Two Israelis Suspected of $129 Million AI-Powered CEO Fraud Scheme

A sophisticated international fraud ring, allegedly operated by two Israelis and a British-Spanish national, used artificial intelligence to impersonate company executives and steal approximately $129 million from businesses worldwide. The indictment, filed in New York, states the network operated for over 18 months, targeting thousands of companies. The suspects are identified as Israelis Guy Shtrit, 42, and Sharon Hazan, 54, along with Jacob Sewell, 41, described as Spanish-British. The group reportedly operated from Israel, Spain, the UK, and the UAE.

The scheme involved identifying employees authorized to approve bank transfers. The fraudsters sent emails impersonating CEOs, requesting assistance with confidential financial transactions. Phone or video calls followed, where AI was allegedly used to mimic the CEO's voice and sometimes appearance. Employees were then directed to an individual posing as a lawyer from a reputable firm, who was actually a member of the ring. AI voice impersonation was also reportedly used in these calls with the fake lawyer, who instructed employees to transfer large sums to accounts controlled by the network.

Prosecutors claim the stolen funds were converted into cryptocurrency to obscure their origin before being divided among the suspects. "The transactions were a complete fraud, and the employees who fell for it did not speak at all with the real CEO or the real lawyer," the lawsuit stated. Hazan and Shtrit are accused of money laundering, while Sewell, using the alias "Rocky Balboa," allegedly wrote scripts to enhance his credibility as a fake lawyer. Hazan reportedly boasted about his money laundering skills, calling himself "number one in the world."

Victims of the alleged scheme include hospital networks in the United States, a Rhode Island bank, a British fintech company, and a pet food company in Florida. The fintech firm was reportedly defrauded of over $11.5 million, and the pet food company lost more than $5 million. US authorities are investigating further victims and law firms potentially used as fronts.

The three suspects were arrested between June and September. Hazan was arrested in Spain in August, and Shtrit in the UK in September. Extradition proceedings are underway for their transfer to the US. Each faces seven charges, including wire fraud, aggravated identity theft, and money laundering, with a maximum sentence of 20 years for most fraud counts. Hazan has a prior conviction in the US for bank fraud conspiracy in 2008. The FBI highlighted the case as an example of advanced technology being exploited for large-scale fraud, emphasizing their commitment to adapting investigative capabilities.