The Australian Securities and Investments Commission (ASIC) has issued a stark warning about a surge in sophisticated 'pump-and-dump' scams, where scammers use fake images of experts to lure victims into investing.Over the past two weeks, 16 Australians have lost more than $2.7 million to these scams, with ASIC commissioner Alan Kirkland stating that AI is 'supercharging' the fraud.Scammers create fake endorsements of financial experts or celebrities, enticing people into private groups to share stock tips.These scams artificially inflate stock prices before crashing them, leaving victims with worthless shares.Kirkland highlighted that older Australians are primary targets due to their savings.

Reputable experts like Tom Piotrowski, NAB's head of market insights, have had their likenesses used in scams, calling it 'heartbreaking'.ASIC advises caution against unsolicited investment advice, checking credentials, and reporting scams to Scamwatch.The article underscores the need for vigilance against AI-driven fraud and the importance of verifying financial recommendations.