Australia and New Zealand Sound Alarm on AI-Powered Investment Scams as Takedowns Hit Record Pace

Financial regulators in Australia and New Zealand issued coordinated warnings this week about a sharp rise in investment scams that use artificial intelligence to fabricate endorsements from politicians and business executives, as both countries struggle to contain losses that now run into billions of dollars.

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Australia's Securities and Investments Commission (ASIC) said it removed 11,964 phishing and investment scam websites between January and December 2025, a 90% increase from the 6,270 sites taken down over the prior 12-month period. That works out to roughly 32 sites per day, or 230 per week.

Across the Tasman Sea, New Zealand's Financial Markets Authority (FMA) issued a parallel warning about what it described as an increasing number of scams that use fake news articles and deepfake videos featuring local politicians and banking executives.

Deepfakes Make Scams Harder to Spot Across the Asia-Pacific

Fraudsters are using AI to generate polished videos, fabricated celebrity endorsements and targeted social media ads that direct victims to fake investment platforms.

Since launching its takedown program in 2023, ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term has knocked out more than 25,000 malicious sites and also removed over 1,100 scam advertisements on social media in 2025.

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The FMA said it identified 110 scam ads published in a single 24-hour period on Meta platforms and has flagged more than 190 fake trading platform websites for removal since the start of March 2026.

ASIC Commissioner Alan Kirkland said scammers are hiding content that violates social media platform rules by using a technique called "cloaking," which displays different content depending on the user's device or location.

"Scammers are using artificial intelligence to make fake investment ads look more polished, more convincing and harder to spot," Kirkland said. "We're seeing AI being used to create professional videos, fake endorsements and targeted ads designed to lure people into handing over their details."

In New Zealand, the FMA said the current wave of scams features clickbait headlines that claim to reveal information authorities are trying to suppress. Samantha McGuire, the FMA's Manager of Regulatory Services, said individuals impersonated through deepfakes include Deputy Prime Minister Winston Peters, Kiwibank CEO Steve Jurkovich, and Westpac CEO Catherine McGrath.

"We recommend exercising extreme caution when engaging with online content promoting investment opportunities, particularly when it uses images of high-profile New Zealanders," McGuire said. She added that scammers continuously switch identities, so stories may still be fraudulent even if they feature a different public figure.

The FMA said the fake articles use logos from real New Zealand news outlets including RNZ, TVNZ, and the NZ Herald but link to fraudulent content containing false endorsements of investment platforms.

$2.18 Billion Lost: Australia's Investment Scam Bill Keeps Growing

The warnings come against the backdrop of rising financial losses. Australians lost $2.18 billion to scams in 2025, according to the National Anti-Scam Centre's latest Targeting Scams Report, with investment scams alone accounting for $837.7 million. Those figures represent a 7.8% increase from 2024, even as total losses remain roughly 30% below the 2022 peak of $3.1 billion.

ASIC said the scams attempt to exploit public interest in AI by making unrealistic promises about quick and easy returns. "Scammers offer guaranteed, quick and easy investment returns, often claiming to leverage the latest AI technology to make money with minimal effort," Kirkland said. "With these AI videos, the only thing that is real is the amount of money you risk losing."

The pattern closely mirrors what regulators have been tracking globally. A January 2026 report from blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term analytics firm Chainalysis found that trading platform impersonation scams grew more than 1,400% year-over-year, with AI-enabled operations extracting 4.5 times more money per victim than traditional fraud methods.

Germany's BaFin has also flagged at least 20 nearly identical websites advertising AI-based trading services with no verifiable operators, and the U.S. Commodity Futures Trading Commission warned in late 2025 that deepfake videos and voice cloning were being used in live video calls to impersonate brokers.

How the Scam Works - From Fake Ads to Fake Profits

Both regulators described a nearly identical playbook. Victims encounter ads or fake news articles on social media featuring AI-generated images or videos of public figures. Clicking on these ads leads to websites where victims are asked to register their contact details.

Scammers then call the victims posing as investment brokers, according to both the FMA and ASIC. In New Zealand, the FMA said victims are typically encouraged to make an initial deposit of around $250. Once the money is in, the fake platform displays fabricated profits to pressure victims into transferring more funds. When victims try to withdraw, they are told to pay additional fees, but no money is ever returned.

The New Zealand regulator first warned about these tactics in August 2024, but McGuire said the agency has recently seen a "significant increase" in ads, fake news articles, and fake platform websites linked to the scam. The FMA has also been tracking deepfake-powered WhatsApp investment fraud and a separate phone survey scam that uses fake economic polls to harvest personal data before pitching bogus trading platforms.

Regulators Urge Caution but Takedowns Alone Have Limits

ASIC said consumers should not provide contact details or personal information to anyone promoting an investment opportunity unless they can verify the person holds an Australian Financial Services licence. The FMA's McGuire was equally direct: "Do not click on these ads or links, and do not enter your personal information into these websites."

The scale of the takedown operations has grown rapidly. ASIC reported removing 6,900 scam sites in the year ended June 2025 and flagged more than 330 fake celebrity endorsement sites in the first half of that year alone. But the 90% year-over-year increase in takedowns also suggests the volume of fraudulent sites is growing faster than regulators can remove them.

For victims who have already provided personal information, both regulators advise contacting their bank immediately and asking whether transactions can be reversed. The FMA also recommended that anyone who downloaded remote access software at a scammer's instruction should contact an IT professional to check their device for malware.