Two Israelis Accused of $129 Million AI-Powered Global Fraud Scheme

Two Israeli nationals, Guy Shtrit, 42, and Sharon Hazan, 54, along with British-Spanish national Jacob Sewell, 41, are facing charges in New York for allegedly operating a sophisticated international fraud network. The group is accused of using artificial intelligence to impersonate company executives and steal approximately $129 million from businesses worldwide over more than 18 months. The indictment states the defendants operated from Israel, Spain, the UK, and the UAE, targeting thousands of companies.

The scheme involved identifying employees authorized to approve bank transfers and sending them emails that appeared to be from the company CEO, requesting assistance with a confidential financial transaction. The fraudsters allegedly used AI to mimic the CEO's voice and sometimes even their likeness during subsequent phone or video calls. Victims were then directed to an individual posing as a lawyer from a reputable firm, who was actually one of the network members, also using AI-generated voice impersonations.

According to the indictment, the network instructed employees to transfer large sums of money to accounts controlled by the group. These funds were reportedly converted into cryptocurrency to obscure their origin before being divided among the members. Prosecutors claim the transactions were entirely fraudulent, and the employees were never in contact with the actual CEO or lawyer. Hazan and Shtrit are accused of money laundering, while Sewell, who allegedly used the alias "Rocky Balboa," is said to have written scripts to aid his impersonations.

Victims of the alleged scheme include hospital networks in the United States, a Rhode Island bank, a British fintech company that lost over $11.5 million, and a Florida pet food company from which more than $5 million was stolen. US authorities are investigating further potential victims and law firms used as fronts. The three suspects were arrested between June and September, with Hazan apprehended in Spain and Shtrit in the UK. Extradition proceedings are underway for their transfer to the US, where they face multiple charges including wire fraud, aggravated identity theft, and money laundering, with potential sentences of up to 20 years per count.

Sharon Hazan has a prior conviction in the US for conspiracy to commit bank fraud in 2008. FBI officials highlighted the case as an example of advanced technology being exploited for large-scale fraud, emphasizing the bureau's commitment to adapting its investigative capabilities. Federal Prosecutor Jamie McDonald urged individuals and businesses to consider protective measures against this emerging threat.