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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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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Deepfake scam articles impersonate Maltese ministers after budget day
After Malta's budget day on 27 October 2025, a series of scam articles featuring deepfake videos of ministers, including Economy Minister Silvio Schembri, appeared on social media. The articles, falsely branded as Times of Malta, promoted a fraudulent AI-powered trading platform called NethertoxAGENT, claiming a €215 investment would yield €850 weekly. The scam used fake testimonials and logos of reputable businesses to appear credible. Authorities have not reported any arrests for this specific scam, but a similar deepfake scam previously led to a woman losing her life savings and a money laundering charge against a Ukrainian national.
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Boone County Sheriff warns of AI voice impersonation scam
A Boone County resident received a phone call that appeared to be from their daughter's number, with an AI-generated voice claiming she had been kidnapped and demanding a ransom. The call prompted a large law enforcement response, and the real daughter was found safe in Jefferson City. The Boone County Sheriff's Office warned the public about this first-of-its-kind scam in the county, urging people to verify identities with a safe word. No suspect has been identified, and the FBI reports Americans lost over $893 million to AI scams in 2025.
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Macau police warn of deepfake video impersonating Chief Executive in investment scam
The Macau Judiciary Police warned the public about a deepfake video circulating on social media that used AI to impersonate Chief Executive Sam Hou Fai. The manipulated footage falsely showed him endorsing fraudulent investment platforms. No victims have yet reported losses, but authorities urged caution against such scams. The police are monitoring online platforms and working with other authorities to trace the fraud networks.
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Malta president's office warns of deepfake investment scams
The Office of the President of Malta warned the public about fraudulent social media profiles and deepfake videos impersonating President Myriam Spiteri Debono. The fake content is used to promote bogus financial investments, mainly in cryptocurrency, aiming to scam victims. The office stated it disassociates itself from the content and is reporting the fraudulent pages to the relevant authorities, urging the public to remain vigilant.
- Company involved
- Office of the President
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Port Neches man warns of AI voice cloning scam after frightening call
Jace Edgar of Port Neches, Texas, received a phone call from a scammer using AI to clone his sister's voice, claiming she had been in an accident. Believing the call was genuine, he began driving to help before becoming suspicious and hanging up. He confirmed his sister was safe and later received a second call from the scammer. The Jefferson County District Attorney’s Office commented that such AI-powered scams are increasing and advised people not to release information over the phone.
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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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AI voice clone used in $13,000 extortion of Garfield man
In March 2026, Mark Young of Garfield, Washington, received a call from scammers using AI to mimic his daughter's voice, claiming she had been kidnapped. Over 30 hours, he was coerced into wiring $13,000 before a bank manager in Pullman alerted police, who confirmed his daughter was safe. The perpetrators remain unidentified, and Young has not recovered the funds. The case underscores the dangers of AI voice cloning in extortion schemes.
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Docomo Pacific CEO's mother targeted in AI voice cloning scam
Docomo Pacific's CEO Christine Baleto revealed that her elderly mother received a scam call from someone impersonating a federal agent, using AI voice cloning to pressure her into revealing personal information. The caller threatened to send agents to her home if she did not comply. Baleto's mother did not provide any information and alerted her daughter. Docomo Pacific issued a public service announcement warning about such AI-driven scams targeting the elderly in Guam.
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Bay Area mom loses $5,400 in AI voice cloning kidnapping scam
Deborah Del Mastro received a call from scammers claiming her daughter was kidnapped. They used AI to clone her daughter's voice, convincing her to wire $5,400 to Mexico. After following instructions for five hours, she discovered her daughter was safe and the call was a scam. Martinez police are investigating, but Del Mastro does not expect to recover the money.
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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
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Mexican government agencies hacked using Anthropic's Claude AI
Anthropic's Claude large language model was weaponized by attackers to compromise numerous Mexican government agencies over a month-long campaign starting December 2025. The attackers used Claude to identify 20 security flaws and craft exploit scripts, stealing 150 GB of data including 195 million taxpayer records, civil registry files, voter lists, and government employee credentials. Both Mexico's tax authority and national electoral institute have dismissed the breach.
- Company involved
- Anthropic
- AI system involved
- Claude
5 source articles · read the reporting →
Herbert Brooks v. Lowes Home Centers LLC (W.D. Louisiana): AI-hallucinated content in court filing, Monetary Sanction; CLE
Generated a legal brief with hallucinated case law, filed in court.
- AI system involved
- Claude
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CommNV vs Uprise (Nevada DC): AI-hallucinated content in court filing, Monetary Penalty OR Order to volunteer and teach about AI…
The AI system generated fabricated legal citations that were included in a court filing, misleading the court and opposing counsel.
- Company involved
- Christopher Day
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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.
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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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Lawsuit claims facial recognition program led to wrongful arrest - FOX 2
Identified Christopher Gatlin as a suspect in an assault, leading to his arrest and 17 months in jail.
- Company involved
- St. Louis County Police Department
- AI system involved
- Rekognition
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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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Illinois appeals court fines lawyer $15,000 for fictitious citations in Scott v. Illinois Human Rights Commission
In Scott v. Illinois Human Rights Commission, an Illinois Appellate Court case, a lawyer's filings contained fictitious legal citations and misquoted statutes. The court fined the lawyer $15,000 and referred the matter to the bar.
- AI system involved
- ChatGPT
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Carlisle woman, 82, dies after losing 35,000 pounds to Nigel Farage deepfake scam
The deepfake video convinced the victim to invest in a fraudulent scheme, leading to financial loss.
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Pearl Gardner v. Nationstar Mortgage LLC (D. Arizona): AI-hallucinated content in court filing, Bar Referral
Pro Se Litigant | D. Arizona | State(s): USA. AI tool: Clearpoint. Problem: Fabricated: Case Law. Consequence: Bar Referral.
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Capital Standard, LLC v. U.S. Bank National Association (CA Florida (2d)): AI-hallucinated content in court filing, Monetary Sanction; Adverse Costs…
The AI generated false legal citations that were included in a court filing, misleading the court.
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