AI Fraud: Trio charged with $129 million CEO impersonation scheme

Prosecutors in New York City have charged three individuals with stealing approximately $129 million by using artificial intelligence to impersonate corporate leaders and attorneys. The indictment, filed in the U.S. District Court for the Southern District of New York, accuses Jacob Soall, 41, Sharon Hazan, 54, and Guy Sheetrit, 42, of wire fraud, aggravated identity theft, and money laundering. The scheme unfolded over a period of more than 18 months, during which the group targeted thousands of organizations worldwide.

The defendants, who hail from Spain, the United Kingdom, Israel, and the United Arab Emirates, specifically targeted accounting departments at various firms. Court documents identify victims as including hospital systems in Missouri and California, a Rhode Island bank, a U.K. financial technology firm, a Massachusetts mutual fund, and a Florida pet food company. The trio, who used nicknames such as “Rocky Balboa” and “Superman Cash,” initiated contact by sending emails that appeared to come from a company’s chief executive officer. These messages requested assistance with confidential financial transactions.

To build trust, the defendants scheduled phone or video calls. During these interactions, they employed AI tools to mimic the voice and sometimes the visual appearance of the executive. They then instructed the employee to speak with an attorney at a major law firm, a role the group was prepared to impersonate as well. Soall primarily impersonated British lawyers and used a handwritten script titled “Lawyer Call” to maintain the ruse during conversations with victims.

The fake attorneys directed employees to wire substantial sums to bank accounts located around the globe. The funds were subsequently converted into cryptocurrency to obscure their origin before being distributed to the three defendants and other associates. Hazan had a prior conviction in 2008 for conspiracy to commit bank fraud in a New York court. The three suspects were arrested between June and September of this year. Lawyers for Soall and Sheetrit did not immediately respond to requests for comment, and it was unclear if Hazan retained legal representation.

James C. Barnacle Jr., the FBI Assistant Director in Charge, stated that the case demonstrates how advanced technology is being used to commit large-scale fraud. He noted in a statement that the agency is working to adapt its capabilities to identify and disrupt criminals who weaponize emerging technologies. If convicted, each defendant faces a maximum sentence of 20 years for the wire fraud and money laundering charges. The aggravated identity theft charge carries a maximum penalty of two years.