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 →
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 →
UnitedHealth used ALERT algorithm to limit mental health coverage, regulators found
ProPublica reports that UnitedHealth Group's Optum subsidiary used the ALERT algorithm to flag mental health patients and therapists as outliers, leading to therapy coverage denials. Regulators in California, Massachusetts and New York alleged this breached the federal Mental Health Parity and Addiction Equity Act, and UnitedHealth agreed to restrict the system in those jurisdictions. The company denies wrongdoing and says its programmes are compliant. Affected patients, including Medicaid enrollees, were left to pay out-of-pocket or go without care.
- Company involved
- UnitedHealth Group
- AI system involved
- ALERT
5 source articles · read the reporting →
Amazon merchants complain about AI review summaries focusing on negatives
Amazon introduced an AI-powered feature to generate summaries of customer product reviews. Merchants reported that the AI inaccurately highlights negative feedback, even when only a small percentage of reviews are critical. The summaries may exaggerate negative themes, potentially harming sales. Amazon acknowledged the issue and said it is working to refine the technology based on seller feedback.
- Company involved
- Amazon
- AI system involved
- AI-powered review highlights
5 source articles · read the reporting →
Cigna StressWaves Test found unreliable and invalid in independent study
A study published in Scientific Reports evaluated the Cigna StressWaves Test (CSWT), an AI tool that claims to assess psychological stress from speech. The study found that the CSWT had poor test-retest reliability and poor validity compared to the Perceived Stress Scale. The authors warned that widespread availability of the tool could lead to misleading results and negative consequences for users making healthcare decisions. Cigna has not publicly responded to the findings.
- Company involved
- Cigna
- AI system involved
- Cigna StressWaves Test
4 source articles · read the reporting →
California EDD's automated fraud detection wrongly suspended 600,000 legitimate unemployment claims
In January 2021, the California Employment Development Department used Thompson Reuters automated batch review software to flag 1.1 million unemployment claims as potentially fraudulent. EDD stopped payments on those claims without prior notice. Later, over 600,000 were confirmed as legitimate after claimants used ID.me to verify their identity. The incident highlights the trade-off between fraud prevention and timely benefit access.
- Company involved
- California Employment Development Department (EDD)
- AI system involved
- Thompson Reuters Automated Batch Review
7 source articles · read the reporting →
N-Tech.lab's FindFace used to identify St Petersburg metro passengers without consent
Egor Tsvetkov photographed passengers on the St Petersburg metro without their permission and used N-Tech.lab's facial recognition service FindFace to match their faces to public Vkontakte profiles. He published the results in an art project called 'Your Face is Big Data', saying he wanted to show how 'digital narcissism' can lead to stalking. Privacy advocates said the project was ethically problematic because the subjects had not consented and their identities were exposed. FindFace had been launched by N-Tech.lab in February 2016.
- Company involved
- N-Tech.lab
- AI system involved
- FindFace
8 source articles · read the reporting →
OnlyFake site uses neural networks to generate fake IDs, bypasses OKX verification
An underground website called OnlyFake uses neural networks to generate realistic photos of fake IDs for $15. The journalist tested the service and obtained a convincing California driver's license. They then used another fake ID to successfully bypass the identity verification process on OKX, a cryptocurrency exchange. The article alleges that this technology could streamline bank fraud and money laundering, but reports no actual financial loss.
- Company involved
- OKX
- AI system involved
- OnlyFake
10 source articles · read the reporting →
Swedish welfare agency's AI system flags marginalized groups for fraud investigations
Försäkringskassan, Sweden's Social Insurance Agency, uses an AI risk-scoring system to flag welfare applicants for fraud investigations. The system disproportionately targets women, individuals with foreign backgrounds, low-income earners, and those without university degrees, according to an investigation by Lighthouse Reports and Svenska Dagbladet. Amnesty International has called for the system to be discontinued, citing violations of the right to equality and non-discrimination.
- Company involved
- Försäkringskassan (Swedish Social Insurance Agency)
6 source articles · read the reporting →
iBorderCtrl lie detector falsely flagged honest reporter as liar
A journalist testing Europe's iBorderCtrl virtual policeman at the Serbian-Hungarian border gave honest answers but was deemed a liar by the system, scoring 48 out of 100 with four false answers flagged. The Hungarian policeman said the result suggested further checks, though none were carried out. The reporter only learned of the result after filing a data access request under European privacy laws. Experts and transparency activists have criticised the technology as pseudoscientific and potentially discriminatory.
- Company involved
- iBorderCtrl consortium
- AI system involved
- Silent Talker / iBorderCtrl virtual policeman
10 source articles · read the reporting →
Proctorio anti-cheating software failed to catch student cheaters in study
Researchers at the University of Twente in the Netherlands tested Proctorio, an anti-cheating software, by asking 30 computer science students to sit an exam while six of them cheated. Proctorio did not flag any of the cheaters and flagged some honest students for irregular behaviour. An independent human review caught only one of the six cheaters. Proctorio disputed the study's methodology and cited other research.
