Japanese teens arrested for using ChatGPT to create illegal phone contracts

Japanese authorities have arrested three teenagers for allegedly exploiting AI technology to commit cyber fraud, using ChatGPT to create fake mobile phone contracts and illegally access carrier networks. The suspects, aged 14, 15, and 16, reportedly developed an AI-powered program to forge contracts and hack into the Rakuten Mobile network, according to local media sources including the Yomiuri Shimbun.

The two high school students and one middle schooler are accused of purchasing stolen personal data—such as credit card details, IDs, and passwords—on the dark web. They then used this data, along with their AI-generated tools, to set up fraudulent accounts, enabling unauthorized access to the mobile carrier’s network.

A police spokesperson confirmed to AFP that two of the teens were taken into custody on Tuesday on charges of violating Japan's Unauthorized Access Prohibition Act and committing computer fraud.

Reports suggest that the trio successfully sold at least 2,500 fraudulent contracts, generating approximately JPY 7.5 million (around USD 50,000) in cryptocurrency. Investigators also revealed that the teens had acquired more than 3.3 billion sets of ID credentials and passwords through an anonymous seller on Telegram, an encrypted messaging platform known for its use in cybercrime circles.

Rakuten Mobile’s parent company, Rakuten, issued a public advisory urging customers to remain vigilant against unfamiliar contracts. In a statement, the company acknowledged the fraudulent activity, confirming that illicitly obtained IDs and passwords had been used to create unauthorized accounts.

Rakuten assured customers that it had fully cooperated with police investigations, suspended the fraudulent contracts, and reset affected passwords to prevent further unauthorized access. The company also emphasized that no internal data leaks had been detected within its systems.

This case highlights growing concerns over AI-assisted cybercrime, as authorities and companies struggle to keep pace with criminals using advanced technology to orchestrate sophisticated fraud schemes.