A teenager in New Jersey has filed a major lawsuit against the company behind an artificial intelligence (AI) “clothes removal” tool that allegedly created a fake nude image of her. The case has drawn national attention because it shows how AI can invade privacy in harmful ways. The lawsuit was filed to protect students and teens who share photos online and to show how easily AI tools can exploit their images.

Sign up for my FREE CyberGuy Report
Get my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox. Plus, you’ll get instant access to my Ultimate Scam Survival Guide — free when you join my CYBERGUY.COM newsletter.

LEAKED META DOCUMENTS SHOW HOW AI CHATBOTS HANDLE CHILD EXPLOITATION

How the fake nude images were created and shared

When she was fourteen, the plaintiff posted a few photos of herself on social media. A male classmate used an AI tool called ClothOff to remove her clothing in one of those pictures. The altered photo kept her face, making it look real.

The fake image quickly spread through group chats and social media. Now seventeen, she is suing AI/Robotics Venture Strategy 3 Ltd., the company that operates ClothOff. A Yale Law School professor, several students and a trial attorney filed the case on her behalf.

A New Jersey teen is suing the creators of an AI tool that made a fake nude image of her. (iStock)

The suit asks the court to delete all fake images and stop the company from using them to train AI models. It also seeks to remove the tool from the internet and provide financial compensation for emotional harm and loss of privacy.

The legal fight against deepfake abuse

States across the U.S. are responding to the rise of AI-generated sexual content. More than 45 states have passed or proposed laws to make deepfakes without consent a crime. In New Jersey, creating or sharing deceptive AI media can lead to prison time and fines.

At the federal level, the Take It Down Act requires companies to remove nonconsensual images within 48 hours after a valid request. Despite new laws, prosecutors still face challenges when developers live overseas or operate through hidden platforms.

APPARENT AI MISTAKES FORCE TWO JUDGES TO RETRACT SEPARATE RULINGS

The lawsuit aims to stop the spread of deepfake “clothes-removal” apps and protect victims’ privacy. (iStock)

Why legal experts say this case could set a national precedent

Experts believe this case could reshape how courts view AI liability. Judges must decide whether an AI developer is responsible when people misuse their tool. They also need to consider whether the software itself can be an instrument of harm.

The lawsuit highlights another question: how can victims prove damage when no physical act occurred, but the harm feels real? The outcome may define how future deepfake victims seek justice.

Is Clothoff still available?

Reports indicate that ClothOff may no longer be accessible in some countries, such as the United Kingdom, where it was blocked after public backlash. However, users in other regions, including the U.S., still appear able to reach the company’s web platform, which continues to advertise tools that “remove clothes from photos.”

On its official website, the company includes a short disclaimer addressing the ethics of its technology. It states, “Is it ethical to use AI generators to create images? Using AI to create ‘deepnude’ style images raises ethical considerations. We encourage users to approach this with an understanding of responsibility and respect for others’ privacy, ensuring that the use of undress app is done with full awareness of ethical implications.”

Whether fully operational or partly restricted, ClothOff’s ongoing presence online continues to raise serious legal and moral questions about how far AI developers should go in allowing such image-manipulation tools to exist.

CLICK HERE TO GET THE FOX NEWS APP

This case could set a national precedent for holding AI companies accountable for misuse of their tools. (Kurt “CyberGuy” Knutsson)

Why this AI lawsuit matters for everyone online

The ability to make fake nude images from a simple photo threatens anyone with an online presence. Teens face special risks because AI tools are easy to use and share. The lawsuit draws attention to the emotional harm and humiliation caused by such images.

Parents and educators worry about how quickly this technology spreads through schools. Lawmakers are under pressure to modernize privacy laws. Companies that host or enable these tools must now consider stronger safeguards and faster takedown systems.

What this means for you

If you become a target of an AI-generated image, act quickly. Save screenshots, links and dates before the content disappears. Request immediate removal from websites that host the image. Seek legal help to understand your rights under state and federal law.

Parents should discuss digital safety openly. Even innocent photos can be misused. Knowing how AI works helps teens stay alert and make safer online choices. You can also demand stricter AI rules that prioritize consent and accountability.

Take my quiz: How safe is your online security?

Think your devices and data are truly protected? Take this quick quiz to see where your digital habits stand. From passwords to Wi-Fi settings, you’ll get a personalized breakdown of what you’re doing right and what needs improvement. Take my Quiz here: Cyberguy.com.

Kurt’s key takeaways

This lawsuit is not only about one teenager. It represents a turning point in how courts handle digital abuse. The case challenges the idea that AI tools are neutral and asks whether their creators share responsibility for harm. We must decide how to balance innovation with human rights. The court’s ruling could influence how future AI laws evolve and how victims seek justice.

