Where automated decisions went wrong

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

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Singapore Firm Defrauded of $499K in Deepfake CEO Video Call Scam

In March 2025, a finance director at a multinational firm in Singapore authorised a US$499,000 payment during a Zoom call that appeared to include the company's CFO and other executives. The call was a deepfake, with AI-generated likenesses and voices. The fraudsters used the impersonation to request an urgent fund transfer for a purported acquisition. The company later discovered the deception and reported it to Singapore police.

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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 DPA fines Municipality of Trento over AI surveillance projects

The Italian data protection authority (Garante) fined the Municipality of Trento €50,000 for two research projects, Marvel and Protector, that used AI to analyze video, audio, and social media data for public security purposes. The projects involved automated detection of risk events from surveillance cameras and microphones in public spaces, as well as monitoring social media for hate speech. The Garante found multiple violations of privacy law, including lack of a valid legal basis, insufficient anonymization, failure to conduct a data protection impact assessment, and inadequate transparency. The municipality is required to delete the unlawfully processed data.

Company involved

Comune di Trento

AI system involved

Marvel and Protector

9 source articles · read the reporting →

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.

3 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

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Security Health Plan used AI to cut off nursing home care for 85-year-old woman

Frances Walter, an 85-year-old woman with a shattered shoulder, had her nursing home care payment cut off by Security Health Plan after an algorithm predicted she would recover in 16.6 days. The algorithm, nH Predict from NaviHealth, did not account for her severe pain and allergy to pain medicine. She was forced to spend her life savings and enroll in Medicaid while fighting the denial. A federal judge later ruled the denial was speculative and she was owed thousands of dollars.

Company involved

Security Health Plan

AI system involved

nH Predict

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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

10 source articles · read the reporting →

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 →

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 →

Senators demand review of VA's AI-driven contract cancellations

The Department of Veterans Affairs used an AI tool created by a Department of Government Efficiency employee to identify hundreds of contracts for cancellation. Senators Richard Blumenthal and Angus King have called for the VA Inspector General to investigate the use of AI in these decisions, alleging that the tool used flawed formulas and that the cancellations are harming veterans by cutting services. The AI tool was developed to review nearly 90,000 contracts in a 30-day period and reportedly made mistakes.

Company involved

Department of Veterans Affairs

8 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 →

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 →

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.

3 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 →

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 →

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 →

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 →

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

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

1 source article · read the reporting →

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 →