Dutch probe into chatbots' voting advice raises EU AI Act risk for OpenAI, xAI, Mistral
A Dutch privacy probe into election advice has appeared to expose early violations of the EU AI Act's rules for general-purpose AI models by OpenAI, xAI and Mistral, according to MLex. The companies' chatbots provided distorted voting advice to users. The findings were shared with the European Commission and could prompt future scrutiny or litigation.
- Company involved
- OpenAI, xAI and Mistral
6 source articles · read the reporting →
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 →
Outabox hack exposes biometric data of patrons at bars, clubs and casinos
Hackers claiming to be former employees published a website allowing searches of Outabox's facial recognition database, exposing biometric and other sensitive data of patrons used for age verification at bars, clubs and casinos. The Surveillance Technology Oversight Project warns that the breach demonstrates the danger of facial recognition for age verification. S.T.O.P. has launched a campaign to ban facial recognition in public accommodations.
- Company involved
- Outabox
8 source articles · read the reporting →
AENA fined €10m for GDPR breach over facial recognition pilot
AENA, Spain's state-owned airport manager, was fined just over €10 million by the Spanish data protection agency for breaching the GDPR. During a pilot project of a new facial recognition system, AENA failed to submit a data protection impact assessment that complied with GDPR requirements. The company has one month from notification to lodge an appeal for reconsideration.
- Company involved
- AENA
6 source articles · read the reporting →
Mumbai businessman loses Rs 80,000 in AI voice cloning scam
A 68-year-old businessman from Powai, Mumbai, was defrauded of Rs 80,000 after receiving a call from scammers posing as the Indian Embassy in Dubai. The fraudsters used AI voice cloning to mimic his son's voice, claiming he was arrested and needed bail money. The victim transferred the money via GPay before realising it was a scam when the call was disconnected. The Kanjurmarg police have registered a case and are investigating.
2 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 →
Italian DPA fines Municipality of Trento over AI surveillance projects
The Italian data protection authority (Garante) fined the Municipality of Trento €50,000 for two research projects, Marvel and Protector, that used AI to analyze video, audio, and social media data for public security purposes. The projects involved automated detection of risk events from surveillance cameras and microphones in public spaces, as well as monitoring social media for hate speech. The Garante found multiple violations of privacy law, including lack of a valid legal basis, insufficient anonymization, failure to conduct a data protection impact assessment, and inadequate transparency. The municipality is required to delete the unlawfully processed data.
- Company involved
- Comune di Trento
- AI system involved
- Marvel and Protector
9 source articles · read the reporting →
Man uses AI face-swap to steal 15,996 yuan from financial accounts, sentenced to 4.5 years
A man in Jiangsu, China, illegally purchased 1.95 million personal records and used AI face-swapping software to bypass facial recognition on financial platforms. He accessed 23 victims' accounts, changed five passwords, and used one account to buy two phones worth 15,996 yuan. He was convicted of infringing citizens' personal information and credit card fraud, sentenced to four years and six months in prison, and ordered to pay damages and delete the data.
3 source articles · read the reporting →
Italian Data Protection Authority Blocks Replika Chatbot Over Risks to Minors
On February 2, 2023, the Italian Data Protection Authority (Garante) issued an urgent order blocking the AI chatbot Replika from processing personal data of Italian users. The Garante found that Replika lacked effective age verification, allowing minors to potentially receive inappropriate content including sex-related replies, and that its privacy policy violated GDPR transparency requirements. The U.S.-based controller was given 20 days to report on compliance measures and may challenge the order within 60 days.
- AI system involved
- Replika
1 source article · 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 →
Greek Data Protection Authority fines Ministry of Migration and Asylum for AI surveillance systems
The Hellenic Data Protection Authority (HDPA) imposed an administrative fine of €175,000 on the Ministry of Migration and Asylum (MMA) for GDPR violations related to the 'Centaur' and 'Hyperion' programmes. These systems use AI behavioral analytics, CCTV, drones, and biometric data to monitor and control access to reception facilities for asylum seekers on Greek islands. The HDPA found that the MMA failed to conduct proper Data Protection Impact Assessments and did not cooperate with the authority. The MMA has been ordered to comply with GDPR within three months.
- Company involved
- Ministry of Migration and Asylum
- AI system involved
- Centaur and Hyperion programmes
10 source articles · 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 →
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 →
Bank of America Customer Targeted by AI Voice Deepfake Scam
Clive Kabatznik, a Florida investor, was targeted by scammers who used AI-generated voice deepfakes to impersonate him in calls to his Bank of America representative. The fraudsters attempted to trick the banker into transferring money, but the banker became suspicious and hung up. The bank reported the incident to its security team, and it took about 10 days for Mr. Kabatznik to re-establish contact with his banker. The incident highlights the growing threat of voice deepfakes in financial scams.
- Company involved
- Bank of America
2 source articles · read the reporting →
Privacy International challenges Clearview AI's facial recognition database in Europe
Privacy International filed complaints against Clearview AI with five European data protection authorities in May 2021, alleging that the company's scraping of facial images from the web and building a biometric database without consent violates data protection laws. The regulators in the UK, France, Italy, Greece, and Austria have since found Clearview's practices unlawful, imposed fines, and ordered deletion of data. Clearview has appealed the UK fine, and the case is ongoing.
