Israelis Charged in Massive AI-Powered Fraud Scheme in New York
Translated & summarized from Kipa by baba
Two Israeli citizens, Sharon Hazan and Guy Shitrit, along with Jacob Saul, are accused in a New York court of orchestrating a $408 million fraud scheme using AI to impersonate executives. The sophisticated operation targeted various U.S. companies and institutions, including hospitals and banks, between 2024 and 2026. The suspects were arrested in Europe and face extradition to the U.S. on multiple charges, including wire fraud and money laundering.
The story in 5 lines · by baba
- Two Israelis and a European national are charged in New York with a $408 million AI-powered fraud.
- The suspects allegedly used AI to impersonate executives and trick employees into making fraudulent transfers.
- Victims included U.S. hospitals, a bank, financial firms, and a pet food manufacturer.
- The accused were arrested in Europe and face extradition to the United States.
- Charges include wire fraud, identity theft, and money laundering, with potential 20-year sentences.
A sophisticated fraud scheme, allegedly orchestrated by two Israeli citizens and a European national, has resulted in the theft of approximately $408 million (129 million dollars). Sharon Hazan, 54, and Guy Shitrit, 42, both Israeli citizens, along with British-Spanish national Jacob Saul, 41, are accused of operating a complex impersonation network between 2024 and 2026. They reportedly used artificial intelligence to mimic senior executives and their voices, tricking employees into making fraudulent financial transfers.
The scheme involved creating convincing AI-generated communications, including video calls, that impersonated company CEOs. The victims were often directed to AI-generated "lawyers" from reputable firms to further legitimize the fraudulent requests. Among the targeted institutions were U.S. hospitals, a bank, financial companies, and a pet food manufacturer. In one instance, a British fintech company lost over $11.5 million, and a Florida-based pet food producer was defrauded of more than $5 million.
Hazan and Shitrit are said to have focused on money laundering, while Saul specialized in impersonating lawyers and crafting detailed scripts for the scams. Hazan reportedly boasted about his global expertise, while Shitrit used the alias "Superman Cash" and Saul called himself "Rocky Balboa." The stolen funds were moved through various international accounts and converted into cryptocurrency to obscure their origins.
Other victims include a Missouri hospital system that lost approximately $4.8 million and a Rhode Island bank from which $2.6 million was stolen. The three suspects were apprehended in Europe: Saul in Spain in June, Hazan in Spain in August, and Shitrit in the UK in September. The United States has requested their extradition and they are awaiting decisions on these requests. Each faces multiple charges, including wire fraud, aggravated identity theft, and money laundering, with potential sentences of up to 20 years per offense.
An FBI official, James Barnacle, warned about the increasing use of advanced technologies for fraudulent purposes, stating the bureau is committed to adapting its capabilities to counter such threats.
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