# AI incidents at banks: governance finding

Source: https://www.bankingnewsai.com/ai-incidents/role/governance
Last updated: Oct 21, 2026

## How many AI incidents at banks since 2022 were cases where a court, regulator, auditor or the institution itself found a problem in how AI was governed, marketed or used (bias, litigation, regulatory findings, AI-washing)?

As of Oct 21, 2026, the register holds 24 publicly reported AI incidents at banks and fintechs where a court, regulator, auditor or the institution itself found a problem in how AI was governed, marketed or used (bias, litigation, regulatory findings, AI-washing) since January 2022. 11 of the 24 records involve systems the institution or a regulator described as AI; 7 are automated systems not described as AI, and 6 are machine-learning systems not labelled AI on the record. Countries: United States (17), United Kingdom (2), Germany (1). Average severity 2.3 on a 1–5 scale. Status: 2 confirmed by the institution, 7 regulator finding, 8 court filing, 5 settled, 2 disputed. The most recent is "U.S. Bank customers sue Pegasystems alleging its Voice AI secretly analysed their customer-service calls" (Oct 2, 2026).

| Date | Institution | Incident | AI? | Role | Category | Severity | Status |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Oct 2, 2026 | U.S. Bank National Association (named in the complaint, not a defendant) | [U.S. Bank customers sue Pegasystems alleging its Voice AI secretly analysed their customer-service calls](https://www.bankingnewsai.com/ai-incidents/us-bancorp-2026-pega-voice-ai-wiretap-suit) | AI (stated) | Governance finding | Litigation | 2/5 | Court filing |
| Jun 22, 2026 | Deutsche Bank National Trust Company (as trustee) | [D.C. Court of Appeals strikes Deutsche Bank National Trust brief citing four AI-invented cases](https://www.bankingnewsai.com/ai-incidents/deutsche-bank-us-2026-ai-hallucinated-brief-struck) | AI (stated) | Governance finding | Litigation | 2/5 | Court filing |
| May 13, 2026 | Klarna and Pagaya Technologies | [Pagaya sues Klarna, alleging it 'distilled' and misappropriated its AI underwriting model](https://www.bankingnewsai.com/ai-incidents/klarna-2026-pagaya-underwriting-model-suit) | AI (stated) | Governance finding | Litigation | 2/5 | Disputed |
| May 5, 2026 | CB Financial Services, Inc. (Community Bank, Carmichaels, PA) | [Community Bank files 8-K after an employee put customer SSNs into an unauthorized AI app](https://www.bankingnewsai.com/ai-incidents/cb-financial-2026-shadow-ai-customer-data) | AI (stated) | Governance finding | Data leak to an LLM | 3/5 | Confirmed by the institution |
| Mar 12, 2026 | Intesa Sanpaolo S.p.A. and Isybank S.p.A. | [Italy's privacy regulator fines Intesa Sanpaolo €17.6m for profiling 2.4m customers to move them to Isybank](https://www.bankingnewsai.com/ai-incidents/intesa-sanpaolo-2026-garante-isybank-profiling) | Automation, not AI | Governance finding | Regulatory finding | 3/5 | Regulator finding |
| Jul 10, 2025 | Earnest Operations LLC | [Massachusetts AG settles with student lender Earnest for $2.5m over AI underwriting disparate impact](https://www.bankingnewsai.com/ai-incidents/earnest-2025-ai-underwriting-settlement) | AI (stated) | Governance finding | Bias finding | 3/5 | Settled |
| Apr 28, 2025 | JPMorgan Chase Bank, N.A. | [Class action alleged JPMorgan's HireVue AI video interviews were an unlawful lie-detector test](https://www.bankingnewsai.com/ai-incidents/jpmorgan-chase-2025-hirevue-lie-detector-suit) | AI (stated) | Governance finding | Litigation | 2/5 | Court filing |
| Jan 22, 2025 | Kakao Pay | [Korea fines Kakao Pay KRW 5.97bn for sending 40m users' data to Alipay to build a credit-risk scoring model](https://www.bankingnewsai.com/ai-incidents/kakao-pay-2025-alipay-credit-score-data-fine) | ML (inferred) | Governance finding | Regulatory finding | 3/5 | Regulator finding |
| Nov 12, 2024 | Metro Bank | [FCA fines Metro Bank £16.7m after its automated transaction monitoring missed 60m transactions](https://www.bankingnewsai.com/ai-incidents/metro-bank-2024-fca-automated-transaction-monitoring) | Automation, not AI | Governance finding | Regulatory finding | 3/5 | Regulator finding |
| Oct 10, 2024 | Rimar Capital USA, Inc. / Rimar Capital, LLC | [SEC charges Rimar Capital over false claims of an AI-driven trading platform](https://www.bankingnewsai.com/ai-incidents/rimar-capital-2024-sec-ai-washing) | AI (stated) | Governance finding | AI-washing | 3/5 | Settled |
