March 16, 2026 — Australia’s financial regulator has issued a stark warning to young investors about relying on social media influencers and artificial intelligence for financial guidance. The alert follows a study revealing nearly one-quarter of Generation Z Australians now own cryptocurrency, with many making investment decisions based on unverified online sources.
High Trust in Unreliable Sources
The Australian Securities and Investments Commission (ASIC) published survey results showing 63% of Gen Z Australians use social media for financial information. Furthermore, 18% consult AI platforms, while 30% specifically turn to YouTube for guidance.
ASIC’s Moneysmart study found that 56% of respondents “somewhat or completely trust” financial information found on social media. Trust in dedicated financial influencers, or “finfluencers,” stood at 52%. Notably, AI platforms garnered the highest trust level at 64% among the demographic.
“While Gen Z has a strong appetite for reputable and trustworthy financial content, many struggle to find it,” ASIC stated. “Their search often leads them to sources designed for engagement rather than accuracy.”
Crypto Ownership and Influencer-Driven Trading
The survey, conducted between late November and early December 2025 with 1,127 respondents aged 18-28, found 23% of Australian Gen Z now holds cryptocurrency. Of these crypto owners, 29% reported trading based on social media and influencer content.
ASIC warned that influencers may “set unrealistic expectations” about investment returns, market volatility, and the complexities of long-term investing. The regulator highlighted particular concern about marketing that drives investments, noting some promotions are outright scams.
Speaking with the Australian Financial Review, ASIC commissioner Alan Kirkland said the regulator monitors marketing activity encouraging crypto investment. “Our work has shown some that is actually encouraging people to invest in scams,” Kirkland said.
He emphasized the unique risks of crypto volatility. “You don’t see that same volatility in other types of investments,” Kirkland added. “Often that volatility is driven by forces that it’s impossible for an individual sitting in Australia to understand.”
Regulatory Action and Licensing Requirements
ASIC has previously taken action against influencers promoting financial products. In June 2025, the regulator issued warning notices to 18 influencers suspected of unlawfully promoting high-risk financial products and providing unlicensed financial advice.
Kirkland also identified Australia’s superannuation system as a target for unqualified advice. The $4.5 trillion retirement fund market represents many Australians’ most valuable asset. “Disreputable people often target it,” Kirkland noted, warning that social media ads sometimes encourage risky superannuation switches.
AI Financial Advice Under Scrutiny
The regulator is also examining AI tools that provide financial information. Kirkland told the AFR that ASIC is “watching very closely” what types of financial guidance come from AI platforms.
“It is clear under Australian law that if any entity is giving financial advice, they need to be licensed,” Kirkland stated. “If an AI tool… is actually making recommendations about individual financial products, taking into account individual circumstances, that would be personal advice, so it needs to be licensed.”
This scrutiny comes as several cryptocurrency exchanges have integrated AI bots offering personalized trading guidance. Platforms like MEXC, KuCoin, and Bitget provide AI “trading partners” to users.
“One of the most surprising findings from this research was the degree of trust young people are placing in AI platforms,” Kirkland said. He cautioned that response quality depends heavily on question specificity and the sources AI systems access.
Broader Regulatory Priorities
ASIC’s concerns about finfluencers and AI form part of broader 2026 priorities. In late January 2026, the regulator warned that crypto or AI firms exploiting licensing gray areas around payments would face increased scrutiny.
The commission maintains resources through its Moneysmart website to help investors identify reliable information. ASIC encourages investors to verify the licensing status of anyone providing financial advice and to be skeptical of promises of guaranteed high returns.
As digital platforms reshape how financial information is consumed, regulators globally are grappling with similar challenges. The Australian findings highlight a generational shift in investment behavior that demands new approaches to investor protection and financial literacy.
This article was produced with AI assistance and reviewed by our editorial team for accuracy and quality.