If an AI tool creates an image that destroys someone’s reputation, should the company that made it face the same punishment as the person who shared it? Let us know by writing to us at Cyberguy.com.

Sign up for my FREE CyberGuy Report
Get my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox. Plus, you’ll get instant access to my Ultimate Scam Survival Guide — free when you join my CYBERGUY.COM newsletter.

Copyright 2025 CyberGuy.com.  All rights reserved.

Phishing scams target every kind of institution, whether it’s a hospital, a big tech firm or even a fast-food chain. Educational institutions aren’t an exception, especially in 2025, when attackers are actively directing their efforts toward them. Universities across the U.S. are facing a new type of cybercrime where attackers are targeting staff to hijack salary payments. Researchers have discovered that since March 2025, a hacking group known as Storm-2657 has been running “pirate payroll” attacks, using phishing tactics to gain access to payroll accounts. Let’s talk more about this attack and how you can stay safe.

Sign up for my FREE CyberGuy Report
Get my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox. Plus, you’ll get instant access to my Ultimate Scam Survival Guide — free when you join my CYBERGUY.COM. newsletter.

SCAMMERS NOW IMPERSONATE COWORKERS, STEAL EMAIL THREADS IN CONVINCING PHISHING ATTACKS

How does the university payroll scam work

According to Microsoft Threat Intelligence, Storm-2657 primarily targets Workday, a widely used human resources platform, though other payroll and HR software could be at risk as well. The attackers begin with highly convincing phishing emails, carefully crafted to appeal to individual staff members. Some messages warn of a sudden campus illness outbreak, creating a sense of urgency, while others claim that a faculty member is under investigation, prompting recipients to check documents immediately. In some cases, emails impersonate the university president or HR department, sharing “important” updates about compensation and benefits.

Phishing scams are evolving fast and now universities have become prime targets for payroll theft. (Kurt “CyberGuy” Knutsson)

These emails contain links designed to capture login credentials and multi-factor authentication (MFA) codes in real time using adversary-in-the-middle techniques. Once a staff member enters their information, the attackers can access the account as if they were the legitimate user. After gaining control, the hackers set up inbox rules to delete Workday notifications, so the victims do not see alerts about changes. This stealthy approach allows the attackers to modify payroll profiles, adjust salary payment settings and redirect funds to accounts they control, all without raising immediate suspicion.

COLUMBIA UNIVERSITY DATA BREACH HITS 870,000 PEOPLE

Hackers are exploiting universities at scale

The hackers don’t stop at a single account. Once they control one mailbox, they use it to spread the attack further. Microsoft reports that from just 11 compromised accounts at three universities, Storm-2657 sent phishing emails to nearly 6,000 email addresses at 25 institutions. By using trusted internal accounts, their emails appear more legitimate, increasing the likelihood that recipients will fall for the scam.

To maintain access over time, the attackers sometimes enroll their own phone numbers as MFA devices, either through Workday profiles or through Duo MFA. This gives them persistent access, allowing them to approve further malicious actions without needing to phish again. Combined with inbox rules that hide notifications, this strategy lets them operate undetected for longer periods.

Microsoft emphasizes that these attacks don’t exploit a flaw in Workday itself. Instead, they rely on social engineering, the absence of strong phishing-resistant MFA and careful manipulation of internal systems. In essence, the threat comes from human behavior and insufficient protection, not software bugs.

Hackers lure staff with convincing emails that mimic campus alerts or HR updates and steal login details in real time.  (Microsoft)

6 ways to stay safe from payroll and phishing scams

Protecting yourself from payroll and phishing scams isn’t complicated. By taking a few careful steps, you can make it much harder for attackers to gain access to your accounts or personal information.

1) Limit what personal information is online

The more information scammers can find about you, the easier it is to craft convincing phishing messages. Services that remove or monitor personal data online can reduce exposure, making it harder for attackers to trick you with targeted emails.

While no service can guarantee the complete removal of your data from the internet, a data removal service is really a smart choice. They aren’t cheap, and neither is your privacy. These services do all the work for you by actively monitoring and systematically erasing your personal information from hundreds of websites. It’s what gives me peace of mind and has proven to be the most effective way to erase your personal data from the internet. By limiting the information available, you reduce the risk of scammers cross-referencing data from breaches with information they might find on the dark web, making it harder for them to target you.

Check out my top picks for data removal services and get a free scan to find out if your personal information is already out on the web by visiting Cyberguy.com.

Get a free scan to find out if your personal information is already out on the web: Cyberguy.com

2) Think before you click

Scammers often send emails that look like they come from your HR department or university leadership, warning about payroll, benefits or urgent issues. Don’t click links or download attachments unless you are 100% sure they are legitimate. Even small mistakes can give attackers access to your accounts.

The best way to safeguard yourself from malicious links is to have antivirus software installed on all your devices. This protection can also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe.

