Google sues suspected AI scam network

Google is suing an alleged criminal operation based in China that it says used AI tools, including its own Gemini platform, to power a sprawling phishing enterprise responsible for millions of dollars in fraud and more than a million scam websites.

The lawsuit, filed in the U.S. District Court for the Southern District of New York, accuses a network known as the “Outsider Enterprise” of operating a “phishing-as-a-service” platform enabling criminals with little technical expertise to create convincing scam websites impersonating trusted companies, financial institutions, toll agencies, and government entities.

Google said the lawsuit marks the first time it has legally pursued bad actors allegedly misusing Gemini to facilitate scams against U.S. consumers. The company is coordinating with the FBI and major telecom carriers including Verizon, AT&T, and T-Mobile.

The “Outsider” software suite allegedly allowed scammers to generate fraudulent websites using more than 290 prebuilt templates for subscription fees as low as $88 per week. Google alleges the network weaponized AI by using Gemini to generate website code imported into the phishing platform.

Between November 2025 and April 2026, Google detected more than 1.59 million URLs linked to the operation. The complaint seeks damages and injunctive relief under RICO and the Lanham Act.

FBI Cyber Division Assistant Director Brett Leatherman: “Criminals increasingly use AI to make fraud like this more convincing and harder to detect.”