- Company involved
- Clearview AI
- AI system involved
- Clearview
10 source articles · read the reporting →
US Secret Service bought access to cellphone location data
The US Secret Service signed a contract to access Locate X, a service that aggregates location data from phone apps and allows law enforcement to track devices without a warrant. The contract with Babel Street was worth about $36,000 and ran from 2017 to 2018. A former employee said the Secret Service used Locate X in 2018 to seize illegal credit card skimmers at petrol stations. Lawmakers and civil liberties advocates criticised the practice, and Senator Ron Wyden introduced a bill to ban such purchases.
- Company involved
- United States Secret Service
- AI system involved
- Locate X
1 source article · read the reporting →
California AG declares out-of-state ALPR data sharing unlawful
California Attorney General Rob Bonta issued guidance confirming that sharing automated license plate reader (ALPR) data with out-of-state or federal agencies violates state law SB 34. The decision follows years of advocacy by EFF and the ACLU, who demonstrated through public records that many California law enforcement agencies were sharing data with hundreds of external agencies, including ICE and CBP. The guidance mandates that all California agencies review their data sharing and cut off access to out-of-state and federal entities.
- Company involved
- California law enforcement agencies
- AI system involved
- Automated license plate readers (ALPRs)
1 source article · read the reporting →
Arizona Unemployment Applicants Required to Submit Facial Recognition
People applying for unemployment benefits in Arizona must verify their identity via facial recognition software provided by ID.me. If the system fails to match a selfie to a photo ID, applicants can be denied benefits unless they successfully complete a video chat with a referee. A class-action lawsuit filed in June 2021 alleges that the practice violates due process rights and discriminates against people of colour.
- Company involved
- Arizona Department of Economic Security
- AI system involved
- ID.me
1 source article · read the reporting →
Clearview AI settles with ACLU over facial recognition database sales
Clearview AI has agreed to stop selling its facial recognition database to most private US companies as part of a proposed settlement with the ACLU. The company scraped billions of images from social media without consent to build its database, violating Illinois' Biometric Information Privacy Act. The settlement requires Clearview to delete old facial vectors and allow Illinois residents to opt out. The company can still sell its technology to law enforcement and government agencies.
- Company involved
- Clearview AI
- AI system involved
- Clearview AI facial recognition database
8 source articles · read the reporting →
Steak 'n Shake sued over facial recognition kiosks under BIPA
A class action lawsuit alleges that Steak 'n Shake illegally collects facial biometrics from customers using PopID-powered self-ordering kiosks without proper consent. Plaintiff Michael Massel claims the restaurant chain failed to provide notice and obtain written consent as required by Illinois' Biometric Information Privacy Act (BIPA). The suit seeks damages of up to $5,000 per violation for anyone whose biometric data was collected in Illinois in the past five years.
- Company involved
- Steak 'n Shake
- AI system involved
- PopID biometric kiosks
6 source articles · read the reporting →
Italian bank (Fideuram / Intesa Sanpaolo) loses about 95 million euro to AI voice-clone scam
The AI-generated voice deceived the chairman into authorizing transfers of about 95 million euros.
1 source article · read the reporting →
Spanish data regulator orders Worldcoin to stop processing biometric data in Spain
The Spanish Data Protection Agency (AEPD) has ordered a precautionary measure against Tools for Humanity Corporation, the company behind Worldcoin, to cease collection and processing of personal data in Spain. The AEPD received complaints alleging insufficient information, collection of data from minors, and inability to withdraw consent. The regulator acted under GDPR Article 66.1 to prevent potentially irreparable harm to individuals' data protection rights.
- Company involved
- Tools for Humanity Corporation
- AI system involved
- Worldcoin
8 source articles · read the reporting →
Portuguese regulator suspends Worldcoin's biometric data collection
Portugal's data protection authority, CNPD, has ordered Worldcoin Foundation to suspend collection of iris, eye and facial biometric data in Portugal for 90 days. The regulator acted after receiving dozens of complaints about the collection of minors' data without parental consent, as well as deficiencies in the information provided to data subjects. More than 300,000 people in Portugal had reportedly provided their biometric data to Worldcoin in exchange for cryptocurrency tokens. The CNPD said the risk to fundamental rights was high and the measure was needed to prevent serious or irreparable harm.
- Company involved
- Worldcoin Foundation
- AI system involved
- Orb
5 source articles · read the reporting →
Airbnb bans users in Australia using trustworthiness algorithm
Airbnb is accused of using an algorithm acquired from Trooly to score users' trustworthiness based on publicly available data, including social media and occupation. Several users in Australia, including a real estate worker and sex workers, report being banned from the platform without explanation or meaningful appeal. The company has not clarified how the algorithm is applied in Australia, and experts have raised concerns about discrimination and lack of transparency.
- Company involved
- Airbnb
- AI system involved
- Trooly
4 source articles · read the reporting →
