AI chatbots used to steal US college financial aid
Crime rings are deploying AI chatbots as 'ghost students' to enrol in online college courses and fraudulently collect US federal financial aid. Victims of identity theft, such as Heather Brady and Brittnee Nelson, discovered loans of over $9,000 and $5,000 respectively taken out in their names for colleges they never attended. The US Education Department introduced a temporary rule requiring government-issued ID for first-time aid applicants, while California community colleges reported losing at least $11.1 million to such scams.
- Company involved
- Delgado Community College
4 source articles · read the reporting →
South Africa's Supreme Court of Appeal Considers Sassa Algorithm Case
Верховный апелляционный суд ЮАР рассмотрел дело об алгоритмах Sassa - UA.NEWS
The Supreme Court of Appeal heard an appeal on 25 August about Sassa's digital application system for the SRD grant. The system only accepts online applications and uses automated bank account checks that may deny grants to people whose accounts receive deposits that are not regular income. The Global Center on AI Governance submitted that automated decisions must uphold constitutional rights and be fair, non-discriminatory, and suited to South Africa's informal economy.
- Company involved
- South African Social Security Agency (Sassa)
- AI system involved
- Sassa digital application system
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Services investigated and found no violation of fair lending laws, but critics argue the audit methodology was outdated and failed to detect proxy discrimination.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 →
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
1 source article · read the reporting →
Uber used Greyball software to evade law enforcement
Uber deployed a secret tool called Greyball that used data to identify and deny service to law enforcement officials attempting to catch drivers violating regulations. The system was used in multiple US cities and countries. Uber defended the program as protecting drivers from harm, but a law professor suggested it may have violated the Computer Fraud and Abuse Act. The revelation came amid other controversies for the company.
- Company involved
- Uber
- AI system involved
- Greyball
2 source articles · read the reporting →
Jordan's National Aid Fund Algorithm Denies Cash Assistance to Vulnerable Households
Human Rights Watch reported that Jordan’s Takaful cash transfer programme, run by the National Aid Fund and financed by the World Bank, uses an algorithm to rank households by estimated economic vulnerability and select recipients. The report found that the algorithm relies on inaccurate self-reported income and questionable indicators such as car ownership and utility use, causing eligible poor families to be denied benefits or receive reduced payments. The World Bank and NAF defended the programme and its targeting approach.
- Company involved
- National Aid Fund (NAF)
- AI system involved
- Takaful (Unified Cash Transfer Program)
3 source articles · read the reporting →
Idaho Medicaid used secret formula to cut assistance for disabled adults
The Idaho Department of Health and Welfare used a secret formula to drastically cut Medicaid assistance for adults with developmental disabilities, claiming the formula was a trade secret. The ACLU of Idaho filed a class action lawsuit, K.W. v. Armstrong, in 2012, alleging the cuts violated due process. A federal court struck down the formula in 2016 and ordered a new system, but as of 2024, a fair system has not yet been implemented.
- Company involved
- Idaho Department of Health and Welfare
10 source articles · read the reporting →
Australian government settles Robodebt class action for $1.7 billion
The Robodebt system, an automated debt recovery system used by Centrelink, calculated welfare debts using averaged income data from the ATO, leading to invalid debts. A class action was filed in November 2019 and settled in November 2020. The settlement provided refunds of over $751 million in invalid debts collected and $112 million in compensation to approximately 400,000 group members. The Australian government also dropped claims for over $1 billion in invalid debts.
- Company involved
- Australian Government (Centrelink)
- AI system involved
- Robodebt
10 source articles · read the reporting →
Global Entry revoked after ICE agent used facial recognition on observer
Nicole Cleland, a Minnesota resident and volunteer ICE observer, had her Global Entry and TSA PreCheck privileges revoked three days after an ICE agent used facial recognition to identify her while she was following agents. She alleges the revocation is retaliation and intimidation. She filed a declaration in a lawsuit against DHS and ICE. The incident highlights the use of facial recognition by federal agents to identify protesters.
