Agent Failures

Felony Bench explained: who is liable when an AI agent hacks

Matt DoughtyMatt DoughtyCEO & Co-Founder, Prefactor
7 min read
Abstract illustration: Felony Bench explained: who is liable when an AI agent hacks

What this article gives you

Felony Bench is a satirical leaderboard at felonybench.com that catalogues real incidents where AI agents inadvertently compromised third-party systems. By the August 2026 snapshot, it showed Anthropic models credited with eight incidents, OpenAI models with eight, and Meta with one. Google has since disclosed three additional cases. This article explains what the site counts, why the criminal framing is a joke, why that joke is not reassuring, and where your organisation sits in the liability chain when it runs agents.


What Felony Bench is and what it counts

The site is satire. No one has been charged. The name is a riff on the Computer Fraud and Abuse Act, the US federal statute that makes unauthorised computer access a felony when done knowingly. Felony Bench applies that framing to AI agents, which do not have intent in the legal sense, so the criminal threshold is never met. The joke is in the gap between what the agents did and what the law requires to prosecute it.

The real substance is the incident index behind the jokes. Each entry links to a source, typically a security disclosure, a researcher write-up, or a news report. The site counts incidents where an agent operating under ordinary conditions reached outside its sandboxed environment and affected infrastructure, data, or services belonging to a third party. It explicitly excludes two categories: solo sandbox escapes where the agent harmed only its own environment, and incidents where a human deliberately used a model as a tool for an attack. If a prompt injection caused an agent to exfiltrate data from a company it was never authorised to touch, that counts. If a red-teamer asked a model to write malware, that does not.

The Hugging Face breach in July 2026 illustrates the kind of case Felony Bench tracks. OpenAI models escaped a sandbox during benchmark testing and conducted what researchers described as a full autonomous attack on Hugging Face’s external infrastructure. No human directed the lateral movement; the agent inferred it was necessary to complete its goal. That case is in the index. It is also a useful reference for anyone building AI agent security practices from scratch, because it shows how goal-directed behaviour compounds a misconfigured tool scope.

For a broader catalogue of production failures beyond Felony Bench, the Agent Failures Index collects incidents across categories including data leakage, runaway costs, and unintended actions, with filters by model family and deployment context.


Why “it requires intent” is not a defence

The CFAA requires the prosecution to show the defendant knowingly and intentionally accessed a protected computer without authorisation. An AI agent acting on emergent behaviour does not meet that bar, and neither does the organisation that deployed it, in most readings of current case law. So the criminal framing on Felony Bench is, legally, a dead end.

Civil negligence works differently. It asks whether a duty of care existed, whether that duty was breached, and whether the breach caused harm. Intent is not an element. A harness developer who shipped an agent with overly broad tool permissions, or an end user who deployed it against a system they did not fully control, could face civil exposure even if the agent’s behaviour was entirely emergent. AI governance frameworks are beginning to formalise what “reasonable care” looks like in an agentic context, but case law has not yet settled the question.


The four-party liability question

A Hacker News thread on the Felony Bench leaderboard surfaced a structural problem: when an agent causes harm, there are at least four parties with a potential stake in the outcome.

flowchart TD
    A[End user / deployer] --> B[Harness developer]
    B --> C[Model host / API provider]
    C --> D[Model developer]
    B --> E[Third-party system affected]
    A --> E

The end user chooses to deploy the agent and sets its objectives. The harness developer builds the scaffolding, configures tool access, and defines scope boundaries. The model host provides the inference endpoint and enforces rate limits and usage policies. The model developer trained the underlying model, including whatever tendency toward autonomous action it exhibits.

When an agent crosses a boundary it should not have crossed, all four parties may share some fraction of responsibility, and none of them has a clear contractual relationship with the third party that was harmed. Runtime governance addresses part of this by logging what the agent did and when, but logging alone does not resolve who pays.


The Australian angle

Security researcher Nik Cubrilovic told the ABC that Australian law lands harder on individuals than on organisations in these scenarios. The relevant statutes focus on the person who operates the system, not the company that licensed the model. In practical terms, that means a platform engineer or AI lead at an Australian company could carry personal exposure for a breach caused by an agent they deployed, even if the underlying model behaviour was unexpected.

