A Queensland man enjoyed soaring profits from a crypto trading app. Then his money started disappearing

A Queensland man, 29, saw his crypto trading app dashboard fill with profits after clicking on an online advertisement. He kept investing more, but then his money began disappearing as unauthorized transfers left him with over $166,000 gone. The man tried contacting customer support but found only a basic chatbot. He only then realized he had fallen victim to an AI-driven investment scam.

According to Scamwatch, Australians have lost over $45 million to fraudulent investment schemes in 2026, up from $160 million in 2025. Experts say AI has reduced the administrative work needed to run such scams, replacing cold calls and phishing emails with complex "scam ecosystems." Dr. Marco Navone, a finance professor at UTS, warns that traditional red flags no longer apply, making it harder for consumers to recognize the sophisticated deception.

Scammers can now use hyper-realistic media, fake news, synthetic reviews, and personalized messages, sometimes cloning voices or generating deepfakes. The Australian Federal Police say AI can clone voices from short audio clips, create convincing deepfakes, and send thousands of personalized messages based on a victim's location and online history.

While the ACC deactivated nearly 12,000 scam websites in 2025, scammers often bypass removal using cloaking technology. Digital platforms are now actively recommending and distributing advertisements to targeted audiences, experts say. The Australian Institute found that over 49% of Australians are concerned about AI-related crime, with 43% seeing AI impersonation as a direct threat.

The AFP acknowledges that fund recovery rates remain low, and calls for stronger AI scam detection from banks, telecoms, and digital platforms. Victims are advised to verify the AFS licensing of investment providers, confirm transactors directly, use independent search engines to navigate platforms, and report scams to Scamwatch and police.