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AI Deepfake Fraud Raises Liability Stakes for Banks and Business

September 30, 2026

An employee of a Hong Kong engineering firm received a message that appeared to come from the company’s chief financial officer requesting several financial transfers. The employee was suspicious but was reassured in a video conference with the CFO and colleagues.

Every participant, except the employee, was an AI-generated deepfake, and the company lost $25 million.

Autonomous AI hacks raise thorny questions of legal accountability

September 25, 2026

The Justice Department has a long history of investigating and prosecuting hackers who break into a private company’s network.

But what happens when the hackers aren’t human?

That’s the question at the center of a public policy debate roiling Silicon Valley and Washington following disclosures by leading tech companies that their artificial intelligence models went rogue and hacked into other organizations. The attacks have generated calls even from within the industry for greater oversight and regulation, spurred congressional inquiries and raised questions about whether a years-old legal framework designed to punish criminal hackers is sufficient in an era of autonomous actors capable of engineering their own havoc.

OpenAI flags 6 new incidents of ‘concerning’ behavior and unveils plan to track it

September 17, 2026

OpenAI has disclosed six new incidents of “unexpected or concerning” behavior by its artificial intelligence models. As industry worries swell over the technology’s rapid progress, the company also unveiled a new framework for tracking and reporting these instances of what it termed “misalignment.”

The announcement late Wednesday follows mounting public calls for a slowdown in the pace of the technology’s development, with U.S. tech bosses voicing grave safety concerns including the risk of human extinction.

Judge Rejects ‘ChatGPT Wrote My Confession’ Defense

August 12, 2026

Company wrote that it fired employee for discussing pay and then tried to claim ChatGPT was responsible for admitting violation.

High school defends staying silent while boys made AI nudes of 59 classmates

August 3, 2026

One of the first schools to shut down after students were found making AI nudes of female classmates is now asking a court to toss a lawsuit filed by victims who claimed that the school stayed silent for months while the emboldened boys targeted many more girls.

Anthropic says its AI models hacked 3 organizations during testing

July 31, 2026

OpenAI said its AI models went rogue during an evaluation of its models, breaking into the servers of AI startup Hugging Face. OpenAI described it as a “significant security incident.”

These incidents have highlighted the vulnerabilities in AI security and controls and raised questions over how AI can be safely kept under human control as the technology’s usage becomes more widespread globally.

AI-Faked Cases Become Core Issue Irritating Overworked Judges

December 30, 2025

AI-hallucinated case citations have moved from novelty to a core challenge for the courts, prompting complaints from judges that the issue distracts from the merits of the cases in front of them.

The growing burden placed by artificial intelligence became clear in 2025, two years after the first prominent instance of fake case citations popped up in a US court. There have been an estimated 712 legal decisions written about hallucinated content in court cases around the world, with about 90% of those decisions written in 2025, according to a database maintained by Paris-based researcher and law lecturer Damien Charlotin.

Bank sues OpenAI over murder-suicide tied to ChatGPT conversations

December 12, 2025

In its capacity as executor to a deceased woman, a bank filed suit against the maker of ChatGPT on Thursday, saying the artificial intelligence was responsible for inducing a mentally unstable son to kill his elderly mother and then die by suicide.

Lawyer, law firm sanctioned for citing fake case in lead poisoning lawsuit

December 10, 2025

A lawyer and a law firm that represented the Chicago Housing Authority must pay nearly $60,000 for filing a court document that included a fake citation.

On Friday, Cook County Circuit Judge Thomas Cushing sanctioned lawyer Larry Mason and his firm Goldberg Segalla for improperly using artificial intelligence and making false representations to the court.

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Tag: Ai