Steak 'n Shake sued over facial recognition kiosks under BIPA
A class action lawsuit alleges that Steak 'n Shake illegally collects facial biometrics from customers using PopID-powered self-ordering kiosks without proper consent. Plaintiff Michael Massel claims the restaurant chain failed to provide notice and obtain written consent as required by Illinois' Biometric Information Privacy Act (BIPA). The suit seeks damages of up to $5,000 per violation for anyone whose biometric data was collected in Illinois in the past five years.
- Company involved
- Steak 'n Shake
- AI system involved
- PopID biometric kiosks
6 source articles · read the reporting →
X platform enables deepfake porn and abuse against women activists
Caitlin Roper, a women's rights activist, reports that she and her colleagues at Collective Shout have been subjected to a sustained campaign of misogynistic threats, abuse, and deepfake pornography on X (formerly Twitter). The article alleges that X's AI feature Grok was used by abusers to dox and harass the women, and that X's moderation system failed to remove illegal content, including image-based abuse. Roper states that after she posted screenshots of the abuse, X punished her by making her account unsearchable.
- Company involved
- X (formerly Twitter)
- AI system involved
- Grok
2 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 →
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 →
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 →
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
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 →
Giggle for Girls v Tickle [2026]: AI Facial Recognition, Gender Identity & Discrimination - Legal Service India
The system excluded a transgender woman from a women-only social networking app based on her facial appearance.
- Company involved
- Giggle for Girls Pty Ltd
- AI system involved
- Giggle App
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 →
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 →
FTC Orders Edmodo to Stop Unlawful Collection of Children's Data for Advertising
The FTC filed a complaint against Edmodo, an education technology provider, alleging that it collected personal information from children under 13 without parental consent and used it for advertising, in violation of the COPPA Rule. Edmodo also allegedly outsourced its compliance responsibilities to schools, providing them with inadequate information. Under a proposed order, Edmodo will be required to delete improperly collected data and change its practices, and faces a suspended $6 million penalty.
- Company involved
- Edmodo, LLC
- AI system involved
- Edmodo
1 source article · read the reporting →
Ningbo fines property developers for using facial recognition without consent
In Ningbo, China, property developers were fined for using facial recognition technology to identify customers without their consent. The enforcement followed China's annual Consumer Protection Gala that highlighted misuse of facial recognition. The fines were imposed by the local government and the developers were accused of violating privacy regulations.
- Company involved
- Multiple property developers in Ningbo
- AI system involved
- Facial recognition technology
6 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 →
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 →
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 →
Upstart Holdings sued for securities fraud over AI model claims
Upstart Holdings, Inc., a cloud-based AI lending platform, is accused of making false and misleading statements about its AI model's ability to account for macroeconomic factors. The lawsuit, filed on May 13, 2022, alleges that the company's positive statements about its business were materially false. Investors suffered losses when Upstart's stock price fell 56% on May 9, 2022, after the company reduced its fiscal 2022 guidance.
- Company involved
- Upstart Holdings, Inc.
- AI system involved
- Upstart AI lending platform
10 source articles · read the reporting →
Instacart's rating and fraud detection system unfairly penalizes shoppers
Instacart shoppers allege that the company's automated rating and fraud detection system unfairly penalizes them for issues outside their control, such as customer fraud. The system assigns low ratings and blames shoppers for missing items, leading to reduced pay and deactivation. The Gig Workers Collective has sent an open letter to CEO Fidji Simo demanding changes including higher base pay, item commission, and occupational death benefits.
- Company involved
- Instacart
10 source articles · read the reporting →
Flo Health shared fertility app users’ health data with Facebook and Google.
Flo Health Inc., the maker of the Flo Period & Ovulation Tracker app, is accused of sharing millions of users' sensitive health data with marketing and analytics firms including Facebook and Google, despite promising to keep that data private. The Federal Trade Commission (FTC) finalized a settlement requiring Flo to obtain affirmative consent before sharing health data, notify affected users, and have an independent privacy review. The company also must instruct third parties to destroy the received data and is prohibited from misrepresenting its data practices.
- Company involved
- Flo Health Inc.
- AI system involved
- Flo Period & Ovulation Tracker
10 source articles · read the reporting →
Inflection background check errors lead to lawsuits from banned Airbnb users
Inflection, a background check company used by Airbnb, Uber, and other platforms, has been sued multiple times for providing inaccurate reports. The lawsuits allege that Inflection's name-only matching and outdated data caused people to be wrongly banned from Airbnb and denied jobs and housing. Some cases have been settled, while others remain ongoing. The company is accused of violating the Fair Credit Reporting Act.
- Company involved
- Inflection
- AI system involved
- Inflection background check
8 source articles · read the reporting →
