Australia’s $2 Billion Scam Epidemic: Investigating the New AI Threats and the National Response

By Michael Vane - News

Published: 19 Nov 2025

Readtime: 11 min

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How scams are impacting Australians and expert advice to protect yourself and vulnerable family members.

Scams back in the day were carnival tricks and rigged games that had you losing twenty bucks and a bit of your dignity, instead of going home with that giant stuffed teddy bear. Nowadays, scams could mean anything from fake delivery texts emptying your bank accounts to a deepfake video stealing your identity.

Whether you’re on your laptop, your smartphone, or one of the many gadgets in your home quietly monitoring your every move, the risk of being scammed is everywhere. Telstra says 42 per cent of customers now avoid answering calls altogether because they assume they’re scams.

It’s a problem that goes far beyond a few missed calls. The latest Australian Competition and Consumer Commission ScamWatch data revealed that in just the first six months of 2025, Australians reported over 108,300 scams, losing a staggering $174 million in the process.

nd although the volume of reports might be down 24 per cent from last year, reports involving financial loss jumped more than 40 per cent. For those considered most vulnerable, their impact was worse. Individuals who speak English as a second language recorded a 44 per cent increase in financial losses, while losses among First Nations Australians jumped 55 per cent.

Despite scam losses peaking back in 2022 and early 2023, damage is still being done. The average loss now sits at $12,212. But that hasn’t stopped the culprits from stealing more. In fact, phishing scams alone have stripped Australians of $19.5 million this year, highlighting just how sophisticated these scams have become.

Rising Threats

Catriona Lowe, the ACCC’s Deputy Chair, put it bluntly: technology is helping scammers reach more people, with tactics that are “more sophisticated and harder for people to detect.” In a media release promoting the simple message of “Stop. Check. Protect.” for Scams Awareness Week, it was revealed that online shopping scams were the standout threat, with ScamWatch receiving more than 6,300 reports of financial loss tied to fake retail sites in the first half of the year, and the highest of any scam type reported.

These sophisticated scammers are luring in unsuspecting victims by creating websites, social ads and shopping links that look like the real thing. One victim lost over $11,000 from what appeared to be a legit travel agency. Despite the very real-looking ticket confirmation, once the scam was revealed, the money was taken, and the agent was never heard of again.

Lowe says the rise of these scams is no coincidence. “Scammers are increasingly targeting people on websites and social media, knowing we’re all spending more time and money online,” she said. However, even with the increase in sophistication, there are ways to combat online scams that can help you avoid them altogether.

Taking just a few moments to verify a seller or offer can be the difference between a good deal and a devastating financial loss,” Ms Lowe said.

“We encourage people to avoid clicking on suspicious ads or links and instead visit official websites directly. Before buying from an unfamiliar seller or business, search their name along with terms like ‘review’, ‘scam’ or ‘complaint’ as this can quickly reveal any red flags from other consumers.”

“It is also important to use secure payment methods like credit cards or PayPal. Taking a few simple steps like these can help protect you from online scams,” Ms Lowe said.

But that also assumes these individuals have the technical know-how to figure out real from scam. And it shows. Australians aged 65 and over were the only age demographic to experience an increase in reported losses in recent years, accounting for 31 per cent of all losses despite making up just 17 per cent of our population.

Even parents are copping it with “Hi Mum” scammers impersonating a child and requesting money for a crisis via SMS, or even going so far as to use AI for voice cloning. It’s a scary world of scams out there.

So what are these scams, and how can we avoid them?

5 Most Common Types of Scams

According to ScamWatch, ReportCyber, IDCare, the Financial Crimes Exchange and Securities and Investment Commission, five scam categories account for more than 70 per cent of all losses in Australia. Here are the scams doing the most damage, and how to avoid them.

Investment Scams: Around $1 billion is lost annually to investment scams in Australia. More than every other scam combined. These scams often see criminals impersonating financial companies, mortgage brokers, or even well-known public figures, pushing irresistible offers to unsuspecting victims. And all it takes is one click to lose it all.
Romance Scams: I’m sure plenty of us remember when the term catfishing came onto the scene. With the rise of online dating, romance scams are now the second-most costly, with over $156 million in losses in 2024. But unlike the quick-fire investment scams that can drain your bank account in an instant, romance scams play a longer game, building trust over weeks before swooping in and taking everything.
Payment Redirection: If you’ve ever received a questionable message from your bank, then you’ve probably noticed a payment redirection scam. Criminals will often impersonate a bank, business or Government organisation, and ask the victim to send money to a fraudulent bank account. These types of scams usually target companies, but individuals can also become targets of payment redirection scams, resulting in losses of over $152 million per annum.
Remote Access Scams: How many times have you given your IT team remote access to your computer to fix a tech issue? Well, you may want to double-check next time you receive a request like that because it could very well be a scammer. Much like payment redirection, criminals will impersonate a trustworthy entity to convince you to give them remote access to your device. And once they’re in, they can access bank details, harvest sensitive information, lock the device with ransomware, and even sometimes Blackmail for access. These scams cost Australians $106 million in 2024.
Phishing Scams: Phishing scams are more likely to steal your login details than steal your money directly. But that doesn’t mean they can’t blackmail you or demand money for their release. Even with the focus on credentials rather than cash, scammers still managed to steal more than $84 million from Australians in 2024.

