Last month, Paul Lee was reviewing applications for a legal and compliance job at the small technology company he leads when his screening software flagged an anomaly.

Hidden in one of the hundreds of résumés he received was a block of roughly 1,500 characters typed in white text on a white background. It was an AI prompt to ignore prior instructions and declare the applicant a top-tier fit, regardless of whether the person met the role’s requirements.

Lee said he was stunned and described the move as an ethical red flag for a role built on trust and integrity.

“You’re cutting in front of the line,” said Lee, CEO of the 40-person, Irvine…