What ASIC has warned
ASIC has issued a warning about a surge in pump and dump share scams using fake celebrity endorsements and AI-generated deepfake videos of well-known economists and financial commentators.
How the scam works
The scam follows a consistent pattern:
- A social media post uses a trusted public figure's image to attract attention.
- Clicking the post leads to a WhatsApp or Telegram group.
- Fake investors in the group promote their supposed profits.
- The targeted person buys shares that the scammers already hold.
- The share price rises as more people buy in.
- Scammers sell their shares, the price collapses, and the victim is left holding shares worth a fraction of what they paid.
One recent example saw a share price spike to nearly US$11 before crashing to US$1.
Because victims buy real shares through a real brokerage account, many do not realise they have been scammed until the price collapses.
Who scammers are targeting
ASIC Commissioner Alan Kirkland has stated that older Australians approaching retirement are being deliberately targeted because scammers know they have accumulated savings.
Scale of the problem
Australians lost $837.7 million to investment scams alone in 2025, according to the National Anti-Scam Centre's Targeting Scams Report.
Responsibility of financial service providers
ASIC Chair Sarah Court has stated that banks and financial service providers also have a responsibility to identify suspicious transaction patterns linked to these scams.
Key actions
- If a stock tip arrives through WhatsApp, Telegram, or any messaging app - especially after clicking a social media post - treat it as a scam and stop communicating immediately.
- Verify any Australian financial services licensee using the Professional Register Search at asic.gov.au before acting on any investment advice.
- If shares have already been purchased following a tip from a messaging group, contact the brokerage platform and your bank immediately to report it.
- Report scams to ASIC and the National Anti-Scam Centre to help protect others - details are available at asic.gov.au.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.