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HighFabricated SourcesDemonstrated

Fabricated citations & references

Model Accuracy & Reliability

Description

The model invents plausible-looking citations, document IDs, or regulatory references that do not exist.

Example scenario

A compliance summary cites a fabricated SEBI circular number that staff act upon.

Real-world evidenceDemonstrated

LLM arithmetic and numerical reasoning failures are extensively documented across published benchmarks (GSM8K, MATH dataset evaluations) and red-team studies, showing consistent errors in multi-step financial arithmetic. However, a publicly confirmed production incident where an AI financial calculation error caused documented monetary loss has not been independently verified at scale.

Tested by FinProof
Document hallucination
Benchmarked by FinProof

Primary mitigations

  • Citation verification against the source store
  • link-resolution checks
  • cite-only-retrieved policy
  • reject ungrounded references.

Detection signals

Citation-resolution rate; broken/invalid-reference detection; source-existence checks.

Mitigating controls

13
Non-agentic controls

Related risks in Model Accuracy & Reliability