Where automated decisions went wrong

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 →

Dutch DPA fines Clearview AI €30.5 million for GDPR violations

The Dutch Data Protection Authority fined Clearview AI €30.5 million for creating an illegal database of biometric codes scraped from social media without consent. The regulator accused the company of failing to inform individuals about how their data is used and continuing violations after investigation. Clearview AI denies the allegations, stating it has no presence in the Netherlands or EU and that the fine is unenforceable.

Company involved

Clearview AI

AI system involved

Clearview AI facial recognition database

7 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 →

Anthropic destroyed millions of physical books to train Claude AI model

Anthropic shredded millions of physical books under Project Panama to train its Claude AI model. Internal documents revealed the company was aware of how bad it would look. A lawsuit by authors led to a $1.5 billion settlement. The practice was deemed legal under first-sale doctrine, but the use of pirated books from LibGen was not.

Company involved

Anthropic

AI system involved

Claude

5 source articles · read the reporting →

Amazon's AI shopping tool lists products from retailers without consent

Amazon launched a program called Shop Direct and a 'Buy for Me' AI agent that scrapes products from other retailers' websites and lists them on Amazon without their permission. Retailers such as Hitchcock Paper and Bobo Design Studio received orders for items they did not sell or that were out of stock. Amazon stated that businesses can opt out by emailing, and that the program helps customers find products. Some retailers have accused Amazon of exploiting their businesses.

Company involved

Amazon

AI system involved

Shop Direct / Buy for Me

5 source articles · read the reporting →

Robby Starbuck Sues Meta for AI Defamation

Robby Starbuck, a filmmaker and activist, alleges that Meta's AI tool published false statements accusing him of participating in the January 6th Capitol riot and other defamatory claims. Despite his requests for correction, Meta refused to remove the falsehoods, which led to death threats, reputational harm, and lost business opportunities. Starbuck filed a defamation lawsuit in Delaware Superior Court seeking damages and an injunction to force Meta to correct its AI systems.

Company involved

Meta Platforms, Inc.

AI system involved

Meta AI

2 source articles · read the reporting →

Scammers Use AI to Create Fake Joann Fabrics Websites to Steal Credit Card Data

After Joann Fabrics filed for bankruptcy in January 2025, scammers used AI to create impostor websites mimicking the retailer's site. These fake sites offered deep discounts to trick shoppers into providing credit-card information and personal data. Customers who placed orders never received products and had their payment information compromised. The incident highlights the growing use of AI by cybercriminals to create convincing fake websites.

2 source articles · read the reporting →

Didi fined for over-collecting personal data of users

The Cyberspace Administration of China fined Didi Global Inc. for violating data protection laws. The investigation found that Didi had over-collected personal data from passengers and drivers, including facial recognition, location, and clipboard information, totaling billions of records. The violations began in 2015 and continued until the investigation in 2021. Didi was ordered to pay a penalty and correct its practices.

Company involved

滴滴全球股份有限公司 (Didi Global Inc.)

AI system involved

Didi ride-hailing apps

8 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 →

Adobe Firefly trained on thousands of Midjourney images, Bloomberg reports

Bloomberg has reported that Adobe's Firefly image generator was trained using thousands of images from competitor Midjourney. Adobe says these made up about 5% of the training data and were part of the Adobe Stock library. The company has marketed Firefly as ethically trained and offered enterprise customers indemnity against copyright claims. Adobe responded that all Adobe Stock images undergo moderation, but the report has raised questions about Firefly's copyright safety.

Company involved

Adobe

AI system involved

Firefly

7 source articles · read the reporting →

AI-powered scam compound in Myanmar uses ChatGPT and Gemini to defraud thousands globally

Safeer Mohammed Koorimannil, trafficked to a scam compound in Tai Chang, Myanmar, was forced to use AI-powered software to impersonate a woman and deceive victims into sending money. The software, Kongtian Intelligent Customer Acquisition and Global Social Traffic Navigation, used OpenAI's ChatGPT and Google's Gemini to generate messages and translate in over 100 languages. Koorimannil targeted 50,000 victims in a month, while the tools enabled scammers to rake in tens of millions of dollars. U.S. authorities have created a strike force to disrupt such operations, and OpenAI has banned accounts linked to the scams.

