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 →
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 →
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 →
Security Health Plan used AI to cut off nursing home care for 85-year-old woman
Frances Walter, an 85-year-old woman with a shattered shoulder, had her nursing home care payment cut off by Security Health Plan after an algorithm predicted she would recover in 16.6 days. The algorithm, nH Predict from NaviHealth, did not account for her severe pain and allergy to pain medicine. She was forced to spend her life savings and enroll in Medicaid while fighting the denial. A federal judge later ruled the denial was speculative and she was owed thousands of dollars.
- Company involved
- Security Health Plan
- AI system involved
- nH Predict
1 source article · read the reporting →
AI-generated voice impersonates Liz Bonnin to deceive Incognito
Scammers used an AI-generated voice to impersonate BBC presenter Liz Bonnin, convincing Incognito CEO Howard Carter to pay £20,000 for an endorsement. Bonnin's likeness was used in insect repellant ads without her consent. The AI-generated voice note exhibited inconsistent accent and cadence, as assessed by experts. Incognito reported the incident to police and its bank.
6 source articles · read the reporting →
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 →
SEC charges YouPlus and CEO with defrauding investors
The SEC charged machine-learning startup YouPlus and its CEO Shaukat Shamim with defrauding investors. Shamim allegedly made false statements about the company's revenue and customer numbers, including providing falsified bank statements. The scheme unravelled when Shamim confessed to investors that the company had earned less than $500,000 and had only four paying customers since 2013. The SEC is seeking permanent injunctions, civil penalties, and an officer-and-director bar.
- Company involved
- YouPlus
- AI system involved
- YouPlus machine-learning tool
1 source article · read the reporting →
Insurer drops California homeowner after aerial photo analysis
Cindy Picos was dropped by her home insurer after the company used aerial photos to assess her roof. The insurer refused to let her see the photos, and she believes her roof is in fine shape. The incident highlights the growing use of drones and aerial imagery by insurers to inspect properties without in-person visits.
2 source articles · read the reporting →
iTutorGroup to Pay $365,000 to Settle EEOC Discriminatory Hiring Suit
The system automatically rejected tutor applicants aged 55+ (women) or 60+ (men).
- Company involved
- iTutorGroup
1 source article · read the reporting →
Instacart used AI to charge different customers different prices for same items
Instacart, a grocery delivery company, was found to have used AI pricing algorithms to charge some customers up to 23% more than others for identical products at the same location. Research by Groundwork Collaborative, Consumer Reports, and More Perfect Union, based on data from 437 shoppers, revealed price fluctuations averaging 7%. Instacart acquired the AI firm Eversight in 2022 and began experimenting with dynamic pricing. The company stated that the tests have ended.
- Company involved
- Instacart
6 source articles · read the reporting →
State Farm accused of algorithmic bias against Black homeowners
A class action lawsuit filed in Chicago alleges State Farm's automated claims processing system discriminates against Black policyholders. The suit claims Black customers are more likely to face additional paperwork and longer waits for claim approval than white customers, citing data from 800 homeowners. State Farm has stated it takes the filing seriously and is committed to fair treatment, while the plaintiffs seek to enjoin the current system and require audits.
- Company involved
- State Farm
- AI system involved
- automated claims processing system
2 source articles · read the reporting →
Moonwell loses $1.78M after AI-generated code from Claude Opus 4.6 causes oracle pricing error
DeFi lending protocol Moonwell lost $1.78 million after an oracle pricing error in smart contract code partially written by Anthropic's Claude Opus 4.6 model. The error valued cbETH at approximately $1.12 per token instead of its actual market price of nearly $2,200, triggering instant liquidations. Moonwell contained the issue by reducing the cbETH borrow cap, but users suffered catastrophic losses. The incident has sparked debate about the risks of AI-generated code in smart contracts.
- Company involved
- Moonwell
- AI system involved
- Claude Opus 4.6
4 source articles · read the reporting →
OpenClaw vulnerabilities enable data leakage and prompt injection
In January 2026, researchers at Giskard exploited a deployment of OpenClaw, an open-source agentic AI. They found that architectural weaknesses in the Control UI and session management allowed prompt injection and unauthorized tool use, leading to potential data leakage across user sessions. The article outlines hardening steps to prevent such vulnerabilities.
