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Alleged ChatGPT Misuse by Contractor Leads to Reported Data Exposure in New South Wales Resilient Homes Program

2 news reports Snapshot 7 Sep 2026

In brief

An AI system built and deployed by Openai allegedly harmed Resilient Homes Program Applicants, Resilient Homes Program and 5 others.

Risk domain
Privacy & Security Compromise of privacy by obtaining, leaking or correctly inferring sensitive information
Occurred
Coverage
2 reportsOct 2025

What happened

A former contractor of the New South Wales Reconstruction Authority reportedly uploaded a spreadsheet containing personal and health information of Resilient Homes Program applicants to ChatGPT during a three-day period in March 2025. Up to 3,000 people may have reportedly been affected.

Laws that address this harm

Policy angle: Classified under Privacy & Security (Compromise of privacy by obtaining, leaking or correctly inferring sensitive information) in the MIT AI Risk Repository taxonomy; 5 recorded instruments address this use case.

Matched from the record's risk domain and country to the instruments recorded here. A reviewer can correct the match in the repository (data/external/incident_overrides.yaml).

News reports (2)

Titles link to the original publisher; report text is not reproduced here.

  1. Resilient Homes Program data breach
    nsw.gov.au · NSW Government
  2. ‘Deeply sorry’: NSW contractor uploaded 3000 flood victims’ data to ChatGPT
    news.com.au · Frank Chung

Who was involved

Alleged deployer
Openai
Alleged developer
Openai
Alleged harmed party
Resilient Homes Program Applicants, Resilient Homes Program, Government Of New South Wales, General Public Of New South Wales, General Public Of Australia, General Public, Privacy

Classification (MIT AI Risk Repository taxonomy)

Causal entity
Human
Intent
Unintentional
Timing
Post-deployment
Harm level
—
Sectors
—
Countries
—

Risk entries describing this failure mode

Entries from the MIT AI Risk Repository coded to subdomain 2.1.

  • Risks to privacy

    "General- purpose AI models or systems can ‘leak’ information about individuals whose data was used in training. For future models trained on sensitive personal data like health or financial data, this may lead to partic...

    International Scientific Report on the Safety of Advanced AI (Bengio2024)

  • Risks to privacy

    "General- purpose AI systems can cause or contribute to violations of user privacy. Violations can occur inadvertently during the training or usage of AI systems, for example through unauthorised processing of personal d...

    International AI Safety Report 2025 (Bengio2025)

  • Private Training Data

    "As recent LLMs continue to incorporate licensed, created, and publicly available data sources in their corpora, the potential to mix private data in the training corpora is significantly increased. The misused private d...

    Risk Taxonomy, Mitigation, and Assessment Benchmarks of Large Language Model Systems (Cui2024)

  • Association in LLMs

    "Association in LLMs refers to the capability to associate various pieces of information related to a person. According to [68], [86], given a pair of PII entities (xi , xj ), which is associated by a model F. Using a pr...

    Risk Taxonomy, Mitigation, and Assessment Benchmarks of Large Language Model Systems (Cui2024)

  • Privacy Leakage

    "Privacy Leakage means the generated content includes sensitive personal information"

    Risk Taxonomy, Mitigation, and Assessment Benchmarks of Large Language Model Systems (Cui2024)

  • Memorization in LLMs

    "Memorization in LLMs refers to the capability to recover the training data with contextual prefixes. According to [88]–[90], given a PII entity x, which is memorized by a model F. Using a prompt p could force the model...

    Risk Taxonomy, Mitigation, and Assessment Benchmarks of Large Language Model Systems (Cui2024)

  • Privacy Leakage

    "The model is trained with personal data in the corpus and unintentionally exposing them during the conversation."

    Risk Taxonomy, Mitigation, and Assessment Benchmarks of Large Language Model Systems (Cui2024)

  • Privacy and regulation violations

    "Some of the broken systems discussed above are also very invasive of people’s privacy, controlling, for instance, the length of someone’s last romantic relationship [51]. More recently, ChatGPT was banned in Italy over...

    Navigating the Landscape of AI Ethics and Responsibility (Cunha2023)

Incidents in the same risk subdomain

All incidents in this subdomain

Other incidents involving Openai

Source record: incident #1228 on the AI Incident Database · all 2 reports