Apate.ai Uses Undercover AI Agents to Waste Scammers’ Time and Expose Fraud
Apate.ai, an Australian startup, is pioneering a new anti-fraud strategy by deploying AI agents to intentionally bait scammers and gather intelligence. Founded on Macquarie University research, these undercover bots engage fraudsters across various platforms to extract crucial data before real victims are harmed. This innovative approach has already led to significant scam disruption and reduced losses for major banks and telecom companies.
Australian startup Apate.ai is deploying artificial intelligence agents to pose as scam victims, engage fraudsters and gather intelligence that can help prevent financial losses. Founded in 2024 from research at Macquarie University in Sydney, the company uses thousands of AI agents to answer fraudulent calls, respond to deceptive messages and emails, follow phishing links and enter social media groups where scams are discussed.
The agents adopt different personas, accents, ages and languages to keep scammers engaged while extracting details such as bank account numbers, cryptocurrency wallets, phone numbers, malicious websites and impersonated brands. Apate says its agents have collectively wasted scammers an estimated 17 years across 2.5 million conversations, with the intelligence shared with banks, telecom companies, government agencies and utilities to strengthen fraud prevention.
The idea grew from an incident involving founder and chief executive Dali Kaafar, who deliberately kept a scam caller occupied for 44 minutes during a family picnic to amuse his children. The experience inspired research into automating scam-baiting, using machine learning and natural language processing to analyse fraudulent conversations and identify useful intelligence.
Apate’s co-founder and chief commercial officer, Brad Joffe, says the company takes a more proactive approach than systems that block suspicious numbers or monitor transactions after scammers have already contacted potential victims. Its agents use a combination of advanced AI models and internally fine-tuned systems, while customers can access an intelligence portal or assign specific missions, such as finding a bank account or crypto-wallet address. The scale of AI-enabled fraud underscores the challenge: the FBI recorded 22,364 complaints referencing AI and adjusted losses of approximately US$893 million in 2025.
Apate reports that its customers include Commonwealth Bank of Australia and TPG Telecom, alongside government agencies and other service providers. Joffe said TPG had redirected nearly 590,000 calls to the company’s agents, while Commonwealth Bank reported a 76% reduction in publicly reported scam losses; an unnamed Australian bank also used the system to disrupt 22 scam campaigns.
In August, Apate raised US$8.15 million in seed funding from Lobby Capital, OIF Ventures, Investible, Concept Ventures and Baobab Ventures, bringing its total funding to just under US$10 million, according to the company. The 20-person startup plans to invest in product development and international expansion, including opening an office in London and growing its presence in the United States. The name comes fromApate, the Greek goddess of deception—a fitting reference for a company that uses simulated identities to turn scammers’ own tactics intointelligence.