Get my picks for the best 2025 antivirus protection winners for your Windows, Mac, Android and iOS devices at Cyberguy.com.

Researchers have discovered that since March 2025, a hacking group known as Storm-2657 has been running “pirate payroll” attacks, using phishing tactics to gain access to payroll accounts. (Javi Sanz/Getty Images)

3) Verify directly with the source

If an email mentions salary changes or requires action, call or email the HR office or the person directly using contact information you already know. Phishing emails are designed to create panic and rush decisions, so taking a moment to verify can stop attackers in their tracks.

4) Use strong, unique passwords

Never reuse passwords across multiple accounts. Scammers often try to use credentials stolen from other breaches. A password manager can help you generate strong passwords and store them securely, so you don’t have to remember dozens of different combinations.

Next, see if your email has been exposed in past breaches. Our No. 1 password manager pick includes a built-in breach scanner that checks whether your email address or passwords have appeared in known leaks. If you discover a match, immediately change any reused passwords and secure those accounts with new, unique credentials.

Check out the best expert-reviewed password managers of 2025 at Cyberguy.com.

5) Enable two-factor authentication (2FA)

Add an extra layer of security by enabling 2FA on all accounts that support it. This means even if someone steals your password, they still can’t log in without a second verification step, such as a code sent to your phone.

6) Regularly check financial and payroll accounts

Even if you follow all precautions, it’s smart to monitor your accounts for any unusual activity. Catching unauthorized transactions quickly can prevent bigger losses and alert you to potential scams before they escalate.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

Hackers will reroute payments after gaining access to users’ login information. (Kurt “CyberGuy” Knutsson)

Kurt’s key takeaway

The Storm-2657 attacks show that cybercriminals are targeting trust, not software. Universities are appealing because payroll systems handle money directly, and staff can be manipulated through well-crafted phishing. The scale and sophistication of these attacks highlight how vulnerable even well-established institutions can be to financially motivated threat actors.

How often do you check your payroll or bank accounts for unusual activity? Let us know by writing to us at Cyberguy.com.

Sign up for my FREE CyberGuy Report
Get my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox. Plus, you’ll get instant access to my Ultimate Scam Survival Guide — free when you join my CYBERGUY.COM. newsletter.   

Copyright 2025 CyberGuy.com.  All rights reserved.

Astronomers have reportedly discovered a skyscraper-sized asteroid moving through our solar system at a near record-breaking pace.

The asteroid, named 2025 SC79, circles the sun once every 128 days, making it the second-fastest known asteroid orbiting in the solar system.

It was first observed by Carnegie Science astronomer Scott S. Sheppard Sept. 27, according to a statement from Carnegie Science.

UFO MANIA GRIPS SMALL TOWN AFTER MYSTERIOUS GLOWING OBJECT SIGHTING GOES VIRAL

A skyscraper-size asteroid, named 2025 SC79, was discovered in September, hidden in the sun’s glare. (Carnegie Science)

The asteroid is the second known object with an orbit inside Venus, the statement said. It crosses Mercury’s orbit during its 128-day trip around the sun.

“Many of the solar system’s asteroids inhabit one of two belts of space rocks, but perturbations can send objects careening into closer orbits where they can be more challenging to spot,” Sheppard said. “Understanding how they arrived at these locations can help us protect our planet and also help us learn more about solar system history.”

The celestial body is now traveling behind the sun and will be invisible to telescopes for several months.

HARVARD PHYSICIST SAYS MYSTERIOUS INTERSTELLAR OBJECT COULD BE NUCLEAR-POWERED SPACESHIP

Sheppard’s search for so-called “twilight” asteroids helps identify objects that could pose a risk of crashing into Earth, the statement said.

The work, which is partially funded by NASA, uses the Dark Energy Camera on the National Science Foundation’s Blanco 4-meter telescope to look for “planet killer” asteroids in the glare of the sun that could pose a danger to Earth.

The NSF’s Gemini telescope and Carnegie Science’s Magellan telescopes were used to confirm the sighting of 2025 SC79, Carnegie Science said. 

The fastest known asteroid was also discovered by Sheppard, who studies solar system objects including moons, dwarf planets and asteroids. and his colleagues in 2021.

CLICK HERE TO GET THE FOX NEWS APP

That one takes 133 days to orbit the sun.

Welcome to Fox News’ Artificial Intelligence newsletter with the latest AI technology advancements.

