Australian police warn AI-powered crypto scams cost A$74k

Australian police have described how transnational criminal networks use artificial intelligence to build complete fake cryptocurrency investment systems, following a case in which a woman in her 60s lost almost A$74,690 after an initial US$174 deposit on social media.

The Joint Policing Cybercrime Coordination Centre (JPC3), led by the Australian Federal Police, reported that gangs deploy AI to generate counterfeit trading sites, fabricated news articles, realistic landing pages and automated chatbots. The agency linked the warning to an expansion of Clickfit, a national public safety campaign that urges people to pause before acting on online investment offers.

Investigators said the schemes combine technology with social engineering to appear legitimate. Fraudsters create hyper-realistic mobile apps and websites, plant fake customer reviews and simulated media coverage, and use network handlers with local Australian or British accents to gain trust. Scammers commonly ask for a small initial deposit that shows artificial returns, then encourage larger transfers or the rollover of retirement savings.

When victims try to withdraw money, accounts are frozen and the operators demand additional fees described as taxes or administrative charges. JPC3 identified investment scams as the highest-loss scam category in Australia. Scamwatch data show investors have reported more than A$31.4 million in losses so far this year, after total reported losses of about A$111.7 million in the previous calendar year. The Australian Securities and Investments Commission reported that in 2025 it deactivated roughly 12,000 scam websites and removed over 1,100 social media advertisements linked to investment fraud.

Police cited recent cases to illustrate how quickly and widely AI-enhanced scams can spread. One case involved a 29-year-old man who lost A$115,873 after installing a browser extension tied to a fake cryptocurrency trading application; attempts to contact support connected him to an AI chatbot that concealed the fraud. In the case that prompted the new warning, a woman in her 60s responded to a social media advertisement with a US$174 deposit and was gradually persuaded to transfer her superannuation savings. When she sought a withdrawal, operators demanded A$8,376 in false administrative fees and eventually cut off contact, leaving her out almost A$74,690.

AFP Detective Superintendent Marie Andersson warned that criminals will exploit vulnerability and opportunity and that they target whatever savings people have built for retirement. The JPC3 noted that although retirees who manage self-managed superannuation funds are frequent targets, victims come from all age groups and losses are divided roughly evenly between men and women.

Clickfit advises users to “stop their scroll” and verify the legitimacy of platforms before transferring funds. Authorities recommend checking regulatory credentials, being cautious of unverified endorsements and pressure to move money quickly, and reporting suspected scams to local police. People who think they have encountered a fake investment platform or have been asked for upfront or unusual fees are asked to contact Scamwatch, ASIC or their local law enforcement agency before making further transfers.