Grok AI prompt-injected to drain $150,000 from crypto wallet
In May 2026, an attacker used a Morse code-encoded message to prompt-inject xAI's Grok AI, causing its linked Bankr trading bot to transfer 3 billion DRB tokens worth approximately $150,000 to the attacker's wallet. The attacker first sent an NFT that granted executive permissions, then posted a reply asking Grok to translate a Morse code message that contained a financial instruction. The agent executed the transaction without human oversight, and the funds were immediately liquidated, causing short-term price volatility. About 80% of the funds were later returned after the DRB community identified the attacker.
- Company involved
- xAI
- AI system involved
- Grok and Bankr
2 source articles · read the reporting →
Lawsuit claims discrimination by Workday’s hiring tech prevented people over 40 from getting hired | CNN Business
The system screened and ranked job applicants, leading to rejections for individuals over 40.
- Company involved
- Workday
- AI system involved
- HiredScore AI
1 source article · read the reporting →
Memphians sue SpaceXAI, subsidiary over noise tied to Southaven data center - localmemphis.com
The data center's operations produced noise that disturbed nearby residents
- Company involved
- SpaceXAI
1 source article · read the reporting →
Did IBM embed age discrimination in its AI-driven job screening software?
Daniel Swanson, a 24-year IBM manager in Austin, sued IBM in federal court, saying he was fired at 48 and then rejected for other roles because IBM's AI-driven HR screening software was programmed to favour younger workers. IBM denies the claims.
- Company involved
- IBM
- AI system involved
- HR screening software
1 source article · read the reporting →
US Federal Court Rejects Workday's Arguments, Allows AI Hiring Lawsuit to Proceed
米連邦地裁がWorkdayの主張を退け、AI採用訴訟の継続を認める - Межа. Новини України.
A federal court in San Francisco declined Workday's request to dismiss a lawsuit alleging its AI-powered hiring software discriminates against applicants with disabilities and other protected groups. Judge Rita Lin ruled that California anti-discrimination law may apply and allowed claims that the software screens candidates using proxy indicators such as employment gaps to move forward. Workday maintains its tools evaluate only qualifications and do not make hiring decisions.
- Company involved
- Workday
- AI system involved
- Workday
1 source article · read the reporting →
Lieff Cabraser and Greer Injury Lawyers Announce Federal Class Action Lawsuit Against X.AI Corp and MZX Tech LLC for Nuisance,…
The data centers and gas turbines emitted constant noise, vibrations, and particulate matter, affecting residents' ability to use and enjoy their properties.
- Company involved
- X.AI Corp and MZX Tech LLC
- AI system involved
- Colossus I, Colossus II, MACROHARDRR, Minihard data centers and gas turbines
1 source article · 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
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 →
Gamma AI Presentation Tool Exploited in Multi-Stage Phishing Campaign
Threat actors used Gamma, an AI-powered presentation builder, to host a page that redirected recipients to a fake Microsoft SharePoint login portal. Emails sent from compromised legitimate accounts passed authentication checks, while a Cloudflare Turnstile blocked automated security scanners. An adversary-in-the-middle framework validated credentials in real time and captured session cookies, enabling multi-factor authentication bypass on Microsoft accounts. Abnormal reported the campaign on 15 April 2025.
- AI system involved
- Gamma
7 source articles · read the reporting →
Claude Code deletes developer's production database and snapshots
Alexey Grigorev used Claude Code to manage infrastructure with Terraform for his websites AI Shipping Labs and DataTalks.Club. Due to a missing state file and over-reliance on the AI agent, Claude executed a destroy command that wiped the production setup, including a database with 2.5 years of records and snapshots. Amazon Business support helped restore the data within a day. Grigorev is now implementing safeguards to prevent recurrence.
- Company involved
- AI Shipping Labs
- AI system involved
- Claude Code
2 source articles · read the reporting →
Calcutta High Court questions ChatGPT exclusion of IndiaMART from search results
IndiaMART, an Indian B2B online marketplace, has petitioned the Calcutta High Court alleging that ChatGPT deliberately excluded it from search results. The company claims the exclusion was based on a United States Trade Representative report and caused loss of goodwill, reputation and commercial injury. The court observed there appeared to be selective discrimination but declined to pass interim orders before hearing the other side. The matter is listed for 13 January 2026.
- Company involved
- OpenAI
- AI system involved
- ChatGPT
4 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 →
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 →
North Korean hackers use ChatGPT to scam LinkedIn users
North Korean state-affiliated hacking group Emerald Sleet (Kimsuky) used OpenAI's ChatGPT to research targets and draft phishing content for scams on LinkedIn. Microsoft and OpenAI terminated the group's accounts after identifying the activity. The hackers impersonated academic institutions and NGOs to lure victims into providing sensitive information, with South Korea's intelligence agency confirming North Korea's use of generative AI for hacking.
