The Australian Securities & Investments Commission issued an investor alert warning of an increase in coordinated “pump and dump” activity ahead of the holiday period, with retail investors including Australians trading in overseas markets being lured into buying thinly traded stocks that promoters rapidly sell down after inflating prices. It also flagged scammers using the identities of Australian celebrities to move victims into messaging apps such as WhatsApp and direct them to buy shares. The warning follows sentencing in Downing Street Court of four people involved in a scheme to pump Australian share prices before dumping them at inflated prices, after guilty pleas on 10 June 2025. ASIC noted that pump and dump schemes have been a focus for international regulators, pointing to recent public warnings by New Zealand’s Financial Markets Authority and the United States’ Financial Industry Regulatory Authority, and referenced an FBI notice citing a 300% rise in victim complaints over the past year; an ASIC estimate from 2022 put retail investor losses from exiting “potentially pumped” events at AUD 6.3 million per month. ASIC said it is monitoring small-cap trading through real-time market surveillance that integrates trade data with surveillance of social media and online forums including X, WhatsApp, HotCopper, Reddit and Discord, and will take enforcement action where appropriate. Investors were urged to watch for paid promotions, coordinated “finfluencer” activity, invitations to private chats, fake celebrity endorsements, unsolicited marketing and sudden price spikes, and to report suspected schemes to SCAMwatch, the Australian Taxation Office or ReportCyber.
Australian Securities & Investments Commission 2025-12-22
Australian Securities & Investments Commission warns investors of rising coordinated pump and dump scams targeting small-cap stocks
The Australian Securities & Investments Commission (ASIC) warned of increased "pump and dump" schemes targeting retail investors, especially during the holidays. These involve thinly traded stocks being promoted and sold at inflated prices, with scammers impersonating celebrities. ASIC conducts real-time market surveillance and urges caution regarding paid promotions, fake endorsements, and sudden price spikes, advising reporting suspicious activities to authorities.