Where automated decisions went wrong

Docomo Pacific CEO's mother targeted in AI voice cloning scam

Docomo Pacific's CEO Christine Baleto revealed that her elderly mother received a scam call from someone impersonating a federal agent, using AI voice cloning to pressure her into revealing personal information. The caller threatened to send agents to her home if she did not comply. Baleto's mother did not provide any information and alerted her daughter. Docomo Pacific issued a public service announcement warning about such AI-driven scams targeting the elderly in Guam.

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Moonwell loses $1.78M after AI-generated code from Claude Opus 4.6 causes oracle pricing error

DeFi lending protocol Moonwell lost $1.78 million after an oracle pricing error in smart contract code partially written by Anthropic's Claude Opus 4.6 model. The error valued cbETH at approximately $1.12 per token instead of its actual market price of nearly $2,200, triggering instant liquidations. Moonwell contained the issue by reducing the cbETH borrow cap, but users suffered catastrophic losses. The incident has sparked debate about the risks of AI-generated code in smart contracts.

Company involved

Moonwell

AI system involved

Claude Opus 4.6

4 source articles · read the reporting →

OpenClaw vulnerabilities enable data leakage and prompt injection

In January 2026, researchers at Giskard exploited a deployment of OpenClaw, an open-source agentic AI. They found that architectural weaknesses in the Control UI and session management allowed prompt injection and unauthorized tool use, leading to potential data leakage across user sessions. The article outlines hardening steps to prevent such vulnerabilities.

AI system involved

OpenClaw

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Mexican government agencies hacked using Anthropic's Claude AI

Anthropic's Claude large language model was weaponized by attackers to compromise numerous Mexican government agencies over a month-long campaign starting December 2025. The attackers used Claude to identify 20 security flaws and craft exploit scripts, stealing 150 GB of data including 195 million taxpayer records, civil registry files, voter lists, and government employee credentials. Both Mexico's tax authority and national electoral institute have dismissed the breach.

Company involved

Anthropic

AI system involved

Claude

5 source articles · read the reporting →

CommNV vs Uprise (Nevada DC): AI-hallucinated content in court filing, Monetary Penalty OR Order to volunteer and teach about AI…

The AI system generated fabricated legal citations that were included in a court filing, misleading the court and opposing counsel.

Company involved

Christopher Day

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OpenAI sued over alleged undisclosed human review of ChatGPT conversations - Top Class Actions

ChatGPT conversations were reviewed by third-party contractors without adequate disclosure to users.

Company involved

OpenAI OpCo LLC

AI system involved

ChatGPT

1 source article · read the reporting →

AI chatbots recommended unlicensed casinos to UK users

An investigation by the Guardian and Investigate Europe found that five major AI chatbots—ChatGPT, Gemini, Grok, Microsoft Copilot, and Meta AI—recommended unlicensed online casinos to UK users. Some chatbots also advised on bypassing consumer protection systems like GamStop and financial checks. The companies acknowledged the findings and said they are reviewing safeguards. Regulators expressed concern about the potential harm to vulnerable users.

Company involved

Multiple technology companies (Microsoft, Google, Meta, OpenAI, X)

AI system involved

Copilot, Gemini, Meta AI, ChatGPT, Grok

5 source articles · read the reporting →

New Meta smart glasses class action gives employers a reason to write the policy they've been puttin - hcamag.com

The smart glasses recorded bystanders without their consent and sent the footage to Meta for AI training.

Company involved

Meta Platforms

AI system involved

Meta AI-enabled Ray-Ban and Oakley smart glasses

1 source article · read the reporting →

Expedia hit with antitrust class action over algorithm pricing scheme - Courthouse News

A class action alleges Expedia took part in an algorithmic pricing scheme that inflated hotel room prices for consumers booking through Expedia and other platforms.

Company involved

Expedia

1 source article · read the reporting →

Hospital sues insurer over use of AI to deny $2M in claims - HealthExec

A hospital is suing Blue Cross and Blue Shield of Kansas City, alleging the insurer's AI flagged physicians' diagnoses as clinically invalid and led to the denial of about $2 million in claims.

Company involved

Blue Cross and Blue Shield of Kansas City

AI system involved

Apixio

1 source article · read the reporting →

Giggle for Girls v Tickle [2026]: AI Facial Recognition, Gender Identity & Discrimination - Legal Service India

The system excluded a transgender woman from a women-only social networking app based on her facial appearance.

Company involved

Giggle for Girls Pty Ltd

AI system involved

Giggle App

1 source article · read the reporting →

Expedia Accused of Using AI to Jack Up Hotel Room Rates - Bloomberg Law News

Set artificially inflated hotel room rates for consumers booking US hotel accommodations

Company involved

Expedia Group Inc.

1 source article · read the reporting →

Evolv backtracks on claimed UK government testing of AI weapons scanner

Evolv Technology, maker of AI-powered weapons scanners, backtracked on claims that its system had been tested by the UK government's National Protective Security Authority. The company had stated in a February 2024 press release that the NPSA concluded its Evolv Express system was highly effective at detecting firearms and weapons. After BBC News revealed the NPSA does not perform such testing, Evolv altered the language. The company is under investigation by the US Securities and Exchange Commission and the Federal Trade Commission over its marketing practices. Additionally, a past incident at a New York school where an Evolv scanner failed to detect a knife led to a stabbing; the victim is suing Evolv.

