Schufa's Black-Box Scoring Unfairly Penalises Consumers with Positive Credit Data
An investigation by SPIEGEL and BR Data reveals that Schufa's credit scoring algorithm often assigns poor risk scores to consumers with only positive credit information. One consumer, Sven Drewert, was denied a credit card limit increase despite having no negative entries. The algorithm uses limited data, and its secret formula can lead to arbitrary categorisations, affecting access to loans, phone contracts, and housing. The system's opacity and potential biases raise concerns about fairness and accountability.
- Company involved
- Schufa Holding AG
- AI system involved
- Schufa Score
2 source articles · read the reporting →
Portland Water Bureau AI pilot offers discount to billionaire CEO
The Portland Water Bureau used a machine learning system in a randomised control trial to identify customers for its financial assistance programme. The system selected Columbia Sportswear CEO Tim Boyle, a billionaire and one of the city's largest residential water consumers, for a 40% water bill discount. Boyle declined the discount, stating it should go to someone who needs it. The bureau is testing whether the SERVUS algorithm can accurately identify customers' ability to pay.
- Company involved
- Portland Water Bureau
- AI system involved
- Smart Discount Program
1 source article · 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 →
Xsolla fires 150 employees after big data analysis tags them as unproductive
Payment services company Xsolla terminated 150 employees at its Perm, Russia office after a big data analysis of their activity in Jira, Confluence, Gmail, chats, and documents tagged them as unengaged and unproductive. CEO Aleksandr Agapitov sent an email to affected employees stating that Xsolla was not for them, sparking backlash. The company later held a press conference, explaining the layoffs were due to slowing growth, and offered affected employees medical insurance and severance pay equal to four to six months' salary.
- Company involved
- Xsolla
4 source articles · read the reporting →
PT Perusahaan Uangtunai Uses AI Deepfake of Ustaz Bustomi for Facebook Scam
On 20 November 2025, the Facebook account 'PT perusahaan uangtunai' posted an AI-generated video of Ustaz Ujang Bustomi, falsely claiming he was giving away money. The video, detected as 96.9% likely AI-generated, was part of a scam to deceive users. The real Ustaz Bustomi had previously warned that such offers are fraudulent. The post received over 12,500 likes and 7,100 comments before being fact-checked.
- Company involved
- PT perusahaan uangtunai
1 source article · read the reporting →
Austin artist targeted in AI-powered Fat Joe impersonation scam
An aspiring artist in Austin, Texas, was contacted by a scammer using AI to impersonate rapper Fat Joe on a video call. The scammer requested money to play her music on the radio after she uploaded songs to a portal. The artist did not pay any money after realising it was a scam, which Fat Joe had warned about on social media. The Better Business Bureau stated that Texans lost over $2 million to impersonation scams in 2024.
- Company involved
- Better Business Bureau
1 source article · 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 →
West Virginia Couple Targeted in AI-Generated Real Estate Scam
Raegan Bartlo received an email on August 23, 2024, that appeared to be from her title company lawyer, instructing her to wire a $255,000 down payment for her new home. The email was part of a scam using generative AI to impersonate real estate professionals. Cybersecurity officials say such scams are occurring across the country, targeting homebuyers. The Bartlos were targets, but it is unclear if they lost any money.
1 source article · read the reporting →
DoNotPay sued for practicing law without a license in California
Jonathan Faridian, a paying customer of DoNotPay, alleges that the AI-powered legal service provided poorly drafted and unusable legal documents, including demand letters and court filings. He claims that DoNotPay is not a lawyer or law firm and engaged in unauthorized practice of law. The lawsuit, filed in California, seeks class action status and restitution for all paying customers in the state. DoNotPay denies the allegations, stating that the plaintiff had submitted successful cases and that the lawsuit is meritless.
- Company involved
- DoNotPay
- AI system involved
- DoNotPay
2 source articles · read the reporting →
RealPage's YieldStar algorithm pushes rents higher for tenants
RealPage's YieldStar algorithm uses private competitor data to recommend rent increases for apartment units. Landlords adopt up to 90% of the suggestions, leading to higher rents for tenants. Critics allege the software may facilitate indirect price-fixing in violation of antitrust law. The company denies wrongdoing and says the software helps eliminate collusion.
