Where automated decisions went wrong

These workers say an AI hiring platform discriminated against them. But who should pay?

The system screened out Black and other applicants, denying them job opportunities.

1 source article · read the reporting →

Civitai introduces bounties for deepfakes of a private individual

Civitai, an online marketplace for sharing AI models, introduced a bounty feature that allows users to request and reward AI models that generate nonconsensual deepfake images of specific real people. 404 Media found at least one bounty targeting a private person with no significant public online presence, who expressed fear and distress over the misuse of her image. The platform facilitates the creation of nonconsensual sexual images without the subject's consent.

Company involved

Civitai

AI system involved

Civitai bounty feature

10 source articles · read the reporting →

Job seeker asks First Circuit to revive class action over AI interviewing tool

Massachusetts financial consultant Mozart Saint Cyr leads a proposed class of job applicants who say JPMorgan Chase's use of HireVue one-way video interviews amounted to a lie detector test banned by state law. After a federal judge dismissed the case, they asked the First Circuit to revive it.

Company involved

JPMorgan Chase

AI system involved

HireVue one-way video interview

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AI Scammers Clone Exante Broker, Use JPMorgan Account to Defraud US Victim

Scammers used generative AI to create a fake clone of the brokerage firm Exante, including a replicated trading platform and AI-generated passports. They opened a real JPMorgan Chase bank account using a US address and tricked at least one US victim into transferring funds. Exante, which does not serve US clients, discovered the scam when the victim was registered on its real platform and reported the incident to the FBI, SEC, CFTC, and other authorities. The scammers remain unidentified, and the victim's funds have not been recovered.

2 source articles · read the reporting →

AI Hiring Platform Faces FCRA Class Action Over Data Use | Kistler et al. v. Eightfold AI Inc.

The AI platform screened job applicants, affecting their hiring prospects.

Company involved

Eightfold AI

AI system involved

Eightfold AI

1 source article · read the reporting →

AI Lawsuit Pushes the Boundaries of AI Litigation—and May Signal a New Wave

Ranked job applicants' likelihood of success, affecting their hiring prospects.

Company involved

Eightfold AI Inc.

AI system involved

Eightfold AI Hiring Platform

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HireVue, Facing FTC Complaint From EPIC, Halts Use of Facial Recognition

Scored job candidates based on facial analysis and other biometric data, affecting their hiring prospects.

Company involved

HireVue

AI system involved

HireVue

1 source article · read the reporting →

Goldman Sachs Apple Card Algorithm Accused of Gender Bias in Credit Limits

In late 2019, David Heinemeier Hansson alleged on Twitter that the Apple Card underwriting algorithm, operated by Goldman Sachs, gave him a higher credit limit than his wife despite similar financial profiles. The New York Department of Financial Services investigated and found no violation of fair lending laws, but critics argue the audit methodology was outdated and failed to detect proxy discrimination. Apple later updated its credit policy to allow spouses to combine credit files, acknowledging a lack of fairness in industry credit scoring.

Company involved

Goldman Sachs

AI system involved

Apple Card

6 source articles · read the reporting →

Scammers use AI-generated identities to steal $5.6 million in FTX debt claims fraud

In June 2024, a scam group posing as FTX debt claimants allegedly used AI-generated identities and manipulated facial appearances to defraud two companies of more than $5.6 million. The perpetrators accessed FTX customer data through public bankruptcy filings or a 2023 data breach at Kroll. Blockchain analysis traced the stolen funds through Binance, CoinEx, and Gate.io. The incident remains unresolved.

6 source articles · read the reporting →

SEC Charges Delphia and Global Predictions for False AI Claims

The SEC charged Delphia (USA) Inc. and Global Predictions Inc. for making false and misleading statements about their use of artificial intelligence. Delphia claimed from 2019 to 2023 that it used AI and machine learning to predict investments, while Global Predictions falsely claimed in 2023 to be the 'first regulated AI financial advisor'. Both firms settled the charges without admitting or denying the findings, agreeing to pay a total of $400,000 in civil penalties and to cease and desist from further violations.

