TL;DR: On July 17, 2026, ASIC warned that pump-and-dump scammers have intensified their use of fake celebrity endorsements. They use the names and images of well-known finance figures to lure people into WhatsApp and other messaging groups, push share purchases (mainly on foreign exchanges), inflate the price, sell their holdings and let it collapse. One example rose to almost US$11 then fell to US$1.

What happened

ASIC release 26-157MR says victims often hold genuine shares bought through legitimate brokerage accounts, so the loss only becomes clear when the price collapses. ASIC suspects older Australians nearing retirement are a main target, and AI-generated deepfake videos make scams harder to spot.

The release cites the National Anti-Scam Centre’s Targeting Scams Report: Australians lost A$2.18 billion to scams in 2025, including A$837.7 million to investment scams. In December 2025, four co-conspirators who used Telegram group chats to pump and dump Australian stocks were convicted and sentenced.

Why it works

Because the shares are real and bought through a licensed broker, the victim feels safe until the price drops. The group chat provides social proof from members who are often part of the scheme.

This differs from the fake-platform version described in Scamwatch alerts, where deposits never reach a real market.

Background: our explainers on Telegram scams and investment and trading app scam recovery. See also ASIC: AI Deepfake Scam Webs Drive 19,400 Takedowns in FY26 and ASIC Removed 11,964 Scam Websites in 2025, Up 90%. For wider numbers, see our data page on average loss per victim by scam type.

What ASIC advises

If you have already sent money

Contact your bank immediately, report the scam to Scamwatch and through ReportCyber, and call IDCARE on 1800 595 160 if your identity may be at risk. Our guides on the Scamwatch and IDCARE recovery process, Australian bank impersonation scams and how to reverse a wire transfer scam explain the steps, and what to do after a scam, wherever you live covers the first 24 hours. Scammers often start with details taken from past leaks, so run our free digital footprint check to see what of yours is already exposed.

Frequently Asked Questions

How does the pump-and-dump scam work?

Scammers lure people into messaging groups with fake finance-figure endorsements, push share purchases (mainly on foreign exchanges), inflate the price, sell their own holdings and the price collapses.

Who is most at risk?

ASIC suspects older Australians nearing retirement are a main target.

Are the shares fake?

Often not. Victims frequently hold genuine shares bought through legitimate brokerage accounts, so the loss only shows when the price collapses.

What should I do if I am in such a group?

Stop acting on the advice, contact your platform and bank if you have bought shares, and report to Scamwatch.

Sources

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