Three people have been indicted in New York over an alleged AI impersonation fraud scheme in which corporate executives and lawyers were mimicked to steal about $129 million from companies worldwide.
Jacob Soall, 41, Sharon Hazan, 54, and Guy Sheetrit, 42, are accused of targeting thousands of businesses over more than 18 months. They face charges including wire fraud, aggravated identity theft and money laundering.
The alleged victims included hospital systems in Missouri and California, a bank in Rhode Island, a UK financial technology company, a Massachusetts mutual fund company and a pet food business in Florida.
The defendants are from Spain, the UK, Israel and the United Arab Emirates, according to the indictment filed in a US District Court in New York. Soall and Hazan were arrested in Spain, while Sheetrit was arrested in the UK. Extradition requests for all three are pending.
How the alleged AI impersonation fraud worked
The group allegedly focused on company accounting departments, sending emails that appeared to come from chief executives and requesting assistance with confidential financial transactions.
They would then arrange a telephone or video call, during which they allegedly used AI to imitate the executive’s voice and, in some cases, appearance.
Employees were subsequently told to contact a lawyer at a major law firm. Prosecutors allege the group was prepared to impersonate those lawyers as well.
Soall mainly posed as UK-based lawyers and allegedly used a handwritten script titled “Lawyer Call” to appear genuine during conversations with victims.
The impersonated lawyers would then instruct employees to transfer large sums to bank accounts around the world. The money was allegedly converted into cryptocurrency to conceal its origin before being distributed among the defendants and others.
FBI Assistant Director in Charge James C Barnacle Jr said the case demonstrated how emerging technology could be used to carry out large-scale fraud.
“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,” he said.
Lawyers for Soall and Sheetrit did not immediately respond to requests for comment, while it was unclear whether Hazan had a lawyer. The US Attorney’s Office for the Southern District of New York also did not immediately respond to a request for comment.
Hazan was convicted in a New York court in 2008 of conspiracy to commit bank fraud, according to prosecutors.
If convicted, the defendants face a maximum sentence of 20 years, apart from the aggravated identity theft charge, which carries a maximum sentence of two years.
