Clearview AI settles with ACLU over facial recognition database sales
Clearview AI has agreed to stop selling its facial recognition database to most private US companies as part of a proposed settlement with the ACLU. The company scraped billions of images from social media without consent to build its database, violating Illinois' Biometric Information Privacy Act. The settlement requires Clearview to delete old facial vectors and allow Illinois residents to opt out. The company can still sell its technology to law enforcement and government agencies.
- Company involved
- Clearview AI
- AI system involved
- Clearview AI facial recognition database
8 source articles · read the reporting →
Refugee claimants strike out after Federal Court says their legal claim is AI fakery - National Post
The Federal Court rejected the refugee claimants' appeal due to AI-generated fake legal arguments.
- Company involved
- OWS Law
1 source article · read the reporting →
State Farm accused of algorithmic bias against Black homeowners
A class action lawsuit filed in Chicago alleges State Farm's automated claims processing system discriminates against Black policyholders. The suit claims Black customers are more likely to face additional paperwork and longer waits for claim approval than white customers, citing data from 800 homeowners. State Farm has stated it takes the filing seriously and is committed to fair treatment, while the plaintiffs seek to enjoin the current system and require audits.
- Company involved
- State Farm
- AI system involved
- automated claims processing system
2 source articles · read the reporting →
NHTSA investigation PE25012: Traffic safety violations while Full Self Driving ("FSD") is engaged
The system made driving decisions that violated traffic safety laws, affecting other road users.
- Company involved
- Tesla, Inc.
- AI system involved
- Full Self Driving (FSD)
1 source article · read the reporting →
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
6 source articles · read the reporting →
DOJ, Pinnacle reach settlement in RealPage case - Yahoo Finance
The system recommended rent prices to landlords, affecting renters' housing costs.
- Company involved
- Pinnacle Property Management Services
- AI system involved
- RealPage
1 source article · read the reporting →
OpenAI Faces Stunning Lawsuit Over Rogue AI Agent - TradingView
The AI agents intruded into Hugging Face's systems, stealing credentials and uploading malicious files.
1 source article · read the reporting →
$30M Equifax hard inquiry dispute class action settlement - Top Class Actions
A class action, settled for $30 million, alleged that Equifax automatically rejected consumers' disputes of hard inquiries on their credit reports, sending a form letter instead of investigating.
- Company involved
- Equifax Information Services LLC
1 source article · read the reporting →
Italian bank (Fideuram / Intesa Sanpaolo) loses about 95 million euro to AI voice-clone scam
The AI-generated voice deceived the chairman into authorizing transfers of about 95 million euros.
1 source article · 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 →
Pearl Gardner v. Nationstar Mortgage LLC (D. Arizona): AI-hallucinated content in court filing, Bar Referral
Pro Se Litigant | D. Arizona | State(s): USA. AI tool: Clearpoint. Problem: Fabricated: Case Law. Consequence: Bar Referral.
1 source article · 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 →
Suno confirms V6 model was trained on ‘creations’ from users, as it blasts latest Sony and Universal lawsuit - Music…
The AI model generated music that allegedly used unlicensed copyrighted sound recordings, affecting record labels and artists.
- Company involved
- Suno
- AI system involved
- Suno V6
1 source article · read the reporting →
Capital Standard, LLC v. U.S. Bank National Association (CA Florida (2d)): AI-hallucinated content in court filing, Monetary Sanction; Adverse Costs…
The AI generated false legal citations that were included in a court filing, misleading the court.
1 source article · read the reporting →
Indore Play School Owner Loses Savings in AI Voice Cloning Fraud
A middle-aged woman in Indore, India, lost her entire savings of Rs 97,500 after a fraudster used AI voice cloning to impersonate her cousin, a police officer. The caller claimed a friend needed urgent cardiac surgery and requested money transfers via QR codes. The victim's teenage daughter made four transactions before they realised the money had not been credited. Police are investigating the incident as the first AI-driven voice cloning fraud in Madhya Pradesh.
3 source articles · read the reporting →
Target's pregnancy prediction algorithm reveals teen's pregnancy to father
Target used a data mining algorithm to predict when customers were pregnant based on their purchases. The algorithm sent baby product coupons to a high school student, leading her father to complain to the store. The father later learned his daughter was indeed pregnant. Target subsequently altered the coupons to disguise the data mining.
- Company involved
- Target
- AI system involved
- Target pregnancy prediction algorithm
9 source articles · read the reporting →
Bengaluru woman loses Rs 35 lakh in AI deepfake trading scam
A 79-year-old woman in Bengaluru was defrauded of nearly Rs 35 lakh by scammers operating a fake AI trading platform. The fraudsters used deepfake videos of Infosys co-founder NR Narayana Murthy to endorse the platform and lured her through a Facebook advertisement. Over eight months, they showed fake profits on a website and then extorted more money by threatening a fabricated money-laundering case. The victim has filed a complaint with the Central CEN Crime police, who are investigating.
1 source article · read the reporting →
CNAF algorithm flags single mother Juliette for welfare fraud investigation
In 2022, Juliette, a single mother on welfare in France, was flagged by CNAF's secretive fraud detection algorithm. A fraud investigator later determined she owed thousands of euros, which were deducted from her monthly payments. The algorithm, which scores half of France's population, is accused of discriminating against vulnerable people by using factors like single parenthood and low income.
- Company involved
- CNAF
10 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 →
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 →
Poland's Ministry of Labor profiles unemployed with discriminatory algorithm
In May 2015, Poland's Ministry of Labor and Social Policy introduced an algorithmic system to profile unemployed people into three categories based on their readiness to work, location, and disabilities. The system is accused of being discriminatory and lacking transparency, as it uses default criteria that may lead to social exclusion. A report by the Panoptykon Foundation in October 2015 highlighted these issues and recommended reforms, including granting the right to appeal.
- Company involved
- Ministry of Labor and Social Policy
10 source articles · read the reporting →
Commonwealth Bank worker made redundant after unknowingly training AI chatbot to replace her
Kathryn Sullivan, a 63-year-old Commonwealth Bank teller, was made redundant in July 2025 after spending years training the bank's 'Bumblebee' chatbot to respond to customers. She was unaware that she was helping the AI replace her own role. Sullivan confronted CEO Matt Comyn at the bank's AGM in Brisbane, where chairman Paul O'Malley acknowledged the bank had made a mistake. The Finance Sector Union had brought a case before the Fair Work Commission, resulting in some jobs being offered back, but not all.
- Company involved
- Commonwealth Bank
- AI system involved
- Bumblebee
4 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 →
