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.
2 source articles · read the reporting →
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.
2 source articles · read the reporting →
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
2 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 →
OpenAI's Sora video generator trained on copyrighted content without consent, tests suggest
Tests by The Washington Post suggest that OpenAI's video generation tool Sora was trained on videos from Netflix, TikTok, YouTube and other sources without permission. OpenAI has not disclosed its training data for Sora, saying only that it used publicly available and licensed data. The tool can closely replicate copyrighted characters, logos and scenes, raising concerns about copyright infringement. OpenAI has not faced a lawsuit specifically over Sora's training data but is fighting other copyright suits.
- Company involved
- OpenAI
- AI system involved
- Sora
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 →
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 →
Arizona Unemployment Applicants Required to Submit Facial Recognition
People applying for unemployment benefits in Arizona must verify their identity via facial recognition software provided by ID.me. If the system fails to match a selfie to a photo ID, applicants can be denied benefits unless they successfully complete a video chat with a referee. A class-action lawsuit filed in June 2021 alleges that the practice violates due process rights and discriminates against people of colour.
- Company involved
- Arizona Department of Economic Security
- AI system involved
- ID.me
1 source article · 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 →
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 →
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 →
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 →
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 →
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.
1 source article · 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 →
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.
1 source article · read the reporting →
Indore Play School Owner Loses Savings in AI Voice Cloning Fraud
A middle-aged woman in Indore, India, lost her entire savings of Rs 97,500 after a fraudster used AI voice cloning to impersonate her cousin, a police officer. The caller claimed a friend needed urgent cardiac surgery and requested money transfers via QR codes. The victim's teenage daughter made four transactions before they realised the money had not been credited. Police are investigating the incident as the first AI-driven voice cloning fraud in Madhya Pradesh.
3 source articles · read the reporting →
Target's pregnancy prediction algorithm reveals teen's pregnancy to father
Target used a data mining algorithm to predict when customers were pregnant based on their purchases. The algorithm sent baby product coupons to a high school student, leading her father to complain to the store. The father later learned his daughter was indeed pregnant. Target subsequently altered the coupons to disguise the data mining.
- Company involved
- Target
- AI system involved
- Target pregnancy prediction algorithm
9 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.
1 source article · read the reporting →
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 →
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 →
Commonwealth Bank worker made redundant after unknowingly training AI chatbot to replace her
Kathryn Sullivan, a 63-year-old Commonwealth Bank teller, was made redundant in July 2025 after spending years training the bank's 'Bumblebee' chatbot to respond to customers. She was unaware that she was helping the AI replace her own role. Sullivan confronted CEO Matt Comyn at the bank's AGM in Brisbane, where chairman Paul O'Malley acknowledged the bank had made a mistake. The Finance Sector Union had brought a case before the Fair Work Commission, resulting in some jobs being offered back, but not all.
- Company involved
- Commonwealth Bank
- AI system involved
- Bumblebee
4 source articles · read the reporting →
