BanksiaPulse Editorial Team For more information, visit the MoneySmart savings guide. BanksiaPulse covers Australian news and finance with AI-assisted research, cross-checked against ATO, ABS, and official government sources. Published: July 09, 2026
AI scams are a growing threat, exemplified by a recent chilling case in Western Australia where extortionists used an AI-generated image of a missing man to demand money from his parents.
- What are AI scams and how do they work?
- How do scammers use AI deepfakes to impersonate missing persons?
- What is AI-powered extortion and why is it becoming more common?
- How can you identify an AI scam targeting you or your family?
- What should you do if you receive an AI scam call about a missing person?
- How can you protect yourself from falling victim to AI-based extortion?
- Frequently Asked Questions
This guide covers everything you need to know about AI scams in Australia. BanksiaPulse reports on this alarming development, highlighting the sophisticated nature of these technologically-driven criminal activities. This incident underscores the increasing need for public awareness and robust security measures against emerging online threats. Understanding the mechanics and motivations behind AI-powered fraud is the first step in safeguarding oneself and loved ones from becoming victims. The Australian Federal Police have noted a rise in sophisticated online scams, with AI tools lowering the barrier to entry for criminals.
What are AI scams and how do they work?
AI scams are fraudulent schemes that leverage artificial intelligence technologies to deceive individuals or organisations, with the objective of financial gain or data theft. These scams operate by employing AI algorithms to create highly convincing and personalised fraudulent communications. This can range from generating realistic text for phishing emails and deceptive social media messages to producing sophisticated voice and video impersonations. For instance, AI can be used to mimic the voice of a trusted individual, such as a family member or a bank representative, to request urgent transfers of money or sensitive personal information. The sophistication lies in the AI’s ability to analyse vast amounts of data to tailor these attacks, making them appear more legitimate and harder to detect than traditional scams. The Australian Competition and Consumer Commission (ACCC) has identified AI-generated content as a key enabler of increasingly convincing scam operations across the country. (Source: ACCC, 2024). The ability of AI to generate human-like text and speech means that even experienced individuals can be caught off guard by the realism of these fabricated interactions. For example, a scammer might use AI to craft an email that perfectly mirrors the writing style of a known colleague, requesting confidential project details. This targeted approach, powered by AI, bypasses many standard security protocols designed to detect generic fraudulent communications.
How do scammers use AI deepfakes to impersonate missing persons?
Scammers utilise AI deepfakes by manipulating existing media to create realistic, yet fabricated, images or videos of missing individuals for extortion purposes. In the disturbing case reported in Western Australia, extortionists reportedly sent an AI-generated image of the missing man to his parents. This technique leverages AI’s capability to synthesise new visual content that closely resembles real photographs or video footage. Deepfake technology, which can alter or generate visual and audio content, allows criminals to create believable portrayals of individuals saying or doing things they never did. When applied to missing persons cases, this is particularly insidious. Scammers can create images that appear to show the individual in distress or captivity, aiming to trigger an immediate emotional response and a desperate desire from family members to secure their loved one’s safety, often without questioning the authenticity of the visual evidence. The emotional vulnerability of families grappling with the disappearance of a loved one is exploited to its fullest extent. The Australian Institute of Criminology has highlighted the increasing use of sophisticated digital tools by criminals to exploit public sympathy and distress, making these types of scams particularly damaging. (Source: AIC, 2023). Such fabricated visuals are designed to bypass rational scrutiny by playing directly on primal fears and parental instincts, making the demand for ransom feel urgent and unquestionable.
What is AI-powered extortion and why is it becoming more common?
AI-powered extortion involves using artificial intelligence to enhance threats, demands, or the perceived consequences of non-compliance, making it a more potent and prevalent criminal tactic.
This form of extortion becomes more common due to the increasing accessibility and sophistication of AI tools, coupled with their effectiveness in creating believable threats. AI can be employed to generate realistic audio or video evidence suggesting harm to a victim or their loved ones, or to craft highly personalised and convincing ransom demands. For instance, an AI might be used to mimic the voice of a kidnapped individual, pleading for their release while simultaneously demanding a ransom from their family. The “AI-generated image” used in the Western Australian case is a prime example of this. It leverages AI to create visual leverage, making the threat appear immediate and concrete. The declining cost and increasing ease of use of AI technologies mean that more individuals with malicious intent can now deploy these advanced tools. The Australian Cyber Security Centre has observed a trend where cybercriminals are integrating AI into their existing methodologies to increase the impact and success rate of their attacks. (Source: ACSC, 2025). This shift means that even small-scale criminals can now orchestrate attacks that were previously the domain of highly resourced criminal organisations, thereby democratising advanced cybercrime and increasing its overall prevalence. The fear factor is significantly amplified when the threat is presented with seemingly irrefutable AI-generated evidence, compelling victims to act swiftly without proper verification. This technological advancement is fundamentally changing the landscape of criminal threats, making them more sophisticated and harder to discern.
