via TechCrunch AI
Google Sues Chinese AI-Powered Cybercrime Network That Scammed ‘Hundreds of Thousands’
Google has filed a lawsuit aimed at dismantling the infrastructure behind a massive AI-powered cybercrime operation allegedly based in China. The tech giant announced on Friday that it is taking legal action against a network known as Outsider Enterprise, which Google claims uses artificial intelligence to orchestrate scam text campaigns impersonating Google and other brands, with the goal of stealing passwords and credit card numbers.
According to Google, Outsider Enterprise has financially defrauded “hundreds of thousands of victims,” resulting in losses “estimated in the millions.” The group reportedly operated 9,000 fake websites, created one million fraudulent web domains, and sent 2.5 million text messages to Android users within a two-week period. Google noted that “55,000 spam texts were flagged by Android users in just two weeks this past May — that’s more than two text spam complaints a minute.”
To combat such threats, Google said it uses “AI-powered tools to fight AI-powered scams,” which help detect fraudulent activity and alert users to suspicious calls and messages. These measures have enabled the interception of more than 10 billion scam messages per month. Google has also collaborated with AT&T, T-Mobile, and Verizon to block scam texts and is coordinating with the FBI. An FBI spokesperson told TechCrunch that the bureau, working with Google and Lumen’s Black Lotus Labs, seized several domains used by the cybercriminals, as well as Shopify storefronts and accounts involved in testing the operation’s phishing service. The spokesperson added that since July 2023, Outsider Enterprise’s phishing platform is estimated to have enabled the theft of at least 3,870,000 credit cards, resulting in approximately $1.9 billion in losses.
## Inside Outsider Enterprise
In its complaint filed as part of the lawsuit, Google detailed evidence against the individuals behind Outsider Enterprise, describing them as foreign-based cybercriminals whose real identities remain unknown. The group allegedly “built, maintains, and uses a turn-key, online software suite that enables criminals, regardless of technical skill, to publish fraudulent websites designed to rob victims and enrich themselves.”
Google characterized this “phishing-for-dummies” software, called Outsider, as costing $88 per week or $200 per month. It allows operators to create fake websites with the help of AI platforms, including Google’s own Gemini. These fraudulent sites impersonate a range of services and companies, including telecom providers, financial institutions, government agencies, and retailers.
To lure victims, cybercriminals collaborate by sending malicious text messages or purchasing ads to direct users to the fake websites. The ultimate goal is to steal passwords, multi-factor authentication codes, and financial information. This is accomplished as victims input their data into the counterfeit sites, which is then transmitted in real time through Outsider’s platform. As Google noted, “Part of the Outsider software’s appeal is the ease…” (the original text appears to be cut off). In 2026, as AI-driven scams become more sophisticated, such legal actions highlight the growing need for cross-industry collaboration to protect consumers and disrupt cybercriminal networks.