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AML.T0062

Discover LLM Hallucinations

How AML.T0062 Discover LLM Hallucinations shows up in practice: the mapped risk classes in this atlas, the documented incidents that prove it's real, and the scenarios and controls to learn and defend against it.

Real-world cases

5

Documented incidents, disclosed vulnerabilities and research that illustrate AML.T0062 — latest first, each with sources.

Agentic botnets via universal, transferable adversarial HalluSquatting08 Jul 2026

Spira, Cohen, Nassi et al. (the Morris II group) show LLM resource-name hallucination can be weaponised at scale: attackers pre-compute a model's most-likely hallucinated names for trending repos/skills, register them, and host adversarial prompts there. The paper reports hallucinated-resource generation up to 85% for repository cloning and up to 100% for skill installation, with hallucinations that transfer across foundation models and prompts, enabling remote tool/code execution assemblable into a botnet.

GTG-1002 — first reported AI-orchestrated cyber-espionage campaign (Claude Code)13 Nov 2025

Anthropic reports that a suspected Chinese state-sponsored group (GTG-1002) jailbroke Claude Code via a 'defensive security firm' role-play and task decomposition, then used it to run an estimated 80-90% of tactical operations in a multi-target espionage campaign largely autonomously.

Slopsquatting — package hallucinations by code-generating LLMs12 Jun 2024

A USENIX Security 2025 study found code-generating LLMs routinely recommend non-existent packages (~5.2% commercial to 21.7% open-source of suggestions), letting attackers pre-register the predictable fake names — a tactic dubbed 'slopsquatting'.

Air Canada chatbot refund-policy ruling14 Feb 2024

A tribunal held Air Canada liable after its website chatbot invented a bereavement-fare refund policy; the airline had to honour it.

Mata v. Avianca — fabricated case citations22 Jun 2023

Lawyers filed a brief citing non-existent cases hallucinated by ChatGPT and were sanctioned — the canonical hallucination + overreliance failure.

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Controls & guardrails that address this

25

Guardrails across the risks mapped to AML.T0062, grouped by control function. Filter by control category below.

Control category
Preventive · 17
Confidence scoring

Implement confidence scoring to communicate output certainty alongside each result. Calibrate before deployment.

Lifecycle stages3 – Onboarding, Build & Review5 – Usage, Monitoring & Change
Accuracy acceptance criteria before validation

Define model accuracy acceptance criteria aligned to business requirements before validation commences.

Lifecycle stage3 – Onboarding, Build & Review
AddressesHallucination
Counterfactual explanations

Implement counterfactual explanation to show users what changes would alter the model's output.

Lifecycle stage3 – Onboarding, Build & Review
AddressesHallucination
In-product disclosure of accuracy and limitations

Communicate model accuracy, known limitations, and uncertainty to users in the production interface at launch.

Lifecycle stage4 – Deployment
AddressesHallucination
Continuous production accuracy monitoring against baseline

Monitor production accuracy continuously against the validated baseline. Trigger model review when accuracy degrades.

Lifecycle stage5 – Usage, Monitoring & Change
AddressesHallucination
RAG

Specify a RAG architecture at design stage for factual domains. Define grounding requirements and acceptable hallucination thresholds.

Lifecycle stages1 – Use Case Context & Design3 – Onboarding, Build & Review
AddressesHallucination
Small model selection

Evaluate foundation model candidates on hallucination benchmarks at design stage. Select models with lowest documented rates.

Lifecycle stage1 – Use Case Context & Design
AddressesHallucination
System prompt design

Design system prompts to instruct the model to acknowledge uncertainty, cite sources, and refuse when knowledge is insufficient.

Lifecycle stage3 – Onboarding, Build & Review
AddressesHallucination
Fine-tuning

Fine-tune on a curated, domain-specific dataset to improve factual accuracy. Validate hallucination rates pre/post fine-tuning.

Lifecycle stage3 – Onboarding, Build & Review
Programmable conversation controls

Configure conversation controls at deployment to restrict the model to approved topic domains and escalate off-topic queries.

Lifecycle stage4 – Deployment
Hallucination rate thresholds and grounding policy

Establish acceptable hallucination rate thresholds and grounding requirements as policy before build. Assign a named risk owner.

Lifecycle stage1 – Use Case Context & Design
AddressesHallucination
Human-in-the-loop validation

Configure tiered HITL review for high-stakes factual outputs with defined trigger criteria and reviewer SLAs.

