Advance fee fraud is far from a relic of the early internet era. In 2025, it’s a rapidly evolving threat, targeting Australians through sophisticated digital channels and costing victims millions every year. Whether you’re an individual lured by a ‘too good to be true’ investment or a business owner targeted by fake invoices, understanding this scam is the first step in defence.
What is Advance Fee Fraud?
Advance fee fraud occurs when scammers persuade victims to pay money upfront—often for a promised reward, service, or financial windfall that never materialises. These scams are notorious for their creativity, preying on hope, greed, or urgency. Recent variations in Australia include:
- Phoney investment opportunities (cryptocurrency, shares, property, or rare commodities)
- Fake lottery wins or inheritances (requiring a fee to ‘release’ your prize)
- Romance scams (where a partner asks for money to cover an emergency or travel costs)
- Business email compromise (BEC) (fraudsters impersonate suppliers or executives, requesting urgent payments)
With the explosion of digital platforms and social media, scammers can target more Australians than ever, refining their tactics to bypass spam filters and detection tools.
The Cost of Advance Fee Fraud in 2025
According to the Australian Competition and Consumer Commission’s (ACCC) Scamwatch, reported losses to advance fee frauds exceeded $140 million in 2024, with figures expected to rise further in 2025. The real cost is likely much higher, as many victims feel embarrassed to report their losses.
Notably, new data from the ACCC reveals:
- Crypto-related advance fee scams are the fastest-growing variant, accounting for over 40% of reported financial losses.
- Older Australians (aged 55+) and small business owners are increasingly targeted, with tailored approaches that exploit specific vulnerabilities.
- Scammers are now exploiting AI-generated documents and deepfake videos to add credibility to their requests.
The Australian Securities and Investments Commission (ASIC) has issued fresh warnings in 2025 about fraudulent investment brokers and unlicensed online platforms, urging caution and diligence before transferring any money.
How to Recognise and Avoid Advance Fee Fraud
Spotting advance fee fraud is easier when you know the common tactics. Here are the key warning signs:
- You’re asked to pay upfront for a reward, job, or investment opportunity.
- The offer arrives unexpectedly or from someone you haven’t met in person.
- The sender pressures you to act urgently or keep the deal confidential.
- Payment is requested via unusual channels—crypto, gift cards, wire transfer, or prepaid debit cards.
- Emails or messages contain poor grammar, vague details, or inconsistencies in names and addresses.
To protect yourself:
- Verify independently: Always cross-check offers or requests with official sources or direct phone calls.
- Be sceptical of secrecy: Legitimate organisations don’t ask for hush-hush payments.
- Never pay upfront for a promise: Whether it’s an inheritance, a loan, or an investment, upfront fees are a red flag.
- Report suspicious activity: Use Scamwatch, your bank, and the police to document and help prevent further scams.
2025 Policy Updates and Support for Victims
Recognising the growing threat, Australian regulators have introduced several initiatives in 2025:
- Mandatory scam detection for banks: Major banks are now required to implement advanced AI-powered scam detection and hold suspicious payments for up to 48 hours, allowing customers to review and recall funds.
- ACCC’s ScamSafe program: A nationwide education campaign, ScamSafe, is rolling out in schools, workplaces, and community groups, focusing on digital literacy and scam prevention.
- Improved reporting tools: The new National Scam Reporting Portal streamlines the process of reporting and tracking scam incidents, making it easier for authorities to respond quickly.
Victims now have better access to support, including free financial counselling and legal advice through services such as the National Debt Helpline and Consumer Action Law Centre.
Real-World Example: The Fake Investment Broker
In early 2025, a Melbourne retiree lost $60,000 after being lured by an online ad promising high returns on overseas shares. The scammer, posing as a licensed broker, provided convincing documents and a professional-looking website. After several ‘processing fees’ and tax prepayments, the retiree realised the shares never existed. Thanks to the bank’s new scam hold policy, she was able to recover part of her funds, but the emotional toll lingered.
Advance fee fraud is constantly evolving, but with vigilance and knowledge, Australians can outsmart the scammers.