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 →
Insurer drops California homeowner after aerial photo analysis
Cindy Picos was dropped by her home insurer after the company used aerial photos to assess her roof. The insurer refused to let her see the photos, and she believes her roof is in fine shape. The incident highlights the growing use of drones and aerial imagery by insurers to inspect properties without in-person visits.
2 source articles · read the reporting →
Kmart's facial recognition system for refund fraud found unlawful by Privacy Commissioner
Kmart Australia deployed facial recognition technology in 28 stores from June 2020 to July 2022, capturing biometric data of every customer entering the stores and those at returns counters to detect refund fraud. The system collected sensitive information without notifying customers or obtaining their consent. The Australian Privacy Commissioner found that Kmart breached the Privacy Act, as the exemption for unlawful activity did not justify the indiscriminate and disproportionate collection of biometric data from thousands of individuals. Kmart has ceased using the system and cooperated with the investigation.
- Company involved
- Kmart Australia Limited
7 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 →
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 →
Facebook exempted Trump and other high-profile users from content enforcement rules.
An internal Facebook program called XCheck granted special treatment to millions of high-profile users, including former President Donald Trump and Senator Elizabeth Warren, exempting them from content enforcement rules. The program, initially for quality control, was expanded to whitelist users deemed newsworthy or PR-risky, with the system failing to enforce rules against them. Internal documents revealed that the program made mistakes, often wrongly taking action against high-profile users. Facebook has attempted to phase out the practice but has struggled.
- Company involved
- Facebook
- AI system involved
- XCheck
10 source articles · read the reporting →
Hospital Denies Pain Medication to Patient Based on Narx Score
Elizabeth Amirault, a 34-year-old chronic pain patient, was denied narcotic pain medication during a hospital visit in Fort Wayne, Indiana, in August 2022. A nurse practitioner told her that her Narx Score, generated by Bamboo Health's NarxCare platform, was too high to prescribe opioids. The algorithm uses prescription drug monitoring data to assess risk of misuse, but critics say it can harm patients by cutting off needed care. Amirault believes her score was unfairly high due to her multiple surgeries and doctors.
- AI system involved
- NarxCare
3 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 →
NHTSA investigation PE25012: Traffic safety violations while Full Self Driving ("FSD") is engaged
The system made driving decisions that violated traffic safety laws, affecting other road users.
- Company involved
- Tesla, Inc.
- AI system involved
- Full Self Driving (FSD)
1 source article · 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 →
Apple Siri Settlement: How to Claim Up to $95 - Yahoo Finance
Apple Siri Settlement: How to Claim Up to $95 Yahoo Finance
- Company involved
- Apple
- AI system involved
- Siri
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 →
Lawsuit Says UnitedHealth Used AI With a 90% Error Rate to Deny Care - Yahoo
Denied post-acute care coverage to elderly Medicare Advantage patients
- Company involved
- UnitedHealth Group
- AI system involved
- nH Predict
1 source article · read the reporting →
Hallucination-laced TRO raises alarm bells on AI use by courts - Massachusetts Lawyers Weekly
A generative AI tool drafted a temporary restraining order in Jackson Federation of Teachers v. Fitch containing fabricated parties, declarations, and statutory language, affecting the state of Mississippi and the plaintiffs.
- Company involved
- U.S. District Court for the Southern District of Mississippi
1 source article · read the reporting →
New York federal court sanctions lawyer for non-existent quotations after ChatGPT research
In Tiekert v. Village of Mamaroneck in the Southern District of New York, the court found that the plaintiff's lawyer filed briefs containing non-existent quotations and misrepresented authorities. In a filing to the court, the lawyer said ChatGPT had been used to assist with legal research. On September 14, 2026, the court imposed Rule 11 sanctions: $500 payable to the court and two New York continuing legal education credits in ethics on the use of AI.
2 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 →
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 →
FTC orders WW International and Kurbo to delete children's data and pay $1.5m penalty
The US Federal Trade Commission alleged that WW International, formerly Weight Watchers, and its subsidiary Kurbo illegally collected personal and health data from children under 13 through the Kurbo by WW weight-loss app without parental consent. The complaint said the signup process encouraged children to lie about their age and that the companies retained the data indefinitely. The companies settled, agreeing to delete the data, destroy any algorithms derived from it, and pay a $1.5 million penalty.
- Company involved
- WW International, Inc. (formerly Weight Watchers) and Kurbo, Inc.
- AI system involved
- Kurbo by WW
10 source articles · 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 →
Tinder accused of age discrimination in Tinder Plus pricing
A CHOICE mystery shop found Tinder charging users over 30 up to five times more for Tinder Plus than younger users, with prices ranging from $6.99 to $34.37 per month. An anti-discrimination law expert says this likely breaches Australia's Age Discrimination Act 2004. Tinder did not respond to CHOICE's requests for comment, but settled a similar US lawsuit by stopping age-based pricing in California and compensating affected users.
- Company involved
- Tinder
- AI system involved
- Tinder Plus
4 source articles · read the reporting →
Yale student sues after GPTZero AI detection leads to cheating accusation and suspension
Thierry Rignol, a top student in Yale's Executive MBA program, was accused of using AI on a final exam after the detection tool GPTZero flagged his answers. Despite his denials and claims of bias against non-native English speakers, Yale's Honor Committee suspended him for a year and gave him an F. Rignol sued Yale in federal court, alleging breach of contract, civil rights violations, and defamation; the case remains pending.
- Company involved
- Yale University
- AI system involved
- GPTZero
1 source article · read the reporting →
