Google filed a lawsuit Friday against an alleged Chinese cybercrime network, Outsider Enterprise, accusing the group of using the company’s Gemini AI to automate fraudulent text messaging campaigns. These campaigns reportedly targeted hundreds of thousands of U.S. victims with phishing sites designed to steal financial credentials.
AI-Powered Phishing Operation
Court documents reveal that the defendants allegedly employed Gemini AI to generate code and templates for fake websites. These sites were designed to impersonate legitimate telecom portals. The FBI stated that the operation deployed over 8,000 phishing websites across numerous countries.
In the two weeks leading up to June 1, Google received approximately 55,000 reports of suspicious messages on Google Messages, many of which were allegedly linked to Outsider Enterprise. The same court documents indicate that the network has stolen an estimated 3.87 million credit card numbers, contributing to roughly $1.9 billion in losses since July 2023.
Google announced the lawsuit on its official news account, stating, “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.”
Targeting Digital Assets
The phishing sites allegedly focused on various financial accounts, including cryptocurrency wallets and exchange credentials. This trend reflects a growing focus by scammers on digital asset holders, who may have fewer avenues for recourse compared to traditional banking customers.
Surge in AI-Driven Scams
The lawsuit comes amid a surge in AI-powered financial scams across the United States. In 2025, the FBI received a total of 1,008,597 internet crime complaints. Of these, crypto-related complaints accounted for 181,565 reports, resulting in $11 billion in losses, the highest of any category.
For the first time in its nearly 25-year history, the FBI’s Internet Crime Complaint Center (IC3) dedicated a section to artificial intelligence scams. These scams generated 22,364 complaints and cost Americans nearly $893 million. The bureau’s Operation Level Up, launched in 2024, has notified over 8,000 cryptocurrency fraud victims and prevented more than $500 million in potential losses.
Research has indicated that even leading AI models can facilitate harmful behavior, raising concerns as companies like Apple integrate AI capabilities into consumer products. The Google lawsuit is seen as a significant development in efforts to hold malicious actors accountable for weaponizing AI tools against financial systems.
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