• Education
    • Higher Education
    • Scholarships & Grants
    • Online Learning
    • School Reforms
    • Research & Innovation
  • Lifestyle
    • Travel
    • Food & Drink
    • Fashion & Beauty
    • Home & Living
    • Relationships & Family
  • Technology & Startups
    • Software & Apps
    • Startup Success Stories
    • Startups & Innovations
    • Tech Regulations
    • Venture Capital
    • Artificial Intelligence
    • Cybersecurity
    • Emerging Technologies
    • Gadgets & Devices
    • Industry Analysis
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy
Today Headline
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
Today Headline
No Result
View All Result
Home Crime & Justice

Former nate CEO who used human workers instead of AI allegedly defrauded investors lured by new tech of millions

April 13, 2025
in Crime & Justice
Reading Time: 3 mins read
A A
0
Former nate CEO who used human workers instead of AI allegedly defrauded investors lured by new tech of millions
4
SHARES
9
VIEWS
Share on FacebookShare on Twitter


A fintech startup that raised $40 million based on the premise of its artificial intelligence capabilities was fueled by human labor, allegedly defrauding investors lured by the new technology of millions, federal prosecutors said this week in a statement.

Albert Saniger, 35, the former CEO  and founder of nate in 2018, who is from Barcelona, Spain, was indicted in the Southern District of New York for engaging in a scheme to allegedly defraud investors and making false statements about his company’s AI capabilities.

Nate, an e-commerce company, launched the nate app that claimed to streamline the online shopping checkout process via a single AI-powered tap option. But the app was not powered by advanced AI technology at all, according to the indictment. 

With the promise of custom-built “deep learning models” that would allow the app to directly purchase goods on product pages in fewer than three seconds, Saniger raised over $40 million. While instructing employees to keep nate’s reliance on overseas workers secret, he pitched investors an AI-driven product capable of 10,000 daily transactions.

Instead, the app allegedly relied heavily on overseas workers in two different countries who manually processed transactions, mimicking what users believed was being done by automation. Saniger, meanwhile, allegedly told investors and the public that the transactions were being completed by AI. 

“Saniger allegedly abused the integrity associated with his former position as the CEO to perpetuate a scheme filled with smoke and mirrors,” the U.S. Justice Department said in a statement.

In the technology’s absence, Saniger allegedly relied heavily on hundreds of workers at a call center in the Philippines, court documents said. When a deadly tropical storm struck the country in October 2021, the indictment said, nate established a new call center in Romania to handle the backlog of customer services. Investors were likely never exposed to the lull in transactions because Saniger directed that transactions by investors be prioritized to avoid suspicion.

The aftermath of the company’s fallout in 2023, left investors with near-total losses, the indictment said. 

U.S. private AI investment grew to $109.1 billion last year — and the U.N. trade and development arm said market share is poised to climb to $4.8 trillion by 2033. 

AI is widely perceived as being free from human intervention but the reality paints a more complicated picture. Nate is not the only company that has capitalized on AI through cheap labor overseas.

In 2023, The Washington Post exposed ‘digital sweatshops’ in the Philippines where employees worked on content to refine American AI models for a company called Scale AI, which multinational technology conglomerates like Meta, Microsoft and OpenAi utilize.

CBS News reached out to the U.S. attorney’s office and Saniger for comment.

More from CBS News



Source link

Tags: aiallegedlyCEOdefraudedhumanInvestorsluredMillionsnateTechworkers
Previous Post

Republicans fear Trump’s trade war could lead to political wipeout

Next Post

Convalescing Pope Francis opens Holy Week with in-person greeting in St. Peter’s Square

Related Posts

U.S.-German citizen arrested for attempted firebombing of U.S. Embassy in Tel Aviv

U.S.-German citizen arrested for attempted firebombing of U.S. Embassy in Tel Aviv

May 26, 2025
5
Police Officer Allegedly Collected $600K For Fake Head Injury

Police Officer Allegedly Collected $600K For Fake Head Injury

May 23, 2025
6
Next Post
Image: VATICAN-RELIGION-POPE

Convalescing Pope Francis opens Holy Week with in-person greeting in St. Peter's Square

  • Trending
  • Comments
  • Latest
Family calls for change after B.C. nurse dies by suicide after attacks on the job

Family calls for change after B.C. nurse dies by suicide after attacks on the job

April 2, 2025
Pioneering 3D printing project shares successes

Product reduces TPH levels to non-hazardous status

November 27, 2024

Hospital Mergers Fail to Deliver Better Care or Lower Costs, Study Finds todayheadline

December 31, 2024

Police ID man who died after Corso Italia fight

December 23, 2024
Harris tells supporters 'never give up' and urges peaceful transfer of power

