ASIC Steps Up Crackdown as AI Fuels Surge in Investment Scams

The Australian Securities and Investments Commission (ASIC) has significantly intensified its efforts to combat online investment scams, warning that artificial intelligence is rapidly increasing both the scale and sophistication of fraud targeting retail investors.

New data shows that throughout 2025, ASIC coordinated the removal of 11,964 phishing and investment scam websites, marking a 90% increase from the previous year. This equates to roughly 32 scam sites taken down daily. Since launching its takedown service in 2023, more than 25,000 malicious websites have been disrupted, alongside 1,100+ scam advertisements removed from social media platforms in 2025 alone.

The regulator highlights that AI is now a central tool for scammers. Fraudsters are using it to produce highly polished fake videos, celebrity endorsements, and targeted advertisements that are harder for consumers to identify as fraudulent. In some cases, “cloaking” techniques are used to display different content depending on a user’s device or location, helping scams evade detection systems.

According to ASIC Commissioner Alan Kirkland, these tactics are designed to exploit growing public interest in AI, often promoting unrealistic claims of quick and effortless profits. Many scams falsely advertise AI-powered trading bots or claim to be licensed by ASIC, creating a false sense of legitimacy.

The financial impact remains severe. Australians lost an estimated $2.18 billion to scams in 2025, with investment scams accounting for $837.7 million, underscoring the scale of the threat.

ASIC identifies several recurring red flags, including guaranteed returns, high-pressure sales tactics, fake endorsements, and requests for personal or financial information. The regulator stresses that legitimate investment providers will always hold a valid Australian Financial Services (AFS) licence, which should be independently verified.

As scam tactics continue to evolve, ASIC is urging investors to pause before acting on online opportunities, conduct independent checks, and avoid sharing sensitive information with unverified sources.