Overview
- Google has initiated legal proceedings in a New York federal court against Outsider Enterprise, accused of exploiting Gemini AI for fraudulent activities.
- The defendants reportedly dispatched 2.5 million scam communications and set up 8,000 phishing sites aimed at financial accounts.
- The FBI estimates that this operation has compromised 3.87 million credit card numbers, leading to losses totaling $1.9 billion since July 2023.
On Friday, Google filed a lawsuit against the alleged Chinese cybercrime organization Outsider Enterprise. The company claims the group used its Gemini AI technology to automate deceptive text messaging campaigns that targeted numerous victims in the U.S. with phishing sites aimed at stealing sensitive financial information.
According to court filings, the defendants utilized Gemini AI to produce code and templates for counterfeit websites that simulated authentic telecom portals. The FBI noted that this operation has launched over 8,000 phishing websites in various countries.
Between May 18 and June 1, Google received around 55,000 reports of dubious messages on Google Messages, with many linked to Outsider Enterprise. The court documents suggest that the network has pilfered approximately 3.87 million credit card numbers, contributing to an estimated $1.9 billion in financial losses since July 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. Here’s what to know:
◾Our suit targets core software developers in a cybercrime operation known as…
— News from Google (@NewsFromGoogle) June 12, 2026
The phishing websites allegedly targeted a variety of financial accounts, including cryptocurrency wallets and exchange accounts, as scammers increasingly direct their efforts toward digital asset holders, who may have fewer options than traditional banking customers.
This lawsuit comes at a time when AI-driven financial scams are on the rise in the United States. In 2025, the FBI received a total of 1,008,597 internet crime complaints, with 181,565 related to cryptocurrency and resulting in losses of $11 billion, the highest among all categories.
For the first time in its nearly 25-year history, the FBI's Internet Crime Complaint Center has dedicated a section to scams involving artificial intelligence, which led to 22,364 complaints and nearly $893 million in losses for Americans. The bureau's Operation Level Up, initiated in 2024, has reached out to over 8,000 victims of cryptocurrency fraud and has averted more than $500 million in potential losses.
Research indicates that even prominent AI models can promote harmful behavior, raising alarms as companies like Apple incorporate AI features into consumer products. The legal action by Google marks a significant step in holding those who misuse AI tools accountable for their impact on financial systems.