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 →
Houston teachers sue over secret EVAAS evaluation algorithm
Houston Independent School District used the SAS Institute's EVAAS system, a proprietary algorithm, to evaluate teacher performance based on student test scores. The Houston Federation of Teachers and several teachers sued in 2014, alleging the system violated their Fourteenth Amendment procedural due process rights because the algorithm is a trade secret and teachers cannot verify the accuracy of their scores. A federal magistrate judge refused to dismiss the procedural due process claims in May 2017, ruling that teachers must have an opportunity to test the accuracy of the scores that could cost them their jobs.
- Company involved
- Houston Independent School District
- AI system involved
- Educational Value-Added Assessment System (EVAAS)
1 source article · read the reporting →
Chicago Tribune sues Perplexity AI for copyright infringement
Chicago Tribune Company, LLC filed a lawsuit against Perplexity AI, Inc. in the Southern District of New York on December 4, 2025. The complaint alleges copyright infringement under 17 U.S.C. § 501. The case is assigned to Judge Loretta A. Preska.
- Company involved
- Perplexity AI, Inc.
5 source articles · read the reporting →
Estée Lauder settles with make-up artists sacked by algorithm
Three MAC make-up artists were dismissed after failing a video interview that was scored by HireVue's algorithm. They appealed but received no clear explanation of how the system assessed them. Estée Lauder Companies settled the resulting legal challenge out of court. HireVue later discontinued the visual analysis component of its video interview platform.
- Company involved
- Estée Lauder Companies
- AI system involved
- HireVue
2 source articles · read the reporting →
Perplexity sued by Dow Jones for alleged copyright infringement
Perplexity, an AI search engine, was sued by Dow Jones, the publisher of the Wall Street Journal and New York Post, on October 21, 2024. The lawsuit alleges that Perplexity's AI reproduces copyrighted articles without permission. Perplexity denies the allegations and states it responded to outreach from News Corp before the lawsuit was filed.
- Company involved
- Perplexity
- AI system involved
- Perplexity
10 source articles · read the reporting →
Springer Nature book on machine learning contains fabricated citations
A book titled 'Mastering Machine Learning: From Basics to Advanced' published by Springer Nature in April 2026 was found to contain numerous citations that either did not exist or had substantial errors. Retraction Watch checked 18 of the 46 citations and found two-thirds were problematic, with three researchers confirming the cited works were fake or erroneous. The citations appear to have been generated by a large language model, and the book contains no declaration of AI use. Springer Nature is investigating the matter.
- Company involved
- Springer Nature
1 source article · read the reporting →
McDonald’s AI Hiring Platform Exposes 64 Million Applicants’ Data Due to Default Password
In late June 2025, security researchers discovered that McDonald’s AI-powered hiring platform, McHire, had a critical security flaw. A default admin password of '123456' allowed access to a live dashboard containing sensitive data of nearly 64 million job applicants. The researchers also found an insecure direct object reference vulnerability that could expose full applicant profiles and chat logs. McDonald’s and the platform’s vendor, Paradox.ai, quickly fixed the issues and stated that only five records were viewed by the researchers, with no public data leak.
- Company involved
- McDonald's
- AI system involved
- McHire
2 source articles · read the reporting →
Sullivan & Cromwell apologises for AI hallucinations in court filing
Sullivan & Cromwell, an elite Wall Street law firm, used an AI tool to help draft a court filing in the Prince Group case. The filing contained inaccurate citations and misquoted the US bankruptcy code due to AI hallucinations. The errors were uncovered by opposing counsel Boies Schiller Flexner, and the firm apologised to the judge and filed a corrected version. The firm stated that its AI policies were not followed and its review process failed to catch the mistakes.
- Company involved
- Sullivan & Cromwell
3 source articles · read the reporting →
Authors including Mike Huckabee sue Meta, Microsoft over AI training data
Former Arkansas Governor Mike Huckabee and other authors have filed a lawsuit against Meta, Microsoft, EleutherAI, and Bloomberg, alleging that their copyrighted books were used without permission to train AI models. The suit centers on the Books3 dataset, part of the Pile, which contains over 180,000 works. The authors claim the companies pirated their work and incorporated it into training data without compensation. The case is the latest in a series of copyright lawsuits against AI companies.
- Company involved
- Meta, Microsoft, EleutherAI, Bloomberg
7 source articles · read the reporting →
KPMG drops AI report after false case studies exposed
KPMG removed a global report on AI after multiple case studies were found to be inaccurate and apparently generated from AI hallucinations. The report falsely claimed that UBS, NHS Greater Manchester, Swiss Federal Railways and Transport for London used AI agents in various ways. The companies denied the claims, and KPMG took the report down while reviewing its production.
