Google sues Chinese cybercrime network 'Outsider Enterprise' over AI-driven $1.9bn fraud scheme
The FBI has seized domains and Shopify storefronts linked to the operation, which Google says has caused estimated losses of $1.9 billion since July 2023.
Google has filed a lawsuit against an alleged Chinese cybercrime network known as 'Outsider Enterprise', accusing the group of orchestrating a massive fraud campaign utilising artificial intelligence. The tech giant alleges the operation sent 2.5 million fraudulent text messages over a two-week period in May, impersonating Google and other major brands to steal passwords and credit card details from hundreds of thousands of victims.
According to Google’s complaint, the group generated over a million phishing websites and caused estimated financial losses of $1.9 billion since July 2023. The lawsuit details how the network employed a turn-key software suite called 'Outsider', which costs $88 per week or $200 per month, allowing operators with limited technical expertise to create deceptive sites using AI platforms, including Google’s own Gemini.
The software offers more than 290 pre-built templates mimicking legitimate services such as telecom providers, financial institutions, and government agencies. Google stated that the group used its own Google Drive and Google Cloud infrastructure to host the phishing websites, with the company detecting more than 1.59 million URLs connected to the operation between November 2025 and April 2026.
The FBI, in coordination with Google and Lumen’s Black Lotus Labs, has seized several domains and Shopify storefronts linked to the operation. An FBI spokesperson confirmed that the bureau, working alongside Google, seized the infrastructure used to test the phishing service. Google is seeking compensatory and punitive damages, alleging copyright infringement, racketeering, wire fraud, and false advertising.
The Outsider Enterprise is described as comprising several sub-groups, including software developers, target list suppliers, spammers using smartphone banks and SIM cards, and money launderers. The group coordinates its efforts in open Telegram channels, where members collaborate and discuss strategies. Google has been collaborating with AT&T, T-Mobile, and Verizon to block scam messages, having intercepted more than 10 billion scam messages a month using AI-powered detection tools.
