Associated Incidents
Leon knows a scam when he sees it --- he's a fraud and data analyst who has previously worked for financial institutions.
But even he was left second-guessing when he was contacted by scammers who he believes used artificial intelligence to create elaborate websites for businesses that don't exist.
Leon --- not his real name --- has asked to be anonymous due to concerns his data could be breached.
Like many scams, Leon's experience began with a cold call from someone identifying themselves as an employee of marketing agency Assent Advisory, and claiming to promote an investment opportunity.
Knowing cold calls are a red flag, Leon played along, curious to see how it would play out.
Leon's caller was professional, patient and didn't pressure him to provide sensitive financial information over the phone --- a tactic often reported by scam victims.
But when he was sent links to the glossy websites of the investment firm being promoted, and a mining company the firm would help him buy shares in, Leon quickly realised this was not any "old school scam".
The elaborate sites featured a business registration number, detailed weekly blog posts, a list of board members with their pictures and the names of their graduating universities, the locations of multiple mining sites, and even a range of publicly accessible documents detailing company policies.
Leon said the level of detail was convincing.
"I do this kind of work, I'm a pretty sceptical person, but I looked at the [site] and I thought 'well, if I was given this website by someone I trusted ... I wouldn't [take] a second glance'," he said.
"So basic due diligence is probably not enough here."
How AI is changing the nature of scams
"Scams are not a new problem or new issue ... but what is different is the way people conduct the scam, especially in the last few years, [where] we've seen the use of AI," said Lennon Chang, associate professor of cyber risk and policy at Deakin University.
Dr Chang said there was no doubt AI was making it easier for criminals to produce a convincing scam.
"Now using AI, everyone can be a developer to create a website, to write a [company] policy ... to generate images ... and even to create fake financial reports," he said.
He said it was becoming increasingly difficult for the general public to verify whether something they saw online was real or AI generated.
"We would usually suggest that people review the likes or comments [of a page] --- what we call 'the feedbacks' --- but that too can all be generated by AI now," he said.
Dr Chang said the general public would need support from multiple experts --- in finance, tech and cybersecurity --- to do the fact-checking.
Fact-checking an AI scam
The ABC looked into the two websites Leon was directed to by his scammers: APPC Capital Singapore and Thackeray Mines and Minerals Inc.
Our fact-checking aimed to determine whether the images, the people and the locations referred to were legitimate.
Here's what we found. (Tap each tile to read more)
AIID editor's note: See the original report for this interactive feature with more information.
Checking business registrations
One notable feature of the APPC Capital Singapore operation was that it had an active business registration number with the country's Accounting and Corporate Regulatory Authority (ACRA) --- the Singaporean equivalent of the Australian Business Register.
But Leon labelled the scam website's strong emphasis on this registration as a "misdirect".
Investment expert Rakesh Gupta, who is an associate professor of accounting and finance at Charles Darwin University, agreed.
He said all investment firms must also have a licence in order to provide a financial service.
In Australia, that licence is given by the Australian Securities & Investments Commission (ASIC) and in Singapore it is with the Monetary Authority of Singapore (MAS).
APPC Capital Singapore is not listed as a licence holder on the MAS register.
Getting expert advice
A 2025 report from the National Anti-Scam Centre found Australians lost $945 million to investment scams last year, accounting for almost half of the total $2.03 billion fleeced by scammers.
Dr Gupta said he encouraged the public to practise "healthy cynicism" when contacted by supposed "investment experts", even ones who seem to use all the right words.
He said typical red flags included cold calls which he said were "very uncommon" in the industry; opportunities that sounded "too good to be true"; and claims of insider knowledge that would be illegal.
Dr Gupta said when it came to investing, it was best to speak to a registered financial advisor who could assess your individual circumstances and find options "right for you".
And if you do think you have been scammed, cyber security expert Dr Lennon said you should report it and contact your bank immediately.
Dr Lennon also said he wanted to see more mental heath support available for victims of scams.
"Counsellors, but also victim [support] groups ... I think would be very helpful to victims."