- Company involved
- RealPage
- AI system involved
- YieldStar
10 source articles · read the reporting →
Companies face AI deepfake job candidates for remote roles
US companies report a surge in fake job seekers using generative AI tools to fabricate identities, employment histories, and conduct deepfake video interviews for remote positions. Cybersecurity firms Pindrop and CAT Labs, along with BrightHire, describe incidents where scammers, including North Korean operatives, attempted to gain employment to install malware, demand ransoms, steal data, or collect salaries fraudulently. One candidate, 'Ivan X', was detected by Pindrop's video authentication tool after a recruiter noticed his facial expressions were out of sync with his words.
- Company involved
- Pindrop Security
- AI system involved
- video authentication program
1 source article · read the reporting →
UDR Sued Over Alleged Use of RealPage Algorithm to Set Rents in San Diego
A class action lawsuit alleges that UDR, Inc. used RealPage's YieldStar algorithmic pricing software to set rental rates and occupancy levels for its San Diego properties, in violation of a local ordinance. The suit claims the software relied on nonpublic competitor data, contributing to inflated rents and making housing less affordable. The lawsuit, filed in July 2026, seeks to represent all affected tenants. UDR has previously acknowledged using YieldStar as one tool among others in its decision-making.
- Company involved
- UDR, Inc.
- AI system involved
- RealPage YieldStar
1 source article · 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 →
Gradient app charges users unexpected subscription fees after free trial
The Gradient app, a celebrity lookalike app promoted by the Kardashians, charges users $19.99 per month after a three-day free trial without clear disclosure. Users complained on social media about unexpected credit card charges. The app's developer, Ticket to the Moon, has not addressed the billing complaints but denied collecting user data.
- Company involved
- Ticket to the Moon, Inc.
- AI system involved
- Gradient
9 source articles · read the reporting →
UberEats algorithm change causes pay cuts and financial hardship for car drivers
A survey by the Transport Workers' Union found that UberEats car drivers experienced a 50% pay cut after the company changed its delivery allocation algorithm to preference cyclists and scooter riders. Drivers reported bankruptcy, homelessness, and inability to support their families. The TWU has called for regulation of the gig economy and delivered a letter to the NSW shadow minister.
- Company involved
- UberEats
- AI system involved
- UberEats platform
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 →
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 →
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 →
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 →
ScaleFactor reportedly failed to deliver promised automated bookkeeping software
ScaleFactor, an Austin-based startup, is reported to have failed to deliver the automated, real-time bookkeeping tools it promised customers, instead relying on human bookkeepers and a Filipino contract accounting firm. The company told Forbes in June that it was shutting down, initially blaming the pandemic, but Forbes later reported that its problems predated Covid-19. Investors reportedly came to see the company as more of a services business than a software platform, and pulled funding after a pivot to a marketplace model. No legal or regulatory action is reported.
- Company involved
- ScaleFactor
10 source articles · read the reporting →
Presto Automation uses off-site human agents to double-check AI drive-thru orders
Presto Automation Inc, which markets an AI voice assistant for drive-thru ordering, used off-site human agents in countries including the Philippines to double-check orders in more than 70% of customer interactions, according to SEC filings reported by Bloomberg. The company told Bloomberg that the process helps train its system and should reduce human intervention over time. Presto's drive-thru AI is used in more than 400 restaurants, including Del Taco, Carl's Jr and Checkers, and its stock fell more than 10% after the reports.
- Company involved
- Presto Automation Inc.
8 source articles · read the reporting →
EvenUp AI errors in personal injury demand letters lead to scrutiny
EvenUp, a legal tech startup valued at $1 billion, uses AI to draft personal injury demand letters. Former employees revealed that the AI system frequently makes errors, including missing injuries and fabricating medical conditions. The company defends its hybrid approach with human oversight, but critics allege overpromised AI capabilities.
- Company involved
- EvenUp
6 source articles · read the reporting →
