Artificial intelligence is the latest weapon being deployed by scammers as they convince Australians to hand over their hard-earned money and lie to their bank about large transfers.

New data shows that victims unwittingly handed over $175 million to scammers in the first six months of this year.

Banks have been collectively fighting scams by sharing information in recent years, recently introducing confirmation of payee technology that checks the name of the person or business that a customer intends to pay before the transfer is made this year.

But it’s not enough to keep pace of AI scams involving AI voice cloning, deepfake videos and AI-generated phishing scams that mimic trusted brands or a bank. Artificial intelligence is being used by scammers to convert voices into other accents and languages as scams become more sophisticated.

While reported scams are down, the total number of reports involving financial losses have increased significantly. Authorities blame increasingly sophisticated AI bots for the growing financial losses.

“AI scams sound real, look real and feel real. That’s what makes them so dangerous.”

Simon Birmingham, Australian Banking Association chief

ScamWatch received 108,305 reports about scams in the first six months of 2025, a 24 per cent decrease in reports compared with the same period last year.

It’s also widely recognised that scams are under-reported due to victims feeling deep humiliation.

Financial losses grow

As part of Scam Awareness Week (August 25-29), ScamWatch confirms there has been a 40.5 per cent rise in reports involving money being handed over to scammers, who are specifically targeting vulnerable groups such as people who speak English as a second language.

Australian Banking Association chief executive Simon Birmingham says the evolving and extreme lengths scammers are now deploying to steal money can be difficult to detect.

“Unfortunately, we live in a world where advances in AI-generated video and audio make it possible for criminals to impersonate celebrities, your friends, family members or even your bank,” Birmingham says.

“While AI is a powerful tool for banks and law enforcement to combat scams, it has also become the new weapon of choice for scammers. AI scams sound real, look real and feel real. That’s what makes them so dangerous,” he says.

Victims stay on call to scammers

ANZ notes a growing trend in scammers coaching customers through prepared scripts or via a call inside the bank branch to avoid detection.

In some cases, victims are instructed to leave their phone in their pocket to allow the scammer to listen while the victim instructs bank tellers to make huge transfers out of their bank account.

“We’ve seen customers actually coming into the branch while on the phone to the scammer, keeping their phone in their pocket so the scammer can listen to make sure they’re answering the questions in the way the scammer has told them to so that the funds are released by the bank,” ANZ scams lead Ruth Talalla says.

Bank impersonation scams are also common. Often arriving by text message, the scam leads victims to believe they need to call their bank’s scam department, leading them to inadvertently call a scammer instead.

The scammer convinces the victim they are speaking to the bank’s fraud department and are asked to transfer money into a safe account, but unwittingly transfer it to the scammer.

Even if a transaction has been flagged by the bank’s detection teams and the customer is contacted, sometimes the scammer helps the victim avoid fraud detection processes.

She warned customers against misleading banks about how their money is being used.

“They can be very convincing, relying on victims to act quickly so they don’t have time to stop and think about whether this could be a scam,” Talalla says.

Another scam asks victims to leave their credit card in their letterbox with their pin for it to be collected and destroyed, only for it to be used on purchases across Victoria.

Scams don’t discriminate

In one scam, a victim lost more than $11,000 to an online shopping scam involving a fake travel agent. The scammer operated a convincing website and offered a free digital travel assistant service.

After the victim made an airline booking through the website, the scammer cancelled the booking but kept the money. Attempts to contact the agent failed once the scam was revealed.

“Scams don’t discriminate and can affect anyone, which is why open conversations with loved ones and greater awareness are so important.

“Government, business and individuals all have a role to play in building a scam-aware community and reaching every group, including those who may face extra barriers to understanding or reporting scams,” says Catriona Lowe, deputy chair of the Australian Competition and Consumer Commission.

Nearly 80 per cent of consumers have received scam communications in the past three months and 90 per cent in the past 12 months, according to an Optus survey.

Often, consumers don’t know what to do if they get scammed or who to go to in the first instance to prevent losing money.

If you believe you have been scammed, contact your bank and report it to ScamWatch.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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