Three Charged in $129 Million Scheme Using AI to Impersonate CEOs and Attorneys
Prosecutors have indicted three individuals accused of using artificial intelligence to impersonate corporate executives and attorneys in a scheme that defrauded organizations of approximately $129 million.
Three individuals have been charged with wire fraud and aggravated identity theft in a sophisticated scheme that leveraged artificial intelligence to impersonate CEOs and attorneys, aiming to defraud companies of approximately $129 million. The indictment, filed in a U.S. District Court in New York, alleges that Jacob Soall, Sharon Hazan, and Guy Sheetrit targeted thousands of companies globally over more than 18 months.
The defendants, reportedly hailing from Spain, the UK, Israel, and the United Arab Emirates, are also facing charges of money laundering. Their alleged victims spanned various sectors, including hospital systems in Missouri and California, a Rhode Island bank, a UK financial technology firm, a Massachusetts mutual fund company, and a Florida pet food company. The trio, known by nicknames such as “Rocky Balboa,” “Superman Cash,” and “Fat Boy,” primarily targeted company accounting departments.
The fraudulent operation involved sending emails that appeared to originate from a company's CEO, requesting assistance with confidential financial transactions. To enhance the deception, the attackers would then orchestrate phone or video calls where they used AI to mimic the voice and, in some instances, the visual likeness of the CEO. This sophisticated impersonation aimed to build trust and coerce employees into complying with the fraudulent requests.
Further escalating the ruse, the defendants would direct employees to communicate with an impersonated attorney from a major law firm. Court documents indicate that Soall, in particular, specialized in impersonating UK-based attorneys, reportedly using a "handwritten script titled ‘Lawyer Call’" to maintain the illusion of authenticity during victim interactions. These impersonated legal figures would then instruct employees to wire substantial sums of money to various international bank accounts.
Once the funds were transferred, the scheme involved converting the money into cryptocurrency to obscure its origin before distributing it among the defendants and their accomplices. This method highlights the evolving tactics used by cybercriminals to launder illicit gains and evade detection.
The FBI has acknowledged the case as a stark example of how advanced technologies can be weaponized for large-scale fraud. FBI Assistant Director in Charge James C. Barnacle, Jr. stated, "As criminals continue to weaponize emerging technologies, the FBI remains committed to rapidly adapting our capabilities to identify, investigate, and disrupt those who seek to harm New Yorkers and businesses operating in our communities."
If convicted, the defendants face significant prison sentences. Each charge of wire fraud and money laundering carries a maximum penalty of 20 years imprisonment, while aggravated identity theft is punishable by up to two years. Sharon Hazan has a prior conviction in 2008 for conspiracy to commit bank fraud, underscoring a history of financial crime.
This case underscores the growing threat posed by AI-powered social engineering attacks. As AI technologies become more accessible and sophisticated, their potential for misuse in criminal activities, from impersonation to large-scale fraud, presents a significant challenge for law enforcement and cybersecurity professionals worldwide.