AI Misconduct.com

The daily rap sheet of the machine age.

Updated Nov 2, 2026
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Wednesday, August 27, 2025

10 items

Anthropic says criminals used Claude for extortion and ransomware

Who did it: HUMAN Anthropic

Anthropic's threat report says a criminal used Claude Code to target at least 17 organisations for personal-data theft and extortion, with ransom demands sometimes exceeding $500,000; North Korean operatives used Claude to land remote jobs at US Fortune 500 technology companies; and a criminal with basic coding skills sold Claude-built ransomware for $400 to $1200. Anthropic says it banned the accounts.

Malicious Nx packages turned AI coding CLIs into credential thieves

Who did it: HYBRID Snyk

On August 26–27, eight malicious Nx releases on npm ran a postinstall script that invoked Claude Code, Gemini CLI and Amazon q with guardrail-skipping flags to inventory SSH keys, wallet files and .env files, then posted harvested secrets to public GitHub repos, Snyk reports. A September 1 update says the flawed CI workflow behind the compromise was estimated to be Claude Code-generated.

Deloitte government report contains apparently invented robo-debt quote

Who did it: HYBRID afr.com

A $439,000 Deloitte report for the Department of Employment and Workplace Relations, already found to cite non-existent academic works, also contains an apparently invented quote attributed to Justice Davies in the robo-debt case Amato, according to the welfare academic who found the errors and suspects AI. Deloitte declined to say whether AI was used; the department says it continues to investigate.

Scammer used deepfake Steve Burton to fleece Los Angeles woman

Who did it: HUMAN ABC7 Los Angeles

A scammer sent a Los Angeles woman deepfake videos of 'General Hospital' star Steve Burton professing love, and she sent at least $81,304 in gift cards, cash and bitcoin, according to an LAPD incident report. She also sold her condo; her daughter intervened before $70,000 more went out, and the two have sued to reverse the sale.

Houston gun store co-owner arrested over alleged AI deepfake porn

Who did it: HUMAN Houston Public Media

Jorge Abrego, 37, co-owner of Houston gun store HTX Tactical, was arrested after allegedly using AI to make fake pornographic images of a social media influencer. Court documents say he admitted creating fake accounts impersonating her and fake nude images using AI or Photoshop. He is out on a $10,000 bond that bars him from owning or using a firearm.

Montana man charged in case involving AI-altered child abuse images

Who did it: HUMAN Newstalk KGVO

Montana prosecutors on August 21, 2025 charged Shy Herbert McCutchan, 31, of Carter County with three felony counts of sexual abuse of children over explicit images of a child under 12. Attorney General Austin Knudsen says he took a child's photos from the parents' public social media account and used AI to create abuse material. He is held on $250,000 bond.

Korean teen jailed for deepfake sexual images of teachers

Who did it: HUMAN 한국일보

The Incheon District Court on the 27th sentenced a teenager to an indeterminate prison term of one year to one year six months, taking him into custody, for making deepfake sexual images of two teachers, a cram-school instructor and others and posting them online. Prosecutors had sought up to five years; the court noted the victims have not returned to teaching.

Medical exam hopefuls want court to probe ChatGPT cheating

Who did it: HUMAN RTBF

At least five students who sat the medical entrance exam want a civil court, in summary proceedings, to order an investigation into suspected ChatGPT cheating after the appeals commission declined to examine large-scale AI fraud, their lawyer says. This year's pass rate was an unusually high 47%; 5,544 students sat the exam on July 3 and 4.

Director pleads guilty over 'AI trading' scheme that never traded

Who did it: HUMAN The Straits Times

Ong Kai Min, 42, a director of Singapore Index Trading Institute, pleaded guilty on Aug 27 to eight counts of cheating over a scheme he said used AI programs to trade for investors, with claimed historical returns of at least 3% a month. Prosecutors say no trading was ever conducted. The case involves over $4.6 million in total; sentencing is expected Sept 19.

Utah man arrested over AI child abuse images, police say

Who did it: HUMAN KSL News

Russell Kenneth Gatrell, 45, of Cottonwood Heights was arrested on Tuesday for investigation of five counts of aggravated sexual exploitation of a minor. A police affidavit says he admitted storing child sexual abuse material on about 280TB of drives, and that FBI computer scientists found he was using 'incredibly advanced' AI, likely with images of identifiable children, to create more.