Report 5538

Imagine sitting in your office and you receive a text message from an unknown number. The text includes a screenshot of a purported text message between you and what appears to be an underage girl. The purported text message exchange leaves nothing to the imagination. You know you are innocent, and the screenshot is a fabrication sent by an unknown person(s). They threaten to spread these lies to your family, friends, and employer unless an immediate and substantial payment is made. To increase the fear, the malicious actors text you the names and phone numbers of your spouse and boss. What to do?

The hypothetical scheme described above---a variation of "sextortion"---is an emerging threat malicious actors are using to target corporate executives and professionals. Originally, the typical sextortion scheme involved tricking victims into sending sexually explicit videos or photos of themselves. The malicious actors then demanded payment (e.g., in the form of gift cards, cryptocurrency, or money) in exchange for not releasing the sensitive and private communications. 

Now, however, using Artificial Intelligence (AI) and other technological advancements, malicious actors no longer need to trick victims into providing intimate images or embarrassing chats---they can simply fabricate them. Malicious actors are increasingly leveraging AI to create what the Federal Bureau of Investigation refers to as "synthetic content" or "deepfakes." Examples include phony AI generated text message exchanges, explicit images, and salacious videos. Recently, Marco Rubio, Secretary of State, and the US Government were reported to be victims of exactly this type of deepfake plot. Using AI, malicious actor(s) impersonated Mr. Rubio. The unknown bad actor(s) created phony text and voice messages purportedly made by Rubio and sent them to foreign diplomats and other US officials.  (*see *https://www.nytimes.com/2025/07/08/us/politics/rubio-ai-impersonation-investigation.html). And this is only the beginning. AI technology is becoming so ubiquitous that YouTube now has "how to videos" on how to create deepfake content.

AI, however, has not yet entirely displaced "old school" fraud techniques. Even with advanced AI technology, we still continue to see criminals target our clients with less sophisticated content manipulation technologies (i.e., Photoshop) to create fake images and content, such as fake text messages and images.

Regardless of which type of tools they employ, malicious actors are increasingly targeting executives and professionals using information they have mined from the Internet and social media (*e.*g., professional networking platforms). These sources provide criminals with a wide range of information about potential targets: employer and employment history, family members, home addresses, telephone numbers, and in some cases, photographs---or even videos, which can be exploited by voice recognition technology.

If defamatory information is created by criminals and released to the public, it often results in adverse employment actions, workplace and criminal investigations, damage to one's reputation, financial harm (i.e., lawyers, forensic experts, etc.), and emotional distress.

Key Recommendations: What Should You Do?

Employers. If you receive unsolicited texts or emails alleging that your employee engaged in the conduct described above, consider the following:

• Confidentially alert in-house or external counsel and Human Resources. Investigations should be conducted consistent with the company's standard operating procedures for conducting investigations (preferably by counsel so it is protected by the attorney-client privilege). Provide the employee an opportunity to respond to the allegation and to present any exculpatory information.
• Take a measured approach. Carefully consider whether placing the employee on administrative leave is appropriate. It may make sense to conduct a prompt intake assessment or review of the matter before placing the employee on leave.
• Consult with counsel before taking any adverse employment action or referring the matter to law enforcement.
• Preserve the information. If the company issued a phone to the employee, obtain possession of the phone and preserve it in a manner that forensically preserves the data. Consult with counsel whether the employee's consent is needed to analyze the phone. In addition, ensure everything is documented (receipt of allegations, internal actions, statements made by the employee, etc.).
• Protect the employee's confidentiality. Like any sensitive matter, keep the information confidential and disclose only to those with a "need to know" (management, HR, legal, etc.). Remember that these allegations, if publicized, can severely damage an employee's reputation---even if he/she is later exonerated.

Individuals. If you are a victim of one of these schemes, it is important to act quickly and consider the following:

• Consider consulting with experienced counsel as soon as possible. Experienced counsel will engage forensic experts whose work can remain confidential and who can analyze your phone or computer consistent with forensically and legally established protocols and standards. This analysis can often prove that the extortionists are liars and establish an alibi that can protect you. If the false information is posted online, counsel can request on your behalf that the platform take down the offending information.
• Do not delete anything. Deleting data could impair the ability of forensic experts to analyze the data, and it could create the perception you are trying to hide something.
• With the assistance of counsel, consider an immediate report it to law enforcement. Reports can be made to the FBI's Internet Crime Complaint Center (IC3) (https://www.ic3.gov/) and your local police department. But it is best not to report to law enforcement before you speak with an attorney. 
• Do not pay anything to the malicious actors. The malicious actors may continue to demand payments once they receive the first one.
• Get ahead of the malicious actors. Remember, you are a victim. After speaking with your attorney, consider notifying your employer and family that you are the victim of an extortion plot. If you have counsel, provide your employer with the lawyer's information. Where appropriate, you and your counsel can consider advising your employer that you have reported the information to law enforcement and are willing to cooperate.
• If you become a target of a criminal investigation, engage experienced counsel before making any statements to the police or consenting to any searches (g., phone, computers and related devices, home, or car).
• Conduct security and privacy maintenance/housekeeping. Change all your passwords, enable two-factor authentication on your bank accounts, email, social media, and cloud accounts, and adjust your privacy settings. Consider whether you should limit audio, video, and photographs of you and your loved ones to only those that you want to have access to these materials.

Dentons has experienced lawyers who represent companies and individuals involved in these matters, including former federal prosecutors experienced in cybercrimes, extortion, fraud, and financial crimes, and employment lawyers. Dentons' lawyers also have deep experience with compliance, investigations, and litigation.