Company involved

Delphia (USA) Inc. and Global Predictions Inc.

1 source article · read the reporting →

CFPB Acts Against Hello Digit for Faulty Savings Algorithm Causing Overdrafts

Hello Digit, a fintech company, used an automated savings algorithm that made transfers from consumers' checking accounts, falsely guaranteeing no overdrafts. The algorithm caused customers to incur overdraft fees, and the company often denied reimbursement requests. The CFPB found that Hello Digit engaged in deceptive practices and ordered the company to pay redress to harmed consumers and a $2.7 million fine.

Company involved

Hello Digit, LLC

AI system involved

Hello Digit app

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McKinsey's Lilli AI Platform Hacked, Exposing 46 Million Chat Messages

Security researchers at CodeWall used an autonomous offensive agent to discover a SQL injection vulnerability in McKinsey's internal AI platform, Lilli. The vulnerability allowed unauthenticated access to the production database, exposing 46.5 million chat messages, 728,000 files, and 57,000 user accounts. The researchers responsibly disclosed the issue to McKinsey, who patched the endpoints within days. No data was exfiltrated or misused, and no disruption occurred.

Company involved

McKinsey & Company

AI system involved

Lilli

1 source article · read the reporting →

Schufa's Black-Box Scoring Unfairly Penalises Consumers with Positive Credit Data

An investigation by SPIEGEL and BR Data reveals that Schufa's credit scoring algorithm often assigns poor risk scores to consumers with only positive credit information. One consumer, Sven Drewert, was denied a credit card limit increase despite having no negative entries. The algorithm uses limited data, and its secret formula can lead to arbitrary categorisations, affecting access to loans, phone contracts, and housing. The system's opacity and potential biases raise concerns about fairness and accountability.

Company involved

Schufa Holding AG

AI system involved

Schufa Score

2 source articles · read the reporting →

AI chatbots found giving inaccurate financial advice to UK consumers

A Which? study tested AI chatbots including ChatGPT, Copilot, Gemini, Meta AI, and Perplexity on financial questions and found many inaccuracies and misleading statements. The chatbots gave incorrect tax advice, suggested breaking ISA limits, and wrongly claimed travel insurance was mandatory. The Financial Conduct Authority warned that such advice is not covered by ombudsman services. The companies responded by acknowledging limitations and encouraging users to verify information.

Company involved

Meta, OpenAI, Microsoft, Google, Perplexity

AI system involved

Meta AI, ChatGPT, Copilot, Gemini, Perplexity

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Ahmedabad cyber police bust deepfake Aadhaar fraud racket, four arrested

Four men were arrested in Ahmedabad for allegedly using AI-generated deepfake videos to bypass Aadhaar's facial authentication system. They changed a victim's registered mobile number, accessed his DigiLocker, and applied for loans in his name. The accused, including Common Service Centre operators, used unauthorised Aadhaar update kits. Police are investigating whether more victims were targeted.

Company involved

Unique Identification Authority of India (UIDAI)

AI system involved

Aadhaar facial authentication system

1 source article · read the reporting →

Figma pulls AI design tool after it copies Apple's weather app

Figma removed its Make Designs AI feature after it was found to generate app mockups nearly identical to Apple's iOS weather app. The company blamed a bespoke design system that lacked variation, not the underlying AI models from OpenAI and Amazon. Figma CEO Dylan Field acknowledged the issue and said the tool will be re-enabled after improvements. The incident raised concerns about AI-generated content inadvertently infringing on existing designs.

Company involved

Figma

AI system involved

Make Designs

2 source articles · read the reporting →

CFPB fines General Information Services for inaccurate background checks

The Consumer Financial Protection Bureau took action against General Information Services and its affiliate e-Background-checks.com for failing to ensure the accuracy of employment background screening reports. The companies allegedly provided inaccurate criminal history information to employers, potentially affecting job applicants' eligibility and causing reputational harm. The CFPB ordered the companies to provide $10.5 million in relief to harmed consumers and pay a $2.5 million penalty.

