Google files lawsuit against alleged China-linked scam operation

Meet the outsider enterprise scam

Ever get a text saying you owe money for unpaid tolls or that a package is stuck? You’re not alone. Google has filed a lawsuit against a China-based cybercrime network it calls Outsider Enterprise, alleging the group used AI-powered phishing kits to run these scams on a massive scale.

Google says the operation financially scammed hundreds of thousands of victims and was tied to 9,000 fake websites, more than 1 million fraudulent URLs, and 2.5 million messages sent to Android users over a two-week period. Google is coordinating with the FBI and major U.S. carriers as part of the broader effort to disrupt the network.

AI helped build fake websites

The criminals allegedly used Google’s Gemini AI to help generate code for fake phishing pages. According to Google’s complaint, Outsider tutorials showed users how to ask Gemini for harmless-sounding page code, including a “gift redemption page,” then paste the output into Outsider’s custom-template editor.

The operation used fake sites and templates impersonating trusted brands and public services, including Google, YouTube, the U.S. Postal Service, and New York’s E-ZPass system. Google says it identified 9,000 fake websites and more than 1 million fraudulent URLs linked to the group.

A phishing for dummies kit

You don’t need to be a hacker to run this scam. Outsider Enterprise sold a software kit called Outsider that made phishing easy for anyone. It was literally phishing for dummies. 

For just $88 a week or $200 a month, criminals could buy this kit on Telegram. It came with more than 290 ready-to-use templates that mimic banks, shipping companies, government agencies, and retailers. 

2.5 million texts in two weeks*

The scale of this scam is staggering. During just two weeks in May 2026, the Outsider Enterprise sent 2.5 million text messages to Android users. Each message contained a link to one of their fake websites. 

Victims received urgent warnings about compromised accounts, missed package deliveries, or unpaid tolls. The messages were designed to create panic so people would click without thinking.

AI makes scams harder to spot

In the past, scam texts were often easier to spot when they used awkward wording or obvious mistakes. AI has made that harder because criminals can generate more polished, convincing messages.

Brett Leatherman, assistant director of the FBI’s Cyber Division, said, “Criminals increasingly use AI to make fraud like this more convincing and harder to detect.” Google says Outsider used AI-generated code and phishing kits to make scams look more legitimate.

Fun fact: The FBI’s 2025 Internet Crime Report found that AI-enabled fraud cost Americans $893 million in reported losses. But the real number is likely much higher since many victims don’t know AI was involved. 

It’s a full-time criminal business

Outsider Enterprise wasn’t just a few hackers in a basement. Google’s complaint describes a structured criminal operation with specialized groups that built and updated the software, recruited and trained members, supplied target lists, sent bulk phishing messages, and monetized or laundered stolen information.

Members coordinated on Telegram, where they shared tactics, trained new users, connected buyers with specialists, and answered questions after someone bought an Outsider license.

Your phone company is helping

Google didn’t fight this battle alone. They teamed up with major US phone carriers, including AT&T, T-Mobile, and Verizon, to block these scam messages before they ever reach your phone. 

By working together at the network level, these companies can identify and stop fake texts before you see them. This teamwork is crucial because these scams rely on sending millions of messages to be effective. 

The FBI seizes domains and cash

The FBI, working with Google and other partners, carried out a technical takedown of Outsider Enterprise as part of the broader Operation Riptide campaign against cybercrime infrastructure. Authorities seized domains linked to administrative servers, a Shopify storefront and account used for testing, and a Telegram bot tied to the phishing service.

Investigators also seized roughly $100,000 in cryptocurrency from Outsider payment wallets. Thousands of phishing domains registered through U.S. providers now redirect to an FBI splash page warning visitors about the criminal site.

Google sues to shut them down*

Beyond the technical takedown, Google filed a civil lawsuit in Manhattan federal court against the people behind Outsider Enterprise. The company asked the court for a restraining order to stop the group’s operations worldwide. 

Google is using the Racketeer Influenced and Corrupt Organizations Act (RICO), the same law used against organized crime families. The lawsuit also includes claims for trademark infringement and abuse of Google Cloud and Drive services. 

Google wants new laws to help

Filing a lawsuit is one thing, but Google says stopping these scams for good will require new laws. The company is pushing Congress to pass seven different bipartisan bills aimed at fighting AI-powered fraud. 

These include the Stop SCAMS Act, which would require the FBI to lead a coordinated national anti-scam strategy. Google argues that current laws weren’t written for this new world of artificial intelligence. 

How the fake toll text works

You’ve probably gotten those fake texts about unpaid E-ZPass tolls. That specific scam was a huge part of the Outsider Enterprise operation. They built fake websites that looked exactly like New York’s official toll payment system. 

The messages look urgent and threaten late fees if you don’t pay immediately. But it’s all a trick to get your credit card number. The software even includes keystroke logging, so every letter you type is sent straight to the criminals. 

AI vs AI in a hidden war

Here’s the twist: Google says it is using AI-powered tools to fight AI-powered scams. The company says Android scam-detection tools can alert users to suspicious conversations and calls, while built-in messaging defenses intercept more than 10 billion malicious messages each month.

Those defenses are part of a broader, behind-the-scenes effort in which automated systems help detect suspicious activity at scale as scammers use AI to make phishing harder to spot.

Want to see how Google is strengthening its position in cybersecurity as AI threats grow? Check out the $32B deal finalized as Google acquires Wiz for a closer look at one of the biggest tech acquisitions in recent years.

Simple ways to protect yourself

You don’t need to be a tech expert to stay safe from these scams. First, never click links in unexpected texts, even if they look real. Instead, go directly to the company’s official website by typing the address yourself.

Second, ignore messages that try to create panic about unpaid tolls or account problems. Scammers love rushing you into bad decisions. Finally, report suspicious texts to your phone carrier by forwarding them to 7726, which spells SPAM.

Curious about the bigger AI arms race happening behind the scenes? Check out how Google lands a $200 billion cloud deal with Anthropic to see how tech giants are investing heavily in the infrastructure powering the next generation of AI tools. 

If this story helped you understand those annoying scam texts a little better, give it a thumbs up or leave a comment below. We’d love to hear from you.

This slideshow was made with AI assistance and human editing.

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