Where automated decisions went wrong

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.

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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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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

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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

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Manchester City to Trial Facial Recognition at Etihad Stadium

Manchester City are set to trial facial recognition software supplied by Blink Identity at the Etihad Stadium. The system would scan fans' faces to check whether they have bought tickets and allow entry, with the aim of reducing matchday queues. Fans would need to sign up using a picture of their face. The article notes concerns about the potential security of users, but the club and vendor say they are committed to protecting fans.

Company involved

Manchester City

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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 →

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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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

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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

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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)

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Pensioner loses 80,000 pounds to deepfake Martin Lewis investment scam

The deepfake video deceived a pensioner into investing in a fraudulent scheme and taking out loans.

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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

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West Midlands Police test NDAS system to assess crime risk

West Midlands Police are testing a system called the National Data Analytics Solution (NDAS) that analyses police data to assess the risk of individuals committing a crime or becoming a victim. The Home Office has funded the project with millions of pounds, intending to roll it out across England and Wales. Critics warn that the system could reinforce bias against minorities and undermine the presumption of innocence. The police say the technology is designed to support, not replace, officer decision-making and that it is still in early testing.

Company involved

West Midlands Police

AI system involved

National Data Analytics Solution

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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 →

Thailand halts iris-scan crypto scheme and deletes 1.2m biometric records

The Ministry of Digital Economy and Society (DES) and the Personal Data Protection Committee (PDPC) ordered a company to stop collecting iris data and delete 1.2 million citizen records. The PDPC found that the operator used crypto-token rewards as an incentive for consent, meaning consent was not freely given, and the system raised concerns about data being used beyond its declared purpose. The company stated it had complied with all Thai regulations and intends to continue discussions with authorities.

Company involved

The company behind the iris-scan system (not named)

AI system involved

Iris-scan system

4 source articles · read the reporting →

Sainsbury's ejects man misidentified by facial recognition software

Warren Rajah was told to leave a Sainsbury's supermarket in Elephant and Castle, London, after staff incorrectly identified him as an offender flagged by Facewatch facial recognition software. The error occurred at the human verification stage, not the technology itself. Sainsbury's apologised and offered a £75 shopping voucher, and Facewatch confirmed Rajah was not on its database. Rajah criticised the lack of explanation and recourse, and expressed concern for vulnerable customers.

Company involved

Sainsbury's

AI system involved

Facewatch

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AI chatbots recommended unlicensed casinos to UK users

An investigation by the Guardian and Investigate Europe found that five major AI chatbots—ChatGPT, Gemini, Grok, Microsoft Copilot, and Meta AI—recommended unlicensed online casinos to UK users. Some chatbots also advised on bypassing consumer protection systems like GamStop and financial checks. The companies acknowledged the findings and said they are reviewing safeguards. Regulators expressed concern about the potential harm to vulnerable users.

Company involved

Multiple technology companies (Microsoft, Google, Meta, OpenAI, X)

AI system involved

Copilot, Gemini, Meta AI, ChatGPT, Grok

5 source articles · read the reporting →

Edinburgh Woman Loses £17,000 in Deepfake Romance Scam

A 77-year-old retired lecturer from Edinburgh lost £17,000 after being deceived by deepfake videos in an online romance scam. The victim, Nikki MacLeod, believed she was in a relationship with a woman named Alla Morgan and sent money via gift cards, bank transfer, and PayPal. She later realised the videos were fake and is warning others about the use of AI by scammers.

6 source articles · 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

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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.

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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 →

Mr Craig Hadley wrongly accused of fraud at Sports Direct shop using Facewatch facial recognition.

Mr Craig Hadley was wrongly accused of being a fraudster at a Rotherham Sports Direct shop using facial recognition technology supplied by Facewatch. The system flagged him as a known fraudster, but the alert was later attributed to human error. Big Brother Watch, a privacy campaign group, has raised concerns about the lack of due process in such systems.

Company involved

Sports Direct

AI system involved

Facewatch

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Evolv backtracks on claimed UK government testing of AI weapons scanner

Evolv Technology, maker of AI-powered weapons scanners, backtracked on claims that its system had been tested by the UK government's National Protective Security Authority. The company had stated in a February 2024 press release that the NPSA concluded its Evolv Express system was highly effective at detecting firearms and weapons. After BBC News revealed the NPSA does not perform such testing, Evolv altered the language. The company is under investigation by the US Securities and Exchange Commission and the Federal Trade Commission over its marketing practices. Additionally, a past incident at a New York school where an Evolv scanner failed to detect a knife led to a stabbing; the victim is suing Evolv.

Company involved

Evolv Technology

AI system involved

Evolv Express

3 source articles · read the reporting →