The record

Where automated decisions went wrong

Incidents gathered from public reporting around the world. Each one links to the articles it came from. None of it is a finding that anyone broke the law.

Reports people file about their own experience are not shown here and never will be without their agreement. Tell us what happened to you.

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92 incidents closest to “Cape Analytics, Inc. (part of Moody's Corporation)” · matched on meaning · public reporting

Finnish recruitment company Digital Minds used AI to analyze job applicants' messages, prompting data protection investigation

Digital Minds, a Finnish recruitment company founded by psychologists, used IBM Watson AI to analyze job applicants' social media and email messages for personality assessments. The company obtained written consent but the Finnish Data Protection Ombudsman launched an investigation, suspecting violations of data protection laws and the secrecy of correspondence. The service was used on fewer than ten applicants and has been paused pending the investigation.

Company involved
Digital Minds
AI system involved
IBM Watson

9 source articles · read the reporting →

Momus Analytics' jury-selection algorithm criticised for racial bias

Momus Analytics, a legal technology company, uses machine learning to rank potential jurors for attorneys. Experts and researchers who reviewed the company's patent application say the algorithm relies on demographic characteristics such as race, which may violate constitutional prohibitions against discriminatory jury selection. The company claims its software has helped secure verdicts worth over $940 million, but did not respond to requests for comment.

Company involved
Momus Analytics
AI system involved
Momus

9 source articles · read the reporting →

Clearview AI tested facial recognition surveillance cameras with UFT and Rudin

Clearview AI, the facial recognition company that scraped billions of photos from social media, developed a surveillance camera system under the name Insight Camera. The system was tested by the United Federation of Teachers and Rudin Management in New York City. The UFT used it to identify individuals who had made threats and prevent them from entering its offices. Clearview did not respond to requests for comment.

Company involved
Clearview AI
AI system involved
Insight Camera

9 source articles · read the reporting →

WF-W8NDC11 Jul 2015

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 →

Portland Metro ends Replica partnership over data privacy concerns

Portland Metro, an elected regional government in Oregon, ended its pilot project with movement data company Replica after a disagreement about data sharing. Portland Metro requested raw, disaggregated data, which Replica refused to provide, citing user privacy concerns. The partnership was terminated without payment.

Company involved
Portland Metro
AI system involved
Replica

10 source articles · read the reporting →

WF-52Q1NZ26 Feb 2021

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 →

WF-VU5D658 Apr 2023

California regulator accuses Maxpread Technologies of using AI-generated fake CEO to scam investors

Maxpread Technologies allegedly used an AI-generated avatar to pose as its CEO in a YouTube video to deceive investors. The California DFPI issued cease and desist letters to Maxpread and four other companies for offering unqualified securities and making false promises. The regulator claims the companies promised high daily returns using AI trading, but these claims were false. Maxpread did not respond to requests for comment.

Company involved
Maxpread Technologies

8 source articles · read the reporting →

WF-VR6R0O1 Aug 2019

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 →

WF-U4WH351 Jun 2020

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 →

WF-PC7X5F12 Aug 2026

JMOR Properties v. Artist Alley Townhomes et al. (CA Florida (4d)): AI-hallucinated content in court filing, Bar Referral

The AI generated fabricated legal citations that were included in a court filing, affecting the court and the opposing party.

1 source article · read the reporting →

Kaedim used human artists instead of AI for 3D model generation

Kaedim, an AI startup that claimed to use machine learning to convert 2D illustrations into 3D models, actually used human artists to produce the models, according to sources. The company's founder was featured in Forbes 30 Under 30 for the technology. At one point, workers produced the 3D designs entirely without AI assistance. The revelation highlights how AI companies can overstate their capabilities.

Company involved
Kaedim
AI system involved
Kaedim

10 source articles · read the reporting →

Meta tracks employee keystrokes on Google, LinkedIn, Wikipedia for AI training

Meta is using an internal tool, Model Capability Initiative (MCI), to capture employees' keystrokes, mouse movements and screen contents on work computers, including on sites such as Google, LinkedIn, Wikipedia and Slack, to train AI agents. Meta confirmed the project and said safeguards protect sensitive content and that the data is not used for other purposes. Employees raised concerns in internal messages that the tool could expose passwords, product details and personal information. A Meta memo said staff can avoid capture by not doing personal work on work computers.

Company involved
Meta
AI system involved
Model Capability Initiative (MCI)

5 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 →

Prosecraft shut down after using authors' books without consent for AI analytics

Prosecraft, a fiction analytics site, used the full text of over 25,000 books without author consent to train its AI algorithms and provide writing statistics. Authors protested on social media, demanding removal of their works. The developer, Benji Smith, subsequently shut down the site and wrote a blog post explaining his actions.