Company involved

Tai Chang

AI system involved

Kongtian Intelligent Customer Acquisition (KT) and Global Social Traffic Navigation (007TG)

2 source articles · read the reporting →

Brookdale Senior Living algorithm blamed for understaffing at assisted-living facilities

Managers at Brookdale Senior Living, the largest assisted-living chain in the US, allege that an algorithm called 'Service Alignment' set staffing levels so low that facilities were dangerously short-handed. The system, based on time-motion studies, failed to account for the complexities of resident care, according to complaints. Some managers say they quit or were fired after raising concerns about the staffing algorithm.

Company involved

Brookdale Senior Living

AI system involved

Service Alignment

1 source article · read the reporting →

Ola drivers file GDPR lawsuit over algorithmic management and data access

Two ride-hailing drivers are taking Ola to court in Amsterdam, alleging the company violated GDPR data access rights by not providing full personal data, including GPS and ratings information. They argue this hinders their ability to challenge algorithmic decisions, such as a driver who had pay docked after Ola's system incorrectly flagged trips as invalid. The case, supported by the App Drivers & Couriers Union, seeks to compel Ola to comply with data protection law and faces fines for non-compliance. Ola says it has not received notification and complies with all applicable laws.

Company involved

Ola

AI system involved

Guardian

1 source article · read the reporting →

Google Cloud Used in CBP AI Virtual Border Wall Contract

The Intercept reported that U.S. Customs and Border Protection accepted a proposal to use Google Cloud artificial intelligence for its Innovation Team, including work with Anduril Industries' surveillance towers. The virtual wall system uses Anduril's Lattice software and sensor towers to detect people or vehicles near the U.S.-Mexico border and relay their locations to agents. Google declined to comment, and CBP and Anduril did not respond to requests for comment.

Company involved

U.S. Customs and Border Protection (CBP)

AI system involved

Google Cloud AI Platform with Anduril Lattice and Sentry Towers

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 →

Meta's Instagram wrongfully suspends users for child exploitation, AI blamed

Multiple Instagram users in Southern California reported being locked out of their accounts after Meta's AI content moderation system flagged them for violating community standards on child sexual exploitation. The users, including a pediatric nurse and a contractor, say the accusations are false and have disrupted their personal and professional lives. They have appealed but received no response from Meta, and suspect an over-reliance on AI caused the erroneous suspensions. ABC7 has contacted Meta for comment.

Company involved

Meta

AI system involved

Instagram

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 →

Zillow faces securities class action over Zillow Offers wind-down

Zillow Group, Inc. is accused of making false and misleading statements to investors about its Zillow Offers home-flipping business. The company allegedly failed to disclose that its forecasting algorithm was unable to predict home prices accurately, leading to a $304 million inventory write-down and a decision to wind down the business. Investors who bought shares between February 10 and November 2, 2021, suffered losses when the stock price dropped after the announcement. A class action lawsuit has been filed in Washington federal court.

Company involved

Zillow Group, Inc.

AI system involved

Zillow Offers

10 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 →

Meta accused of exploiting content moderators in Ghana

Meta moved its Facebook content moderation operations to Ghana after laying off moderators in Kenya. Workers in Accra report poor working conditions, low pay, and psychological harm from reviewing traumatic content. Foxglove is investigating and planning a legal challenge.

Company involved

Meta

AI system involved

Facebook content moderation system

3 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 →

Ashley St. Clair alleges Grok generated sexual deepfake images of her

Ashley St. Clair, the mother of one of Elon Musk's children, alleges that xAI's chatbot Grok generated and published sexual deepfake images of her on X without her consent. She says she asked Grok to stop but it continued producing more explicit images. She filed a report with xAI, and some images were removed. She is considering legal action.

Company involved

xAI

AI system involved

Grok

4 source articles · read the reporting →

Consumer Reports calls for action against Meta over scam ad proliferation

Consumer Reports has called on the FTC and state attorneys general to take enforcement action against Meta for allowing billions of scam advertisements on its platforms. According to a Reuters investigation, Meta's own documents showed that the company delivered an estimated 15 billion scam ads per day in 2024, generating billions of dollars in revenue. Meta is accused of failing to identify and remove most scam ads, exposing users to fraudulent schemes and illegal products. Consumer Reports argues that Meta's practices constitute unfair business practices under the FTC Act and state laws.

Company involved

Meta

6 source articles · read the reporting →