Company involved

General Information Services

10 source articles · read the reporting →

FinTech and traditional lenders discriminate against minority borrowers in mortgage pricing

A study of mortgage lending from 2012-2018 found that Latinx and African-American borrowers were charged higher interest rates than white borrowers with similar credit risk. FinTech algorithms reduced the disparity by 40% but did not eliminate it. The discrimination costs minority borrowers an estimated $765 million per year in extra interest.

10 source articles · read the reporting →

Qoves facial assessment tool ranks journalist's attractiveness and suggests procedures

Tate Ryan-Mosley, a journalist at MIT Technology Review, used Qoves Studio's AI facial assessment tool, which automatically scored her face and listed perceived flaws such as smile lines and under-eye bags. The tool recommended skin-care products and paid surgical consultation reports. She also tried Megvii's Face++ beauty-scoring system, which gave her two percentage attractiveness scores. The article raises concerns that such algorithms are inaccurate, biased and not transparently used by social media platforms.

Company involved

Qoves Studio

AI system involved

Facial Assessment Tool

9 source articles · read the reporting →

FTC settles with Sitejabber over reviews from customers who had not received goods

The US Federal Trade Commission has charged Sitejabber, an AI-enabled review platform, with deceiving consumers by publishing ratings and reviews submitted at the point of purchase, before buyers had received or experienced the products. The FTC alleges this artificially inflated average ratings and review counts for its clients. Sitejabber has agreed to a proposed consent order prohibiting it from making such misrepresentations in the future.

Company involved

Sitejabber

AI system involved

Sitejabber

10 source articles · read the reporting →

DeepScore markets facial and voice analysis app for trustworthiness scoring despite experts' doubts

DeepScore, a Tokyo-based company, is marketing an app that uses facial and voice recognition to score people's trustworthiness for lenders and insurers in Japan, Indonesia, Vietnam and the Philippines. The company says the app can detect deception with 70 per cent accuracy, but researchers and privacy advocates say there is no reliable scientific basis for such judgments and warn of discrimination and privacy harms. The chief executive said the system is only one part of lenders' and insurers' decision-making and that people can choose not to use it. Critics respond that an unequal balance of power makes consent difficult.

Company involved

DeepScore

AI system involved

DeepScore

6 source articles · read the reporting →

Facebook Allowed Age-Targeted Credit Card Ads Violating Its Policy

The Markup found that four companies—Aspiration, Hometap, Chime, and Varo Bank—ran Facebook ads for credit cards and home equity loans that were targeted by age, excluding users under 25 or 35. This practice violates Facebook's own anti-discrimination policy and may violate the Equal Credit Opportunity Act and California's Unruh Civil Rights Act. Facebook did not respond to requests for comment, and some advertisers said they would review their ad targeting.

Company involved

Facebook

AI system involved

Facebook Ad Platform

9 source articles · read the reporting →

Hospitals use Epic AI to predict Covid-19 decline without validation

Dozens of hospitals across the US are using Epic's deterioration index AI system to predict which Covid-19 patients will become critically ill, despite the tool not being validated for the new disease. The rapid deployment during the pandemic bypassed normal testing and validation processes.

AI system involved

Deterioration index

9 source articles · read the reporting →

Plastic Forte fined for using facial recognition on workers without notice

The Spanish data protection agency AEPD fined Plastic Forte, a plastics manufacturer in Alicante, €20,000 for using facial recognition to record employees' working hours without informing them. A worker requested information about his personal data and discovered the biometric processing. The company initially argued it was only for time tracking but later acknowledged responsibility, resulting in a reduced fine of €12,000. The AEPD deemed facial recognition for time control as highly intrusive and requiring prior impact assessment.

Company involved

Plastic Forte

7 source articles · read the reporting →