Company involved
Prosecraft
AI system involved
Prosecraft

10 source articles · read the reporting →

WF-GEPFGZ1 Dec 2023

OpenDream AI art site allowed users to generate child sexual abuse material

OpenDream, an AI image generation platform, allowed users to generate and publicly display child sexual abuse material (CSAM) and non-consensual deepfakes from at least December 2023 until July 2024. The platform, operated by CBM Media Pte Ltd in Singapore, offered paid plans with NSFW prompts and models. Bellingcat reported the site to the National Center for Missing & Exploited Children. After Bellingcat's inquiry, the CSAM was removed from the site and search engines, and Google terminated OpenDream's AdSense account.

Company involved
CBM Media Pte Ltd
AI system involved
OpenDream

3 source articles · read the reporting →

WF-KPQ2GA8 Aug 2024

Microsoft Copilot vulnerable to automated phishing and data theft

Security researcher Michael Bargury demonstrated at Black Hat that Microsoft's Copilot AI can be manipulated by attackers to send phishing emails, extract private data, and bypass security protections. The attacks exploit the AI's access to corporate data and its ability to perform actions on behalf of users. Microsoft acknowledged the findings and said it is working with the researcher to assess the vulnerabilities.

Company involved
Microsoft
AI system involved
Copilot

3 source articles · read the reporting →

WF-PQKZOM1 Jan 2016

Vumacam's AI CCTV system flagged 28 black people as suspicious in Johannesburg suburbs

In Johannesburg suburbs, Vumacam's AI-powered CCTV network using iSentry software flagged 28 black individuals as 'suspicious' in a shift report, according to a 2019 article. The system, deployed by private security firms, uses video analytics to detect abnormal behavior and alerts security guards. The article alleges that the system disproportionately targets people of color, reflecting racial bias in a racially divided country.

Company involved
Vumacam
AI system involved
iSentry

6 source articles · read the reporting →

WF-JRPF9K30 Jul 2024

Microsoft Dynamics 365 Field Service AI singles out workers in performance predictions

A report by Cracked Labs found that Microsoft's Dynamics 365 Field Service software uses AI to generate performance metrics and predict task durations, singling out individual workers. The AI predictions can be influenced by the worker's identity, such as increasing or decreasing estimated duration. Microsoft stated the system is not intended for employment decisions and is not a surveillance tool, but the report raises concerns about potential misuse for worker monitoring.

Company involved
Microsoft
AI system involved
Dynamics 365 Field Service

6 source articles · read the reporting →

WF-DSAKEZ4 Nov 2024

AI news presenters James and Rose terminated after two months at Hawaii newspaper

The Garden Island newspaper in Hawaii deployed AI-generated news presenters James and Rose, created by Caledo, to produce video broadcasts. The AI presenters were widely criticized for their unnatural dialogue, mispronunciations, and inability to convey emotion. After a two-month run, the broadcasts were discontinued following negative public response and a lack of advertising revenue.

Company involved
Oahu Publications
AI system involved
James and Rose

8 source articles · read the reporting →

42,900 OpenClaw AI agents exposed, 15,200 vulnerable to RCE

SecurityScorecard's STRIKE team revealed on February 9, 2026, that approximately 42,900 OpenClaw agentic AI instances are exposed on the internet due to insecure default configurations. Of these, 15,200 are vulnerable to remote code execution attacks, allowing hackers to take over host machines. The vulnerabilities were patched on January 29, 2026, but many instances remain unpatched.

AI system involved
OpenClaw

5 source articles · read the reporting →

WF-UF6BMA1 Jan 2018

TransUnion AI tenant screening denied 75-year-old man apartment due to mistaken littering conviction

Chris Robinson, then 75, applied for a senior living apartment in California. The property manager used an AI screening program from TransUnion, which assigned him a low score based on a mistaken conviction for littering that belonged to a different person with the same name in Texas. Robinson lost the apartment and his application fee. A federal class-action lawsuit against TransUnion moved toward a $11.5 million settlement in 2023.

10 source articles · read the reporting →

MAA, JBG to pay DC $9.3M total to settle RealPage case - Multifamily Dive

The system set rent prices for tenants, causing them to pay higher rents.

Company involved
MAA (Mid-America Apartments) and JBG Smith
AI system involved
RealPage Revenue Management Software

1 source article · read the reporting →

WF-2ZQ1HW24 Jul 2020

PredictiveHire builds AI to predict job hopping from interviews

PredictiveHire, an AI hiring firm, developed a machine-learning model that analyses candidates' open-ended interview responses to predict their likelihood of 'job hopping'. The company used data from 45,899 applicants to build the 'flight risk' assessment, which it advertises as coming soon. Scholars warn that such tools can suppress wages by screening out workers who might seek better pay or conditions, continuing a historical trend of using personality tests to identify potential labour organisers.

Company involved
PredictiveHire
AI system involved
Phai

1 source article · read the reporting →

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