- Company involved
- Proctorio
- AI system involved
- Proctorio
5 source articles · read the reporting →
DWP algorithm mistakenly flags 200,000 Housing Benefit claimants for fraud review
The UK Department for Work and Pensions (DWP) uses an algorithm to flag Housing Benefit claimants for possible fraud or error. According to a Big Brother Watch investigation, the algorithm has mistakenly flagged 200,000 innocent people, subjecting them to intrusive reviews. Only one in three flagged cases actually had errors, compared to two in three during the pilot. The DWP has spent £4.4 million on these pointless checks.
- Company involved
- Department for Work and Pensions (DWP)
6 source articles · read the reporting →
AI-generated fact check falsely accuses MSNBC of using outdated protest footage
An AI-generated fact check on X falsely claimed that MSNBC aired outdated video footage to inflate the size of anti-Trump protests. Conservatives, including Senator Ted Cruz, relied on the AI hallucination to accuse MSNBC. NewsGuard debunked the claim, stating the footage was legitimate.
3 source articles · read the reporting →
Meta's cross-check program delays removal of violating content for privileged users
The Oversight Board's policy advisory opinion on Meta's cross-check program found that the system grants certain users, such as business partners and celebrities, additional human review before removing violating content, while ordinary users face immediate removal. This unequal treatment allows potentially harmful content to remain on the platform for days, and Meta has failed to track whether the program improves accuracy. The Board made 32 recommendations to address these flaws.
- Company involved
- Meta
- AI system involved
- cross-check program
10 source articles · read the reporting →
Audit of RisCanvi finds biases and reliability issues in criminal justice system
Eticas conducted an adversarial audit of RisCanvi, an AI risk assessment tool used in Catalonia's criminal justice system. The audit uncovered biases in risk classifications against specific demographics and significant reliability issues. The findings call for fairer practices in criminal justice AI.
- Company involved
- Catalonia's criminal justice system
- AI system involved
- RisCanvi
4 source articles · read the reporting →
Dutch probation service's OXREC algorithm flawed, leading to incorrect recidivism risk assessments
The Dutch Inspectorate of Justice and Security (Inspectie JenV) published a report finding that the probation service's (Reclassering) OXREC algorithm contains serious flaws, including swapped formulas and incorrect numbers, causing about a quarter of risk assessments to be wrong. The algorithm, used since 2018 for about 44,000 cases per year, also uses variables that can lead to discrimination, such as neighborhood score and income. The Inspectorate recommended immediate correction or temporary suspension. The probation service announced it would temporarily stop using OXREC.
- Company involved
- Reclassering Nederland
- AI system involved
- OXREC
4 source articles · read the reporting →
Citizens Advice finds ethnicity penalty in car insurance pricing
Citizens Advice conducted exploratory research into car insurance pricing and found that people of colour may be paying £250 more per year than White people. The research suggests that areas with large communities of colour may be identified as more risky by algorithms, even when objective risk factors are controlled. Citizens Advice has called on the Financial Conduct Authority to investigate the issue.
9 source articles · read the reporting →
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 →
Kmart's facial recognition system for refund fraud found unlawful by Privacy Commissioner
Kmart Australia deployed facial recognition technology in 28 stores from June 2020 to July 2022, capturing biometric data of every customer entering the stores and those at returns counters to detect refund fraud. The system collected sensitive information without notifying customers or obtaining their consent. The Australian Privacy Commissioner found that Kmart breached the Privacy Act, as the exemption for unlawful activity did not justify the indiscriminate and disproportionate collection of biometric data from thousands of individuals. Kmart has ceased using the system and cooperated with the investigation.
- Company involved
- Kmart Australia Limited
7 source articles · read the reporting →
Broward College student flagged by Honorlock and accused of cheating
A 17-year-old Black student at Broward College was flagged by Honorlock, a remote proctoring system, during an online biology exam in February 2022. Her professor reviewed the recording and accused her of academic dishonesty for looking down and away from the screen; the college found her responsible for noncompliance and gave her a zero and a warning. The student says she was only thinking and fidgeting, and the article reports that the video is ambiguous. Honorlock says it does not definitively identify cheaters and the final decision rests with the school.
- Company involved
- Broward College
- AI system involved
- Honorlock
2 source articles · read the reporting →
Facebook exempted Trump and other high-profile users from content enforcement rules.
An internal Facebook program called XCheck granted special treatment to millions of high-profile users, including former President Donald Trump and Senator Elizabeth Warren, exempting them from content enforcement rules. The program, initially for quality control, was expanded to whitelist users deemed newsworthy or PR-risky, with the system failing to enforce rules against them. Internal documents revealed that the program made mistakes, often wrongly taking action against high-profile users. Facebook has attempted to phase out the practice but has struggled.
- Company involved
- Facebook
- AI system involved
- XCheck
10 source articles · read the reporting →
Mr Craig Hadley wrongly accused of fraud at Sports Direct shop using Facewatch facial recognition.
Mr Craig Hadley was wrongly accused of being a fraudster at a Rotherham Sports Direct shop using facial recognition technology supplied by Facewatch. The system flagged him as a known fraudster, but the alert was later attributed to human error. Big Brother Watch, a privacy campaign group, has raised concerns about the lack of due process in such systems.
- Company involved
- Sports Direct
- AI system involved
- Facewatch
2 source articles · read the reporting →
