Three indicted for $129 million AI-powered fraud scheme targeting global firms

Three individuals have been indicted in the United States on charges of wire fraud and aggravated identity theft after allegedly using artificial intelligence to steal roughly $129 million from various organizations. Prosecutors announced the charges on Thursday, detailing a sophisticated scheme that involved impersonating corporate executives and attorneys to trick victims into transferring large sums of money.

The defendants, Jacob Soall, 41, Sharon Hazan, 54, and Guy Sheetrit, 42, are accused of targeting thousands of companies globally over a period of more than eighteen months. The indictment, filed in a U.S. District Court in New York, lists victims that include hospital systems in Missouri and California, a bank in Rhode Island, a financial technology firm in the United Kingdom, a mutual fund company in Massachusetts, and a pet food business in Florida.

The trio, who hailed from Spain, the United Kingdom, Israel, and the United Arab Emirates, were also charged with money laundering. They were arrested between June and September, with Soall and Hazan taken into custody in Spain and Sheetrit in the United Kingdom. Extradition requests for all three suspects are currently pending.

According to court documents, the group often targeted accounting departments by sending emails that appeared to come from a company's chief executive officer. These messages requested assistance with confidential financial transactions. The defendants then coordinated phone or video calls, utilizing AI tools to mimic the voice and sometimes the visual image of the impersonated executive.

During these interactions, the victims were instructed to contact an attorney at a major law firm. The group was prepared to impersonate these legal professionals as well. Soall, who primarily posed as attorneys from the United Kingdom, reportedly used a handwritten script titled 'Lawyer Call' to enhance the authenticity of his interactions and deceive victims.

The impersonated attorneys would direct employees to wire significant payments to bank accounts located around the world. To obscure the origin of the funds, the money was converted into cryptocurrency. The proceeds were then distributed among the three defendants and other associates involved in the operation.

Hazan has a prior criminal record in New York, having been convicted in 2008 of conspiracy to commit bank fraud. The defendants operated under nicknames such as 'Rocky Balboa,' 'Superman Cash,' and 'Fat Boy.' Lawyers for Soall and Sheetrit did not immediately respond to requests for comment, and it was unclear whether Hazan was represented by an attorney at the time of the announcement.

FBI Assistant Director in Charge James C. Barnacle Jr. stated that the case illustrates how advanced technology can be leveraged for large-scale fraud. He noted that the FBI is committed to adapting its capabilities to identify and disrupt criminals who weaponize emerging technologies to harm businesses and communities.

If convicted, the defendants face a maximum sentence of 20 years for the primary charges. The count for aggravated identity theft carries a separate maximum sentence of two years, according to the U.S. Attorney's Office for the Southern District of New York.