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

By Michael Vane - News

Published: 28 Oct 2025|Last Updated: 20 Nov 2025

Readtime: 7 min

How scams are impacting Australians and expert advice shaping the national response.

Australians are losing billions of dollars to increasingly sophisticated scams, with new national data showing a sharp rise in financial harm despite efforts to curb the threat. As government agencies, banks and tech platforms ramp up their countermeasures, the scale of the problem highlights just how quickly scam tactics are evolving. Or, more importantly, how urgently Australians need clearer protections.

What were once low-stakes tricks have become complex cyber-enabled operations. Scams now range from fake delivery texts draining bank accounts to deepfake videos capable of manipulating a person’s voice and identity. The result is a widespread public hesitation to even pick up the phone.

Telstra reports that 42 per cent of its customers now avoid answering calls altogether because they assume they’re scams.

The latest Australian Competition and Consumer Commission (ACCC) ScamWatch data makes the national picture even clearer. In the first six months of 2025, Australians lodged more than 108,300 scam reports, resulting in staggering losses of $174 million. Although report volumes fell 24 per cent from last year, financial losses increased more than 40 per cent, indicating that scams are becoming more effective, if not more frequent.

The impact on vulnerable communities is particularly scary. Australians who speak English as a second language reported a 44 per cent rise in financial losses, while losses among First Nations people surged 55 per cent. Average losses for Australians now sit at $12,212 per report, with phishing scams alone stripping $19.5 million from victims this year.

Rising Threats

ACCC Deputy Chair Catriona Lowe said scammers were now using technology to reach more people with tactics that are “more sophisticated and harder for people to detect.” As part of Scams Awareness Week, the ACCC highlighted online shopping scams as a key threat, receiving more than 6,300 reports of financial loss tied to fake retail sites in the first half of the year.

These schemes increasingly mimic legitimate businesses through cloned websites, social ads and plausible transaction confirmations. One victim lost more than $11,000 to what appeared to be a genuine travel agency, only learning the truth when the ticket and the agent disappeared.

“Scammers are increasingly targeting people on websites and social media, knowing we’re all spending more time and money online,” Lowe said. She urged Australians to verify sellers, independently navigate to official websites and use secure payment methods such as credit cards or PayPal.

Yet many Australians find it difficult to distinguish legitimate services from scams. For example, Australians aged 65 and over remain disproportionately affected, accounting for 31 per cent of total losses despite representing just 17 per cent of the population. Families aren’t immune either, with “Hi Mum” impersonation scams and AI-enabled voice cloning now common enough to prompt warnings from the ACCC and police.

So what do these scams look like, 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 types account for more than 70 per cent of all losses in Australia.

Investment Scams: Responsible for around $1 billion in losses annually, often involving criminals posing as financial companies, brokers or public figures offering high-return schemes.
Romance Scams: With more than $156 million in losses in 2024, scams, like catfishing, rely on long-term emotional manipulation before extracting funds.
Payment Redirection: Criminals impersonate banks, businesses or government agencies to redirect transfers to fraudulent accounts, costing Australians more than $152 million a year.
Remote Access Scams: Offenders pose as IT technicians or service providers to gain access to devices, enabling credential theft, ransomware, or blackmail. These scams cost Australians $106 million in 2024.
Phishing Scams: Typically aimed at stealing login credentials, but can lead to blackmail or financial loss. Australians lost more than $84 million to phishing scams in 2024.

Combating Scams: What’s Being Done

The Federal Government has begun reshaping Australia’s scam prevention framework to match the scale of the threat. In early 2025, it introduced a world-first Scam Prevention Framework, a set of mandatory rules for banks, telcos and digital platforms. The framework includes tougher penalties for non-compliance, expanded reporting obligations and more than $180 million in funding for the National Anti-Scam Centre.

New technologies are being deployed across the private sector, like Telstra’s Scam Protect system, which automatically labels suspicious calls and messages. Since its launch in late 2024, it has intercepted more than ten million scam attempts. Smartphone makers, including Apple, Samsung and Google, have introduced native scam alerts, while major banks have adopted Confirmation of Payee, a name-matching system designed to stop customers from sending money to the wrong account.

While these measures improve early detection, consumer groups say they do not remove the burden from victims. CHOICE Director of Campaigns Rosie Thomas says stronger industry obligations are essential.

“For too long, the businesses enabling scammers to conduct their criminal activities have faced no consequences, leaving consumers to carry the burden,” she said.

“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

Federal agencies, including ScamWatch, the Australian Cyber Security Centre, and the eSafety Commissioner, continue to stress that basic digital hygiene remains one of the strongest defences against scams.

Set Up Multi-Factor Authentication:
- Multi-Factor Authentication (MFA) provides an additional security layer beyond passwords, preventing criminals from accessing your account even if they obtain your login credentials.
Create Strong Passphrases
- Longer, more complex passphrases can reduce the risk of unauthorised access. Avoid reusing passwords or using predictable patterns.
Stop. Check. Protect.
- Stop: Pause before sharing money or personal information.
- Check: Confirm the identity of the person or business.
- Protect: Act quickly if something feels wrong.
Normalise Talking About Scams
- While 90 per cent of Australians believe conversations about scams increase awareness, only 8 per cent feel comfortable discussing personal losses. Regulators say breaking this silence is essential to reducing stigma and improving early detection.

Staying One Step Ahead of Scammers

Given the reluctance to report losses, ScamWatch and government agencies believe the true national cost is significantly higher than the current data shows. The combination of new industry rules, strengthened governmental oversight and improved consumer tools is designed to slow the rise of scam-related harm. However, a key part of preventing losses still depends on public awareness.

As ACCC Deputy Chair Catriona Lowe noted: “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 youavoidm 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 confidentfinancialy decision, with free tips and tools forinvestings 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.