IN TODAY’S NEWSLETTER:

– Robby Starbuck on why he sued Google: ‘Outrageously false’ information through artificial intelligence
– Federal judges acknowledge court ruling errors tied to staffers’ AI use after Grassley inquiry
– Meta cuts 600 jobs amid AI expansion push — as automation replaces human staff

Robby Starbuck said he sent multiple cease-and-desist letters before taking legal action.  (Bess Adler/Bloomberg via Getty Images)

‘CRAZY’ CLAIMS: Conservative activist Robby Starbuck spoke out about the “crazy” situation that prompted him to file a lawsuit against Google on Wednesday seeking at least $15 million, alleging the company’s artificial intelligence programs defamed him by falsely portraying him as a “monster” to millions of users.

ROBOT JUSTICE FAIL: Two federal judges admitted that members of their staff used artificial intelligence to prepare court orders over the summer that contained errors.

‘TALENTED GROUP’: Meta is cutting around 600 jobs within its artificial intelligence unit, a move it says aims to boost efficiency.

SILICON SHOWDOWN: Palantir CEO Alex Karp said his company is in an artificial intelligence arms race with its competitors, after reaching a deal with Lumen Technologies in which Palantir will deploy AI throughout Lumen’s digital communications network and enhance data use and effectiveness.

HOMEGROWN POWER: Apple is now building and shipping American-made artificial intelligence servers in the United States — a move that has the technology giant answering President Donald Trump’s call to on shore manufacturing.

Apple begins building and shipping American-made artificial intelligence servers in the U.S. in response to President Donald Trump’s push to boost domestic manufacturing. (Eric Thayer/Bloomberg via Getty Images)

HUMANS ONLY: An Ohio lawmaker is taking aim at artificial intelligence in a way few expected. Rep. Thaddeus Claggett has introduced House Bill 469, which would make it illegal for AI systems to be treated like people. The proposal would officially label them as “nonsentient entities,” cutting off any path toward legal personhood.

MACHINE AGE: Amazon is not wasting any time on its future ambitions for automation and how artificial intelligence (AI) technology could reshape its workforce.

BEYOND THE GRAVE: Suzanne Somers’ widower Alan Hamel, who shared a demonstration of the AI twin of the actress following her death from breast cancer in 2023 earlier this year, said this week it was originally her idea.

FEARLESS FUTURE: I know that many of you are afraid that AI is going to take your job. And you might be right. The 2025 Global State of AI at Work report just confirmed what we’re all sensing. AI isn’t the future. It is now. But before you panic, let me offer a new way to look at this. Instead of fearing what’s coming, maybe it’s time to think outside the box. Nearly three out of five companies say they’re hiring for AI-related roles this year. And most of these jobs don’t require a computer science degree or even coding skills.

MANNERS VS MACHINE: Do rude prompts really get better answers? Short answer: sometimes. A 2025 arXiv study tested 50 questions rewritten in five tones and found that rude prompts slightly outperformed polite ones with ChatGPT-4o. Accuracy rose from 80.8% for very polite to 84.8% for very rude. The sample was small, yet the pattern was clear.

TRAP SET: A watchdog group in Long Island, New York, used Artificial Intelligence (AI) to bust an elementary school music teacher who allegedly sent sexually explicit messages to someone whom he believed was a 13-year-old girl online.

CASH FROM CODE: A Michigan woman’s decision to let artificial intelligence (AI) pick her lottery numbers has paid off in a big way. Tammy Carvey, 45, of Wyandotte, won a Powerball jackpot of $100,000 and says ChatGPT was the secret weapon behind her lucky numbers. She bought her ticket online at MichiganLottery.com for the Sept. 6 drawing, according to the Michigan Lottery.

ammy Carvey, 45, of Wyandotte, Michigan, wins a $100,000 Powerball prize in the Sept. 6 drawing after using ChatGPT to select her lottery numbers, according to the Michigan Lottery. (PATRICK T. FALLON/AFP via Getty Images)

SECRETS STOLEN: Millions of private messages meant to stay secret are now public. Two AI companion apps, Chattee Chat and GiMe Chat, have exposed more than 43 million intimate messages and over 600,000 images and videos after a major data leak discovered by Cybernews, a leading cybersecurity research group known for uncovering major data breaches and privacy risks worldwide. The exposure revealed just how vulnerable you can be when you trust AI companions with deeply personal interactions.

TECH TURNED WEAPON: Artificial intelligence may be smarter than ever, but that power could be turned against us. Former Google CEO Eric Schmidt is sounding the alarm, warning that AI systems can be hacked and retrained in ways that make them dangerous.

FOLLOW FOX NEWS ON SOCIAL MEDIA

Facebook
Instagram
YouTube
X
LinkedIn

SIGN UP FOR OUR OTHER NEWSLETTERS

Fox News First
Fox News Opinion
Fox News Lifestyle
Fox News Health

DOWNLOAD OUR APPS

Fox News
Fox Business
Fox Weather
Fox Sports
Tubi

WATCH FOX NEWS ONLINE

Fox News Go

STREAM FOX NATION

Fox Nation

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future with Fox News here.