$129M AI Scam: Fake CEOs & Lawyers Allegedly Fooled Major Companies
Three foreign nationals are accused of cloning the voices of trusted executives and attorneys to convince employees to transfer millions.
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A federal indictment on November 5 in Manhattan revealed a $129 million scam involving the use of AI between 2024 and early 2025. Three people allegedly used artificial intelligence to pretend to be people that they were not. Read on for more details.
Three People Were Arrested
According to NBC News, the three people worked together to use technology to clone the voices of corporate executives and elite attorneys.
The outlet explained that “according to an indictment filed in the Southern District of New York, Jacob Soall, who went by ‘Rocky Balboa’ and ‘Seba Clarke,’ was arrested in Spain in June.”
The other suspects include Sharon Hazan who hails from Israel, and Guy Sheetrit from the UAE. By tricking unsuspecting employees into trusting their fake identities, the group successfully convinced them to transfer millions into accounts under their control.
CBS News reported that “the three were arrested between June and September.” Soall and Hazan were arrested “in Spain and Sheetrit in the U.K. Extradition requests for all three are pending.”
The Scam Was Huge
Sofx detailed some of the losses and they included “a British financial technology company…a Florida pet food maker…a Missouri hospital system… a Massachusetts mutual fund company… a California hospital system and… a Rhode Island bank.”
The U.S. attorney’s office alleges the scheme stole more than $129 million from companies worldwide, and they used the AI to create fake voices that sounded like CEOs and lawyers. It might not be over yet because prosecutors are still calling for anyone affected by the scam to contact them.
One Of Them Boasted
According to NBC News, “Prosecutors allege that Hazan boasted that he had been laundering money since 1994; that he had laundered over $400 million in just the past three years; and that, among professional money launderers, he was ‘number one all over the world.'”
The use of AI in scams and fraud is increasing, and two months ago, Al Jazeera carried coverage about it on YouTube. While they mainly focused on Singapore, the video also covered how AI can map faces.
Elaborate Schemes Arise
Additionally, it covered an incident where “an AI-generated clip of a supposed government meeting with Prime Minister Lawrence Wong defrauded a victim of nearly $4 million.”
In the comments of that video, one person said, “AI must be regulated worldwide. A legal chartered global scrutiny system with all the UN participating countries are responsible to curb & combat global AI frauds, scams, etc.”
Another person opined, “We don’t have to worry. Only foolish gullible people will be scammed.”
Well, the new case involving the three foreign nationals didn’t scam foolish and gullible people, judging by the sophistication of the alleged crimes.
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