AI incident #1423 ·
KPMG Australia Partner Reportedly Used AI to Cheat on Internal AI Training Test and Was Fined A$10,000
What happened
In Australia, a KPMG Australia partner and registered company auditor reportedly uploaded a reference document from an internal AI training course into an AI tool to answer an exam question, in violation of firm policy. KPMG reportedly detected the activity in August 2025 and imposed a penalty of more than A$10,000 of future income after an internal investigation. The partner also reportedly self-reported the matter to Chartered Accountants ANZ, which is investigating the case.
Only the incident metadata is stored here. The underlying news reports are on the AI Incident Database (CC BY-SA 4.0); use the links above to read them.
News reports (2)
Coverage catalogued by the AI Incident Database. Titles link to the original publisher; the text is not reproduced here.
Who was involved
- Alleged deployer
- Unnamed Kpmg Australia Partner
- Alleged developer
- Generative Ai Developers
- Alleged harmed party
- Kpmg Australia
Classification (MIT AI Risk Repository taxonomy)
- Risk domain
- Malicious Actors & Misuse
- Risk subdomain
- 4.3 Fraud, scams, and targeted manipulation
- Causal entity
- Human
- Intent
- Intentional
- Timing
- Post-deployment
- Harm level
- —
- Sectors
- —
- Countries
- —
Risk entries describing this failure mode
Entries from the MIT AI Risk Repository coded to subdomain 4.3.
- Impersonation/identity theft
"Impersonation/identity theft - Theft of an individual, group or organisation’s identity by a third-party in order to defraud, mock or otherwise harm them."
- IP/copyright loss
"IP/copyright loss - Misuse or abuse of an individual or organisation’s intellectual property, including copyright, trademarks, and patents."
- Dehumanisation/objectification
"Dehumanisation/objectification - Use or misuse of a technology system to depict and/or treat people as not human, less than human, or as objects."
- Defamation/libel/slander
"Defamation/libel/slander - Use of a technology system to create, facilitate or amplify false perception(s) about an individual, group, or organisation."
- Financial and business
"Financial and Business - Use or misuse of a technology system in a manner that damages the financial interests of an individual or group, or which causes strategic, operational, legal or financial harm to a business or...
- Cheating/plagiarism
"Cheating/plagiarism - Use of another person’s or group’s words or ideas without consent and/or acknowledgement."
- Cybersecurity
"LLMs may exacerbate cybersecurity risks in various ways (Newman, 2024). Firstly, LLMs may significantly amplify the effectiveness of deceptive operations aimed at tricking people into disclosing sensitive information or...
- Domain-Specific Misuses
"Improvements in LLMs may exert greater pressure to apply LLMs to various domains, such as health and education (Eloundou et al., 2023). Crude efforts to use LLMs in such domains, however, may incur harm and should be di...
Incidents in the same risk subdomain
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- Scammers Reportedly Used AI-Cloned Daughter's Voice to Defraud Bay Area Mother in Fake Kidnapping Call
- Texas Man Arturo Hernandez Allegedly Published AI-Generated Deepfake Pornography Depicting Women in TAKE IT DOWN Act Case
- Guelph, Ontario, Woman Reportedly Lost $14,000 in Purported Deepfake MrBeast Cryptocurrency Scam
- Purportedly AI-Recreated Clips from Beastie Boys' 'Sabotage' Video Reportedly Appeared in FBI Promotional Video Posted by Kash Patel
- Ahmedabad Aadhaar Fraud Racket Reportedly Used Purportedly AI-Generated Deepfakes to Change Businessman's Linked Mobile Number