Australian financial authorities are issuing a major warning about a surge in "pump and dump" investment scams that are increasingly targeting older Australians, often using deepfake technology and impersonations of well-known personalities. The Australian Securities and Investments Commission (ASIC) has expressed significant concern over the rise in these fraudulent schemes.
According to ASIC Commissioner Alan Kirkland, scammers appear to be deliberately targeting individuals nearing retirement. "They know many people in this age group have accumulated retirement savings and are looking for investment opportunities," Kirkland stated. These fraudsters utilize social media and messaging applications to promote dubious money-making schemes by impersonating public figures, financial experts, and even legitimate financial institutions.
Economist and market analyst Tom Piotrowski, known for his financial market commentary on television, is among those whose name and image have been used without authorization. Piotrowski described the situation as heartbreaking, noting that scammers prey on individuals with some familiarity with the stock market but insufficient knowledge to detect fraud. "I can't tell you how heartbreaking it is to think that hard-working people are having to deal with this; it's really terrible," he told AAP.
In recent days, the financial regulator has received more than a dozen reports related to pump and dump scams, with potential losses estimated in the millions of dollars. Similar tactics have been employed using the likeness of financial counselor and author Scott Pape, widely known as the Barefoot Investor. Pape himself recently warned about hundreds of deepfake artificial intelligence posts circulating online that offered fake financial advice. He clarified on his website that he does not maintain a social media presence.
Iron ore magnate Andrew "Twiggy" Forrest has also been a target, reportedly spending millions of dollars in a legal battle against Meta. Forrest is contesting the proliferation of deepfake AI videos and advertisements that falsely depict him endorsing automated trading bots or cryptocurrency platforms.
Unlike many scams where funds are transferred directly to criminals, pump and dump schemes often involve the purchase of genuine shares traded on legitimate exchanges. Victims may not realize they are being scammed until the fraudsters sell their shares, causing the stock price to collapse. Kirkland advised that a quick way to verify authenticity is to ask for an Australian Financial Services licence, information readily verifiable on the ASIC website. Further guidance is available on ASIC's ScamWatch website.
Data from the National Anti-Scam Centre indicates that Australians lost $2.18 billion to scams in 2025, with investment scams accounting for $837.7 million of that total. In December 2025, four individuals were convicted and sentenced to jail for using Telegram group chats to inflate stock prices before selling them at a profit.