AI and Fake Financial News Are Increasing Pump-and-Dump Risks

Artificial intelligence is making it easier for organised trading groups to produce convincing financial content, promote selected shares and influence investor behaviour at scale.

The National Crime Agency’s National Strategic Assessment 2026 states that the threat posed by pump-and-dump schemes increased during 2025. It says individuals based outside the UK have used social media and articles published on bogus financial-news websites to spread disinformation and affect the price of chosen investments.

The NCA assesses that this threat will almost certainly increase over the next one or two years as artificial intelligence becomes more widely used.

For investors, listed companies, brokers and legal advisers, the concern is no longer limited to an anonymous message promoting an obscure share.

Artificial intelligence can help those behind a manipulation campaign create apparently professional news reports, fabricated analyst commentary, synthetic executive statements and coordinated social-media activity within a short period.

The result can be a false appearance of market interest, credibility and momentum.

What is a pump-and-dump scheme?

A pump-and-dump scheme involves promoting an investment in order to drive up demand and its market price.

Those behind the promotion may already hold the shares or other financial instruments. Once the price has risen, they sell their position, leaving later investors exposed when demand falls and the price declines.

The promotion may rely on:

• False claims about the company’s performance.
• Misleading announcements about contracts or partnerships.
• Fabricated analyst recommendations.
• Coordinated social-media posts.
• Anonymous investment groups.
• Unsubstantiated takeover rumours.
• Invented regulatory approvals.
• Misleading statements about new technology or products.
• Artificial trading activity intended to create momentum.

Not every rapidly rising share price is evidence of manipulation.

Concern arises where the apparent market interest is being generated through false or misleading information, coordinated promotion or undisclosed financial interests.

How fake financial news creates credibility

A message posted in an anonymous online group may be treated cautiously. A professionally presented article can appear much more credible.

A bogus financial-news website may imitate the structure and design of a legitimate publication. It may include:

• A convincing publication name.
• Professional formatting and branding.
• Named or fabricated journalists.
• Charts and market data.
• Supposed quotations from executives.
• Links to genuine company information.
• Articles about unrelated legitimate businesses.
• Claims that the content has been independently researched.

The promotional material may then be circulated through social media, encrypted messaging groups, online forums and email.

One false article can be repeated by multiple accounts until it appears to have been confirmed by several independent sources.

In reality, the accounts, websites and promotional messages may be controlled by the same individuals or network.

The NCA says social-media platforms and less moderated online spaces are allowing organised criminals to reach victims, distribute misleading material and operate across jurisdictions with greater scale and perceived anonymity.

How artificial intelligence changes the threat

Artificial intelligence reduces the time, cost and technical skill required to produce persuasive financial content.

It can be used to generate:

• News articles written in a convincing financial style.
• Executive interviews that never took place.
• Synthetic photographs of supposed directors or analysts.
• Cloned voices presented as company executives.
• Manipulated videos promoting an investment.
• Translated promotions aimed at investors in several countries.
• Automated social-media posts supporting the same narrative.
• False documents designed to support invented claims.
• Responses to sceptical investors in real time.

A manipulation campaign can therefore look larger and more credible than the number of people actually controlling it.

The NCA assesses that artificial intelligence is lowering barriers to serious and organised crime by increasing scale, automation and the quality of deceptive material. It also expects synthetic media and less moderated platforms to be used increasingly to promote fraud and other criminal activity.

Why small and thinly traded companies may be vulnerable

Pump-and-dump activity is often associated with securities where relatively limited trading can produce a noticeable price movement.

A low-volume share may react sharply when a sudden group of investors begins purchasing it.

Promoters may present that rise as evidence that:

• Institutional investors are buying.
• A major announcement is imminent.
• The market has discovered an undervalued company.
• A takeover is being prepared.
• A new product will transform the business.
• Early investors are already making substantial returns.

The visible price rise can then attract additional buyers who have not seen the original promotion.

This creates a feedback loop: promotional activity produces buying, the buying produces price movement and the price movement is used to validate the original claims.

When those controlling the scheme sell, the artificial demand may disappear quickly.

Warning signs investors should consider

No single indicator proves that a share or promotional campaign is being manipulated.

Several warning signs occurring together may justify closer scrutiny:

• Unsolicited investment tips received through messaging applications or social media.
• Urgent instructions to buy before an announcement or deadline.
• Claims of guaranteed or near-certain returns.
• Articles appearing only on unfamiliar websites.
• Identical wording repeated across multiple accounts.
• Anonymous administrators controlling investment groups.
• A sudden increase in promotion without a corresponding company announcement.
• Pressure not to sell while promoters appear to exit.
• Claims based on unnamed insiders.
• A refusal to explain financial interests held by the promoter.
• Professional-looking videos or interviews that cannot be independently verified.

