Australian startup Apate.ai is sending AI agents undercover to get scammed, aiming to gather intelligence on fraud techniques. These agents can answer scam calls, respond to shady messages, and join social media groups, keeping scammers engaged to reveal their secrets. Since 2024, the company’s agents have wasted 17 years of scammers’ time, with their insights used to inform anti-fraud measures for banks, telecom companies, and government agencies.

Apate’s founder, Dali Kaafar, was inspired by a real scam call at a family picnic, leading him to develop a system that automates the process of baiting scammers. The company’s AI agents now converse with tens of thousands of scammers every day, providing valuable data to its customers.

Investors are betting big on Apate, with the company raising $8.15 million in seed funding. Its clients include Commonwealth Bank of Australia and TPG Telecom, and the startup has seen significant drops in scam losses. By engaging with scammers directly, Apate is providing a unique perspective on fraud that can save real people from falling victim to these scams.

However, as AI continues to evolve and empower scammers, the question remains: are we turning into the scammers’ worst nightmare, or are we just making it worse?