Two Israelis Charged in $129 Million AI Fraud Scheme

Two Israeli nationals, Sharon Hazan, 54, and Guy Shitrit, 42, along with Jacob Suele, 41, are accused of orchestrating an international fraud scheme totaling over $129 million, allegedly using artificial intelligence. According to a indictment unsealed in New York federal court, the group impersonated senior executives and lawyers to trick employees into transferring substantial sums to their accounts.

The sophisticated method involved identifying employees authorized for large financial transfers and then impersonating the company's CEO via AI-generated voice and, at times, video impersonations. Victims were then directed to transfer funds to accounts provided by an individual posing as a lawyer from a prominent international firm. The indictment details losses including approximately $11.6 million from a British fintech company, $5.2 million from a Florida pet food manufacturer, and $7.8 million from two hospital systems. Funds were moved through various bank accounts before being converted to cryptocurrency to obscure their origin.

Not all attempts were successful; in October 2024, an attempted $2.85 million transfer from a major New York investment firm was halted by the company's operations department before completion. Sharon Hazan, who has a prior conviction for conspiracy to commit bank fraud in the U.S. in 2008, is alleged to have been a key figure in laundering the illicit funds. He reportedly boasted about laundering over $400 million in three years and claimed to be the "number one in the world" in this field, though these are claims by the prosecution and not proven amounts.

Guy Shitrit is also known as a digital marketing entrepreneur, having founded Over The Top SEO, a company involved in AI-based brand promotion, though no evidence links the company's operations to the alleged fraud. Following an international investigation involving the FBI and European law enforcement, Suele was arrested in Spain on June 17, Hazan in Spain on August 5, and Shitrit in the UK on September 7. The suspects are awaiting extradition to the United States, where they face charges including wire fraud, conspiracy to commit fraud, aggravated identity theft, and money laundering, with potential sentences of up to 20 years per count for five charges.

This case highlights the growing threat of AI-powered fraud. In May, cybersecurity firm ESET warned of similar scams using AI to mimic CEO voices, advising businesses to verify fund transfer instructions through separate communication channels and require multiple approvals for significant transactions. The legal proceedings against the three defendants are pending in the U.S., and they are presumed innocent until proven guilty.