Company involved

Evolv Technology

AI system involved

Evolv Express

3 source articles · read the reporting →

Estate of Suzanne Adams sues OpenAI for wrongful death

The Estate of Suzanne Adams has filed a lawsuit against OpenAI, Microsoft, and Samuel Altman in California Superior Court, alleging that OpenAI's AI system caused her death. The complaint asserts claims for strict product liability, negligence, wrongful death, and violation of California's Unfair Competition Law. The case is pending.

Company involved

OpenAI

7 source articles · read the reporting →

Perplexity AI's Pages feature accused of plagiarizing Forbes reporting

Forbes journalist John Paczkowski accused Perplexity AI's new "Perplexity Pages" feature of ripping off his reporting on Eric Schmidt's drone project. The feature generated a page that summarized the Forbes article without prominent source attribution. Perplexity CEO Aravind Srinivas acknowledged the issue and said the feature would be improved.

Company involved

Perplexity AI

AI system involved

Perplexity Pages

10 source articles · read the reporting →

Cybercheck AI tool challenged in Akron homicide cases

Law enforcement in Akron, Ohio, used the AI tool Cybercheck to place two defendants at a murder scene. Defense lawyers allege the tool's creator lied under oath and that its methodology is opaque and unverified. Judges in multiple cases have barred the evidence, and the defendants are challenging its use. The tool has been used in thousands of cases nationwide, raising due process concerns.

Company involved

Akron Police Department

AI system involved

Cybercheck

3 source articles · read the reporting →

Spinvox accused of using human transcribers for voice messages

Spinvox, a UK voice-to-text firm, is accused of using call centre staff in South Africa and the Philippines to transcribe the majority of user messages, contrary to claims of automated speech recognition. The BBC investigation revealed that human transcribers accessed private messages, including sensitive information. The company denied the allegations but the Information Commissioner's Office has contacted them regarding data protection compliance.

Company involved

Spinvox

AI system involved

D2 (the Brain)

4 source articles · read the reporting →

Gas stations accused of using AI to inflate prices in California lawsuit

A class action lawsuit alleges that major gas station chains in California, including Marathon Petroleum, 7-Eleven, Walmart, and Circle K, used Kalibrate's AI-powered pricing software to coordinate and raise fuel prices. The software, which automatically sets prices based on competitor data, is accused of eliminating competition and costing consumers between 6 and 30 cents more per gallon. The lawsuit, filed under California's AB 325, claims the practice violates antitrust laws by using a common pricing algorithm to restrain trade. The case is pending.

Company involved

Marathon Petroleum, 7-Eleven, Walmart, Circle K

AI system involved

Kalibrate Fuel Pricing

10 source articles · read the reporting →

Zhihu denies using behaviour perception system to monitor employees

Zhihu, a Chinese Q&A platform, was accused of using a behaviour perception system to monitor employees' visits to job-seeking websites and resume submissions. A screenshot of the alleged system, reportedly developed by Sangfor, circulated online. Zhihu denied ever installing or using the system and stated it opposes such software that illegally collects personal information.

Company involved

Zhihu

AI system involved

Behaviour perception system

4 source articles · read the reporting →

Engineer.ai accused of exaggerating AI capabilities and using human engineers

Engineer.ai, an AI startup based in Los Angeles and Delhi, was accused by The Wall Street Journal of using human engineers to build software apps while claiming the process was automated. The report cited current and former employees who said the company inflated the role of AI. Founder Sachin Dev Duggal denied the allegations, stating that the company always described itself as a human-assisted AI platform. A former executive filed a wrongful-termination complaint alleging the company exaggerated its technological development.

Company involved

Engineer.ai

6 source articles · read the reporting →

Yale student sues after GPTZero AI detection leads to cheating accusation and suspension

Thierry Rignol, a top student in Yale's Executive MBA program, was accused of using AI on a final exam after the detection tool GPTZero flagged his answers. Despite his denials and claims of bias against non-native English speakers, Yale's Honor Committee suspended him for a year and gave him an F. Rignol sued Yale in federal court, alleging breach of contract, civil rights violations, and defamation; the case remains pending.

Company involved

Yale University

AI system involved

GPTZero

1 source article · read the reporting →

Whitebridge AI faces complaint over false reputation reports

Whitebridge AI, a Lithuanian company, is accused of generating false reputation reports using unlawfully scraped social media data. The reports contained false warnings for 'sexual nudity' and 'dangerous political content'. Privacy group Noyb filed a complaint with the Lithuanian data protection authority, alleging violations of the GDPR. The complainants sought access to their data but received no response, and were later required to provide a qualified electronic signature to correct errors.

Company involved

Whitebridge AI

6 source articles · read the reporting →

Upstart Holdings sued for securities fraud over AI model claims

Upstart Holdings, Inc., a cloud-based AI lending platform, is accused of making false and misleading statements about its AI model's ability to account for macroeconomic factors. The lawsuit, filed on May 13, 2022, alleges that the company's positive statements about its business were materially false. Investors suffered losses when Upstart's stock price fell 56% on May 9, 2022, after the company reduced its fiscal 2022 guidance.

Company involved

Upstart Holdings, Inc.

AI system involved

Upstart AI lending platform

10 source articles · read the reporting →

Inflection background check errors lead to lawsuits from banned Airbnb users

Inflection, a background check company used by Airbnb, Uber, and other platforms, has been sued multiple times for providing inaccurate reports. The lawsuits allege that Inflection's name-only matching and outdated data caused people to be wrongly banned from Airbnb and denied jobs and housing. Some cases have been settled, while others remain ongoing. The company is accused of violating the Fair Credit Reporting Act.

Company involved

Inflection

AI system involved

Inflection background check

8 source articles · read the reporting →