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.
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Scammers use AI deepfakes to defraud Simcoe County residents of tens of thousands
Scammers are using AI-generated deepfake videos of public figures to promote fraudulent investment schemes, tricking residents of Simcoe County, Ontario, into transferring large sums of money via cryptocurrency. Victims, numbering at least half a dozen, have lost tens of thousands of dollars, with one losing over $100,000. The scammers, who pose as investment representatives, instruct victims to move money to crypto exchanges and then transfer it to untraceable addresses. MP Adam Chambers is calling for greater public awareness and platform accountability.
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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 →
Clearview AI facial recognition app scrapes billions of images and is used by police
Clearview AI, a secretive start-up, built a facial recognition app that matches photos to a database of more than three billion images scraped from social media and websites. More than 600 law enforcement agencies, including the FBI and Department of Homeland Security, have used the tool to identify suspects in crimes such as shoplifting, identity theft and murder. The company monitored officers who ran a reporter's photo through the app, and its founder acknowledged designing an augmented-reality prototype but said there were no plans to release it. Critics warned the tool could end anonymity and enable misuse.
- Company involved
- Clearview AI
- AI system involved
- Clearview AI facial recognition app
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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 →
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 →
Facebook's automated ad system rejects adaptive fashion ads
Small adaptive fashion companies have had their advertisements repeatedly rejected by Facebook's automated advertising system, which misidentifies their products as medical devices. The system's inability to understand context leads to discrimination against people with disabilities. Facebook has acknowledged the issue and restored some ads, but the problem persists, highlighting biases in machine learning.
- Company involved
- Facebook
- AI system involved
- Facebook automated advertising review system
2 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 →
LinkedIn Used by Foreign Spies with AI-Generated Photos to Target US Officials
Foreign intelligence operations created fake LinkedIn profiles with AI-generated photos to connect with US politicians, lobbyists, and government officials. The fake accounts, such as 'Katie Jones,' sent connection requests to gain credibility and access. LinkedIn removed the account after being contacted by the Associated Press, but the platform remains vulnerable to such espionage tactics.
- Company involved
- LinkedIn
1 source article · read the reporting →
Adobe Stock creators say Firefly trained on their images without consent
Adobe Stock contributors allege that Adobe trained its Firefly generative AI model on their stock images without express notification or consent. They say Firefly's popularity is reducing demand for their stock photos and flooding the platform with AI-generated images. Adobe says Firefly is still in beta and it is committed to compensating creators, with details to come when generally available.
- Company involved
- Adobe
- AI system involved
- Adobe Firefly
1 source article · 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 →
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 →
X platform enables deepfake porn and abuse against women activists
Caitlin Roper, a women's rights activist, reports that she and her colleagues at Collective Shout have been subjected to a sustained campaign of misogynistic threats, abuse, and deepfake pornography on X (formerly Twitter). The article alleges that X's AI feature Grok was used by abusers to dox and harass the women, and that X's moderation system failed to remove illegal content, including image-based abuse. Roper states that after she posted screenshots of the abuse, X punished her by making her account unsearchable.
- Company involved
- X (formerly Twitter)
- AI system involved
- Grok
2 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 →
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 →
Hackers Extract Encryption Keys from Flock Surveillance Cameras, Revealing Person Detection Alongside Vehicle Tracking - finance.biggo.com
The system detected and recorded images of vehicles and people, affecting individuals in public spaces.
- Company involved
- Flock Safety
- AI system involved
- Flock Safety ALPR cameras
1 source article · read the reporting →
$30M Equifax hard inquiry dispute class action settlement - Top Class Actions
A class action, settled for $30 million, alleged that Equifax automatically rejected consumers' disputes of hard inquiries on their credit reports, sending a form letter instead of investigating.
- Company involved
- Equifax Information Services LLC
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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 →
Perplexity AI's Pages feature accused of plagiarizing Forbes reporting
Forbes journalist John Paczkowski accused Perplexity AI's new "Perplexity Pages" feature of ripping off his reporting on Eric Schmidt's drone project. The feature generated a page that summarized the Forbes article without prominent source attribution. Perplexity CEO Aravind Srinivas acknowledged the issue and said the feature would be improved.
- Company involved
- Perplexity AI
- AI system involved
- Perplexity Pages
10 source articles · read the reporting →
FTC Orders Edmodo to Stop Unlawful Collection of Children's Data for Advertising
The FTC filed a complaint against Edmodo, an education technology provider, alleging that it collected personal information from children under 13 without parental consent and used it for advertising, in violation of the COPPA Rule. Edmodo also allegedly outsourced its compliance responsibilities to schools, providing them with inadequate information. Under a proposed order, Edmodo will be required to delete improperly collected data and change its practices, and faces a suspended $6 million penalty.
- Company involved
- Edmodo, LLC
- AI system involved
- Edmodo
1 source article · read the reporting →
Ningbo fines property developers for using facial recognition without consent
In Ningbo, China, property developers were fined for using facial recognition technology to identify customers without their consent. The enforcement followed China's annual Consumer Protection Gala that highlighted misuse of facial recognition. The fines were imposed by the local government and the developers were accused of violating privacy regulations.
- Company involved
- Multiple property developers in Ningbo
- AI system involved
- Facial recognition technology
6 source articles · read the reporting →
Bengaluru woman loses Rs 35 lakh in AI deepfake trading scam
A 79-year-old woman in Bengaluru was defrauded of nearly Rs 35 lakh by scammers operating a fake AI trading platform. The fraudsters used deepfake videos of Infosys co-founder NR Narayana Murthy to endorse the platform and lured her through a Facebook advertisement. Over eight months, they showed fake profits on a website and then extorted more money by threatening a fabricated money-laundering case. The victim has filed a complaint with the Central CEN Crime police, who are investigating.
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CNAF algorithm flags single mother Juliette for welfare fraud investigation
In 2022, Juliette, a single mother on welfare in France, was flagged by CNAF's secretive fraud detection algorithm. A fraud investigator later determined she owed thousands of euros, which were deducted from her monthly payments. The algorithm, which scores half of France's population, is accused of discriminating against vulnerable people by using factors like single parenthood and low income.
- Company involved
- CNAF
10 source articles · read the reporting →
