Over the past two years, Australia has confronted one of its most aggressive waves of online fraud — dismantling 14,000 scam operations since mid-2023, with 21% tied to cryptocurrency. While authorities have made gains in cracking down on fraudulent schemes, losses tied to crypto-related scams remain stubbornly high at a time when global digital-asset fraud is surging past $2.4 billion annually. Regulators, including the Australian Securities and Investments Commission (ASIC), are shifting resources to combat increasingly sophisticated tactics, from fake celebrity endorsements to scams powered by artificial intelligence. The campaign reveals both progress and enduring risks for investors.

ASIC Expands Its Arsenal Against Fraud

The regulator’s efforts escalated in July 2023, when it launched a robust scam disruption initiative. This initiative gave ASIC the ability to refer malicious websites directly to specialized cybersecurity firms for takedown and blacklisting. So far, these efforts have resulted in approximately 130 scams shut down each week in 2025, a slight decline from 140 per week in 2024.

According to ASIC Deputy Chair Sarah Court, the mission has been broadened to include social media advertisements, one of the fastest-growing channels used by fraudsters. Court underscored that modern scams often arrive in feeds masquerading as legitimate investment opportunities or financial advice.

“The takedown capability is one example of how we are monitoring the latest trends and acting to protect Australians from those who try to steal from them,” Court said.

The war against scam operators now hinges on proactive surveillance, timely takedowns, and consumer education — with ASIC increasingly recognizing that static, reactive approaches are no longer sufficient.

The Rising Share of Crypto Scams

One of the most striking indicators of change is the rise of crypto-linked scams. In ASIC’s 2024 reporting, crypto accounted for only 8% of total scams dismantled. This year, that proportion has surged to 21%, demonstrating the growing appeal of digital assets to fraudsters seeking fast-moving, borderless vehicles to siphon money.

Some of the most common tactics include:

Fraudulent AI trading bots claiming to generate guaranteed profits.

Phishing portals that impersonate legitimate crypto exchanges.

Hoax news articles leveraging fabricated celebrity or influencer endorsements created with AI-generated imagery.

This evolution reflects the aggravating role of artificial intelligence itself. ASIC warned last year that deepfakes and AI audio/video manipulation make scams exponentially harder for retail investors to spot. Against this backdrop, investors face the challenge of differentiating between legitimate innovation in financial technology and predatory fraud wrapped in hi-tech packaging.

Global Context: A $2.47 Billion Problem
Beyond Australia, the issue has taken on sweeping international dimensions. Worldwide losses from crypto hacks, scams, and exploits reached $2.47 billion in the first half of 2025, exceeding the $2.4 billion total fraud losses reported in all of 2024.

This marginal increase — 3% year-over-year — disguises the deeper concerns: the resilience of cybercriminal groups, their growing professionalism, and their reliance on sophisticated technologies. The transnational nature of digital assets allows perpetrators to swiftly move stolen funds, often across multiple jurisdictions that lack harmonized enforcement powers.

Australia’s campaign, while applauded for its aggressiveness, underscores how complex these global fraud networks have become.

Investment Scams Remain Costliest

Despite the surge in crypto-related fraud, traditional investment scams still dominate the losses Australians are incurring. According to the country’s National Anti-Scam Centre, investment scams have drained $73 million so far this year, though this is down significantly from previous periods — $192 million in 2024 and $291 million in 2023.

This declining trend suggests that coordinated national enforcement, public warning campaigns, and improved detection technologies are beginning to have an impact. Yet, as Court emphasized, scammers adapt rapidly, often piggybacking on the latest buzzwords like “AI-driven wealth” or “guaranteed crypto yields” to convince unsuspecting individuals.

Consumer vulnerability remains a central concern because retail investors frequently engage via direct messaging platforms such as WhatsApp and Telegram, where oversight is minimal and promises of fast gains proliferate.

How Investors Can Stay One Step Ahead

ASIC has repeatedly urged Australians to adopt a culture of financial skepticism. Courts and regulators advise individuals to question all testimonials, endorsements, promises of high returns, and unsolicited investment proposals. Particular scrutiny should be exercised when offers come attached to AI-powered schemes or blockchain-based projects lacking transparency.

For investors, several strategic takeaways stand out:

Diversification is essential: Avoid placing substantial capital into opaque, high-yield “opportunities.”

Verify before trusting: Independently confirm any investment firm or exchange via official Australian financial registries.

Treat celebrity or AI endorsements with suspicion: Increasingly, these are tools of deception.

Be alert to messaging app promotions: High-risk scams circulate heavily on WhatsApp, Telegram, and private channels.

The Road Ahead

Australia’s campaign to police digital fraud is becoming a standard for other jurisdictions grappling with rising scams. The decline in reported investment scam losses compared to previous years proves that systematic disruption can yield results. Still, the rapid rise of crypto-linked fraud and the exploitation of AI technology represent a formidable frontier.

What is clear is that the regulatory fight is less about eliminating fraud completely and more about tilting the balance toward deterrence and disruption. For investors and ordinary citizens, vigilance remains the strongest line of defense.