AI-powered scams rise in complexity as Aussies lose AUD $945M

Trend Micro has released findings signalling that AI-powered scams are set to escalate in sophistication, scale and impact over the coming year. The company's latest report outlines the growing threat from fraud that combines automation with emotionally targeted deception across multiple communication channels.

Scammers are now using artificial intelligence to clone voices, generate synthetic relationships, and interact with victims across a spectrum of platforms. The report highlights a significant shift in the way online crimes are carried out, with criminals increasingly leveraging personalised messages, deepfake media, and automated agents to target individuals.

According to Trend Micro’s research, almost half of Australians and over half of New Zealanders reported frequent or constant exposure to AI-generated content online. This trend has made it more difficult for people to distinguish between genuine and fraudulent communications, eroding the effectiveness of traditional warning signs.

The report notes that multi-channel scams are now the standard approach. Criminals initiate contact through SMS or social media and then move victims to encrypted messaging platforms or fraudulent websites. This creates an end-to-end fraud journey that leverages a range of digital touchpoints to slip past basic security measures.

Among the most prevalent threats are impersonation scams, particularly those relating to delivery, billing, and subscription services. These scams are becoming more localised, targeting smaller online personalities such as micro- and nano-influencers. Professional design and local contextual cues in messages make the scams difficult to distinguish from authentic communications.

Financially, romance and investment scams remain the most damaging, as they often involve shifting victims from dating platforms into speculative schemes such as cryptocurrency trading or high-yield investment offers. In Australia, losses from investment scams in 2024 reached AUD $945M, according to the country’s competition and consumer watchdog.

The report also observes a surge in instant payment fraud. With the adoption of peer-to-peer payment apps and real-time transfers, criminals are exploiting the irreversible nature of instant transactions to achieve quick financial gain before fraud can be identified.

As AI-driven manipulation makes it harder for users to rely on clues such as grammar or spelling errors, Trend Micro suggests adopting a “verification-first” approach. This involves cross-checking identities, using secure channels, and deploying tools that can analyse behavioural patterns and risky URLs. The company references its ScamCheck solution as one example of the type of protection consumers will require as scams become more sophisticated and widespread.

The company recommends ongoing education about emerging scam techniques and encourages consumers to seek verification before acting on suspicious communications. It also calls for vigilance in adopting new trust and safety habits to counteract the growing professionalism and realism of AI-powered scams.

“Today, AI is transforming how scams are created and delivered, making them more convincing, more prolific and harder to recognise. In fact, nearly half of Australians say they encounter AI-generated content very frequently or constantly online*, blurring the cues people once relied on to spot something suspicious. The challenge ahead is ensuring consumers have the awareness, skills and tools to verify what they see before they act, so they can protect themselves from today’s modern digital threats,” said Ashley Millar, Director of Consumer Education, Trend Micro.