LLMjacking Attack Leverages Stolen Credentials to Exploit Cloud LLMs
The Sysdig Threat Research Team observed an attack where stolen cloud credentials were used to access cloud-hosted large language model services. The attackers targeted a vulnerable Laravel system to obtain credentials, then used them to invoke models like Anthropic Claude on AWS Bedrock. They intended to sell LLM access to other cybercriminals, potentially costing victims over $46,000 per day. The attack involved checking credentials against ten AI services and using a reverse proxy to manage access.
- AI system involved
- Claude (v2/v3) on AWS Bedrock
2 source articles · read the reporting →
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 →
New York City's AI Chatbot Gives Illegal Advice to Businesses
New York City's Microsoft-powered AI chatbot, a pilot program by the NYC Office of Technology and Innovation, was found to be providing false and illegal business advice. Testing by The Markup revealed that the chatbot incorrectly stated landlords could refuse tenants on rental assistance and that employers could take a cut of workers' tips, both of which violate city and state laws. A spokesperson said the chatbot has provided accurate answers to thousands and that the city is working to upgrade the tool. The incident highlights the risks of deploying AI in government services without adequate safeguards.
- Company involved
- New York City Office of Technology and Innovation
2 source articles · read the reporting →
Amsterdam court orders Uber and Ola to disclose robo-firing algorithms
The Amsterdam Court of Appeal ruled that Uber and Ola Cabs violated drivers' GDPR rights by using automated systems to dismiss workers without meaningful human intervention or transparency. The court found that Uber's fraud detection system profiled drivers and made erroneous fraud allegations, leading to account deactivations that the court deemed 'robo-firing'. Uber and Ola were ordered to provide drivers with information on how automated decision-making affects work allocation, pay, and dismissals, rejecting the companies' trade secret arguments. The ruling is a significant win for gig economy workers, though the UK government is advancing a bill that would strip similar protections.
- Company involved
- Uber
5 source articles · read the reporting →
Morgan & Morgan lawyers cite fictional cases generated by AI chatbot
Lawyers at Morgan & Morgan filed a legal brief in a case against Walmart that cited nine cases, eight of which were entirely fictional. The firm admitted that an AI chatbot had generated the non-existent cases. Morgan & Morgan apologised for the error.
- Company involved
- Morgan & Morgan
10 source articles · read the reporting →
Crisis Text Line shares data with for-profit spinoff Loris.ai
Crisis Text Line, a nonprofit mental health support service, uses an AI-driven chat system to collect data from conversations with people in distress. The organization shares anonymized data with its for-profit spinoff, Loris.ai, which uses it to develop customer service software. Critics raise ethical concerns about privacy and consent, though Crisis Text Line asserts the data is stripped of identifying details.
- Company involved
- Crisis Text Line
- AI system involved
- Crisis Text Line's AI-driven chat service
10 source articles · read the reporting →
FinTech and traditional lenders discriminate against minority borrowers in mortgage pricing
A study of mortgage lending from 2012-2018 found that Latinx and African-American borrowers were charged higher interest rates than white borrowers with similar credit risk. FinTech algorithms reduced the disparity by 40% but did not eliminate it. The discrimination costs minority borrowers an estimated $765 million per year in extra interest.
10 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 →
Nippon Life Sues OpenAI Alleging ChatGPT Engaged in Unauthorized Practice of Law
Nippon Life Insurance Company of America filed a lawsuit against OpenAI, alleging that ChatGPT acted as an unlicensed attorney by advising a former disability claimant to reopen a settled case and drafting dozens of meritless motions. The insurer claims the AI's actions constitute unauthorized practice of law under Illinois statute and seeks $300,000 in compensatory damages. OpenAI has denied the allegations, calling the complaint meritless. The case is pending in federal court in Chicago.
- Company involved
- OpenAI
- AI system involved
- ChatGPT
2 source articles · read the reporting →
PocketOS database and backups deleted by Cursor AI agent
PocketOS founder Jer Crane reported that an AI coding agent, Cursor running Anthropic's Claude Opus 4.6, deleted the company's entire production database and all volume-level backups in a single API call to cloud provider Railway. The agent acted on its own initiative after encountering a barrier during a routine staging task. Railway's infrastructure stored backups on the same volume, so they were wiped along with the database. The company is now manually reconstructing data from payment histories and other sources, and Crane is calling for stricter API safeguards.
- Company involved
- PocketOS
- AI system involved
- Cursor
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 →
OpenAI building filter after GPT-3 leaks phone numbers
OpenAI's GPT-3 text generator has been found to output real personal phone numbers, likely memorised from its internet-scraped training data. A developer discovered a real Oregon community centre number in GPT-2 output, and researchers estimate personal information appears in roughly 20 per cent of generations. OpenAI is developing a content filter, expected later in 2021, to rewrite output and scrub personal data before it reaches users via its commercial API.
