Google has sued the Chinese cybercrime group Outsider Enterprise for using its Gemini AI technology in phishing schemes that led to significant financial losses.
Overview
- Google has filed a lawsuit against Outsider Enterprise in a New York federal court, alleging misuse of its Gemini AI in phishing operations.
- The group is accused of sending out 2.5 million scam messages and creating 8,000 phishing sites targeting financial accounts.
- According to the FBI, these activities have led to the compromise of 3.87 million credit card numbers, resulting in $1.9 billion in losses since July 2023.
Google has taken legal action against Outsider Enterprise, a cybercrime organization from China, claiming that the group exploited its Gemini AI technology to run deceptive text messaging campaigns aimed at defrauding victims in the U.S.
The lawsuit asserts that Outsider Enterprise utilized Gemini AI to generate code and templates for fake websites that mimicked legitimate telecom portals. The FBI has reported that this operation has resulted in the creation of over 8,000 phishing sites across different countries.
Between May 18 and June 1, Google received approximately 55,000 reports of suspicious messages linked to the group. The court filings indicate that the criminal network has stolen around 3.87 million credit card numbers, contributing to an estimated total loss of $1.9 billion since mid-2023.
“Today, we filed a lawsuit to permanently dismantle a group of organized cybercriminals accused of using AI tools — including Gemini — to scam Americans via fake text campaigns,” Google stated.
The fraudulent websites reportedly targeted various financial accounts, including cryptocurrency wallets and exchanges, as scammers increasingly focus on digital asset holders, who may encounter fewer protective measures compared to traditional bank customers.
This lawsuit emerges amidst a growing trend of AI-related financial scams in the U.S. The FBI reported over a million internet crime complaints in 2025, with 181,565 related to cryptocurrency, resulting in losses of $11 billion—the highest in any category.
In a historic move, the FBI's Internet Crime Complaint Center has established a dedicated section for AI-related scams, documenting 22,364 complaints and nearly $893 million in losses. The bureau's Operation Level Up, launched in 2024, has reached out to over 8,000 victims of cryptocurrency fraud, successfully preventing over $500 million in potential losses.
Research has shown that even advanced AI models can inadvertently encourage harmful behaviors, raising concerns as tech companies, including Apple, integrate AI features into their products. Google's legal action represents a pivotal step in holding accountable those who misuse AI technologies in ways that jeopardize financial systems.
