Scammer uses deepfake video to impersonate U.S. Admiral and swindle California widow of $287,928
An unidentified individual used a deepfake video to impersonate U.S. Navy Admiral Sean Buck on Skype, deceiving a widow from Santa Monica, California, into believing she was in a romantic relationship. Over four months, the victim wired nearly $288,000 to the scammer, who also posed as another person named Robert Ankeny. The funds have not been recovered, and a federal complaint has been filed.
9 source articles · read the reporting →
Woody Nora v. M & A Transport, Inc., et al. (E.D. Louisiana): AI-hallucinated content in court filing, Monetary Sanction; 1…
The AI tool generated fictitious case law citations that were included in a court filing, affecting the plaintiff and the court.
- AI system involved
- Westlaw Precision
1 source article · read the reporting →
Waddell and Reed Blamed for 2010 Flash Crash Amid Algorithmic Trading Chaos
On 6 May 2010, the Dow Jones Industrial Average plunged nearly 1,000 points in under an hour before recovering, an event known as the Flash Crash. Regulators initially attributed the crash to a 'fat finger' error, but a later SEC-CFTC report pointed to a large sell order by Kansas City-based mutual fund Waddell and Reed executed in a disruptive manner. Academic research has challenged the role of trader Navinder Sarao, who faces criminal charges for spoofing, and highlighted anomalies in market data feeds and the withdrawal of liquidity by automated market makers. The incident exposed the fragility of electronic markets and the potential for algorithmic trading to cause sudden, severe disruptions.
- Company involved
- Waddell and Reed
10 source articles · read the reporting →
Smith v. Farwell (Massachusetts): AI-hallucinated content in court filing, Monetary Fine (Supervising Lawyer)
The AI generated hallucinated legal citations that were filed in court, misleading the court and opposing counsel.
1 source article · read the reporting →
Durham Police uses Experian Mosaic data in HART AI risk tool
Durham Constabulary developed the Harm Assessment Risk Tool (HART), a machine learning algorithm that assesses the recidivism risk of offenders. The tool uses 34 data categories including criminal history, age, gender and two types of postcode, one sourced from Experian's Mosaic marketing segmentation system. Big Brother Watch alleges that using such commercial consumer behaviour data to inform custody decisions risks prejudice and disproportionate targeting of deprived neighbourhoods. The force has stated it is refreshing the model with an aim to remove one of the postcode predictors.
- Company involved
- Durham Constabulary
- AI system involved
- Harm Assessment Risk Tool (HART)
9 source articles · read the reporting →
X's AI bot Grok falsely accuses NBA player Klay Thompson of vandalism
X's AI bot Grok generated a false trending story accusing Golden State Warriors guard Klay Thompson of vandalizing homes with bricks in Sacramento. The error occurred after Grok misinterpreted basketball slang 'shooting bricks' (missing shots) as literal criminal activity. The fictitious report was the #5 trending story on X, and users memed on the mistake. X had not corrected the story at the time of reporting.
- Company involved
- X
- AI system involved
- Grok
1 source article · read the reporting →
Benjamin v. Costco Wholesale Corp (E.D. New York): AI-hallucinated content in court filing, Monetary sanction; public reprimand; order to serve…
The AI generated fake case citations that were included in a court filing, misleading the court and opposing counsel.
- Company involved
- Hovsepyan Law Group, PC
- AI system involved
- ChatOn
1 source article · read the reporting →
341 Malicious ClawHub Skills Found Stealing OpenClaw User Data
Security researchers discovered 341 malicious skills on ClawHub, a marketplace for the OpenClaw AI assistant. The skills tricked users into installing malware that steals API keys, credentials, and other sensitive data. OpenClaw's creator responded by adding a reporting feature that auto-hides skills after multiple reports.
- Company involved
- OpenClaw
- AI system involved
- OpenClaw
4 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 →
Hanlon v. Parkersburg City (CC West Virginia): AI-hallucinated content in court filing, Request for injunctive relief dismissed
Generated fabricated case law in a legal complaint, causing the court to deny an emergency injunction against the City of Parkersburg.
1 source article · read the reporting →
Verkada security breach exposes customer video and data
In March 2021, attackers compromised Verkada's platform and accessed video and image data from 97 customer organisations. The attackers used a misconfigured customer support server to gain access and viewed live video, accessed badge credentials for eight customers, and downloaded user lists. Verkada cut off access within hours and notified affected customers. The attacker, Tillie Kottmann, was later indicted by the U.S. Department of Justice.
- Company involved
- Verkada
- AI system involved
- Verkada Command platform with People Analytics
10 source articles · read the reporting →
Art gallery owner loses business after AI deepfake scam impersonating Pierce Brosnan
Simone Simms, owner of a Nottingham art gallery, was deceived by scammers using AI deepfake technology to impersonate actor Pierce Brosnan. She exchanged messages and had video calls with the fake Brosnan, leading her to send £3,000 and organise an exhibition, selling £20,000 in tickets. After the real Brosnan issued a cease-and-desist, she refunded the tickets and was forced to close her gallery, losing her £30,000 business.
1 source article · read the reporting →
Johnson / Estate of Fisher v. City of Annapolis (D. Maryland): AI-hallucinated content in court filing, (Attorney was dismissed by…
The AI generated fabricated case law and quotes that were included in a court filing, affecting the plaintiffs and the judicial process.
- Company involved
- City of Annapolis
1 source article · read the reporting →
Landberg v City of New York (CA NY (2d)): AI-hallucinated content in court filing, Monetary Sanction
AI-generated fake legal citations were included in a court filing, resulting in monetary sanctions against the attorney and his law firm.
1 source article · 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 →
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 →
TOV Realty, LLC v. Suarez; Kosel Equity, LLC v. MacGregor (SC Connecticut): AI-hallucinated content in court filing, 6 hours CLE;…
The AI generated legal briefs containing fabricated citations, which were submitted to the Connecticut Supreme Court.
- Company involved
- GLG Law LLC
- AI system involved
- ChatGPT
1 source article · 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 →
Hackers use deep voice tech in $35 million theft
Hackers used deep voice technology to impersonate a person and steal $35 million. The Dubai Public Prosecution Office is investigating the money laundering that occurred in January 2020. The United States Department of Justice filed an application to assist the UAE in collecting evidence.
7 source articles · read the reporting →
Henry v. Long Island University (E.D. New York): AI-hallucinated content in court filing, Two-year filing-disclosure sanction
The court granted a motion to dismiss and imposed sanctions on plaintiff's counsel for submitting a brief with AI-hallucinated fake cases.
1 source article · read the reporting →
Jessica Fuller v. Hyde School, et al. (D. Maine): AI-hallucinated content in court filing, CLE; Firm procedures and certification; Serve…
The AI generated fictitious legal citations that were submitted to the court in a legal filing.
- AI system involved
- ChatGPT or Claude
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 →
DeepSeek exposed user data via open ClickHouse database
Cloud security firm Wiz discovered a ClickHouse database belonging to DeepSeek that was open to the internet without authentication, containing over a million lines of logs with chat histories, secret keys and backend details. Wiz disclosed the breach to DeepSeek, which promptly locked down the database. The incident highlights security risks in rapidly deploying AI services.
- Company involved
- DeepSeek
- AI system involved
- DeepSeek-R1
5 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 →
