ASIC shuts down 3,106 crypto scams as AI fraud surges in Australia

Australia’s securities regulator has removed 3,106 cryptocurrency investment scams during FY26 as its total online scam takedowns surged 182% to more than 19,400.

The Australian Securities and Investments Commission said in an Aug. 17 release that crypto investment scam removals increased by almost 30% from the previous financial year, while criminals increasingly used generative AI, fake celebrity endorsements and networks of fabricated websites to convince investors that fraudulent platforms were legitimate.

Across the financial year, ASIC also removed 7,051 fake investment platforms and 5,476 phishing links. Fake investment platform removals rose 151% from FY25, while phishing link takedowns increased 279%.

The regulator said scam operators have also changed how they build credibility around fraudulent investments. Potential victims can encounter social media advertisements before being directed to fake news reports, fabricated reviews and AI-generated comments that all support the same supposed investment platform.

AI crypto scams are creating entire networks of fake information

Generative AI has made it easier for criminals to create large amounts of material around a single investment scam, according to ASIC. One fraudulent platform can be supported by deepfake videos, fake media coverage, positive reviews and social media comments designed to make the business look genuine when a potential investor searches for it online.

Some campaigns use AI-generated videos of politicians, financial commentators or other recognised public figures to promote supposed automated cryptocurrency trading systems. The familiar faces can then be combined with copied branding and fabricated testimonials.

After a victim enters their details, scammers may make direct contact and guide them through an account setup process. ASIC said some victims are shown small returns or apparent profits to gain their confidence before being encouraged to transfer larger amounts.

Fake dashboards can continue displaying trades and increasing balances even though no genuine investment activity has occurred. Funds transferred to the platform may instead be sent to criminal groups operating overseas.

ASIC Chair Sarah Court said the increasing quality of AI-generated material meant investors could no longer depend on basic online searches when checking an unfamiliar investment.

“AI is making investment scams more convincing and harder to detect. A simple online search is not enough to verify whether an opportunity is legitimate,” Court said.

“The presence of polished content, familiar branding or convincing testimonials does not mean an investment is legitimate.”

ASIC’s latest figures represent a sharp increase from the first year of its scam disruption operation. In August 2024, crypto.news reported on ASIC’s takedowns after the regulator removed more than 7,300 phishing and investment scam websites between July 2023 and July 2024.

Of the sites removed during that first year, 5,530 were fake investment platforms, 1,065 were phishing links and 615 were cryptocurrency investment scams. ASIC was removing an average of about 20 investment scam websites each day at the time.

Three years after starting the disruption service, the regulator has now removed more than 33,400 malicious links, fake investment platforms and online advertisements.

Celebrity deepfakes have contributed to millions in scam losses

Celebrity and public figure impersonation has become another tool used to make fraudulent crypto investments look credible.

National Anti-Scam Centre data cited by ASIC showed Prime Minister Anthony Albanese and financial commentators Tom Piotrowski and Alan Kohler were among the public figures frequently impersonated by scammers during FY26.

Scams involving the 10 most frequently impersonated public figures accounted for more than A$7.4 million in reported losses, according to the data.

Similar tactics have been used to promote crypto scams in Australia for several years. In February 2024, a deepfake crypto promotion impersonated Australian mining billionaire Andrew Forrest to advertise a fraudulent trading platform called Quantum AI.

Cybersecurity company Cybertrace said the video used footage from an earlier Forrest appearance and manipulated it to make him appear to endorse the platform. The fake promotion claimed the trading software could generate daily profits ranging from $700 to $2,200.

Another incident several months later involved hackers taking control of a 7News YouTube account and using an AI-generated version of Elon Musk to advertise a cryptocurrency scam. The compromised channel was made to resemble Tesla while retaining the Australian broadcaster’s verification badge.

The scam directed viewers through a QR code to a fraudulent cryptocurrency website, using the manipulated Musk footage as part of the promotion.

Australian authorities have separately reported substantial losses connected to crypto investment fraud. Federal police said Australians recorded A$382 million in investment scam losses during FY24, with cryptocurrency accounting for nearly half of the total. People under 50 represented 60% of reported crypto investment scam cases.

Fake crypto platforms can show profits that do not exist

Fraudulent trading interfaces allow scammers to continue controlling what victims see after money has been deposited.

A May report on fake platforms detailed an ASIC warning about criminals posing as successful traders in messaging groups before directing potential investors to sham cryptocurrency websites.

ASIC said the websites could display fabricated trades, account balances and profits despite no genuine trading taking place. Deposited money instead went to the scammers.

When victims attempted to withdraw their supposed profits, criminals could demand additional payments described as withdrawal fees or charges required to release the assets.

The regulator also warned that younger Australians were particularly exposed to channels where such promotions circulate. Survey data cited by ASIC showed 23% of Australians aged 18 to 28 held cryptocurrency, while 72% of Gen Z respondents had encountered crypto advertisements on social media.

Another 41% said they had received direct online pitches involving digital asset investments.

Law enforcement agencies have also pursued alleged fraud networks using fake trading platforms. In February, Australian authorities charged two men following an investigation into an alleged A$5 million cryptocurrency investment scam.

New South Wales Police alleged that victims were approached through social media before being directed to what they believed was a legitimate cryptocurrency trading platform called NEXOpayment.

Investigators said deposited money was instead moved through multiple cryptocurrency wallets and exchanges. Police said elderly and vulnerable Australians were among the alleged victims.

More recently, ASIC took action against websites connected to crypto platform Yepbit following complaints from investors who said they could not withdraw their funds. An August report on the Yepbit case detailed claims that the platform told customers ASIC had frozen their money while regulatory checks or audits were taking place.

The regulator denied freezing the funds and said it had taken no action preventing Yepbit from returning customers’ money. ASIC also said Yepbit did not hold an Australian Financial Services Licence and was not registered with AUSTRAC as a virtual asset service provider.

ASIC says licence details should be checked independently

Fraudsters can also copy or fabricate Australian Financial Services Licence information to give fake investment businesses the appearance of regulatory approval, according to ASIC.

A licence number displayed on an investment website should therefore not be treated as confirmation that the operator is authorised. The regulator advised consumers to search its Professional Registers independently and compare the listed business name, licence number and contact information with the entity offering the investment.

Investors have also been directed to the Moneysmart Investor Alert List, where suspected scam websites, companies and investment offers can be checked before money or digital assets are transferred.

Australia’s treatment of legitimate crypto products under existing financial services law has meanwhile received further definition from the courts. In June, the High Court ruled against Block Earner in a unanimous 7-0 decision over the company’s former fixed-yield cryptocurrency product.

The court found that Block Earner’s Earner product required a financial services licence, overturning a 2025 appeal ruling. The product operated as a facility for making a financial investment and also met the legal definition of a derivative, according to the judgment.

Block Earner had already stopped offering the yield product, while the High Court sent the case back to the Full Federal Court to consider ASIC’s appeal concerning penalties.

Nine days later, the regulator extended temporary licensing relief for certain digital asset businesses until Sept. 30, replacing the previous June 30 deadline.

The extension covers businesses seeking an Australian Financial Services Licence as well as certain companies that may require market or clearing and settlement licences. ASIC also expanded the relief to some digital asset businesses operating through authorised representatives or intermediary arrangements with licensed entities.

For suspected investment scams, ASIC has advised consumers not to send money, cryptocurrency or personal information until the provider’s identity and licence information have been independently checked against its official registers.