US Charges Israelis in $129 Million AI-Powered Corporate Fraud Scheme

Federal prosecutors in New York have indicted three individuals in a sophisticated international fraud scheme that used artificial intelligence to steal corporate funds, resulting in $129 million in damages. The accused allegedly targeted businesses globally, tricking employees into transferring large sums to accounts they controlled.

The indictment names Sharon Hazan, 54, and Guy Sterritt, 42, both from Israel, and Yaakov Suell, 41, who resides in Spain and the UK. The perpetrators employed advanced AI algorithms to create highly realistic digital replicas of real top executives, including fake voices and appearances. These deepfakes were used to issue fraudulent financial directives to company personnel, often under the guise of urgent, confidential corporate operations.

When employees expressed doubts, the fraudsters escalated their deception by impersonating lawyers to validate the urgent financial transfers. Investigators have documented numerous successful transactions where millions of dollars were siphoned from victim corporations. The use of AI-generated speech and video impersonations allowed the criminals to deceive even experienced financial professionals for an extended period, as victims believed they were communicating with their actual superiors.

U.S. law enforcement has concluded the indictment process and is collaborating with international partners to apprehend the accused. Authorities intend to seek the extradition of all defendants for trial in New York. Prosecutors highlighted the growing threat of generative AI in the corporate sector and urged businesses to enhance their internal payment verification protocols.