How can you identify an AI scam targeting you or your family?
Identifying an AI scam involves looking for inconsistencies, unusual requests, or emotional manipulation tactics that deviate from normal communication patterns, even when the content appears highly realistic. Additional resources are available at the RBA official interest rate data.
While AI can create incredibly convincing simulations, subtle clues can still reveal a scam. One key indicator is an urgent, high-pressure demand for immediate action, especially involving financial transactions or sensitive personal information. Scammers often try to bypass your critical thinking by invoking fear, urgency, or extreme emotional states. For example, if you receive a call from someone claiming to be a government official demanding immediate payment via an unusual method like cryptocurrency, it’s a significant red flag. Similarly, if an AI-generated image or video of a loved one in distress is presented, pausing to consider the source and context is vital. Always verify such claims through a separate, trusted communication channel—call the person directly on their known number or contact a reliable authority. The Australian Securities and Investments Commission (ASIC) strongly advises verifying any unusual financial requests, especially those involving urgency or threats, through established, independent channels. (Source: ASIC, 2023). Be wary of communications that contain poor grammar or spelling, even if the AI aims for realism; sometimes these slip through. Another tactic is the use of generic greetings or a lack of specific, verifiable details about the situation. If a supposed contact seems unusually demanding or evasive when pressed for more information, it’s a strong indicator of a potential AI scam designed to exploit your trust and emotional responses.
| AI Scam Tactic | How Scammers Use It | How to Detect It |
|---|---|---|
| Voice Cloning | Mimicking a known person’s voice to request urgent funds or information. | Listen for unusual phrasing, tone, or background noise. Verify by calling the person back on a known number. |
| Deepfake Video/Images | Creating fabricated visuals of individuals in distress or to impersonate officials. | Examine for visual anomalies, unnatural movements, or lighting inconsistencies. Cross-reference with trusted sources. |
| Personalised Phishing | Generating highly tailored scam messages using AI to exploit specific information. | Be suspicious of unsolicited messages requesting personal data or urgent action. Check sender details carefully. |
| AI-Generated Text | Producing believable, yet fraudulent, emails or messages to trick recipients. | Look for unusual sender addresses, vague requests, or pressure tactics. Trust your instincts if something feels off. |
What should you do if you receive an AI scam call about a missing person?
If you receive an AI scam call regarding a missing person, the immediate and most crucial action is to verify the information independently and report the incident to the authorities, rather than engaging with the potential scammer. The overwhelming emotional distress that accompanies news of a missing loved one can cloud judgment, making it imperative to establish a protocol for such devastating circumstances. Firstly, do not provide any personal information or financial details to the caller. Instead, terminate the call. Then, immediately contact the official police force in the relevant jurisdiction—in this case, the West Australian Police Force—through their official, non-emergency line or by reporting online if available. If the missing person is known to you, try to contact them or other trusted family members or friends through pre-established, reliable contact methods to ascertain their well-being. Never rely on contact details or information provided by the suspected scammer. The Australian Cyber Security Centre (ACCC) strongly advises reporting all scam attempts, including those involving AI impersonation, to Scamwatch to help build a comprehensive understanding of emerging threats and protect others. (Source: Scamwatch, 2023). By reporting, you contribute to law enforcement’s ability to track and disrupt these criminal operations. Remember that legitimate authorities will typically have established procedures for communication and will not demand immediate financial transactions under duress, especially without prior official contact.
How can you protect yourself from falling victim to AI-based extortion?
Protecting yourself from AI-based extortion involves adopting a proactive stance on cybersecurity, practising critical information evaluation, and maintaining open communication channels with trusted networks. On a personal level, strengthening your digital security is paramount. This includes using strong, unique passwords for all your online accounts, enabling two-factor authentication (2FA) wherever possible, and being vigilant about phishing attempts. Regularly update your software and operating systems, as these updates often patch security vulnerabilities that AI-powered attacks could exploit. Critically, develop a habit of questioning and verifying any unsolicited or unusual communications, particularly those that create a sense of urgency or demand immediate action, especially if money or personal data is involved. For families, establishing a pre-arranged “code word” or question that only genuine family members would know can serve as an effective safeguard against voice or video impersonation scams. If a call comes in that feels off, asking for the code word can immediately expose a scammer. The Australian Government’s Moneysmart website offers extensive resources on protecting yourself from scams and financial fraud, advising regular education on the latest threats. (Source: Moneysmart, 2024). Fostering a culture of open discussion about online safety within your family, including explaining the capabilities of AI in creating fake content, can empower everyone to be more discerning. Staying informed about the evolving tactics used by AI scammers is a continuous process, but by combining digital hygiene with critical thinking and robust communication strategies, individuals and families can significantly reduce their risk of becoming victims.

