How is AI Transforming Scams and Making Them Harder to Detect？

“Scams have always existed, but the methods have evolved dramatically, especially with AIs rise in recent years,” explained Lennon Chang, an associate professor of cyber risk and policy at Deakin University. The integration of artificial intelligence into fraudulent schemes has transformed how criminals operate, making scams more sophisticated and harder to detect.

Dr. Chang emphasized that AI significantly lowers the barrier for scammers. “Now, with AI, anyone can design a professional-looking website, draft a convincing company policy, generate realistic images, or even fabricate financial reports,” he noted. This accessibility means that scammers no longer need advanced technical skills—just access to AI tools. The result? A flood of highly believable scams flooding the digital landscape.

The challenge for everyday people is immense. Dr. Chang pointed out that traditional methods of verifying authenticity—like checking likes, comments, or reviews—are obsolete. “AI can generate all of that feedback now,” he warned. This leaves the public vulnerable, often requiring a team of experts in finance, technology, and cybersecurity to unravel the truth behind an AI-generated scam.

To explore this, ABC investigated two websites linked to a scam victim named Leon: APPC Capital Singapore and Thackeray Mines and Minerals Inc. The goal was to authenticate their images, personnel, and locations. APPC Capital Singapore boasted a legitimate business registration with Singapores Accounting and Corporate Regulatory Authority (ACRA). However, Leon dismissed this as a “misdirect,” a view echoed by Rakesh Gupta, an investment expert and associate professor at Charles Darwin University.

Dr. Gupta clarified that a business registration isn‘t enough. “All legitimate investment firms need a financial services license,” he said. In Singapore, that was issued by the Monetary Authority of Singapore (MAS), and APPC Capital Singapore wasn’t listed. In Australia, the equivalent is the Australian Securities & Investments Commission (ASIC)—another critical checkpoint for legitimacy.

The stakes are high. According to a 2025 National Anti-Scam Centre report, Australians lost $945 million to investment scams in the past year—nearly half of the $2.03 billion total stolen by scammers. Dr. Gupta urged the public to adopt “healthy cynicism” when approached by so-called investment experts. Red flags include unsolicited calls (“very uncommon” in the industry), promises of unrealistically high returns, or hints of illegal insider knowledge.

For those navigating investment opportunities, Dr. Gupta recommended consulting a registered financial advisor tailored to personal needs. “Theyll find options right for you,” he assured. Meanwhile, Dr. Chang offered practical advice for scam victims: report the incident immediately, notify your bank, and seek support. He also advocated for expanded mental health resources, like counselors and victim support groups, to aid recovery.

The rise of AI scams signals a new era of cybercrime—one where technology empowers deception on an unprecedented scale. Staying vigilant and informed is more critical than ever.