AI-fabricated photos fuel fraud in Victoria's $572 million energy-upgrade scheme
Rogue installers are using AI-generated images to claim false green certificates under Victoria’s Victorian Energy Upgrades program, leaving many households without refunds or warranties.
Victoria’s flagship Victorian Energy Upgrades (VEU) scheme, worth $572 million, is being undermined by operators who exploit AI-created images to fake installation evidence and claim energy-efficiency certificates valued at $83 each. Over the past two years, nearly 20 firms have been removed from the program, with some entering liquidation and leaving households owed millions in deposits and without product warranties.
The Essential Services Commission has stepped up compliance checks, ordering businesses to surrender hundreds of thousands of dollars in carbon credits and banning repeat offenders. High-profile cases include an employee accused of diverting $5.9 million in credits to his own company and multiple firms forced to return certificates after staged photo submissions. Regulators are now requiring on-site interviews and using advanced data analytics to detect fraud, while advising affected consumers to seek chargebacks or manufacturer warranties.
Why it matters
Consumers risk losing money and safety guarantees as fraud threatens the integrity of a major energy-saving program.
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