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
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