Google has filed a lawsuit in New York federal court against Outsider Enterprise, an alleged Chinese cybercrime network accused of weaponizing the company’s Gemini AI to execute massive phishing operations. The suit claims the group used AI to generate code and templates for fraudulent websites mimicking legitimate telecom portals, targeting U.S. financial accounts and cryptocurrency wallets.
The scale of the operation is staggering. Authorities estimate the network deployed over 8,000 phishing sites across dozens of countries, sending 2.5 million scam messages. Since July 2023, the scheme has allegedly stolen 3.87 million credit card numbers, contributing to approximately $1.9 billion in total losses.
Google reported receiving roughly 55,000 complaints regarding suspicious messages on its platform in just a two-week period ending June 1. The legal action underscores a growing trend where criminal enterprises leverage advanced artificial intelligence to automate fraud at an industrial scale.
This case arrives as AI-driven financial scams surge nationwide. The FBI’s Internet Crime Complaint Center recorded over one million internet crime complaints in 2025, with crypto-related fraud accounting for $11 billion in losses. For the first time, the bureau dedicated a specific section to artificial intelligence scams, which cost Americans nearly $893 million last year alone.