Australia’s main financial regulator, the Australian Securities and Investments Commission (ASIC), reported a significant increase in its efforts to combat online investment scams in the 2025-2026 financial year, as the use of sophisticated technologies and AI-powered tactics rise among scammers targeting cryptocurrency investors.
Spike in Scam Takedowns and Online Fraud
ASIC removed 3,106 scams related to cryptocurrency investments during the financial year, marking a nearly 30% increase from the previous year. The regulator also took down 7,051 fake investment platforms and 5,476 phishing links from the internet.
The surge in fraudulent activities led to a record 19,400 online scam takedowns over the period. This figure represented a 182% jump compared to the previous year. Fake investment platform removals climbed 151%, while phishing link takedowns increased by 279%.
Criminal networks behind these schemes are employing increasingly advanced methods to deceive investors, with the use of artificial intelligence (AI) playing a central role.
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AAPL| Category | FY25 | FY26 | % Change |
|---|---|---|---|
| Crypto scams removed | Approx. 2,389 | 3,106 | +30% |
| Fake platforms removed | 2,809 | 7,051 | +151% |
| Phishing links removed | 1,445 | 5,476 | +279% |
| Total scams removed | 6,870 | 19,400 | +182% |
Generative AI Deepens Fraud Threats
ASIC warned that criminals now leverage generative AI tools to create elaborate networks of fake content supporting fraudulent schemes. These include deepfake videos, counterfeit news articles, and fabricated testimonials, all designed to give scams a layer of authenticity.
In some cases, scammers use AI-generated footage featuring high-profile politicians or well-known financial commentators to endorse bogus cryptocurrency trading platforms. This technique also combines replicated branding and manipulated user reviews to convince potential victims.
If a victim engages with these websites, scammers commonly follow up with direct phone calls and may display fictitious profits on dashboards to encourage further investments. This progression of tactics makes it increasingly difficult for everyday investors to distinguish fake opportunities from legitimate ones.
Online searches alone are no longer sufficient to verify an offer’s legitimacy, and professional-looking websites or familiar brands cannot be trusted as proof of authenticity.
ASIC Chair Sarah Court advised that investors should only check licence information through official ASIC registers, not through general web searches.
Mini dictionary: ASIC (Australian Securities and Investments Commission) is the country’s main corporate, financial services, markets, and consumer credit regulator. It oversees financial practices, investment products, and the conduct of companies in Australia.
Celebrity Deepfakes and Reported Losses
Impersonation scams using deepfake images and videos of ten prominent Australians—including Prime Minister Anthony Albanese and finance commentators Tom Piotrowski and Alan Kohler—resulted in over A$7.4 million in reported losses in FY26.
In previous years, scams have used AI-generated content featuring personalities such as billionaire Andrew Forrest or Elon Musk to endorse fraudulent trading platforms. These incidents included manipulated YouTube accounts and circulation of QR codes linked to suspicious crypto schemes.
Investment losses remain high. In 2024, law enforcement reported Australians lost A$382 million to investment scams, with cryptocurrency making up nearly half of the total. Reports show that individuals under the age of 50 accounted for 60% of crypto scam losses.
Victims are typically shown fabricated trading gains and growing balances, only to face additional fee demands when they attempt to withdraw funds. Ultimately, the funds do not exist, and these additional fees are never refunded.
Some criminal operators have faced legal action. In February, two men were charged in connection to an alleged A$5 million scam using the NEXOpayment platform. ASIC also intervened against a platform named Yepbit, after unresolved customer withdrawal issues.
Regulatory Steps and Investor Guidance
ASIC reported that scammers sometimes fabricate or misuse Australian Financial Services Licence (AFSL) numbers to create a veneer of legitimacy. The regulator advises investors to cross-check all licensing details using its official Professional Registers and review the Moneysmart Investor Alert List before transferring any funds or cryptocurrency.
In a separate update, ASIC extended temporary licensing relief for some digital asset businesses, moving the compliance deadline from June 30 to September 30.