- Company involved
- U.S. Customs and Border Protection
1 source article · read the reporting →
France: CNAF's discriminatory risk-scoring algorithm must be stopped
Amnesty International and coalition partners filed a complaint with the Council of State against CNAF's risk-scoring algorithm used to detect benefit overpayments. The algorithm assigns risk scores based on criteria that discriminate against vulnerable groups, including those with disabilities, single parents, and low-income households. The complaint alleges the system violates human rights to equality and privacy. The EU AI Act's social scoring ban may apply, but its definition remains unclear.
- Company involved
- CNAF
2 source articles · read the reporting →
U.S. Border Patrol uses AI and ALPR to target drivers for pretext stops and asset seizures
The U.S. Border Patrol has built a nationwide dragnet driver-surveillance system using automated license plate readers and AI to flag suspicious travel patterns. Local police then pull over targeted drivers on pretexts, interrogate them, and seize cash and vehicles through civil asset forfeiture. The program has been kept secret, with details hidden from court documents and the public. The ACLU report highlights the abuse of innocent drivers and calls for congressional action.
- Company involved
- U.S. Border Patrol (CBP)
- AI system involved
- Automated license plate reader (ALPR) system with AI analytics
6 source articles · read the reporting →
Serbia's Social Card law could harm marginalized groups
Serbia's Social Card law, which entered into force on 1 March 2022, establishes a centralized government database to assess eligibility for social security support. Amnesty International and seven other rights organizations submitted a legal opinion to the Constitutional Court, alleging that the automated system is an intrusive surveillance system that could discriminate against Roma communities and people with disabilities. The system processes 130 categories of personal data and lacks transparency, potentially leading to errors and denial of benefits.
- Company involved
- Serbian government
- AI system involved
- Social Card system
10 source articles · read the reporting →
Nevada's AI grad score model cuts funding for low-income students
Nevada replaced its income-based school funding formula with a machine learning model developed by Infinite Campus that generates a 'grad score' for each student. The model reduced the number of students eligible for supplemental funding from 288,000 to 63,000, disproportionately affecting low-income students. Critics argue the model lacks transparency and de-emphasizes economic status, potentially leaving many high-poverty schools underfunded.
- Company involved
- Nevada Department of Education
- AI system involved
- Grad score model
7 source articles · read the reporting →
India's Aadhaar facial recognition risks excluding millions from vaccines
India's National Health Authority piloted an Aadhaar-based facial recognition system for authentication at COVID-19 vaccination centres, and made Aadhaar the preferred mode of registration. Rights groups and experts warned that millions of vulnerable people, including those without an Aadhaar ID, could be excluded or misidentified and denied vaccines. The system was tested in the eastern state of Jharkhand, with plans for nationwide rollout.
- Company involved
- National Health Authority
- AI system involved
- Aadhaar-based facial recognition system
10 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 →
USPS algorithm RRECS causes pay cuts for two-thirds of rural mail carriers
The United States Postal Service (USPS) implemented a new algorithm, RRECS, to evaluate rural carrier routes and determine pay. Due to flaws in how carriers scanned packages, the algorithm underestimated route times, resulting in pay cuts for 66 per cent of rural carriers, some losing thousands of dollars annually. Carriers report that they were not adequately trained on the system and that the cuts are scheduled to take effect, though they have been postponed multiple times. The USPS stated that the system is the result of a nationally negotiated agreement.
- Company involved
- United States Postal Service
- AI system involved
- RRECS
9 source articles · read the reporting →
Denmark's Udbetaling Danmark welfare algorithm illegally surveilled millions
Udbetaling Danmark (UDK), Denmark's centralized welfare payment agency, used automated algorithms to check eligibility and detect fraud. The system collected personal data on millions of beneficiaries and their relatives, including non-beneficiaries, in what a think-tank called 'systematic surveillance'. A complaint to the Danish Data Protection Authority led to a ruling that the data collection violated GDPR, and UDK eventually deleted the illegally obtained data. The system also caused erroneous payments, including underpaying 300,000 pensioners by 94 million euros annually.
