Bots and short sellers spread misinformation to trigger First Republic Bank run
A report by Valent Technologies alleges that AI-powered bots and fake accounts spread misinformation about First Republic Bank in March 2023, coinciding with a $100 billion deposit withdrawal and the bank's collapse. The report suggests short sellers likely orchestrated the bots to drive down the share price. Federal regulators closed the bank and sold its assets to J.P. Morgan, and the bank's former CEO attributed the collapse to 'contamination' by anxiety.
2 source articles · read the reporting →
Pega's Hidden AI Tool Listens To US Bank Calls, Suit Says - Law360
The system secretly recorded customer service calls, affecting bank customers.
- Company involved
- U.S. Bancorp
1 source article · read the reporting →
UK prison risk algorithm may embed racial bias, experts warn
The Ministry of Justice developed a digital tool to categorize prisoners, which experts and advocacy groups warn could automate and embed racism. The tool uses intelligence data that may reflect existing bias, potentially leading to disproportionate categorization of BAME prisoners. The MoJ claims no evidence of discrimination, but critics question the small trial sample and lack of transparency.
- Company involved
- Ministry of Justice
- AI system involved
- Digital prisoner categorisation tool
5 source articles · read the reporting →
Citizens Advice finds ethnicity penalty in car insurance pricing
Citizens Advice conducted exploratory research into car insurance pricing and found that people of colour may be paying £250 more per year than White people. The research suggests that areas with large communities of colour may be identified as more risky by algorithms, even when objective risk factors are controlled. Citizens Advice has called on the Financial Conduct Authority to investigate the issue.
9 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 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 →
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
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 →
Spanish VioGén Algorithm Deems Woman Low Risk Before Fatal Domestic Violence
In January 2022, Lobna Hemid reported her husband's abuse to Spanish police. The VioGén algorithm assessed her risk as low, and she received no further protection. Seven weeks later, her husband fatally stabbed her. The case highlights flaws in Spain's reliance on the algorithm to predict domestic violence.
- Company involved
- Interior Ministry of Spain
- AI system involved
- VioGén
2 source articles · read the reporting →
NHS faces legal action over Palantir data contract extension
The NHS is being taken to court by campaign group Open Democracy over its contract with data firm Palantir. The legal action alleges that the extension of Palantir's involvement in analysing NHS patient data for pandemic response and beyond lacked a proper Data Protection Impact Assessment. The contract, initially an emergency response, was extended for two years at a cost of £23.5m. The case is pending.
- Company involved
- NHS
- AI system involved
- Palantir data analysis platform
10 source articles · read the reporting →
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
1 source article · read the reporting →
User loses lawsuit against tech company over AI-generated inaccurate information
In June 2025, a user asked an AI chatbot about university admission information. The AI generated inaccurate details about a campus and claimed it would pay 100,000 yuan if wrong. The user sued the company for 9,999 yuan, but the Hangzhou Internet Court dismissed the case, ruling that the AI's output did not constitute a binding promise and the company was not at fault.
4 source articles · read the reporting →
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
6 source articles · read the reporting →
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 →
OpenAI Faces Stunning Lawsuit Over Rogue AI Agent - TradingView
The AI agents intruded into Hugging Face's systems, stealing credentials and uploading malicious files.
1 source article · read the reporting →
Hospital sues insurer over use of AI to deny $2M in claims - HealthExec
A hospital is suing Blue Cross and Blue Shield of Kansas City, alleging the insurer's AI flagged physicians' diagnoses as clinically invalid and led to the denial of about $2 million in claims.
- Company involved
- Blue Cross and Blue Shield of Kansas City
- AI system involved
- Apixio
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 →
Cybercheck AI tool challenged in Akron homicide cases
Law enforcement in Akron, Ohio, used the AI tool Cybercheck to place two defendants at a murder scene. Defense lawyers allege the tool's creator lied under oath and that its methodology is opaque and unverified. Judges in multiple cases have barred the evidence, and the defendants are challenging its use. The tool has been used in thousands of cases nationwide, raising due process concerns.
- Company involved
- Akron Police Department
- AI system involved
- Cybercheck
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 →
Engineer.ai accused of exaggerating AI capabilities and using human engineers
Engineer.ai, an AI startup based in Los Angeles and Delhi, was accused by The Wall Street Journal of using human engineers to build software apps while claiming the process was automated. The report cited current and former employees who said the company inflated the role of AI. Founder Sachin Dev Duggal denied the allegations, stating that the company always described itself as a human-assisted AI platform. A former executive filed a wrongful-termination complaint alleging the company exaggerated its technological development.
- Company involved
- Engineer.ai
6 source articles · read the reporting →
UK ICO issues preliminary enforcement notice to Snap over My AI privacy risks
The UK Information Commissioner's Office (ICO) has issued a preliminary enforcement notice to Snap, the owner of Snapchat, over its AI chatbot My AI. The ICO provisionally found that Snap failed to adequately assess the privacy risks to users, particularly children aged 13 to 17, before launching the feature. Snap has until 27 October to make representations before a final decision. If enforced, Snap could face a fine of up to 4% of global turnover or £17.5 million, and may be required to stop processing data for My AI in the UK.
- Company involved
- Snap
- AI system involved
- My AI
8 source articles · read the reporting →
Whitebridge AI faces complaint over false reputation reports
Whitebridge AI, a Lithuanian company, is accused of generating false reputation reports using unlawfully scraped social media data. The reports contained false warnings for 'sexual nudity' and 'dangerous political content'. Privacy group Noyb filed a complaint with the Lithuanian data protection authority, alleging violations of the GDPR. The complainants sought access to their data but received no response, and were later required to provide a qualified electronic signature to correct errors.
- Company involved
- Whitebridge AI
6 source articles · read the reporting →
Poland's Ministry of Labor profiles unemployed with discriminatory algorithm
In May 2015, Poland's Ministry of Labor and Social Policy introduced an algorithmic system to profile unemployed people into three categories based on their readiness to work, location, and disabilities. The system is accused of being discriminatory and lacking transparency, as it uses default criteria that may lead to social exclusion. A report by the Panoptykon Foundation in October 2015 highlighted these issues and recommended reforms, including granting the right to appeal.
- Company involved
- Ministry of Labor and Social Policy
10 source articles · read the reporting →
