AI startup deploys undercover agents to waste scammers' time and gather fraud intelligence

Australian startup Apate uses AI agents to masquerade as potential victims, extracting data to help banks and governments fight fraud

By LineZotpaper
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Apate, an Australian startup founded in 2024 on research from Macquarie University in Sydney, is deploying thousands of AI agents that pose as potential scam victims to waste fraudsters' time and gather actionable intelligence. The company says its undercover agents have already occupied 17 years' worth of scammers' time across 2.5 million conversations, feeding data to banks, telecom companies, government agencies and utilities to inform their anti-fraud measures.

Most companies use AI agents to speed up workflows. Apate sends them undercover to get scammed.

The startup's fleet of AI agents masquerade as innocent victims, answering scam calls, responding to shady messages and emails, following phishing links, and joining social media groups. The agents adopt different ages, genders, accents and languages as they seek to keep scammers engaged long enough to extract useful intelligence.

Apate, a finalist in this year's Startup Battlefield 200 at TechCrunch Disrupt in San Francisco, feeds gathered intelligence to its customers. The information includes bank accounts, crypto wallets, phone numbers, malicious websites, the brands being impersonated, and other details about the scams. Banks, telecom companies, government agencies and utilities use this data to strengthen their anti-fraud efforts.

The idea for Apate originated from a personal experience of founder and CEO Dali Kaafar. Several years ago, while at a family picnic, Kaafar received a scam call and decided to play along, keeping the scammer on the line for 44 minutes. He realized those were 44 minutes the scammer had not spent calling a real victim, but also 44 minutes of his own time wasted. That observation led him to wonder if the process could be automated and made productive.

The FBI received more than 22,000 complaints of AI-related crimes in 2025, resulting in about $893 million in losses. Over $632 million of that came from investment scams, where fraudsters use AI to hold conversations and deepfake voices and appearances of celebrities, executives and trusted figures.

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Analysis

Why This Matters

  • AI has empowered scammers, making fraud more sophisticated and costlier; Apate's approach offers a countermeasure that uses the same technology defensively.
  • By gathering real-time intelligence on scam infrastructure (bank accounts, crypto wallets, malicious websites), the platform helps financial and telecom firms block attacks before they reach consumers.
  • The scale is significant: 2.5 million interactions and 17 years of scammers' time wasted suggests the approach can meaningfully reduce the bandwidth of fraud operations.

Background

Apate is an Australian startup founded in 2024 based on research at Macquarie University in Sydney. The company is named after the Greek goddess of deceit, Apate. Its technology represents an automated evolution of "scam-baiting," an activity where individuals deliberately string along scammers for entertainment or education. The FBI's Internet Crime Complaint Center recorded rising losses from AI-enabled scams in 2025, with investment fraud featuring deepfakes as a particularly costly category.

Key Perspectives

Banks and telecom companies: They gain actionable threat intelligence without exposing real customers, potentially reducing fraud losses and blocking scam campaigns earlier. Consumer advocates: Automated scam-baiting could reduce the number of scam calls and messages reaching vulnerable individuals, especially the elderly or less tech-savvy. Critics/Skeptics: The approach relies on constantly engaging scammers, who may adapt their tactics once they become aware of AI honeypots. There are also questions about whether the information gathered is timely enough to be useful against fast-moving fraud operations.

What to Watch

  • How quickly fraudsters adapt their methods when they detect they are interacting with AI agents rather than real victims.
  • Whether Apate's intelligence leads to measurable reductions in scam success rates for its customers.
  • Regulatory interest: authorities may examine how the platform handles data collected from scammers and whether it crosses legal boundaries in its interactions.

Sources

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Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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