AI chatbots found giving inaccurate financial advice to UK consumers
A Which? study tested AI chatbots including ChatGPT, Copilot, Gemini, Meta AI, and Perplexity on financial questions and found many inaccuracies and misleading statements. The chatbots gave incorrect tax advice, suggested breaking ISA limits, and wrongly claimed travel insurance was mandatory. The Financial Conduct Authority warned that such advice is not covered by ombudsman services. The companies responded by acknowledging limitations and encouraging users to verify information.
- Company involved
- Meta, OpenAI, Microsoft, Google, Perplexity
- AI system involved
- Meta AI, ChatGPT, Copilot, Gemini, Perplexity
1 source article · read the reporting →
HSBC voice ID breached by customer's twin brother
BBC reporter Dan Simmons set up an HSBC voice-ID authenticated account. His non-identical twin brother Joe was able to mimic his voice and gain access after eight attempts, viewing balances and transactions and being offered the chance to transfer money. HSBC acknowledged the breach and reduced the number of allowed attempts from seven to three. The bank stated that the system remains secure and that the scenario was not typical of fraud.
- Company involved
- HSBC
- AI system involved
- Voice ID
3 source articles · read the reporting →
Guernsey Deputy Targeted in AI-Generated Investment Scam
Scammers used AI-generated video and fake press reports to impersonate Guernsey's senior politician, Deputy Lindsay de Sausmarez, falsely showing her endorsing a non-existent government investment scheme. The deputy warned the public on social media not to fall for the scam, which contained a typo referring to her as 'Mr.' No financial losses have been reported, but the incident is part of a series of scams using recognisable local figures and media.
3 source articles · read the reporting →
Journalist Bypasses Lloyds Bank Voice ID with AI-Generated Voice Clone
A journalist used an AI-generated clone of his own voice to bypass the voice authentication system of Lloyds Bank, gaining access to his account. The experiment, conducted using ElevenLabs' free voice synthesis service, demonstrated that voice biometrics can be fooled by synthetic voices. Lloyds Bank stated it is aware of the threat and is deploying countermeasures, but has not seen real-world fraud using this method. The incident raises concerns about the security of voice verification used by many banks.
- Company involved
- Lloyds Bank
- AI system involved
- Voice ID
1 source article · read the reporting →
Greek Finance Minister Sues Over Deepfake Investment Scam Advert
Greek Minister of Economy and Finance Kyriakos Pierrakakis and his ministry filed a lawsuit against unknown administrators of a Facebook page. They allege that AI was used to create a deepfake video falsely depicting the minister urging citizens to invest in high-yield programmes. The lawsuit accuses the page of deceptive advertising. The EU AI Act classifies deepfakes as limited risk.
- Company involved
- Unknown Facebook page administrators
2 source articles · read the reporting →
FMA Warns of Deepfake Impersonation Scam Targeting Kiwi Investors
The New Zealand Financial Markets Authority (FMA) has warned that a pump-and-dump scam using deepfake ads impersonating business leaders is targeting Kiwi investors. Victims are lured into WhatsApp groups via social media ads and encouraged to buy low-value shares, artificially inflating prices before scammers sell, leaving investors with losses. The FMA has received multiple complaints and is sharing information with overseas regulators, while urging the public to be cautious of unsolicited investment advice.
2 source articles · read the reporting →
Mumbai Cyber Police Bust Deepfake Share Trading Scam by Valueleaf
Mumbai Cyber Police arrested four individuals from Bengaluru-based advertising agency Valueleaf for allegedly circulating deepfake videos of stock market experts to deceive investors. The videos, created for Hong Kong-based First Bridge, were promoted despite knowledge of their falsity and potential financial harm. Meta flagged the content, but the accused evaded detection by increasing ad accounts and changing domain locations. The case, registered under the Bhartiya Nyaya Sanhita and Information Technology Act, is under investigation to determine the number of defrauded investors.
- Company involved
- Valueleaf
1 source article · read the reporting →
CFPB fines General Information Services for inaccurate background checks
The Consumer Financial Protection Bureau took action against General Information Services and its affiliate e-Background-checks.com for failing to ensure the accuracy of employment background screening reports. The companies allegedly provided inaccurate criminal history information to employers, potentially affecting job applicants' eligibility and causing reputational harm. The CFPB ordered the companies to provide $10.5 million in relief to harmed consumers and pay a $2.5 million penalty.
- Company involved
- General Information Services
10 source articles · read the reporting →
Wells Fargo software error caused hundreds of faulty foreclosures
Wells Fargo disclosed that a software error in its mortgage modification underwriting tool caused incorrect denials of loan modifications for approximately 870 borrowers between 2010 and 2015. The error miscalculated attorneys' fees, leading to 545 foreclosures that should not have occurred. Wells Fargo set aside $8 million for remediation and is contacting affected customers to offer compensation and mediation.
- Company involved
- Wells Fargo
3 source articles · read the reporting →
Bankrate Publishes AI-Generated Article with Numerous Factual Errors, Deletes After Futurism Inquiry
Bankrate published an AI-generated article about the best places to live in Colorado that contained multiple factual errors, including incorrect median home prices and unemployment rates. The article was removed after Futurism pointed out the mistakes. A Bankrate spokesperson blamed the errors on outdated data from an internal database, claiming the article was editor-reviewed. The incident follows a previous scandal where CNET and Bankrate paused AI content after similar errors, but the company has resumed AI article publication.
- Company involved
- Bankrate
1 source article · read the reporting →
Inland Revenue warns of AI scam using commissioner's image
Scammers used AI-generated images and messaging to impersonate New Zealand's Commissioner of Inland Revenue, Peter Mersi, in social media ads inviting people to a fake crypto tax webinar. The ads aimed to trick people into giving personal information for identity theft or account access. Inland Revenue received over 3000 scam reports in three months and worked to have the ads removed, but they kept reappearing. The department warned the public about the increasing use of AI in investment scams.
