Australia’s financial regulator says investment scams are becoming harder to identify as criminals use AI, fake endorsements and convincing digital identities to target consumers.
The Australian Securities and Investments Commission (ASIC) removed more than 19,400 online scams during the 2025-26 financial year, representing an increase of 182% from the previous year, according to newly reported figures. The regulator said the growing use of AI is making fraudulent investment schemes increasingly sophisticated.
The scams range from fake investment platforms and phishing websites to fraudulent advertisements designed to imitate legitimate businesses and well-known individuals. ASIC’s latest warnings underline how quickly scammers are adapting their methods as AI tools become more accessible.
Deepfakes add a new layer of risk.
One of the biggest concerns is the use of AI-generated deepfakes. Scammers can create realistic videos, audio and images of celebrities, financial experts and public figures, making fraudulent investment opportunities appear credible.
ASIC has specifically warned about fake celebrity endorsements being used to promote investment schemes and pump-and-dump operations. In some cases, victims are directed from social media advertisements into messaging groups such as WhatsApp, where fake experts and other supposed investors encourage them to buy particular shares. Fabricated testimonials and multiple fake identities can create the impression that an investment opportunity has already delivered substantial returns to others.
Fake platforms and cryptocurrency scams.
Investment fraud is also spreading through fake trading websites. ASIC warned in May this year that scammers were directing consumers towards fraudulent crypto-asset platforms that display fabricated trades and profits. Victims may then be asked to pay additional fees to withdraw supposed earnings or assets that do not actually exist.
The regulator has also been working to make it easier for consumers to verify whether financial services websites are genuine. ASIC is collecting website addresses of Australian financial services licensees and publishing them through its professional registers.
ASIC advises investors to independently verify financial services providers, check its scam warnings and avoid making investment decisions based solely on social media posts, celebrity endorsements or unsolicited messages.