| Oct 2, 2024 | Starling Bank | [FCA fines Starling £29m after its automated sanctions screening checked only part of the list](https://www.bankingnewsai.com/ai-incidents/starling-2024-fca-automated-sanctions-screening) | Automation, not AI | Governance finding | Regulatory finding | 4/5 | Regulator finding |
| Jul 25, 2024 | ING Bank N.V. | [Dutch human-rights institute finds ING's automated payment screening discriminated over non-Dutch names](https://www.bankingnewsai.com/ai-incidents/ing-2024-nihr-name-screening-discrimination) | Automation, not AI | Governance finding | Bias finding | 3/5 | Regulator finding |
| Mar 27, 2024 | Upstart | [Independent monitor finds approval disparities for Black applicants in Upstart's AI lending model](https://www.bankingnewsai.com/ai-incidents/upstart-2024-fair-lending-monitor-disparities) | AI (stated) | Governance finding | Bias finding | 2/5 | Confirmed by the institution |
| Mar 18, 2024 | Delphia (USA) Inc. and Global Predictions Inc. | [SEC's first 'AI-washing' cases: robo-advisers Delphia and Global Predictions pay $400,000](https://www.bankingnewsai.com/ai-incidents/delphia-global-predictions-2024-sec-ai-washing) | AI (stated) | Governance finding | AI-washing | 3/5 | Settled |
| Dec 17, 2023 | Navy Federal Credit Union | [Suits alleged Navy Federal's semi-automated mortgage underwriting discriminated against minority applicants](https://www.bankingnewsai.com/ai-incidents/navy-federal-2023-mortgage-underwriting-bias-suit) | Automation, not AI | Governance finding | Litigation | 2/5 | Disputed |
| Dec 2023 | Revolut | [Revolut faces Illinois BIPA class action over selfie identity checks](https://www.bankingnewsai.com/ai-incidents/revolut-2023-illinois-biometric-id-suit) | ML (inferred) | Governance finding | Litigation | 1/5 | Court filing |
| May 31, 2023 | Deutsche Kreditbank AG (DKB) | [Berlin DPA fines a bank, reported as DKB, €300,000 over an unexplained automated credit-card refusal](https://www.bankingnewsai.com/ai-incidents/dkb-2023-automated-credit-card-refusal-fine) | Automation, not AI | Governance finding | Regulatory finding | 2/5 | Regulator finding |
| May 1, 2023 | Coinbase | [Coinbase sued under Illinois BIPA over face-scan identity verification](https://www.bankingnewsai.com/ai-incidents/coinbase-2023-biometric-face-scan-suits) | ML (inferred) | Governance finding | Litigation | 1/5 | Court filing |
| Nov 27, 2022 | Webster Bank, N.A. | [Breach at ML fraud-analytics vendor Guardian Analytics exposes Webster Bank customers' data](https://www.bankingnewsai.com/ai-incidents/webster-2023-guardian-analytics-vendor-breach) | ML (inferred) | Governance finding | Vendor AI breach | 3/5 | Settled |
| Oct 6, 2022 | JPMorgan Chase | [Callers sued over Nuance voice biometrics on Chase customer-service calls](https://www.bankingnewsai.com/ai-incidents/jpmorgan-chase-2022-nuance-voiceprint-suits) | ML (inferred) | Governance finding | Litigation | 1/5 | Court filing |
| Oct 3, 2022 | The Charles Schwab Corporation | [Class action alleged Schwab's Voice ID examined callers' voiceprints without written consent](https://www.bankingnewsai.com/ai-incidents/schwab-2022-voice-id-biometric-privacy-suit) | ML (inferred) | Governance finding | Litigation | 1/5 | Court filing |
| Jul 26, 2022 | Upstart | [Investors' class action says Upstart misled them about its AI underwriting model](https://www.bankingnewsai.com/ai-incidents/upstart-2022-ai-model-securities-suit) | AI (stated) | Governance finding | Litigation | 2/5 | Court filing |
| Feb 17, 2022 | Wells Fargo Bank, N.A. | [Suits alleged Wells Fargo's automated mortgage underwriting discriminated against minority applicants](https://www.bankingnewsai.com/ai-incidents/wells-fargo-2022-mortgage-underwriting-bias-suit) | Automation, not AI | Governance finding | Litigation | 3/5 | Settled |
| Feb 8, 2022 | Budapest Bank Zrt. | [Hungarian DPA fines Budapest Bank HUF 250m for AI emotion analysis of customer-service calls](https://www.bankingnewsai.com/ai-incidents/budapest-bank-2022-emotion-ai-call-analysis-fine) | AI (stated) | Governance finding | Regulatory finding | 2/5 | Regulator finding |

The register: https://www.bankingnewsai.com/ai-incidents

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