Google Files Lawsuit Against China-Based Scam Network Behind 9000 Fake Websites

Google has initiated legal proceedings on June 12 against a China-linked cybercriminal group known as “Outsider Enterprise,” accusing it of exploiting Gemini AI to orchestrate a vast wave of online financial fraud targeting hundreds of thousands of users in the United States. This case is being seen as one of the earliest high-profile attempts by a major AI company to hold third-party actors accountable for abusing generative AI systems for large-scale criminal activity. According to Google, the group used Gemini to rapidly generate deceptive websites mimicking trusted institutions such as Google itself, YouTube, the United States Postal Service, and New York’s E-ZPass toll system. These fraudulent pages were designed to trick users into submitting sensitive financial information, leading to losses reportedly running into millions of dollars. The operation was massive in scope, with over 9,000 fake websites created, more than one million malicious URLs generated, and around 2.5 million scam messages sent to Android users within just a two-week span in May 2026. During the same period, users flagged approximately 55,000 spam texts, highlighting the scale of the attack. Google is collaborating with US telecom providers and the FBI to disrupt the network and block scam messages in real time. The company also emphasized the need for updated AI-era laws to combat evolving digital fraud.