Sydney, April 2026 – Financial regulators worldwide are sounding the alarm as millions of young investors turn to social media “finfluencers” for money tips, with Australian authorities issuing formal warnings and launching a major review of unlicensed advice.
Australia’s corporate watchdog, the Australian Securities and Investments Commission (ASIC), has issued warning notices to four prominent finfluencers suspected of providing unlicensed financial advice and engaging in misleading or deceptive conduct. The regulator is also scrutinising 15 additional influencers operating under Australian Financial Services (AFS) licences, examining whether licensees are properly overseeing their content.
ASIC Commissioner Alan Kirkland highlighted the growing risks, noting that social media algorithms favour engaging and often sensational content over accurate information. “We’re particularly concerned about claims of guaranteed returns, ‘easy money’ schemes, urgency tactics, or lifestyle displays that suggest quick wealth,” he said.
Global Blitz Targets Illegal Financial Promotions
The Australian action forms part of an international “Week of Action” coordinated by 17 regulators, led by the UK’s Financial Conduct Authority (FCA).
The FCA reported taking down 120 accounts and flagging 1,267 illegal financial advertisements that reached millions of viewers. Similar enforcement efforts are underway across multiple jurisdictions, reflecting a coordinated push against unregulated financial advice on platforms like TikTok, Instagram, and YouTube.
Young Australians Heavily Influenced by Social Media
New research from ASIC’s Moneysmart initiative reveals the scale of the issue. Around 63% of Gen Z Australians aged 18–28 rely on social media for financial information and guidance. The most popular sources include YouTube (30%), Instagram (19%), AI tools (18%), TikTok (17%), and influencers (10%). More than half of this group report trusting the content they see to some or a great extent.
While finfluencers can make finance seem more accessible and less intimidating, experts warn that much of the advice lacks proper credentials, personalised consideration, or regulatory oversight. This leaves young investors vulnerable to poor decisions, especially in high-risk areas such as cryptocurrency and speculative investments.
Red Flags and Consumer Advice
Regulators urge the public to exercise caution when consuming financial content online. Key warning signs include:
- Promises of guaranteed returns (no legitimate investment can guarantee profits)
- Pressure to act quickly or “before it’s too late”
- Content focused on lavish lifestyles rather than transparent risk disclosure
- Advice that appears tailored without the creator holding proper licensing
Consumers are advised to:
- Verify whether a finfluencer holds a valid financial services licence or operates as an authorised representative
- Cross-check any advice with official sources or qualified professionals
- Remember that social media content is rarely a substitute for regulated, personalised financial advice
- Build financial literacy to better identify misleading claims
This regulatory blitz underscores the tension between the democratisation of financial information and the need to protect consumers from potentially harmful guidance. As social media continues to shape how younger generations learn about money, authorities are stepping up efforts to ensure that accessible advice does not come at the cost of financial safety.
Investors are encouraged to treat online tips with healthy scepticism and seek professional guidance for significant financial decisions.
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