Investment scams are becoming harder to recognise. Artificial intelligence can now be used to create convincing videos, news articles, reviews and websites designed to make a fraudulent investment appear legitimate.

ASIC is warning Australians that a quick online search may no longer be enough to establish whether an investment opportunity is genuine.

For investors, this makes independent verification increasingly important before transferring money or providing personal or financial information.

Why are AI investment scams harder to recognise?

Investment scams have long relied on promises of unusually high returns or pressure to act quickly. What is changing is the quality and scale of the material scammers can create.

ASIC says scammers are using generative AI and other digital tools to create networks of content that reinforce each other.

A person researching an investment may encounter a professional-looking website, positive reviews, apparent news coverage and a video featuring a familiar public figure. Rather than independent evidence that the investment is genuine, all of those elements may be part of the same scam.

Familiar faces can create false confidence

One tactic receiving particular attention is the use of AI-generated or manipulated videos featuring well-known Australians.

Scammers may use the image or voice of a public figure, financial commentator or other trusted person to make it appear that they are recommending an investment.

ASIC says celebrity impersonation may then be supported by fabricated news stories, fake comments and reviews, spoof websites and social media advertising.

The result can look convincing, particularly when several apparently independent sources seem to support the same investment.

A Google search may not tell you the whole story

Searching for a business before investing remains useful, but ASIC warns that search results alone should not be relied upon as proof that an investment is legitimate.

Scammers can deliberately create an online footprint around a fake investment. This can include websites and articles using the same invented company name or distinctive terminology so that searches appear to confirm the business exists.

They may also copy the details of a legitimate Australian business or misuse an Australian Financial Services (AFS) licence number.

This means seeing an AFS licence number on a website isn't enough. The licence should be independently checked against ASIC's records, including whether the licence holder's name and details match the business offering the investment.

Warning signs to look for

No single warning sign will identify every investment scam. However, ASIC has identified several behaviours and claims that should prompt further checking.

• Promises of very high, guaranteed or unusually consistent investment returns.
• Claims that an AI trading system or automated bot can generate easy or passive income.
• Celebrity or public figure endorsements promoted through social media.
• Pressure to invest quickly or warnings that an opportunity is about to disappear.
• Investment approaches that move from social media to WhatsApp, Telegram or another messaging service.
• Websites displaying an AFS licence number that you haven't independently verified.
• Requests for personal or financial information before you have established who you are dealing with.

Check who is actually behind the investment

Before investing, check whether the person or business is authorised to provide the financial service being offered.

You can search ASIC's professional registers and compare the licence holder's name, licence number and business details with the organisation you're dealing with.

ASIC's Moneysmart Investor Alert List can also help identify businesses and investment opportunities that may be unlicensed, fraudulent or suspected scams.

Be careful about following a link supplied in an advertisement or message to perform these checks. Access the relevant regulator or organisation independently where possible.

What if you've already transferred money?

If you suspect you've transferred money to a scammer, acting quickly matters.

Contact your bank or financial institution immediately and explain what has happened. You can also report the incident to Scamwatch and follow the Australian Government's cyber security guidance if personal information or accounts may have been compromised.

If you're considering an investment and are unsure whether it fits with your broader financial strategy, speaking with a Modoras financial planner can also provide an opportunity to assess the investment in the context of your goals and existing financial position.

Don't let professional presentation replace verification

AI can make fraudulent content look polished and credible. That makes the process used to verify an investment more important than how convincing the opportunity appears online.

Take your time, check licence details independently and be wary of anyone encouraging you to bypass normal checks or make a financial decision under pressure.