2 source articles · read the reporting →
Binance CCO warns scammers used AI deepfake of him to trick crypto projects
Patrick Hillmann, Chief Communications Officer at Binance, reported that over the past month a hacking team created a deepfake hologram of him using archived news interviews and TV appearances. The scammers used this AI-generated hologram to approach unsuspecting crypto project teams, falsely claiming to discuss token listings on Binance.com. The article warns that attempts to steal from users and projects through impersonation have increased, and urges vigilance.
- Company involved
- Binance
- AI system involved
- deep fake hologram
10 source articles · read the reporting →
Deepfake video of Sam Bankman-Fried used in crypto phishing scam
A verified Twitter account posted a deepfake video of FTX founder Sam Bankman-Fried claiming to offer compensation to users of the collapsed exchange. The video directed viewers to a phishing website, ftxcompensation.com, that asked them to connect their crypto wallets and send funds with the promise of doubling them. The site's Ethereum address reportedly received over $1,000 in ETH. The account was later suspended.
10 source articles · read the reporting →
SEC warns public of deep fake investment scams featuring Lance Gokongwei
The Securities and Exchange Commission (SEC) warned the public that scammers are using deep fake videos and audio of Lance Gokongwei to endorse fraudulent investment schemes. The manipulated media circulate on social media, deceiving people into investing in a platform registered in Cyprus. Victims are asked to provide credit card details and OTPs, then lose contact when attempting to withdraw funds. The SEC advises the public to verify investment offers with the agency.
2 source articles · read the reporting →
Barclays pilot of Sapience monitoring software causes employee stress
Barclays introduced a pilot of employee monitoring software from Sapience in its product control department at Canary Wharf. The system monitors computer activity and admonishes staff if they are not deemed active enough, recording breaks as "unaccounted activity". Employees reported significant stress and worry about taking breaks. Barclays acknowledged the pilot and said it would listen to feedback.
- Company involved
- Barclays
- AI system involved
- Sapience employee monitoring software
10 source articles · read the reporting →
Google AI Overviews provide inaccurate finance information in 43% of searches
A study by The College Investor found that Google's AI Overviews provided misleading or inaccurate information in 43% of 100 personal finance-related searches. The AI-generated answers included outdated tax rules and incorrect student loan repayment plan details. One user believed she could convert her 529 plan to a Roth IRA in California, which is not allowed. Google has not responded to requests for comment.
- Company involved
- Google
- AI system involved
- AI Overviews
3 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 →
Facebook Allowed Age-Targeted Credit Card Ads Violating Its Policy
The Markup found that four companies—Aspiration, Hometap, Chime, and Varo Bank—ran Facebook ads for credit cards and home equity loans that were targeted by age, excluding users under 25 or 35. This practice violates Facebook's own anti-discrimination policy and may violate the Equal Credit Opportunity Act and California's Unruh Civil Rights Act. Facebook did not respond to requests for comment, and some advertisers said they would review their ad targeting.
- Company involved
- Facebook
- AI system involved
- Facebook Ad Platform
9 source articles · 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 →
Zhengzhou officials punished for red health codes on depositors
Five officials in Zhengzhou were punished for ordering red health codes to be assigned to 1,317 depositors of four village banks, restricting their movement and preventing them from withdrawing savings. The officials acted without authorization, and the codes were later turned green after media coverage. Legal experts say the liability for privacy invasion remains unresolved, and the banks may face breach of contract claims.
- Company involved
- Zhengzhou municipal government
- AI system involved
- Health code system
10 source articles · read the reporting →
City analyst Michael Hewson cloned in AI deepfake scam on social media
A deepfake video using AI to impersonate City analyst Michael Hewson circulated on Facebook and Instagram, directing users to a WhatsApp group promising undervalued investments. The scam used fear-of-missing-out tactics to lure victims. Hewson publicly disavowed the video and reported it to Meta, expressing anger.
- Company involved
- Meta
4 source articles · read the reporting →
SEC charges American Bitcoin Academy over $1.2M AI scam
Brian Sewell, through his company American Bitcoin Academy, allegedly defrauded 15 students of $1.2 million by claiming his Rockwell Fund would use AI to generate high returns. The SEC charged that Sewell never launched the fund and lost the investors' money when his Bitcoin wallet was hacked. The case was settled with Sewell agreeing to pay $1.6 million in disgorgement and a $233,229 penalty.
- Company involved
- American Bitcoin Academy
6 source articles · read the reporting →
NBI raids Makati love scam facility using AI-generated fake female profiles
The National Bureau of Investigation raided a Makati condominium believed to be a love-scam facility, arresting about 100 suspects. The scammers used AI-generated conversations and fake profile pictures of women to trick victims into investing in fraudulent cryptocurrency schemes. Singaporean actor Laurence Pang said he lost S$35,000 after being deceived by such a scheme via the dating site PinaLove in late 2024; the PNP Anti-Cybercrime Group confirmed he was a victim. The NBI continues to interrogate a Chinese national said to be the supervisor.
2 source articles · read the reporting →
CJEU rules Dun & Bradstreet must explain automated credit decisions under GDPR
A customer was refused a mobile phone contract because of an automated credit assessment by Dun & Bradstreet Austria. The customer took the case to court, which found that Dun & Bradstreet had infringed the GDPR by failing to provide meaningful information about the logic involved. The CJEU ruled that data controllers must explain automated decisions and that trade secrets cannot automatically override the right of access.
- Company involved
- Dun & Bradstreet Austria GmbH
7 source articles · read the reporting →
