentials, then used them to invoke models like Anthropic Claude on AWS Bedrock. They intended to sell LLM access to other cybercriminals, potentially costing victims over $46,000 per day. The attack involved checking credentials against ten AI services and using a reverse proxy to manage access.
- AI system involved
- Claude (v2/v3) on AWS Bedrock
2 source articles · read the reporting →
Fake AI law firm sends DMCA threats for SEO backlinks
Ernie Smith, writer of the Tedium newsletter, received a DMCA copyright notice from 'Commonwealth Legal', a firm that appears to be entirely fabricated using AI-generated images and text. The notice demanded he add a backlink to the gadget review site Tech4Gods for a keyfob photo legitimately sourced from Unsplash. The scheme is designed to generate fake SEO gains through backlinks, and Smith did not receive any follow-up after the stated deadline.
- Company involved
- Commonwealth Legal
- AI system involved
- Generative Adversarial Network (GAN) model
1 source article · read the reporting →
Oracle faces US privacy class action over alleged surveillance of five billion people
Oracle is facing a class action lawsuit in California, alleging that its adtech and advertising subsidiaries collected vast amounts of data from internet users without consent, creating detailed profiles on approximately five billion people. The suit, filed by privacy advocates including Dr Johnny Ryan, claims Oracle's practices violate multiple federal and state laws. Oracle declined to comment on the litigation, which remains pending.
- Company involved
- Oracle
1 source article · read the reporting →
国内ベンチャー企業A社、AIなりすまし面談で実在エンジニアになりすまされる
A domestic Japanese logistics SaaS venture, referred to as Company A, conducted an online casual interview for an engineer role on 4 March 2026. An applicant used AI-generated video to impersonate a real engineer, Yoshii Kenbun, whose CV details had been submitted without his knowledge. The interviewer noticed discrepancies in language ability and unnatural video, and the company confirmed with Yoshii that he had not applied or attended. Company A and Yoshii publicised the incident on X the next day.
3 source articles · read the reporting →
Estée Lauder settles with make-up artists sacked by algorithm
Three MAC make-up artists were dismissed after failing a video interview that was scored by HireVue's algorithm. They appealed but received no clear explanation of how the system assessed them. Estée Lauder Companies settled the resulting legal challenge out of court. HireVue later discontinued the visual analysis component of its video interview platform.
- Company involved
- Estée Lauder Companies
- AI system involved
- HireVue
2 source articles · read the reporting →
Sullivan & Cromwell apologises for AI hallucinations in court filing
Sullivan & Cromwell, an elite Wall Street law firm, used an AI tool to help draft a court filing in the Prince Group case. The filing contained inaccurate citations and misquoted the US bankruptcy code due to AI hallucinations. The errors were uncovered by opposing counsel Boies Schiller Flexner, and the firm apologised to the judge and filed a corrected version. The firm stated that its AI policies were not followed and its review process failed to catch the mistakes.
- Company involved
- Sullivan & Cromwell
3 source articles · read the reporting →
Deloitte to refund Australian government after AI-generated report errors
Deloitte used generative AI (Azure OpenAI GPT-4o) to help produce an independent assurance review for Australia's Department of Employment and Workplace Relations. The report, published in July 2025, contained multiple errors including non-existent academic references and a fabricated court case. After the errors were flagged, Deloitte acknowledged the AI use and agreed to refund the final instalment of the A$439,000 contract. The report was corrected, but its substance and recommendations remained unchanged.
- Company involved
- Deloitte
- AI system involved
- Azure OpenAI GPT-4o
5 source articles · read the reporting →
KPMG drops AI report after false case studies exposed
KPMG removed a global report on AI after multiple case studies were found to be inaccurate and apparently generated from AI hallucinations. The report falsely claimed that UBS, NHS Greater Manchester, Swiss Federal Railways and Transport for London used AI agents in various ways. The companies denied the claims, and KPMG took the report down while reviewing its production.
