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Australian police say organised crime groups are using artificial intelligence to build complete fake cryptocurrency investment ecosystems, trading platforms, chatbots, and fabricated news coverage, after a woman lost more than US$74,000 in one such scheme.
The alert, issued as part of the Australian Federal Police-led ClickFit cyber awareness campaign, shows how organised transnational crime groups are increasingly using artificial intelligence to create convincing fake investment ecosystems.
The warning comes amid a broader crackdown by Australian regulators on crypto-related fraud and serves as a reminder for crypto investors to scrutinise investment opportunities before committing funds.
According to Australia’s Joint Policing Cybercrime Coordination Centre (JPC3), scammers are no longer relying on poorly designed websites or generic phishing emails.
Instead, they are leveraging AI to generate realistic cryptocurrency trading platforms, customer support chatbots, fake financial advisers and convincing marketing campaigns across social media.
Authorities revealed that one victim, a woman in her 60s, initially invested approximately US$174 after seeing a cryptocurrency advertisement on social media.
Over the following year, scammers persuaded her to transfer nearly US$74,690, including retirement savings, into what appeared to be a legitimate crypto investment platform.
When she attempted to withdraw her funds, the fraudsters demanded an additional US$8,376 in fictitious administrative fees before cutting off communication.
Another case involved a 29-year-old investor who reportedly lost more than US$115,000 after downloading a browser extension linked to a fake cryptocurrency trading application.
The victim later discovered that customer support was operated by an AI chatbot rather than a legitimate financial service.
Detective Superintendent Marie Andersson of the Australian Federal Police warned that criminals are increasingly using AI to improve the credibility of their operations.
The latest police warning aligns with recent action by the Australian Securities and Investments Commission (ASIC), which has significantly increased efforts to remove fraudulent investment websites, fake advertisements and scam-related social media accounts.
ASIC reported that scammers are increasingly using artificial intelligence to produce convincing promotional videos, fabricated celebrity endorsements and personalised investment advertisements designed to lure retail investors into fraudulent crypto platforms.
“Scammers are using artificial intelligence to make fake investment ads look more polished, more convincing and harder to spot.” — Sarah Court Kirkland, ASIC Commissioner
The regulator added that Australians lost approximately A$837.7 million to investment scams during 2025, making investment fraud one of the country’s most financially damaging cybercrime categories.
Many of these scams now incorporate fake cryptocurrency trading platforms displaying fabricated profits to encourage victims to deposit increasingly larger sums.
ASIC has separately warned that fraudsters frequently recruit victims through WhatsApp groups, Telegram channels and social media communities that claim to offer exclusive stock tips before redirecting users to fake crypto exchanges.
While blockchain technology itself is not responsible for these scams, criminals continue to exploit growing retail interest in digital assets to make fraudulent investment opportunities appear legitimate.
Unlike traditional banking fraud, cryptocurrency transactions are generally irreversible once funds have been transferred, making recovery particularly difficult when scammers operate across international jurisdictions.
The Australian Federal Police also noted that fraud networks increasingly combine AI-generated voices, realistic local accents and professional-looking investment dashboards to build trust over several months before encouraging victims to transfer larger investments or retirement savings.
ASIC advises investors to independently verify any investment platform, avoid offers promising guaranteed returns and remain cautious of anyone requesting additional “release” or “administration” fees before permitting withdrawals.
Australia’s latest warning reflects a wider global trend as regulators and cybersecurity agencies confront increasingly sophisticated AI-assisted financial fraud targeting cryptocurrency users.
For crypto investors, the incident reinforces that due diligence now extends beyond analysing digital assets and market fundamentals.
Verifying platform legitimacy, regulatory registration and wallet security has become equally important as cybercriminals leverage generative AI to replicate legitimate financial services with unprecedented realism.
Authorities continue to encourage anyone approached with unsolicited cryptocurrency investment opportunities to verify the company through official regulatory databases before sending funds or personal information.
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