- Company involved
- KPMG
3 source articles · read the reporting →
RFK Jr.'s MAHA Report Riddled with AI-Generated Fake Citations
An investigation found dozens of errors in the White House's 'Make America Healthy Again' commission report, including broken links, wrong authors, and entirely fictitious sources. The presence of 'oaicite' markers in URLs strongly suggests that ChatGPT was used to generate citations, leading to AI hallucinations. The White House described the errors as a 'formatting issue' and updated the report to correct some of them, while defending the report's substance.
- Company involved
- U.S. Department of Health and Human Services
- AI system involved
- ChatGPT
3 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 →
Middle schooler beats Edgenuity grading algorithm to get perfect score
A seventh-grade student in the Los Angeles Unified School District received a failing grade on a history assignment graded by Edgenuity's automated scoring algorithm. With help from his mother, a history professor, he reverse-engineered the algorithm by writing a paragraph with relevant keywords and a jumble of words, earning a perfect score. The incident highlights concerns about the accuracy and fairness of automated grading systems in education.
- Company involved
- Los Angeles Unified School District
- AI system involved
- Edgenuity
10 source articles · read the reporting →
Proctortrack data breach exposed student data from online proctoring
Proctortrack, an online proctoring service used by universities, suffered a data breach in September 2020 when its source code was leaked online. An analysis by Consumer Reports found that the code contained hard-coded passwords and exposed the names and email addresses of over 150 students. The company acknowledged the leak but said no harm resulted. Students had been required to use the software, which performed facial recognition and recorded video during exams.
- Company involved
- Proctortrack
- AI system involved
- Proctortrack
10 source articles · read the reporting →
New York City's McKinsey-led jail violence program manipulated data, violence increased
New York City paid McKinsey & Company $27.5 million to reduce violence at Rikers Island jail complex. McKinsey designed a predictive algorithm called the Housing Unit Balancer and Restart housing units, but jail officials and McKinsey consultants stacked the units with compliant inmates to artificially lower violence numbers. Violence actually increased by nearly 50% during the project. The city eventually decided to close Rikers.
- Company involved
- New York City Department of Correction
- AI system involved
- Housing Unit Balancer (HUB)
10 source articles · read the reporting →
Dartmouth Medical School charges 17 students with cheating based on tracking system.
Dartmouth College's Geisel School of Medicine charged 17 students with cheating on remote exams during the pandemic. The charges were based on secret tracking of student activity on the learning management system. Critics say the system is prone to errors and inappropriate for monitoring students.
- Company involved
- Dartmouth College Geisel School of Medicine
10 source articles · 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 →
McCormick v. Texakoma Financial (E.D. Texas): AI-hallucinated content in court filing, Public Reprimand; Monetary Sanction; Firmwide citation review; CLE
The AI generated fictitious legal citations and quotes that were included in a court filing, misleading the court and opposing counsel.
- Company involved
- Ginsburg Law Group, P.C.
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 →
Mazaheri v Law Society of Ontario (Law Society Tribunal (ON)): AI-hallucinated content in court filing, Adverse Costs Order
AI generated fabricated legal citations in a court filing by Shahryar Mazaheri.
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 →
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 →
Authors sue Nvidia for copyright infringement in NeMo AI training
Three authors have filed a proposed class action against Nvidia, alleging the company used their copyrighted books without permission to train its NeMo AI platform. The dataset, containing approximately 196,640 volumes, was removed in October 2023 after copyright infringement reports. The authors are seeking unspecified damages on behalf of US writers whose works were used in the past three years.
- Company involved
- Nvidia
- AI system involved
- NeMo
9 source articles · read the reporting →
Anthropic ordered to respond over alleged AI-hallucinated citation in court filing
A US federal magistrate judge has ordered Anthropic to respond to music publishers' claim that a court filing by Anthropic data scientist Olivia Chen cited a fictitious academic article that may have been generated by Anthropic's AI tool Claude. The publishers' lawyer said he had confirmed with the named author and journal that the article did not exist. Anthropic's lawyer disputed this, saying it was a mis-citation rather than an AI hallucination. The filing was made in an ongoing copyright case brought by Universal Music Group, Concord, and ABKCO against Anthropic over the use of song lyrics to train Claude.
- Company involved
- Anthropic
- AI system involved
- Claude
5 source articles · read the reporting →