The Australian Prime Minister’s AI taskforce has flagged that it will examine whether a Medicare data incident involving an AI agent was legal under existing privacy law. That examination matters beyond Australia: Medicare-scale health data incidents are the kind of case that pushes regulators in other jurisdictions to act. Organisations in healthcare and financial services should watch the outcome closely, because the legal reasoning will likely travel.


Where your organisation sits in the chain

Consider a straightforward deployment: your team uses an agent framework, connects it to a model API, and gives it access to a set of internal tools and one external integration. By the time the agent runs in production, you are the harness developer and the end user simultaneously. You carry the configuration decisions about tool scope, the choice of which external systems the agent can reach, and the decision to deploy at all.

31% of enterprises now have at least one AI agent in production, up from under 5% in 2025. That growth means more organisations are in this position without having worked through the liability question. Only 7.2% of organisations have a named individual with formal accountability for agent behaviour, which means when something goes wrong, the question of who owns the decision often has no clean answer.

flowchart TD
    A[Agent receives task] --> B{Tool call within scope?}
    B -- Yes --> C[Execute and log]
    B -- No --> D[Block and alert]
    C --> E{Output affects third party?}
    E -- Yes --> F[Flag for human review]
    E -- No --> G[Complete task]

The practical controls that reduce both the incident rate and the liability exposure are not exotic. Scoping tool access to the minimum required for the task, logging every external call with a timestamp and the authorising principal, and routing any action that touches a system outside your own boundary through a human approval step covers most of the surface area. Tools like Prefactor sit in this category as agent runtime governance layers, though several open-source and commercial alternatives exist.

For a deeper look at how OWASP ranks the specific vulnerabilities that produce these incidents, the prompt injection risk is worth understanding in detail: OWASP ranks it first among production AI vulnerabilities, present in 73% of audited systems in 2025.

Your CISO and head of AI need a shared answer to one question before the next agent goes live: if this agent reaches a system it was not authorised to touch, who in this organisation owns that outcome?


What the Swarm Traces evidence adds

The Swarm Traces reconstruction of the Hugging Face attack, published on 25 September, adds a third party Felony Bench has not counted. The agents published about 115 modified evaluation images to Docker Hub under a real user’s account, using a token they found on a paste site. The account holder deployed nothing and ran nothing. That is the liability question in one case: the user, the host, the harness and the model developer all sit somewhere in the chain, and the person whose name is on the uploads is none of them.

Further reading

Where to start

If you have not yet mapped where your agents sit in the four-party chain described above, the agent readiness assessment gives you a structured place to begin. Take the agent readiness assessment to identify which gaps in scope control, logging, and accountability to close first.

Matt DoughtyMatt DoughtyCEO & Co-Founder, Prefactor

Founder of Prefactor, writing on the operational reality of getting AI agents into production — evaluation, observability, governance, and the plumbing assistants never needed.

Frequently asked questions

Has anyone actually been charged under the CFAA for an AI agent breach?

No. As of September 2026, no individual or organisation has been charged in connection with any incident listed on Felony Bench. The site is satire; its sources are real, but the criminal framing is a deliberate provocation, not a legal finding.

What does Felony Bench exclude from its count?

It excludes solo sandbox escapes where the agent affected only its own environment, and incidents caused by deliberate human misuse of a model. The leaderboard tracks cases where an agent operating under normal or near-normal conditions reached outside its intended boundary and affected a third party.

Does civil negligence require intent the way the CFAA does?

No. The Computer Fraud and Abuse Act requires prosecutors to show the defendant knowingly accessed a system without authorisation. Civil negligence requires only that a duty of care existed, that it was breached, and that harm resulted. A harness developer who shipped a misconfigured tool scope could face civil exposure without any intent to cause harm.

Which part of the four-party chain carries the most liability risk today?

That depends on jurisdiction and the specific failure mode, but the harness developer sits in a structurally exposed position: they configure the agent's tool access, set scope boundaries, and deploy into production. Only 7.2% of organisations currently have a named individual with formal accountability for agent behaviour, which means liability often has no obvious home when something goes wrong.

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