- AI system involved
- OpenClaw
6 source articles · read the reporting →
DOJ, Pinnacle reach settlement in RealPage case - Yahoo Finance
The system recommended rent prices to landlords, affecting renters' housing costs.
- Company involved
- Pinnacle Property Management Services
- AI system involved
- RealPage
1 source article · read the reporting →
New Meta smart glasses class action gives employers a reason to write the policy they've been puttin - hcamag.com
The smart glasses recorded bystanders without their consent and sent the footage to Meta for AI training.
- Company involved
- Meta Platforms
- AI system involved
- Meta AI-enabled Ray-Ban and Oakley smart glasses
1 source article · read the reporting →
Geico and other insurers charge higher premiums in minority neighborhoods than in white areas with similar risk
ProPublica's analysis of auto insurance premiums in California, Illinois, Texas and Missouri found that major insurers such as Geico, Allstate and Liberty Mutual charge minority neighborhoods up to 30% more than white areas with similar accident costs. The disparity is alleged to result from pricing algorithms that may inadvertently use zip code as a proxy for race. Otis Nash, a 26-year-old Chicagoan, pays $190.69 per month for Geico insurance while a white driver in a safer neighborhood pays $54.67. The insurers deny discrimination, stating they do not collect race data.
- Company involved
- Geico
5 source articles · read the reporting →
Engineer.ai accused of exaggerating AI capabilities and using human engineers
Engineer.ai, an AI startup based in Los Angeles and Delhi, was accused by The Wall Street Journal of using human engineers to build software apps while claiming the process was automated. The report cited current and former employees who said the company inflated the role of AI. Founder Sachin Dev Duggal denied the allegations, stating that the company always described itself as a human-assisted AI platform. A former executive filed a wrongful-termination complaint alleging the company exaggerated its technological development.
- Company involved
- Engineer.ai
6 source articles · read the reporting →
Whitebridge AI faces complaint over false reputation reports
Whitebridge AI, a Lithuanian company, is accused of generating false reputation reports using unlawfully scraped social media data. The reports contained false warnings for 'sexual nudity' and 'dangerous political content'. Privacy group Noyb filed a complaint with the Lithuanian data protection authority, alleging violations of the GDPR. The complainants sought access to their data but received no response, and were later required to provide a qualified electronic signature to correct errors.
- Company involved
- Whitebridge AI
6 source articles · read the reporting →
Commonwealth Bank worker made redundant after unknowingly training AI chatbot to replace her
Kathryn Sullivan, a 63-year-old Commonwealth Bank teller, was made redundant in July 2025 after spending years training the bank's 'Bumblebee' chatbot to respond to customers. She was unaware that she was helping the AI replace her own role. Sullivan confronted CEO Matt Comyn at the bank's AGM in Brisbane, where chairman Paul O'Malley acknowledged the bank had made a mistake. The Finance Sector Union had brought a case before the Fair Work Commission, resulting in some jobs being offered back, but not all.
- Company involved
- Commonwealth Bank
- AI system involved
- Bumblebee
4 source articles · read the reporting →
Upstart Holdings sued for securities fraud over AI model claims
Upstart Holdings, Inc., a cloud-based AI lending platform, is accused of making false and misleading statements about its AI model's ability to account for macroeconomic factors. The lawsuit, filed on May 13, 2022, alleges that the company's positive statements about its business were materially false. Investors suffered losses when Upstart's stock price fell 56% on May 9, 2022, after the company reduced its fiscal 2022 guidance.
- Company involved
- Upstart Holdings, Inc.
- AI system involved
- Upstart AI lending platform
10 source articles · read the reporting →
Tenant screening software denies housing to disabled Latino man in Connecticut
In 2016, Carmen Arroyo requested to move her disabled son Mikhail into a larger apartment in the same complex. The landlord, WinnResidential, used CoreLogic's CrimSafe tenant screening software, which flagged a dropped retail theft charge against Mikhail as disqualifying. The landlord rejected the application without explanation. Arroyo sued CoreLogic and WinnResidential under the Fair Credit Reporting Act and the Fair Housing Act, alleging that the software disproportionately excludes people of colour. The case was scheduled for trial in August 2021.
- Company involved
- WinnResidential
- AI system involved
- CrimSafe
10 source articles · read the reporting →
