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

A Queensland man's crypto trading profits rapidly turned into losses when his funds began disappearing unexpectedly. After investing more as the app appeared successful, the losses escalated to over $166,000. The platform's customer service proved ineffective, offering only a basic chatbot. This situation reflects the growing issue of AI-driven investment scams, where scammers employ advanced technologies to create convincing, automated schemes.

According to experts, AI is significantly reducing the administrative work needed to run such scams, replacing traditional methods with sophisticated "scam ecosystems." Fraudulent investment schemes have cost Australians over $45 million so far in 2026, compared to $160 million in 2025. Scammers can now use AI to create hyper-realistic, localized media, deepfakes, and personalized messages with Australian or English accents.

These scams often involve fake "financial advisers" and use "cloaking" technology to bypass removal of scam websites. Digital platforms are also implicated, as they actively recommend and distribute these ads to users likely to engage with them. The Australian Federal Police acknowledge that fund recovery rates remain low, but they are developing a national scams prevention framework.

This framework aims to require banks, telecommunications providers, and digital platforms to enhance AI scam detection.