- Company involved
- KPMG
3 source articles · read the reporting →
UDR Sued Over Alleged Use of RealPage Algorithm to Set Rents in San Diego
A class action lawsuit alleges that UDR, Inc. used RealPage's YieldStar algorithmic pricing software to set rental rates and occupancy levels for its San Diego properties, in violation of a local ordinance. The suit claims the software relied on nonpublic competitor data, contributing to inflated rents and making housing less affordable. The lawsuit, filed in July 2026, seeks to represent all affected tenants. UDR has previously acknowledged using YieldStar as one tool among others in its decision-making.
- Company involved
- UDR, Inc.
- AI system involved
- RealPage YieldStar
1 source article · read the reporting →
EEOC sues iTutorGroup for automated rejection of older tutor applicants
The US Equal Employment Opportunity Commission (EEOC) alleges that tutoring provider iTutorGroup programmed its recruitment software automatically to reject female applicants aged 55 or older and male applicants aged 60 or older. More than 200 qualified US-based applicants were denied work in 2020. The EEOC has filed a lawsuit in the Eastern District of New York seeking back pay and damages.
- Company involved
- iTutorGroup
10 source articles · read the reporting →
Finnish recruitment company Digital Minds used AI to analyze job applicants' messages, prompting data protection investigation
Digital Minds, a Finnish recruitment company founded by psychologists, used IBM Watson AI to analyze job applicants' social media and email messages for personality assessments. The company obtained written consent but the Finnish Data Protection Ombudsman launched an investigation, suspecting violations of data protection laws and the secrecy of correspondence. The service was used on fewer than ten applicants and has been paused pending the investigation.
- Company involved
- Digital Minds
- AI system involved
- IBM Watson
9 source articles · read the reporting →
New York City's McKinsey-led jail violence program manipulated data, violence increased
New York City paid McKinsey & Company $27.5 million to reduce violence at Rikers Island jail complex. McKinsey designed a predictive algorithm called the Housing Unit Balancer and Restart housing units, but jail officials and McKinsey consultants stacked the units with compliant inmates to artificially lower violence numbers. Violence actually increased by nearly 50% during the project. The city eventually decided to close Rikers.
- Company involved
- New York City Department of Correction
- AI system involved
- Housing Unit Balancer (HUB)
10 source articles · read the reporting →
Barteca Holdings v. Tacobarn (D. Connecticut): AI-hallucinated content in court filing, Monetary Sanction; Bar Referral
The attorney filed a court document containing AI-hallucinated legal authorities, misleading the court and opposing party.
- Company involved
- Hilary Miller
1 source article · read the reporting →
Joann LeDoux v. Outliers, Inc. (2) (W.D. Washington): AI-hallucinated content in court filing, Expert Brief excluded/struck
The AI-generated hallucinated citations in an expert report led to the exclusion of the expert and dismissal of the plaintiff's case.
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Heriberto Perez-Castillo v. Todd W. Blanche (7th Cir. CA): AI-hallucinated content in court filing, Monetary Sanction; Admonishment; Bar Referral
The AI generated false legal citations and quotations in an appellate brief, misleading the court and harming the client's immigration appeal.
1 source article · read the reporting →
LoanDepot algorithm denied mortgage to Black couple in Charlotte
In August 2019, Crystal Marie and Eskias McDaniels, a Black couple, were denied a mortgage for a house in Charlotte, North Carolina, by loanDepot's automated underwriting algorithm. The algorithm rejected the application because Crystal Marie was a contractor, not a full-time employee, despite her high credit score and income. After the couple enlisted their real estate agent and employer to intervene, the lender reversed the decision and cleared them to close. The couple alleged that race played a role in the denial, which loanDepot denied.
- Company involved
- loanDepot
- AI system involved
- Classic FICO and Fannie Mae/Freddie Mac automated underwriting software
10 source articles · read the reporting →
In re Rosslyn2016, LLC, et al. (S.D. Texas (Bankruptcy)): AI-hallucinated content in court filing, CLE on generative AI; Civil Contempt;…
The AI generated fabricated legal citations that were submitted to the bankruptcy court.
1 source article · read the reporting →
