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 →
UnitedHealthcare sued for using AI to deny Medicare Advantage patients care
A class action complaint alleges that UnitedHealthcare and its subsidiary naviHealth deployed an artificial intelligence model to override treating physicians' determinations of medically necessary care for elderly Medicare Advantage patients. The complaint claims the AI model has a known 90% error rate and wrongfully denied patients care. The lawsuit, filed in the U.S. District Court for the District of Minnesota, seeks damages on behalf of the estates of two deceased patients and all others similarly situated.
- Company involved
- UnitedHealthcare, Inc.
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 →
ElevenLabs AI voice generation used in Russian influence operation targeting Europe
The article reports that a Russian influence campaign, dubbed "Operation Undercut," very likely used ElevenLabs' AI voice generation technology to create realistic voiceovers for fake news videos. The videos targeted European audiences to undermine support for Ukraine. Recorded Future's researchers used ElevenLabs' own AI Speech Classifier to detect the AI-generated audio. The campaign was attributed to the Russia-based Social Design Agency, which the U.S. government sanctioned. The overall impact on public opinion was minimal.
- Company involved
- Social Design Agency
- AI system involved
- ElevenLabs AI voice generation
7 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 →
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 →
EviCore denied heart catheterization for patient using algorithm
In fall 2021, Little John Cupp's doctor requested a left heart catheterization exam. EviCore, a company hired by UnitedHealthcare, denied the request twice using an algorithm called 'the dial' that adjusts thresholds for review. The algorithm flagged the request for review, and EviCore's doctors determined it was not medically necessary. Cupp did not receive the procedure and his symptoms continued.
- Company involved
- EviCore (a Cigna company)
- AI system involved
- the dial
6 source articles · read the reporting →
Humana sued for using AI to deny seniors rehabilitation care
Health insurer Humana is accused in a class-action lawsuit of using an AI algorithm to systematically deny rehabilitation care to Medicare Advantage patients, despite recommendations from their doctors. The lawsuit, filed on December 12, 2023, alleges that the AI tool restricted medically necessary care. This is the second major health insurer to face legal action over its use of AI to deny care.
- Company involved
- Humana
9 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 →
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 →
L'Observatoire de l'Europe uses AI to steal Euronews articles
Euronews reports that a site called L'Observatoire de l'Europe uses AI to generate a fake journalist named Jean Delaunay and automatically translate Euronews articles word-for-word, republishing them without permission. The site attributes all articles to the fake journalist. Euronews states that this happens daily and that the site will likely steal this article as well.
- Company involved
- L'Observatoire de l'Europe
6 source articles · read the reporting →
Texas uses AI to grade student STAAR test answers
The Texas Education Agency will use an automated scoring engine to grade written answers on the 2023 STAAR tests, replacing thousands of human graders. The system uses natural language processing and will initially score all responses, with a quarter rescored by humans. Educators have expressed concerns about the system's fairness and the potential for errors, especially for creative or non-standard answers.
- Company involved
- Texas Education Agency
- AI system involved
- automated scoring engine
10 source articles · read the reporting →
CJEU rules Dun & Bradstreet must explain automated credit decisions under GDPR
A customer was refused a mobile phone contract because of an automated credit assessment by Dun & Bradstreet Austria. The customer took the case to court, which found that Dun & Bradstreet had infringed the GDPR by failing to provide meaningful information about the logic involved. The CJEU ruled that data controllers must explain automated decisions and that trade secrets cannot automatically override the right of access.
- Company involved
- Dun & Bradstreet Austria GmbH
7 source articles · read the reporting →
Delta uses AI from Fetcherr for domestic ticket pricing
Delta Air Lines is using generative AI from Fetcherr to determine some domestic flight prices, currently covering 3% of its network with plans to reach 20% by end of 2025. Democratic senators expressed concern that the AI could be used for individualized pricing based on personal data, leading to higher fares. Delta denies using personal data in pricing and states it complies with regulations. No actual harm has been reported.
- Company involved
- Delta Air Lines
- AI system involved
- Fetcherr
8 source articles · read the reporting →
Kroger's digital price tags investigated for surge pricing concerns
U.S. Senators Elizabeth Warren and Bob Casey sent a letter to Kroger CEO Rodney McMullen raising concerns about the company's use of Electronic Shelving Labels (ESLs) for dynamic pricing. The system, called EDGE shelf and developed with Microsoft, can change prices based on time of day or weather, potentially leading to price gouging. The senators warned that this could harm consumers by increasing grocery costs and requested information from Kroger about its use of the technology.
- Company involved
- Kroger
- AI system involved
- EDGE shelf (Electronic Shelving Labels)
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 →
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 →
Thomson Reuters wins copyright lawsuit against AI startup Ross Intelligence
In 2020, Thomson Reuters filed a copyright lawsuit against legal AI startup Ross Intelligence, alleging that Ross reproduced materials from its Westlaw legal research service. In February 2025, a US District Court judge ruled in Thomson Reuters' favor, finding that Ross infringed copyright and that fair use did not apply. Ross Intelligence had shut down in 2021 due to litigation costs.
- Company involved
- Ross Intelligence
- AI system involved
- Ross Intelligence
4 source articles · read the reporting →
Tennessee's TennCare Connect algorithm illegally denied thousands Medicaid benefits
A U.S. District Court judge ruled that Tennessee's TennCare Connect system, built by Deloitte for over $400 million, illegally denied thousands of low-income residents and people with disabilities Medicaid and disability benefits due to programming and data errors. The system automatically terminated coverage without properly considering eligibility for all available programs. A class action lawsuit filed in 2020 resulted in the ruling.
- Company involved
- TennCare (Tennessee Medicaid)
- AI system involved
- TennCare Connect
10 source articles · read the reporting →
Edinburgh Airport AI trial gives passengers different parking prices
Edinburgh Airport admitted it was trialling an AI system that randomly set higher or lower parking prices for online bookers, with customers receiving different quotes for the same service. The Scottish Passenger Agents Association called for the trial to be conducted in controlled 'lab' conditions rather than on the public. The airport said the AI's pricing closely matched staff-set prices and the findings would evaluate whether to adopt the system.
- Company involved
- Edinburgh Airport
- AI system involved
- AI trial for parking pricing
3 source articles · read the reporting →
Paper Werewolf uses AI-generated decoys and XLLs to target Russian organizations
The threat group Paper Werewolf (aka GOFFEE) is conducting a cyberespionage campaign targeting Russian defense and high-technology organizations. The campaign uses AI-generated decoy documents, such as invitations and official letters, to trick recipients into opening malicious Excel XLL add-ins that deliver a backdoor called EchoGather. The backdoor collects system information and communicates with a command-and-control server. The campaign is ongoing and was first detected in late October 2025.
- Company involved
- Paper Werewolf
- AI system involved
- EchoGather
2 source articles · read the reporting →
PimEyes facial recognition search engine identifies individuals from public photos
PimEyes, a Polish facial recognition search engine, allows users to upload a photo and find matching images from across the internet. The system scrapes billions of photos and creates biometric profiles without consent. A banker named Dylan (pseudonym) discovered that an old party photo of him was found by the system, potentially outing his private life. Privacy advocates and platforms like Instagram and YouTube are taking action against PimEyes, alleging violations of the GDPR.
- Company involved
- PimEyes
- AI system involved
- PimEyes
6 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 →
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 →