Investors should verify important claims through recognised regulatory announcements, established news organisations and the company’s official market disclosures.

A polished article, realistic video or apparently expert voice recording should not be treated as proof that the underlying information is genuine.

Listed companies can also be victims

The harm is not limited to investors who buy at an artificially inflated price.

A listed company may find its name, directors or commercial announcements being used without permission.

False publicity can create:

• Unusual trading activity.
• Regulatory scrutiny.
• Confusion among shareholders.
• Pressure on executives to respond publicly.
• Damage to commercial relationships.
• Questions about whether confidential information was leaked.
• Increased exposure to impersonation and fraud.

Companies should have a process for identifying and responding to fabricated market commentary.

This may include monitoring unusual online activity, preserving false content, reviewing whether internal information has been compromised and coordinating with legal, regulatory and communications advisers.

A rushed public response can unintentionally amplify the false claim, so the approach should be controlled and evidence-led.

Evidence to preserve after suspected manipulation

Where an investor, company or adviser suspects that false information is being used to influence trading, relevant evidence should be preserved quickly.

Retain:

• Complete copies of the articles.
• Website addresses and publication dates.
• Screenshots showing the original layout.
• Social-media posts and account details.
• Messaging-group histories.
• Usernames and administrator information.
• Emails and promotional documents.
• Audio or video files.
• Trading instructions and timestamps.
• Broker statements and transaction records.
• Company announcements and regulatory disclosures.
• Records showing when false claims first appeared.
• A chronology of price movement and promotional activity.

Websites, accounts and messages can be altered or removed rapidly.

Where possible, preserve the complete content rather than isolated screenshots. Record the URL, time, account name and surrounding context.

What a financial enquiry may examine

A review of suspected market manipulation may consider the relationship between the promotional campaign, the people controlling it and the resulting transactions.

Relevant work may include:

• Identifying operators of websites or online accounts.
• Examining company and domain records.
• Comparing language and content across apparently separate sources.
• Reviewing known aliases and associated businesses.
• Mapping relationships between promoters and investors.
• Analysing the timing of publications and trades.
• Examining payments made to promoters or intermediaries.
• Tracing assets or proceeds where legally appropriate.
• Preparing an evidence chronology for legal advisers.
• Assessing cross-border connections.

Conflict International’s Fraud and Financial Investigation Services support complex matters involving deceptive financial activity, payment networks, corporate connections and the preparation of structured evidence.

Where losses, proceeds or related assets may have moved through companies, accounts or overseas structures, Asset Tracing Services may help establish relevant ownership and financial connections.

Neither process can guarantee that every participant will be identified or that losses will be recovered. Information held by brokers, banks, platforms and other institutions may require regulatory powers, police involvement or formal legal disclosure.

Why cross-border activity complicates the response

The NCA says some organised trading groups operating in this area are based outside the UK. It also describes the UK as a hub for global insider-dealing activity because of the financial products and access to international markets available through the UK system.

A suspected manipulation campaign may therefore involve:

• A UK-listed security.
• Promoters based overseas.
• Websites registered in another jurisdiction.
• Social-media platforms headquartered elsewhere.
• Trading accounts in several countries.
• Payments routed through third parties.
• Different legal and regulatory regimes.

This can make it difficult for any one victim or organisation to see the complete picture.

A clear chronology connecting the promotional material, relevant identities, trading activity and financial loss can help advisers and authorities assess the available options.

What the NCA assessment means for businesses and investors

The National Strategic Assessment does not suggest that every online investment discussion or financial article is unreliable.

It does indicate that organised groups are increasingly using disinformation, bogus news websites and artificial intelligence to influence trading and undermine confidence in financial markets.

The practical response is not to reject every online source.

It is to apply independent verification before relying on information that could affect a financial decision.

Investors should establish who published the claim, what evidence supports it and whether it appears in official company or regulatory disclosures.

Companies should monitor for impersonation and fabricated announcements that may affect their shareholders, reputation or market activity.

Professional advisers should preserve the original material and financial records before accounts or websites disappear.

If you are dealing with suspected investment manipulation, fabricated financial reporting or losses linked to an organised promotion campaign, contact Conflict International in confidence to discuss the available evidence and proportionate next steps.