Harris tells supporters ‘never give up’ and urges peaceful transfer of power

0
Des Moines Man Accused Of Shooting Ex-Girlfriend's Mother

Des Moines Man Accused Of Shooting Ex-Girlfriend’s Mother

0

Trump ‘looks forward’ to White House meeting with Biden

0
Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

0
All-party delegation led by Tharoor arrives in Guyana to convey India's message of zero-tolerance for terrorism

All-party delegation led by Tharoor arrives in Guyana to convey India’s message of zero-tolerance for terrorism

May 26, 2025
Morten Bødskov

Copenhagen hits back as Berlin and Paris push to scrap rules on green supply chains

May 26, 2025
Egypt working to integrate railways in Asia-Europe network

Egypt working to integrate railways in Asia-Europe network

May 26, 2025
Is Chick-fil-A open on Memorial Day?

Is Chick-fil-A open on Memorial Day? todayheadline

May 26, 2025

Recent News

All-party delegation led by Tharoor arrives in Guyana to convey India's message of zero-tolerance for terrorism

All-party delegation led by Tharoor arrives in Guyana to convey India’s message of zero-tolerance for terrorism

May 26, 2025
0
Morten Bødskov

Copenhagen hits back as Berlin and Paris push to scrap rules on green supply chains

May 26, 2025
0
Egypt working to integrate railways in Asia-Europe network

Egypt working to integrate railways in Asia-Europe network

May 26, 2025
1
Is Chick-fil-A open on Memorial Day?

Is Chick-fil-A open on Memorial Day? todayheadline

May 26, 2025
6

TodayHeadline is a dynamic news website dedicated to delivering up-to-date and comprehensive news coverage from around the globe.

Follow Us

Browse by Category

  • Africa
  • Asia
  • Basketball
  • Business & Finance
  • Climate Change
  • Crime & Justice
  • Cybersecurity
  • Economic Policies
  • Elections
  • Entertainment
  • Entrepreneurship
  • Environmental Policies
  • Europe
  • Football
  • Gadgets & Devices
  • Health
  • Medical Research
  • Mental Health
  • Middle East
  • Motorsport
  • Olympics
  • Politics
  • Public Health
  • Relationships & Family
  • Science & Environment
  • Software & Apps
  • Space Exploration
  • Sports
  • Stock Market
  • Technology & Startups
  • Tennis
  • Travel
  • Uncategorized
  • Us & Canada
  • Wildlife & Conservation
  • World News

Recent News

All-party delegation led by Tharoor arrives in Guyana to convey India's message of zero-tolerance for terrorism

All-party delegation led by Tharoor arrives in Guyana to convey India’s message of zero-tolerance for terrorism

May 26, 2025
Morten Bødskov

Copenhagen hits back as Berlin and Paris push to scrap rules on green supply chains

May 26, 2025
  • Education
  • Lifestyle
  • Technology & Startups
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy

© 2024 Todayheadline.co

Welcome Back!

OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business & Finance
  • Corporate News
  • Economic Policies
  • Entrepreneurship
  • Market Trends
  • Crime & Justice
  • Court Cases
  • Criminal Investigations
  • Cybercrime
  • Legal Reforms
  • Policing
  • Education
  • Higher Education
  • Online Learning
  • Entertainment
  • Awards & Festivals
  • Celebrity News
  • Movies
  • Music
  • Health
  • Fitness & Nutrition
  • Medical Breakthroughs
  • Mental Health
  • Pandemic Updates
  • Lifestyle
  • Fashion & Beauty
  • Food & Drink
  • Home & Living
  • Politics
  • Elections
  • Government Policies
  • International Relations
  • Legislative News
  • Political Parties
  • Africa
  • Asia
  • Europe
  • Middle East
  • Artificial Intelligence
  • Cybersecurity
  • Emerging Technologies
  • Gadgets & Devices
  • Industry Analysis
  • Basketball
  • Football
  • Motorsport
  • Olympics
  • Climate Change
  • Environmental Policies
  • Medical Research
  • Science & Environment
  • Space Exploration
  • Wildlife & Conservation
  • Sports
  • Tennis
  • Technology & Startups
  • Software & Apps
  • Startup Success Stories
  • Startups & Innovations
  • Tech Regulations
  • Venture Capital
  • Uncategorized
  • World News
  • Us & Canada
  • Public Health
  • Relationships & Family
  • Travel
  • Research & Innovation
  • Scholarships & Grants
  • School Reforms
  • Stock Market
  • TV & Streaming
  • Advertise with Us
  • Privacy & Policy
  • About us
  • Contact

© 2024 Todayheadline.co