← SBS News In Depth
INTERVIEW: The insidious danger of 'pump and dump' financial scams artwork

INTERVIEW: The insidious danger of 'pump and dump' financial scams

SBS News In Depth
07:08
Play episode

Show notes

ASIC is warning Australians to be extremely cautious of investment tips received through social media and messaging apps, amid a spike in reports of so-called 'pump and dump' scams using fake celebrity endorsements and impersonations of financial institutions. ASIC says scammers use the identities and images of well-known finance industry figures, including respected market commentators and economists, to lure consumers into WhatsApp and other messaging groups where they are encouraged to buy investments, particularly shares. Once consumers join a messaging group, scammers provide stock tips designed to artificially inflate the price of a share before selling their own holdings. The share price then falls, leaving unsuspecting investors with significant losses. SBS Reporter Natalie Poyhonen has been talking to ASIC Commissioner Alan Kirkland

More from this show

More
  1. Retiring Liberal senator Jonno Duniam on his party's challenges

    Is the Liberal Party a sinking ship? Retiring senator Jonno Duniam faces questions on migration, visa delays and his party's future. As he prepares to leave federal politics, Libe…

    19:18
  2. Australian MP injured in alleged attack, Europe rocked by riots

    An alleged attack on well-loved regional MP Helen Haines leaves Australia grappling with the reality of political violence on its shores. We’re joined by SBS’ Canberra bureau to di…

    39:59
  3. What rural American voters want ahead of the midterms

    In the Republican heartland of southwestern Arizona, growing disillusionment with Donald Trump is testing party loyalties ahead of the US midterm elections. Some former supporters…

    06:55
  4. Australia's rising threat of radicalisation

    Authorities and security agencies are warning that online radicalisation is growing and becoming more accessible in the country. Warnings have emerged at a parliamentary inquiry e…

    04:48
  5. NextDC’s 42% plunge puts data centre risks in focus

    Delays to power upgrades at NextDC's Melbourne site forced a sharp downgrade, raising questions for data centre investors. A delay to power upgrades at a Melbourne site sent NextD…

    15:21
  6. Peace at what price? Trump's pressure on Ukraine grows

    Trump ramps up pressure on Ukraine to strike a peace deal with Russia, raising fears Kyiv could be forced into painful concessions. Donald Trump is ramping up pressure on Ukraine…

    05:27
Now Playing
INTERVIEW: The insidious danger of 'pump and dump' financial scams — SBS News In Depth | Podcast | Josplay Music