Meta’s new AI‑powered customer‑service tool slipped a flaw that let attackers reset Instagram passwords, letting hackers seize over 34,000 accounts. The breach surfaced when a former Obama White House post went viral, revealing the bug’s reach.

Internal documents show 20,000 accounts were breached, exposing emails, phone numbers and birth dates. Hackers also hijacked 3,500 usernames, turning high‑profile accounts into propaganda platforms.

Meta claims the issue is fixed and has notified regulators, but the incident underscores the risks of rapid AI deployment. Investors now face a sharper scrutiny of Meta’s shift to an AI‑first strategy amid rising security concerns.

The hack rattles Meta’s upcoming “business agent” rollout and erodes trust among corporate clients eyeing AI‑driven customer service.