ASIC warns of rising AI-generated investment scams

The Australian Securities and Investments Commission (ASIC) has reported a significant rise in sophisticated investment scams utilizing generative artificial intelligence. Recent research highlights the increasing prevalence of deepfake images and videos featuring celebrities and politicians to deceive investors.

One prominent example involves a fabricated article depicting a heated confrontation between Reserve Bank chair Michele Bullock and ABC finance presenter Alan Kohler regarding a cryptocurrency trading platform called Boulder Sparhaven. The interview never occurred, and the platform in question is not licensed to provide financial services in Australia.

ASIC data shows a sharp increase in fraudulent activity. Last year, the regulator removed 19,400 scams, representing a 182 per cent increase. This includes a 279 per cent rise in phishing scam take-downs and a 151 per cent increase in the removal of fake investment platforms. ASIC chair Sarah Court warned that polished content and familiar branding no longer guarantee the legitimacy of an investment due to the convincing nature of AI-generated content.