CBA calls in police, $1 billion in fraudulent loans as banks battle AI forgeriesCommonwealth Bank has called in the police after making a disturbing $1 billion discovery.Harrison Christian2 min readFebruary 27, 2026 - 11:42AMCommonwealth Bank has called in the police after discovering a suspected $1 billion in home loans obtained fraudulently, including with documents created by AI. CBA began investigating its loan book last year after a network of criminals known as the Penthouse Syndicate allegedly defrauded NAB of around $150 million to buy luxury property. The exposed loans could amount to $1 billion, which would be the biggest fraud ever committed against an Australian bank. CBA has not lost money, however, because the mortgages are being paid down and are secured against properties that can be sold if required. The suspected fraud with CBA loans was believed to be separate from the Penthouse Sydnicate, allegedly run by former CBA and NAB banker Andrew Hu, although the investigation had not ruled out some overlap.News.com.au has contacted Commonwealth Bank for comment. Artificial intelligence is being used to make banking services more efficient, but it’s also helping criminals to secure dodgy loans. Just this week, CBA had announced 300 job cuts as part of a $90 million pivot to the technology.CBA chief executive Matt Comyn said businesses and staff had to prepare for a future where AI held a bigger role.CBA chief executive Matt Comyn announced 300 job cuts as the bank makes a $90 million pivot to artificial intelligence. Picture: NewsWire/Nikki ShortMORE: 6 essential workplace skills in the age of AI“Australia has to get really good at adopting this technology and whatever follows it,” he said.“This is a topic we have been thinking about for some time.”Penny Dunn, a PwC forensics and financial crime partner, said artificial intelligence could create “more sophisticated documentation forgery and also synthetic identities and deepfakes”.“It’s very difficult for the human eye to see,” Ms Dunn told The Australian Financial Review.A CBA spokesperson said the industry was facing “sustained and increasing levels of attempted fraud, driven by criminals who actively evolve their methods”.“This is an industry-wide challenge, with fraud being attempted through mortgage broking and referral channels,” the spokesperson said.“Like others, we have increased our focus on financial compliance, and we’re continually reviewing our policies and processes and making changes to help protect our customers, the bank, and the community.“Last financial year CBA invested $900 million to help protect customers from fraud, scams, cyber threats, and financial crime.”The bank has called in police to investigate a suspected $1 billion lost to fraudulent loans. Picture: NewsWire/James GourleyAussies overconfident about spotting fakesIt comes after research from Commonwealth Bank, provided exclusively for NewsWire, showed Aussies were over-estimating their ability to spot AI deepfake scams as technology improves and basic psychology plays against them.While 89 per cent of Australians believed they could spot a deepfake, when put to the test, only 42 per cent of people could spot the difference between a real person and an AI generated image, the study revealed.More CoverageMarket’s record high, bubble fears smashedHarrison Christian‘Leave now’: Tense scenes, thousands sackedHarrison ChristianCommonwealth Bank general manager James Roberts told NewsWire scammers are becoming more sophisticated as they are aided by AI.“As deepfake scams have evolved the quality of them has gotten better, so they are harder to spot than even a year ago, which might be the factor for the over confidence,” he said.“The quality of the audio and visuals have improved drastically to the point where it is very hard to distinguish high quality (scams) as deep fakes, so while AI can be used for millions of legitimate reasons, unfortunately the criminals are using generative AI as well.”Read related topics:Commonwealth BankMore related storiesAustralian MarketsTech stocks, Woolies push ASX to new highThe Australian sharemarket has soared to a new record high off the back of surging tech stocks, which have defied AI disruption fears.Read moreBankingBig bank cuts 300 roles amid AI rolloutOne of Australia’s big four banks has slashed 300 jobs as it introduced a $90m program to adapt AI into its workforce.Read moreAustralian MarketsOil prices push ASX to record intraday highOvernight rumblings of the US invading Iran have lifted oil prices and nudged the ASX to a record intraday high.Read more