ASIC Warns AI Deepfakes and Fake Endorsements Fuel Pump-and-Dump Scams; Australian Investors Lost A$837.7M in 2025

According to ASIC, on 17 July, the regulator warned that pump-and-dump stock manipulation schemes are increasingly sophisticated, with scammers using AI-generated deepfake videos and fake celebrity endorsements to lure investors into buying shares. Scammers impersonate recognized economists and financial institutions on social media, then direct victims to private messaging groups like WhatsApp and Telegram where fake investment experts encourage share purchases.

One recent case saw a stock surge to US$11 before collapsing to approximately US$1. According to ASIC's data, Australians lost A$837.7 million to investment scams in 2025, the largest category of financial fraud losses. The regulator noted that retirees and older Australians have become primary targets, as they hold accumulated savings and actively seek higher-return investments.