AI CEO impersonation fraud: three charged over $129 million

How does AI voice cloning work?

Voice cloning software can copy the pitch and speaking habits of a person from a short recording. It can then produce speech that sounds like them, including words they never said. Over a phone line, it can be hard to tell the difference. Prosecutors have not said exactly which tools were used in this case.

How the fake lawyer closed the trap

The fake executive then pointed the employee to a lawyer at a major law firm, supposedly handling the deal. The person who answered was an impostor too, and he told the employee which bank account to send money to. One defendant playing the lawyer allegedly had a handwritten script called "Lawyer Call". It included lines meant to stop employees from talking to colleagues.

The victims included a hospital, a bank, an investment fund company, a fintech firm and a pet food company. A UK fintech lost about $11.58 million, and a Florida pet food company about $5.24 million. The money went to accounts in the U.S., Spain, Singapore and China, then was converted to cryptocurrency and shared among the group. Prosecutors believe that was meant to hide where it came from.

The three were arrested in Spain and the UK between June and September this year, and the U.S. is seeking their extradition.

The lesson for any employee is awkward. A familiar voice is no longer proof of who is speaking, and checking with the lawyer you were handed does nothing if the lawyer is part of the act.