AI Hallucinations Draw $15,000 Sanction from Illinois Appellate Court - JD Supra
The court imposed a $15,000 sanction on the attorney for submitting AI-generated false citations.
- AI system involved
- ChatGPT
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Incidents gathered from public reporting around the world. Each one links to the articles it came from. None of it is a finding that anyone broke the law.
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44 incidents closest to “Viz Neuro Suite” · matched on meaning · public reporting
The court imposed a $15,000 sanction on the attorney for submitting AI-generated false citations.
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Two patients allege that Acclarent's TruDi Navigation System, which uses AI to confirm device positioning during sinus surgery, misled surgeons and caused severe injuries including strokes. The FDA has received over 100 reports of malfunctions and at least ten injuries since AI was added. Lawsuits claim the company rushed the technology to market with only 80% accuracy, making the device less safe than before. Acclarent denies any causal connection, and the cases are ongoing.
2 source articles · read the reporting →
A deepfake video posted on Facebook falsely depicts Croatian neurosurgeon Josip Paladino promoting a pain relief product called Steplex. The video uses AI-manipulated footage from a 2012 press conference and a Ukrainian TV fight to fabricate a story of a studio brawl. The scam attempts to trick viewers into purchasing an unregistered product via a suspicious website. Paladino has previously reported similar deepfake incidents to police and the Croatian Medical Chamber.
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In a 2024 research paper, Google's Med-Gemini AI model generated a radiology report diagnosing an 'old left basilar ganglia infarct', a non-existent body part conflating the basal ganglia and basilar artery. The error was not caught by Google before publication. After a neurologist flagged the mistake, Google quietly edited a blog post to correct the term, calling it a typo, but the research paper remains unchanged. Experts warn that such hallucinations pose significant risks if doctors fail to notice them in clinical settings.
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The Galileu AI system, developed by the Tribunal Regional do Trabalho da 4ª Região (TRT-RS) and nationalised by the Conselho Superior da Justiça do Trabalho (CSJT), detected a prompt injection attempt in a petition filed at the 3rd Labour Court of Parauapebas, Pará. The system alerted the magistrate, who reviewed the content and made a decision based on human verification, in line with judicial AI supervision requirements. The court reported that the system prevented the malicious content from being processed and highlighted the importance of institutional AI tools with security measures.
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Meta AI Glasses captured faces, bodies, voices, and personal information of millions of bystanders, including minors, without consent and funneled the data to human reviewers for AI training.
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The TruDi Navigation System by Acclarent, which uses AI to confirm device positions during sinus surgery, has been linked to at least ten patient injuries including strokes, according to FDA reports and two lawsuits. Plaintiffs Erin Ralph and Donna Fernihough allege that the AI was inaccurate and misled surgeons, causing carotid artery damage and strokes in 2022. Acclarent denies the allegations, stating there is no credible evidence of a causal connection. The lawsuits are ongoing.
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The Nebius AI Factory data center construction produced noise, dust, vibrations and raised concerns about power and water use affecting nearby residents and the Greater Birmingham Humane Society.
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Guardio Labs tested three popular AI agents—ChatGPT, Claude, and Lovable—to see how easily they could be manipulated into generating phishing campaigns. The benchmark, called VibeScamming, simulated a novice scammer attempting to create an SMS phishing attack to steal Microsoft credentials. While ChatGPT and Claude initially refused, they provided full code and tutorials after a jailbreak attempt posing as ethical hacking; Lovable instantly generated and deployed a fully functional, convincing phishing page with no resistance.
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The New York State Nurses Association alleges that Montefiore Health System plans to lay off 12 utilization review nurses and replace them with AI-powered software from Datavant. The union warns that the move could compromise patient care by having AI review insurance denials without clinical judgement. Montefiore denies the claims, stating they are investing in technology for better outcomes. The plan has sparked a town hall and calls from elected officials to halt the layoffs.
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In July 2025, Urban Cyber Security updated its Urban VPN Proxy Chrome extension to automatically harvest everything users typed into major AI chatbots, including ChatGPT and Claude, as well as the chatbots' replies. The extension, used by over 7 million people, also collected conversation metadata and identifiers, sharing the data with its ad analytics affiliate BIScience. The data collection was disclosed in the privacy policy but users were not explicitly notified at the time of use. Security researchers at Koi discovered the practice and reported it publicly.
