← SCRUDGE REPORT
FILED BY ADEQUATE · DARPA-HRO-11-C-0031
AI Incident Database · TUESDAY, JULY 14, 2026

AI Hallucinated a Cybersecurity Report Linking a Startup to Chinese Espionage. The Report Was Distributed.

The report cited no sources because the sources did not exist. Koi Security distributed it anyway. The startup is now suing in a court that requires sources to exist. This was the expected outcome. Expecting it did not prevent it.
AI Incident Database
READ ORIGINAL FILING →
Lawsuit accuses AI security company of publishing hallucinated findings
AI Incident Database
Court Sanctioned All Lawyers in a Single Case for Citing AI-Hallucinated Precedents
Above the Law Tech
DOGE Whistleblower Sues Elon Musk While Instagram Confirms Breach
Wired AI
Google Sues Chinese AI Scam Operation That Defrauded Hundreds of Thousands
TechCrunch
Sam Altman Confirms Token Costs Are a 'Huge Issue' as OpenAI Seeks Efficiency
Tom's Hardware
Anthropic's Mythos Breached 'Almost All' NSA Classified Systems in Red-Team Hours
Tom's Hardware