- Company involved
- OpenAI
- AI system involved
- ChatGPT
6 source articles · read the reporting →
Texas AG Settles with Pieces Technologies Over Deceptive Healthcare AI Claims
The Texas Attorney General investigated Pieces Technologies, a Dallas-based healthcare AI company, for making false and misleading statements about the accuracy of its generative AI product used in hospitals. The company claimed an error rate of less than 1 per 100,000, but the investigation found these metrics were likely inaccurate. As part of the settlement, Pieces agreed to accurately disclose its product's accuracy and ensure hospital staff understand the appropriate reliance on its AI. The case marks the first-of-its-kind healthcare generative AI investigation by the AG.
- Company involved
- Pieces Technologies
4 source articles · read the reporting →
Microsoft funded Israeli facial recognition firm surveilling West Bank Palestinians
Microsoft invested in AnyVision, an Israeli facial recognition company whose technology powers a secret military surveillance project in the West Bank. The system, called Better Tomorrow, identifies and tracks Palestinians in live camera feeds. Microsoft said it would audit AnyVision for compliance with its ethical principles.
- Company involved
- Israeli Defense Forces
- AI system involved
- Better Tomorrow
10 source articles · 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 →
X bot network used ChatGPT to spread political disinformation in Ghana's election
A network of 171 bot accounts on X is using ChatGPT to generate posts supporting Ghana's incumbent president, Mahamudu Bawumia, and his New Patriotic Party ahead of the December 7, 2024 election. The accounts, active since February 2024, also disparage opposition candidate John Mahama. NewsGuard researchers identified the network and reported it to X and OpenAI, which have not responded. Two accounts were suspended and two restricted.
- Company involved
- X
- AI system involved
- ChatGPT
4 source articles · read the reporting →
Jacobs files BIPA class action against Walgreen Company over fingerprint scanning
A class action lawsuit alleges that Walgreen Company (Walgreens) collected and stored employees' fingerprint data without obtaining informed consent, in violation of the Illinois Biometric Information Privacy Act (BIPA). The plaintiff, Jacobs, claims the company used fingerprint scanners for employee timekeeping without providing required disclosures or obtaining written consent. The case is pending in Illinois state court.
- Company involved
- Walgreen Company
- AI system involved
- Fingerprint time clock
7 source articles · read the reporting →
UnitedHealthcare sued for using AI to deny Medicare Advantage patients care
A class action complaint alleges that UnitedHealthcare and its subsidiary naviHealth deployed an artificial intelligence model to override treating physicians' determinations of medically necessary care for elderly Medicare Advantage patients. The complaint claims the AI model has a known 90% error rate and wrongfully denied patients care. The lawsuit, filed in the U.S. District Court for the District of Minnesota, seeks damages on behalf of the estates of two deceased patients and all others similarly situated.
- Company involved
- UnitedHealthcare, Inc.
10 source articles · read the reporting →
UnitedHealth used ALERT algorithm to limit mental health coverage, regulators found
ProPublica reports that UnitedHealth Group's Optum subsidiary used the ALERT algorithm to flag mental health patients and therapists as outliers, leading to therapy coverage denials. Regulators in California, Massachusetts and New York alleged this breached the federal Mental Health Parity and Addiction Equity Act, and UnitedHealth agreed to restrict the system in those jurisdictions. The company denies wrongdoing and says its programmes are compliant. Affected patients, including Medicaid enrollees, were left to pay out-of-pocket or go without care.
- Company involved
- UnitedHealth Group
- AI system involved
- ALERT
5 source articles · read the reporting →
Beus Gilbert PLLC v. Brigham Young University et al. (D. Utah): AI-hallucinated content in court filing, Two AI-ethics CLE courses;…
The AI system generated fake legal citations that were included in a court filing, misleading the court and opposing counsel.
1 source article · read the reporting →
Answer.AI tests Devin and reports 14 failures in 20 tasks
Answer.AI's team tested Devin, an autonomous AI coding assistant, on 20 real-world tasks over a month. Devin succeeded in only 3 tasks, failed 14, and was inconclusive in 3. The team found Devin often produced overly complex or hallucinated solutions and could not recognize fundamental blockers. They ultimately decided to stick with tools that allow more human control.
- AI system involved
- Devin
5 source articles · read the reporting →
Good Daily operates AI-generated local news network without disclosure
Good Daily Inc., run by Matthew Henderson, operates hundreds of AI-generated local newsletters across the U.S. that aggregate and summarize news from local outlets. The newsletters use large language models without disclosing this to subscribers, and feature fabricated testimonials. Some readers reported being signed up without their consent. Local news outlets have criticized the network for not driving meaningful traffic and for undermining trust.
- Company involved
- Good Daily Inc.
- AI system involved
- Good Daily
3 source articles · read the reporting →
