Australian Regulators Ramp Up Scam Website Takedowns as AI Fuels Sophistication and Public Confusion
Australian financial regulators have significantly increased efforts to combat online scams, reporting a high volume of website removals in the past year. This surge in enforcement comes as artificial intelligence (AI) is identified as a key factor in accelerating the creation and sophistication of online fraudulent schemes. Concurrently, new data highlights a critical vulnerability: a majority of Australians struggle to distinguish AI-generated deepfakes, despite expressing high confidence in their ability to do so.
AI is identified as a key factor in accelerating the creation and sophistication of online scams.
Regulatory Actions and Impact
The Australian Securities and Investments Commission (ASIC) reported the removal of 11,964 phishing and investment scam websites in 2025. This figure marks a 90% increase in website takedowns compared to 2024, averaging 32 sites daily. Since initiating its take-down service in 2023, ASIC has successfully removed over 25,000 investment scam and phishing websites, alongside more than 1,100 online investment scam advertisements on social media.
ASIC Commissioner Alan Kirkland noted a national loss of $2.18 billion to scams in 2025. Despite this alarming figure, reported losses specifically from investment scams showed an approximately 11% decline.
The Influence of Artificial Intelligence on Scams
AI is profoundly contributing to both the proliferation and sophistication of online scams. According to ASIC, AI facilitates the quicker and easier creation of new scam websites, enabling scammers to promote fraudulent investment opportunities with unprecedented speed.
Scammers are employing AI to generate deepfake photos, voice and text clones of individuals such as loved ones, senior executives, and government officials.
Beyond simple website creation, scammers are leveraging AI to generate deepfake photos, voice and text clones of individuals such as loved ones, senior executives, and government officials. They also create fabricated investment videos to execute their schemes. Professor Monica Whitty, a Professor of Human Factors in Cyber Security at Monash University, highlighted that these types of scams expertly leverage human tendencies to trust familiar faces and voices.
Public Perception and Vulnerability
A recent survey conducted by Commbank, involving nearly 2,000 individuals across Australia, revealed a concerning gap in public awareness. Over half of respondents were unable to differentiate between a real image and an AI-generated deepfake. The survey further indicated a significant disparity between perceived and actual ability: while 89% of respondents expressed confidence in their ability to identify an AI-generated scam, only 42% were successful in doing so.
James Roberts, Commbank's General Manager for Scam and Fraud, commented on this observed disconnect. He emphasized the increasing use of AI to target both individuals and small businesses, making the public's vulnerability more critical than ever.
Financial Losses and Common Scam Methods
The Australian Competition & Consumer Commission's (ACCC) National Anti-Scam Centre reported that Australians incurred losses of nearly $260 million to scams between January and September of a previous reporting period. Analysis showed that online content—including fake websites, advertisements, social media, and applications—was the most frequent method for scam delivery.
Commbank's research further clarified the landscape of common scams, indicating that investment scams were the most prevalent type, followed by business email compromise scams and relationship scams.
Prevention and Guidance
To combat this escalating threat, the National Anti-Scam Centre provides crucial advice for Australians:
- Pause and verify information before making any financial decisions.
- Learn to recognize warning signs of scams.
- Communicate openly with loved ones about potential scams.
- Engage in open discussions regarding potential threats and how to respond.
- Avoid rushing decisions about money or sharing personal details, especially when a sense of urgency is imposed by an unknown party.
Commbank's James Roberts additionally recommended practical methods, such as asking for a family safe word or contacting loved ones directly via their usual phone number when encountering suspicious messages or requests.