- Company involved
- Udbetaling Danmark
10 source articles · read the reporting →
Amazon expands palm-scanning payments to all Whole Foods stores amid privacy concerns
Amazon is expanding its Amazon One palm-scanning payment system to all Whole Foods stores by the end of 2023. The biometric technology, which creates a unique palm signature from vein patterns, is used for payments and identification. Privacy advocates and lawmakers have raised concerns about surveillance, data sharing, and security risks. Amazon faces a class action lawsuit under New York City's biometric privacy law for allegedly failing to provide adequate notice.
- Company involved
- Amazon
- AI system involved
- Amazon One
9 source articles · read the reporting →
EPIC lawsuit challenges USPS secret surveillance program using facial recognition
The United States Postal Service's law enforcement wing, the Postal Inspection Service, ran a secret surveillance program called the Internet Covert Operations Program (iCOP) that used facial recognition from Clearview AI and social media monitoring tools to infiltrate online communities and monitor protests. The Electronic Privacy Information Center (EPIC) sued the USPS for failing to conduct and publish a privacy impact assessment as required by the E-Government Act. A federal district court dismissed the lawsuit on standing grounds, ruling that EPIC did not suffer a cognizable injury from the agency's refusal to disclose information about the program.
- Company involved
- United States Postal Service
- AI system involved
- Internet Covert Operations Program (iCOP)
10 source articles · read the reporting →
LAPD told officers to collect social media data on every civilian stopped
The Los Angeles Police Department directed officers to record the social media accounts of every civilian they interviewed, including those not arrested or accused of a crime, according to records obtained by the Brennan Center for Justice. The field interview cards, which also ask for social security numbers, have raised civil liberties concerns. Prosecutors have accused three officers of using the cards to falsely label civilians as gang members. The LAPD said the policy was being updated but did not respond to questions about its use of social media monitoring tools including Media Sonar and Geofeedia.
- Company involved
- Los Angeles Police Department (LAPD)
- AI system involved
- Field interview cards, Media Sonar, Geofeedia
10 source articles · read the reporting →
EviCore denied heart catheterization for patient using algorithm
In fall 2021, Little John Cupp's doctor requested a left heart catheterization exam. EviCore, a company hired by UnitedHealthcare, denied the request twice using an algorithm called 'the dial' that adjusts thresholds for review. The algorithm flagged the request for review, and EviCore's doctors determined it was not medically necessary. Cupp did not receive the procedure and his symptoms continued.
- Company involved
- EviCore (a Cigna company)
- AI system involved
- the dial
6 source articles · read the reporting →
Presto Automation uses off-site human agents to double-check AI drive-thru orders
Presto Automation Inc, which markets an AI voice assistant for drive-thru ordering, used off-site human agents in countries including the Philippines to double-check orders in more than 70% of customer interactions, according to SEC filings reported by Bloomberg. The company told Bloomberg that the process helps train its system and should reduce human intervention over time. Presto's drive-thru AI is used in more than 400 restaurants, including Del Taco, Carl's Jr and Checkers, and its stock fell more than 10% after the reports.
- Company involved
- Presto Automation Inc.
8 source articles · read the reporting →
California EDD's automated fraud detection wrongly suspended 600,000 legitimate unemployment claims
In January 2021, the California Employment Development Department used Thompson Reuters automated batch review software to flag 1.1 million unemployment claims as potentially fraudulent. EDD stopped payments on those claims without prior notice. Later, over 600,000 were confirmed as legitimate after claimants used ID.me to verify their identity. The incident highlights the trade-off between fraud prevention and timely benefit access.
- Company involved
- California Employment Development Department (EDD)
- AI system involved
- Thompson Reuters Automated Batch Review
7 source articles · read the reporting →
Haryana government's algorithm wrongly declares thousands dead, stops pensions
The Haryana state government's Family Identity Data Repository (PPP) algorithm wrongly declared thousands of elderly and widowed citizens as dead, stopping their pensions. Dhuli Chand, a 102-year-old man, had to stage a mock wedding procession to prove he was alive after his pension was cut for six months. The government acknowledged the errors and corrected some records, but many still face difficulties.
- Company involved
- Haryana state government
- AI system involved
- Family Identity Data Repository (Parivar Pehchan Patra or PPP)
6 source articles · read the reporting →
