Apate sends AI agents undercover to get scammed so they can gather fraud intelligence

Scam intelligence costs less than fighting fraud, and it’s available now.

Australian startup Apate.ai deploys thousands of AI agents to pose as potential victims and engage with scammers, gathering intelligence on their methods and targets. Founded in 2024 and based on Macquarie University research, Apate's agents answer scam calls, respond to malicious messages, and join suspicious online groups. Their goal is to waste scammers' time while extracting crucial details like bank accounts, crypto wallets, and scam infrastructure. The company claims its agents have simulated 17 years of scammer engagement across 2.5 million conversations. Apate then provides this actionable intelligence to its clients, which include major banks, telecommunication companies, government agencies, and utilities, to enhance their anti-fraud strategies. The company recently raised $8.15 million in seed funding and plans international expansion. This approach contrasts with traditional methods that react to fraud after it occurs, aiming instead to proactively disrupt scam operations.

Apate's novel approach of weaponizing AI to bait and study scammers represents a significant evolution in cybersecurity, moving from reactive defense to proactive intelligence gathering. By simulating victimhood at scale, the company can create a dynamic and continuously updated database of emerging fraud tactics, which is invaluable for financial institutions and government bodies facing increasingly sophisticated AI-powered scams. The success metrics, such as Commonwealth Bank's reported 76% drop in publicly reported scam losses, suggest this method can yield tangible improvements in fraud prevention.

This strategy signals a shift in the AI security market towards offensive AI applications, where AI agents are used not just for defense but for active reconnaissance against malicious actors. The funding raised by Apate indicates investor confidence in this disruptive model, potentially paving the way for more companies to explore similar 'adversarial AI' tactics. As AI continues to empower both legitimate businesses and criminals, solutions like Apate's may become critical for staying ahead of evolving threats, impacting how organizations allocate their cybersecurity budgets and resources.