AI impersonation scheme targeted California hospital systems in $129M fraud

Three individuals have been indicted for allegedly using artificial intelligence to impersonate corporate executives and lawyers in a scheme that stole approximately $129 million from companies worldwide, according to CBS News Bay Area.

The indictment, filed in a U.S. District Court in New York, states the suspects targeted thousands of companies over more than a year and a half, including hospital systems in California, banks, financial technology firms, and other businesses across multiple states and countries.

The defendants, from Spain, the U.K., Israel, and the United Arab Emirates, are charged with wire fraud, aggravated identity theft, and money laundering. They allegedly used AI technology to mimic voices and images of CEOs during phone or video calls to deceive company accounting departments into transferring funds.

Two of the accused were arrested in Spain and one in the U.K., with extradition requests pending. One defendant has a prior conviction for conspiracy to commit bank fraud in New York.

The case highlights the emerging use of AI in sophisticated financial crimes impacting companies in California and beyond.