Italian authorities have dismantled a suspected fraud network operating in the south of the country by using artificial intelligence to create fake identities and illegally access social benefits. The Financial Guard (Italy's economic police) reported this on Tuesday. The operation, named 'Fake Family', is estimated to have generated 1.4 million euros in fraud obtained through fraudulent applications for the universal single allowance, a monthly subsidy for vulnerable families managed by Italy's National Institute of Social Security (INPS). The investigation, carried out in the province of Foggia in the Apulia region (southeast Italy), resulted in the arrest of four people who allegedly created 59 fake profiles of Romanian women, each claiming to have five or six children in their care. According to authorities, the faces and personal data of these identities were generated using advanced AI tools, and after checks with the Carabinieri and international cooperation channels, it was confirmed that these identities did not exist. The network included the complicity of a civil registry official who allegedly issued fake identity cards and residence permits, and an employee of a tax assistance center (CAF) in Foggia, responsible for submitting applications to INPS. To reinforce the simulation of legitimacy, fake employment contracts were also generated in agricultural companies in Cerignola and prepaid cards were activated to withdraw the funds obtained. The investigating judge of the Court of Foggia authorized the seizure of assets related to the suspects, including properties, bank accounts, and other assets, while the case is investigated for aggravated fraud and ideological falsity in a public document. The Financial Guard emphasized in its statement that such crimes not only divert public resources but also undermine social equity and cohesion, harming those who truly need these benefits.