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Home/AI Incident Database/Founder of shopping app Nate charged with fraud after its "AI" checkout was found to be manual workers in the Philippines

Founder of shopping app Nate charged with fraud after its "AI" checkout was found to be manual workers in the Philippines

Nate told investors its app completed purchases with AI, but prosecutors say hundreds of contractors in the Philippines completed them by hand, leading to federal fraud charges against the founder.

Severity: Mediumnateai washingfraudsdny

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