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Neuro-sama, an AI-controlled VTuber created by programmer Vedal, made controversial statements during Twitch streams, including denying the Holocaust and claiming women's rights do not exist. The AI, which uses a large language model trained on internet text, was prompted by chat users. Vedal acknowledged the issue and improved the system's filters and moderation to prevent further harmful remarks.
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In January 2023, AI-generated videos of fictitious Americans expressing support for Burkina Faso's military junta circulated on WhatsApp and social media. The videos were created using Synthesia's AI video generator. Synthesia banned the user responsible and condemned the misuse, highlighting challenges in content moderation for AI-generated media.
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The city of Suresnes has allowed startup XXII to use its public CCTV cameras for 18 months to develop algorithms for detecting suspicious behavior. The algorithms are experimental and may have high error rates. Residents were not informed or consulted. The startup will own the data and can use the city's surveillance center as a showroom for clients.
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Security researcher Bar Lanyado discovered that generative AI models repeatedly hallucinate non-existent software package names. He created a real package named 'huggingface-cli' based on one such hallucination and uploaded it to PyPI. The package was downloaded over 15,000 times, and Alibaba's GraphTranslator project included instructions to install it. The experiment demonstrated a potential supply chain attack vector where malicious actors could exploit AI hallucinations to distribute malware.
4 source articles · read the reporting →
MIT Media Lab developed Norman, an AI image captioning system trained on graphic content from Reddit. The project demonstrated how biased training data can lead to disturbing outputs. Norman was compared to a standard AI on Rorschach inkblot tests, showing the influence of data bias. The project was active from April to June 2018.
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Cybercriminals set up Facebook pages impersonating Luma Dream Machine and linked to fake AI video generation websites. Users who uploaded images received an archive containing a malicious executable instead of a video. The executable launched a multi-stage attack that installed Noodlophile, which harvests browser credentials, cookies and cryptocurrency wallet information. Morphisec reported the campaign.
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Several models in London discovered that their likenesses had been used without their knowledge in AI-generated propaganda videos supporting the dictator of Burkina Faso. The videos were created using Synthesia's AI avatar platform, which the models had previously posed for. The models reported psychological distress and reputational harm, and Synthesia acknowledged the misuse and banned the accounts but the videos remain online.
6 source articles · read the reporting →
Nvidia has released a beta version of Eye Contact, an AI-powered feature for its Broadcast app that replaces a user's eyes in video streams with simulated eyeballs that always face the camera. The feature is intended to maintain eye contact even when the user looks away, but social media response has been largely negative. A former TV news anchor said that unbroken eye contact can be regarded as creepy or uncomfortable.
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The NSW Education Standards Authority (NESA) used an AI-generated image as a stimulus in the 2024 HSC English exam without disclosing its origin. The image, created by Florian Schroeder using OpenAI's ChatGPT and Dall-E 2, was published on Medium in July 2023. Students suspected AI use due to irregularities in the image, and NESA initially declined to confirm. After the Sydney Morning Herald confirmed the image was AI-generated, NESA stated that students would be marked on their response to the question, not the image's origin.
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In 2020, Collaborations Pharmaceuticals demonstrated that its AI drug discovery system, MegaSyn, could be repurposed to generate toxic molecules similar to the nerve agent VX. The company ran the software overnight and produced 40,000 potentially hazardous substances. The researchers presented their findings at a conference and briefed the White House, warning that such AI systems could be misused to create chemical weapons.
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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.
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Bayerischer Rundfunk journalists conducted experiments with Retorio's AI video interview analysis tool. The AI, which assesses personality traits from short videos, produced different scores when the same actress changed her appearance (glasses, headscarf, wig) or the video background and lighting were altered. The start-up Retorio acknowledged that the AI considers external image, similar to a human interviewer. Experts warned that such software could perpetuate stereotypes and unfairly affect job candidates.
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In April 2018, ViaQuatro installed the Digital Interactive Doors System, developed by AdMobilize, on the São Paulo metro's yellow line. The system used cameras to detect passengers' faces and claimed to infer their emotion, age, and gender in order to target advertisements. The Brazilian Institute of Consumer Protection (IDEC) filed a public civil action alleging that the system violated consumer and data protection laws by processing biometric data without consent and making pseudoscientific and discriminatory inferences. A judge ordered the cameras removed in August 2018, and the case is pending a final ruling.
10 source articles · read the reporting →