By Roy Denish
Google has launched a landmark lawsuit against a China-linked cybercrime network accused of using Gemini AI to mass-produce phishing scams, fake websites, and fraud campaigns that allegedly targeted more than 100,000 victims across the United States.
NEW YORK — Google has filed a civil lawsuit against a China-based cybercrime network, accusing the group of weaponizing the tech giant’s Gemini artificial intelligence platform to automate and mass-produce sophisticated phishing campaigns targeting American consumers.
The lawsuit, filed in the U.S. District Court for the Southern District of New York, represents Google’s first legal action addressing the criminal exploitation of its generative AI technology.
The complaint alleges that an organized cybercrime ring known as Outsider Enterprise used the chatbot to bypass safety filters by masquerading as legitimate developers seeking coding assistance. The network allegedly prompted Gemini to generate the custom HTML code required to build convincing shell websites.
According to court filings, the AI-generated code was then imported into a malicious software suite sold over encrypted Telegram channels for subscription fees as low as $88 per week. This “phishing-as-a-service” setup allowed low-level criminals with minimal technical skills to rapidly deploy functional scam websites.
Google reported that the operation generated more than 9,000 counterfeit web pages designed to harvest credit card numbers, passwords, and multi-factor authentication codes. These pages mimicked major entities including the U.S. Postal Service, mobile phone providers, Google, YouTube, and New York’s E-ZPass toll system.
Security researchers tracking the infrastructure detected more than 1.59 million malicious URLs linked to Outsider Enterprise over a five-month span concluding in April.
The lawsuit follows a broader pattern of tech companies confronting foreign threat actors exploiting their platforms. OpenAI disclosed earlier this week that it had banned multiple clusters of ChatGPT accounts originating from China that were being used to run covert political influence operations in the United States.
Google’s legal filing claims that during a two-week stretch in late May, the network sent roughly 2.5 million automated text messages to Android users, prompting more than 55,000 spam complaints. The text messages typically used urgent alerts regarding missed deliveries or compromised bank accounts to direct users to the fraudulent, AI-generated sites.
U.S. District Judge Victor Marrero approved Google’s emergency request for a temporary restraining order to freeze the group’s digital infrastructure. The tech company is seeking permanent injunctions and damages under the Racketeer Influenced and Corrupt Organizations Act, or RICO.
Google general counsel Halimah DeLaine Prado stated that the internet giant is coordinating its enforcement efforts with the FBI’s Cyber Division and major wireless carriers, including AT&T, T-Mobile, and Verizon, to identify the network’s digital footprint and block the text messages at the carrier level.
Brett Leatherman, assistant director of the FBI’s Cyber Division, said in a statement that criminals are increasingly utilizing AI to make online fraud more convincing and difficult to detect.
While total financial damages remain undetermined, the lawsuit notes that the operation has defrauded over 100,000 victims. The FBI previously reported that cybercriminals stole nearly $21 billion from Americans last year, with approximately $893 million in losses tied to AI-driven schemes.
