Key facts
- Google sued Chinese cybercrime network Outsider Enterprise for using Gemini AI to automate phishing scams.
- The operation allegedly deployed thousands of fake websites and sent millions of scam text messages.
- The FBI estimates the scheme resulted in $1.9 billion in losses and the theft of 3.87 million credit card numbers since July 2023.
- The Outsider software, costing $88/week or $200/month, allows users to create fake websites impersonating legitimate services.
- Google is collaborating with law enforcement and mobile carriers to combat these AI-powered scams.
Google has filed a lawsuit against Outsider Enterprise, an alleged Chinese cybercrime network, accusing the group of using the company's Gemini AI models to automate fraudulent text messaging and create phishing websites.
The tech giant announced the lawsuit Friday, stating that the network has financially scammed "hundreds of thousands of victims" with losses "estimated in the millions." The group allegedly deployed 9,000 fake websites and sent 2.5 million texts to Android users in a two-week period, with 55,000 spam texts flagged by users in just two weeks in May.
Google stated it uses AI-powered tools to combat AI-powered scams, enabling the interception of over 10 billion scam messages monthly. The company is collaborating with AT&T, T-Mobile, and Verizon to block scam texts and is coordinating with the FBI. The FBI, in conjunction with Google and Lumen's Black Lotus Labs, seized several domains and Shopify storefronts used by the cybercriminals.
The FBI estimates that since July 2023, Outsider Enterprise's phishing platform enabled the theft of at least 3,870,000 credit cards, resulting in an estimated $1.9 billion in losses. The complaint details how the network built and maintains a software suite that allows criminals to publish fraudulent websites, with the "phishing-for-dummies" software, Outsider, costing $88 per week or $200 per month. This software reportedly helps operators create fake websites impersonating various services and companies, using AI platforms like Gemini.
Cybercriminals use these fake websites to steal passwords, multi-factor authentication codes, and financial information. They coordinate their efforts on Telegram channels to share strategies and develop attacks. The Outsider platform allegedly offers over 290 pre-built templates and guides on using AI-generated code. Google Drive and Google Cloud infrastructure were reportedly used to host these phishing websites. Google is seeking compensatory and punitive damages and an order to halt the criminals' activities.