HISPI Project Cerebellum HISPI PROJECT CEREBELLUM

Michigan's Unemployment Benefits Algorithm MiDAS Issued False Fraud Claims to Thousands of People

October 1, 2013

Michigan’s MiDAS system, designed to cut costs, falsely accused over 34,000 people of unemployment fraud from 2013 to 2015. Without human oversight, the automated system led to an 85% error rate causing financial ruin for many. Victims faced wage garnishments, some lost homes, and some faced bankruptcy. Early warnings were ignored, but lawsuits and federal pressure eventually forced reforms. Legislators are now seeking compensation for those wrongfully accused. This incident underscores the need for responsible AI governance and safe and secure practices to prevent harm. For more information on how Project Cerebellum TAIM (Govern) can help in shaping trustworthy AI, visit JOIN US.

Matched TAIM controls

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Alleged deployer
michigan-unemployment-insurance-agency
Alleged developer
fast-enterprises, csg-government-solutions
Alleged harmed parties
unemployed-michigan-residents-falsely-accused-of-fraud, michigan-residents-who-faced-bankruptcy-or-foreclosure-due-to-midas

Source

Data from the AI Incident Database (AIID). Cite this incident: https://incidentdatabase.ai/cite/373

Data source

Incident data is from the AI Incident Database (AIID).

When citing the database as a whole, please use:

McGregor, S. (2021) Preventing Repeated Real World AI Failures by Cataloging Incidents: The AI Incident Database. In Proceedings of the Thirty-Third Annual Conference on Innovative Applications of Artificial Intelligence (IAAI-21). Virtual Conference.

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