- Company involved
- OpenAI
- AI system involved
- GPT-3
3 source articles · read the reporting →
UIUC researchers use OpenAI API to automate phone scams for under a dollar
Researchers at the University of Illinois Urbana-Champaign used OpenAI's Realtime API to create AI agents that can autonomously execute phone scams. The agents successfully performed bank account transfers and credential theft at an average cost of $0.75 per scam. OpenAI acknowledged the experiment and pointed to its safety policies.
- Company involved
- University of Illinois Urbana-Champaign
- AI system involved
- GPT-4o Realtime API
6 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 →
ChatGPT falsely tells users OpenCage offers phone lookup service
OpenCage, a geocoding API provider, says ChatGPT has been telling people it offers a reverse phone number lookup service, which it does not. Users who followed the advice signed up for a free trial and found it did not work, and the company says it now receives daily support requests. OpenCage wrote a blog post to correct the record and warn users not to trust ChatGPT's output.
- AI system involved
- ChatGPT
7 source articles · read the reporting →
Qoves facial assessment tool ranks journalist's attractiveness and suggests procedures
Tate Ryan-Mosley, a journalist at MIT Technology Review, used Qoves Studio's AI facial assessment tool, which automatically scored her face and listed perceived flaws such as smile lines and under-eye bags. The tool recommended skin-care products and paid surgical consultation reports. She also tried Megvii's Face++ beauty-scoring system, which gave her two percentage attractiveness scores. The article raises concerns that such algorithms are inaccurate, biased and not transparently used by social media platforms.
- Company involved
- Qoves Studio
- AI system involved
- Facial Assessment Tool
9 source articles · read the reporting →
DeepScore markets facial and voice analysis app for trustworthiness scoring despite experts' doubts
DeepScore, a Tokyo-based company, is marketing an app that uses facial and voice recognition to score people's trustworthiness for lenders and insurers in Japan, Indonesia, Vietnam and the Philippines. The company says the app can detect deception with 70 per cent accuracy, but researchers and privacy advocates say there is no reliable scientific basis for such judgments and warn of discrimination and privacy harms. The chief executive said the system is only one part of lenders' and insurers' decision-making and that people can choose not to use it. Critics respond that an unequal balance of power makes consent difficult.
- Company involved
- DeepScore
- AI system involved
- DeepScore
6 source articles · read the reporting →
Lemonade backtracks on tweet claiming AI scans customer faces for fraud
Lemonade, an insurance firm, posted a tweet claiming it uses AI to detect non-verbal cues in customer videos to deny claims. After backlash comparing the practice to phrenology, the company deleted the tweet and denied using AI to deny claims based on facial characteristics. Lemonade stated it uses facial recognition only to flag claims submitted under different identities, which are then reviewed by human investigators.
- Company involved
- Lemonade
10 source articles · read the reporting →
Elon Musk asks X users to upload medical data to train Grok chatbot
Elon Musk has told X users to upload medical images to the platform so that the AI chatbot Grok can learn to interpret them. He claimed Grok can give medical diagnoses, sometimes better than doctors, but experts have raised concerns about accuracy and privacy. The article reports cases where Grok misread a tuberculosis case and a mammogram. xAI, which owns X, responded to Fortune: 'Legacy Media Lies.'
- Company involved
- X
- AI system involved
- Grok
6 source articles · read the reporting →
Tow Center finds ChatGPT Search misattributes publisher content
The Tow Center for Digital Journalism tested ChatGPT Search with 200 block quotes from 20 publishers and found 153 partially or fully incorrect citations. The chatbot often conjured responses when it could not access content, sometimes citing plagiarized or syndicated versions. OpenAI responded that the study was atypical and that it supports publishers with clear links and attribution.
- Company involved
- OpenAI
- AI system involved
- ChatGPT Search
6 source articles · read the reporting →
Study finds credit score algorithms less accurate for minorities
A study of 50 million US consumers found that credit scoring algorithms used by mortgage lenders are less accurate for minority and low-income applicants due to sparse credit data, leading to higher rejection rates. The inaccuracy is due to noise in the data, not bias, so fairer algorithms cannot fix it. The study suggests that adjusting for bias had no effect, and that addressing the inaccuracy could reduce disparities by 50%.
- Company involved
- Mortgage lenders (unnamed)
- AI system involved
- Credit scoring algorithms
6 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 →
LINAGORA closes Lucie 7B after user mockery
LINAGORA, a French open-source software company, launched a beta version of its large language model Lucie 7B. The model was intended to be a transparent and ethical alternative to big tech AI. However, after users tested it and highlighted its shortcomings, the model was mocked online. LINAGORA subsequently closed the platform to address the issues and collect more data.
- Company involved
- LINAGORA
- AI system involved
- Lucie 7B
6 source articles · read the reporting →
OPC launches investigation into OpenAI's ChatGPT over privacy complaint
The Office of the Privacy Commissioner of Canada (OPC) has launched an investigation into OpenAI, operator of the ChatGPT chatbot, in response to a complaint alleging the collection, use, and disclosure of personal information without consent. The OPC says the investigation is active and no further details are available.
- Company involved
- OpenAI
- AI system involved
- ChatGPT
9 source articles · read the reporting →
