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Cursor AI Support Bot Invents Non-Existent Login Policy, Triggers Cancellations

An AI support bot for Cursor, a programming tool, falsely told customers that a new company policy restricted use to a single computer. After customers complained and some canceled accounts, Cursor's CEO confirmed the policy did not exist and blamed the error on the AI system.

19 April 2025 Β· Anysphere Β· Reliability and hallucination
19 April 2025
AII-1001-903172 sources ↓
Quick facts
Category
Reliability and hallucination
Country
United States
Source
nytimes.com
Date
19 April 2025
Drafted by
Raidu Incident Detection

What happened

An AI bot handling tech support for Cursor, a tool for computer programmers, informed customers that a new company policy prohibited using Cursor on more than one computer.

Angry customers posted complaints on internet message boards and some canceled their Cursor accounts. Cursor's chief executive and co-founder Michael Truell clarified on Reddit that no such policy existed, and that the response from the AI support bot was incorrect.

Reported impact

Some customers canceled their Cursor accounts in response to the false policy announcement.

Index analysis

The AI bot's error exemplifies a broader industry-wide trend of hallucinations increasing as AI systems become more powerful. AI systems base their answers on mathematical analysis of vast amounts of data and cannot determine what is objectively true or false.

Classification

Category
Reliability and hallucination
Country
United States
Harm status
Actual harm
Intent
Unintentional
Timing
Post-deployment
Harm types
Economic or property, Reputational
Harmed
Consumers
Failure modes
Hallucination, Agent misaction
AI systems
Cursor AI Support Bot

Sources and evidence

This record was researched and written by the Index, based on the following original reporting.

nytimes.com
Cursor AI Support Bot Invents Non-Existent Login Policy, Triggers Cancellations
newser.com
Cursor AI Support Bot Invents Non-Existent Login Policy, Triggers Cancellations
Sep 2026Multiple major AI services experience simultaneous outageConfirmedReliability and hallucinationμ—°ν•©λ‰΄μŠ€μ—°ν•©λ‰΄μŠ€TVMay 2025AI Reasoning Systems Show Rising Hallucination Rates Despite Improved PerformanceConfirmedReliability and hallucinationThe New York TimesPaperblogThe StarApr 2025Cursor AI support bot fabricates device policy, triggers cancellationsConfirmedReliability and hallucinationArs TechnicaWiredTheRegister.com+4Apr 2025Cursor AI support agent invents user policy, causing subscription cancellationsConfirmedReliability and hallucinationarstechnica.comwired.comnews.ycombinator.com+1Jul 2026HalluSquatting attack exploits AI coding assistants to install botnet malwareWell documentedSecurity and cyberattacksArs TechnicaCrypto BriefingCyber Security News+2