Combating Scams: What’s Being Done

The Australian Government is already changing its approach to scam operators and the companies that enable them. At the start of 2025, the Scam Prevention Framework, a world-first set of mandatory rules for banks, telcos and digital platforms, was introduced, placing new obligations for businesses, tougher penalties for non-compliance and an expanded push for public awareness. The package includes more than $180 million for the National Anti-Scam Centre.

Of course, it’s not just the government that is taking up arms against scammers. In late 2024, they launched Scam Protect, a service that automatically flags suspicious calls and messages with warning labels. It’s an added line of defence that has already intercepted more than ten million calls.

Coupled with the scam alerts now built into iPhones, Samsung and Google devices, a lot is being done to protect us from scammers.

Banks are also joining the fight. In July, Australia’s major banks jointly rolled out Confirmation of Payee, a name-matching system designed to stop customers from sending money to the wrong account. The way it works is once you enter a BSB and account number, the system checks whether those details match the intended recipient. If it doesn’t match, you’ll receive a warning, giving you one last chance to “Stop. Check. Protect.” before hitting transfer.

These types of warnings are a necessary safeguard, but they don’t completely block scams. At the end of the day, the final decision and the risk that comes with it still rest with the customer. And for many vulnerable Australians, this limited safeguard may not be enough to protect them.

hile many of the changes have been welcomed, some consumer advocates agree that more needs to be done. CHOICE says the reforms must come with real consequences for the companies that fail to protect their users.

“For too long, the businesses enabling scammers to conduct their criminal activities have faced no consequences, leaving consumers to carry the burden,” said CHOICE Director of Campaigns Rosie Thomas.

“Strong scam codes with hefty penalties and rights to compensation should give everyone more confidence that banks, telcos and social media platforms are financially motivated to take scam prevention seriously.”

How to Protect Yourself and Family from Scams

Due diligence is still your strongest defence against scammers, and the good news is that most protections are simple. ScamWatch, the Australian Cyber Security Centre, and the eSafety Commissioner all point to a handful of easy-to-follow steps that can dramatically reduce your risk of being scammed.

Set Up Multi-Factor Authentication:
- Multi-Factor Authentication (MFA) requires two or more ways to verify your identity before you can log in to your account. A common form of MFA requires you to enter a unique PIN sent to your phone or email after entering your password. It’s called MFA because it requires multiple identity verifications.
- The idea behind MFA is that even if a criminal has your username and password, they can’t access your account without MFA.
- Adding MFA to your online accounts is one of the most effective scam barriers you can have.
Create Strong Passphrases
- If MFA is unavailable, the next best option is to create a strong passphrase. They’re essentially longer, more complex passwords that are harder for scammers to crack.
- Just be mindful of reusing these passphrases or using similar or obvious words. Oh, and remember to make them really long, too.
Stop. Check. Protect.
- While digital safeguards, MFA and online barriers can eliminate most scam threats, you’ll still need to be on your guard in case one slips through. That’s why ScamWatch recommends everyone to “Stop. Check. Protect.”
- Stop: Always take a moment before giving your money or personal information to anyone.
- Check: Make sure the person or organisation you’re dealing with is real.
- Protect: Act quickly if something feels wrong.
Normalise Talking About Scams
- Communication is also key to stopping scams. A recent CommBank study found that more than 90 per cent of Australians believe that talking about scams builds awareness. However, only about 8 per cent are actually comfortable discussing being scammed with family, primarily out of fear or embarrassment.
- It’s why ScamWatch has videos of scam stories to help kick-start conversations, build trust, create non-judgmental spaces, and encourage loved ones to discuss scams openly.

Staying One Step Ahead of Scammers

With so few Australians feeling comfortable talking about scam losses, it’s clear that the real impact is much higher than what’s being reported.

The hope is that with the introduction of these new government rules, tougher industry obligations and smarter tech safeguards for banks, telcos and digital platforms, Australia will be able to fend off scams more diligently.

But it was ACCC Deputy Chair Catriona Lowe who summed it up best. “Scams don’t discriminate and can affect anyone, which is why open conversations with loved ones and greater awareness are so important. Government, business and individuals all have a role to play in building a scam-aware community and reaching every group, including those who may face extra barriers to understanding or reporting scams.”

Australian Scam FAQs

What is the National Anti-Scam Centre?

The National Anti-Scam Centre (NASC) is a new Australian Government body, launched in 2024/2025 and run by the ACCC. Its primary role is to coordinate a “scam-fighting” partnership between government, banks, telecommunications companies, and social media platforms, sharing data in real-time to block scams before they can reach consumers.

What is the ‘Confirmation of Payee’ Service?

Confirmation of Payee is a new anti-scam service rolled out by Australian banks in 2025. When you enter a new BSB and account number for a payment, it checks if the account name you entered matches the name on the recipient’s account. It will then warn you if there is no match or a partial match, helping to prevent you from accidentally paying a scammer.

What is the Most Damaging Scam in Australia?

While phishing scams are the most common, investment scams cause the most financial harm, accounting for over $1 billion in annual losses. These scams often impersonate legitimate companies or figures, using AI and pressure tactics to convince victims to invest in fake opportunities (e.g., in cryptocurrency or bonds) that are “too good to be true.”

Additional Resources on Scams

IDCare: Get help if you are experiencing a scam or cyber incident.
Moneysmart: Moneysmart can help you make confident money decisions, with free tips and tools for investments and general finance.
The Little Book of Scams: The Little Book of Scams is recognised internationally as an important tool for consumers and small businesses. It is available in 20 languages.