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Erroneous Declined Transaction Notification by PayPal AI Assistant

Occurred
Jun 19, 2024
Published
Jul 13, 2024
Source
AI Incident Database

Summary

On July 13th, 2024, a user reported an incident involving PayPal's generative AI chatbot. The chatbot allegedly incorrectly informed the user of a declined transaction that never occurred, causing confusion and prompting a call to customer service for clarification. This false alert suggests a flaw in the AI system's reliability. The incident created unnecessary labor for both the user and PayPal's human support, demonstrating the potential harm of deploying generative AI without thorough testing and error handling mechanisms.

Developers

  • PayPal

Deployers

  • PayPal

Harmed parties

  • Kiri Wagstaff
  • PayPal customer service representatives
  • PayPal customers

Classification

Category confidence: 90%
Severity confidence: 85%

Rationale: Generative AI chatbot provided false financial information causing user confusion and support burden.

Classifier: Qwen/Qwen3.5-35B-A3B-FP8

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