A rapidly growing scam involving fake online casinos has disproportionately affected Indigenous Australians, with 45% of victims identifying as First Nations people and reported losses more than tripling in twelve months to reach $1.6 million.
The Australian Competition and Consumer Commission, the body responsible for protecting consumers from fraud, disclosed the figures as it launched a six-month investigation into what it calls “scambling,” a portmanteau describing fraudulent gambling operations designed to look like legitimate betting platforms.
Across 2025, authorities received 806 reports of the scam, up from 677 the previous year. More alarming than the volume is the financial damage. Reported losses jumped from roughly $449,000 in 2024 to $1.6 million in 2025, though the National Anti-Scam Centre believes the true cost is far higher because many victims assume they lost money through ordinary gambling rather than fraud.
How the Scam Works
The fraudulent sites mimic real online casinos in appearance and function, allowing users to deposit money and place bets. The deception becomes clear when victims attempt to withdraw their supposed winnings. The fake platforms block withdrawals, demand additional payments, or simply disappear with the funds.
A particularly insidious element involves referral schemes. Scammers promise users lucrative rewards for recruiting friends and family, exploiting social networks to expand their reach. What appears to be an online casino with bonus incentives is actually a trap designed to extract money from multiple victims within the same community.
Indigenous Communities Disproportionately Affected
ACCC Deputy Chair Catriona Lowe revealed that 45% of those who reported losses in 2025 identified as Indigenous, a figure that has prompted the Commission to investigate whether First Nations communities are being deliberately geo-targeted by the fraudsters.
“We need to find out if that is true and, if it is true, how it’s being done,” Lowe stated, highlighting the possibility that scammers are using location data or other targeting methods to focus on vulnerable populations.
The demographic skew is especially striking given that Indigenous Australians make up roughly 3.8% of the country’s total population, according to recent census data. The targeting, if confirmed, would represent a calculated effort to exploit communities that already face economic disadvantages and limited access to financial services.
Remote and regional areas with high Indigenous populations may be particularly vulnerable to such scams, especially if awareness campaigns about online fraud have not reached these communities effectively.
Multi-Agency Investigation Underway
The ACCC is launching what it calls a “fusion cell,” bringing together police, government agencies, banks, telecommunications companies, and frontline community services for a coordinated response. The six-month effort aims to map how the scam operates, identify the perpetrators, and develop strategies to protect potential victims.
The involvement of banks and telecom providers suggests authorities are examining how money flows through the system and whether communication channels are being exploited to spread the scam. Community service organizations will likely play a role in education and victim support, particularly in Indigenous communities where trust in government institutions can be limited.
Lowe urged anyone who believes they have fallen victim to contact their bank immediately to prevent further losses and to file a report with Scamwatch, the ACCC’s reporting platform. She emphasized that many victims remain silent because they mistake the fraud for legitimate gambling losses, which hinders efforts to track the scale and methods of the operation.
The Broader Context of Online Gambling in Australia
Australia has one of the highest rates of gambling participation in the world, with online betting growing rapidly in recent years. Legitimate online casinos and betting platforms are subject to strict licensing requirements and consumer protections, but the digital landscape makes it easier for fraudulent operators to set up convincing facades.
The rise of scambling comes as Australian regulators continue to grapple with broader challenges in the online gambling sector, including affordability checks, advertising restrictions, and harm minimization measures. The fake casino scam exploits the familiarity many Australians have with online betting platforms while bypassing all regulatory safeguards that protect players on licensed sites.
For Indigenous communities, the impact extends beyond individual financial losses. Money extracted through these scams drains resources from families and communities that often operate on tight budgets, and the referral structure can damage social cohesion when friends or relatives unknowingly introduce others to the fraud.
The National Anti-Scam Centre has acknowledged that current reporting figures likely represent only a fraction of actual losses, making the fusion cell investigation a critical step in understanding the full scope of the problem and developing targeted interventions to protect vulnerable Australians from this evolving threat.
Based on reporting by SBS Australia.