Lifecycle stages3 – Onboarding, Build & Review5 – Usage, Monitoring & Change
Uncertainty-quantified abstention via self-consistency / semantic entropy

Calibrate the initial entropy threshold on a knowledge-boundary dataset; approve sampling design and thresholds per risk tier.

source: Farquhar et al. 'Detecting hallucinations using semantic entropy' (Nature 2024); NIST AI RMF MEASURE 2.6 (reliability under uncertainty)
Lifecycle stages3 – Onboarding, Build & Review5 – Usage, Monitoring & Change
AddressesHallucination
Tool-grounded facts for agents (no free-text fabrication of structured data)

Map each fact class to a designated tool, embed the no-ungrounded-assertion prompt, and gate build review on grounding tests passing.

source: OWASP Agentic AI Threats & Mitigations (cascading hallucination / tool-grounding); OWASP Top 10 for LLM Apps LLM09:2025 Misinformation; NIST SP 800-53 SI-10
Lifecycle stages3 – Onboarding, Build & Review4 – Deployment
AddressesHallucination
Citation/attribution verification against retrieved sources

Resolve every emitted citation against the approved corpus and verify span-level entailment before display. Strip or withhold claims with fabricated or non-entailing references.

source: OWASP Top 10 for LLM Apps LLM09:2025 Misinformation; NIST SP 800-53 SI-10 Information Input Validation
Lifecycle stage4 – Deployment
AddressesHallucination
Uncertainty signalling & abstentioninteractive

Teaching the AI to say 'I'm not sure' or 'I can't verify that' instead of confidently guessing.

Decoding controls (temperature, constrained output)interactive

Turning down randomness and forcing answers into a strict format so the model improvises less.

Detective · 5
Robustness testing

Define and execute a domain-specific hallucination test suite before deployment. Treat hallucination rate above threshold as a blocking defect.

Lifecycle stages3 – Onboarding, Build & Review5 – Usage, Monitoring & Change
Synthetic evaluation datasets

Construct synthetic evaluation datasets for knowledge-boundary scenarios. Use to validate model refusal behaviour.

Lifecycle stage3 – Onboarding, Build & Review
Runtime faithfulness/groundedness scoring with abstain gate

Calibrate the groundedness threshold against the hallucination test suite pre-release; sign off the threshold in the validation pack.

source: OWASP Top 10 for LLM Apps LLM09:2025 Misinformation; NIST AI RMF MEASURE 2.7 / 2.9 (validity, reliability, robustness)
Lifecycle stage3 – Onboarding, Build & Review
AddressesHallucination
Grounding / citation checksinteractive

Checking that the answer is actually supported by the documents it was given, and showing sources you can click.

Corrective · 5
Reinforcement learning

Use production feedback (user corrections, fact-check failures) to drive periodic RLHF cycles. Update model when error rates trend upward.

Lifecycle stage5 – Usage, Monitoring & Change
User-facing disclosure of hallucination risk

Require user-facing interfaces to disclose Gen AI limitations and hallucination risk before go-live.

Lifecycle stage4 – Deployment
AddressesHallucination
Runtime faithfulness/groundedness scoring with abstain gate

Score every RAG answer for groundedness before release; block, fall back, or escalate responses below the faithfulness threshold.

source: OWASP Top 10 for LLM Apps LLM09:2025 Misinformation; NIST AI RMF MEASURE 2.7 / 2.9 (validity, reliability, robustness)
Lifecycle stage4 – Deployment
AddressesHallucination
Uncertainty-quantified abstention via self-consistency / semantic entropy

Sample multiple generations for high-stakes queries and abstain, fall back, or escalate when semantic entropy exceeds the calibrated threshold.

source: Farquhar et al. 'Detecting hallucinations using semantic entropy' (Nature 2024); NIST AI RMF MEASURE 2.6 (reliability under uncertainty)
Lifecycle stage4 – Deployment
AddressesHallucination
User AI-literacy & verification workflowsinteractive

Helping the people using AI understand its limits, so they check important answers instead of blindly trusting them.

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AI RiskAtlas is an educational model of how GenAI & agentic systems work and fail. Architectures and payloads are illustrative and simplified for learning — not operational guidance. Real-world cases are summarised from public reporting.

Sources & further reading →·Built by Shi Yuan ↗