Regulator urges 'sense check' as unverified finance content drives riskier investing
Australia’s corporate regulator has warned young adults to verify financial claims encountered online, after research found social media and artificial intelligence (AI) tools are increasingly influencing decisions about money.
The Australian Securities and Investments Commission (ASIC) said findings from a Moneysmart study of Australians aged 18 to 28 showed a gap between demand for reliable guidance and the information many people actually consume. The agency said much of what reaches users is prioritised for engagement rather than accuracy, which can raise the chance of poor outcomes.
The study found 63% of respondents used social media to get financial information or guidance. YouTube was used by 30%, while 18% reported using AI platforms.
Levels of confidence in these sources were also high. More than half said they somewhat or completely trusted financial information on social media (56%) and from financial influencers (52%). Almost two thirds (64%) said they trusted AI platforms.
ASIC noted that 60% of respondents also used formal or professional channels, and 50% turned to family and friends. Even so, the regulator said social media remained a leading influence despite widespread awareness of its limits.
ASIC said advice drawn from a narrow set of sources — particularly content that is unverified or promotional — may amplify risk in fast-moving markets where messages are rarely tailored to an individual’s circumstances.
Cryptocurrency featured prominently in the research. Almost one in four respondents (23%) said they owned crypto. Among those investors, 66% took a short-term or speculative approach to at least some holdings, and 29% said they traded based on social media or influencer content or recommendations.
The study also found that 24% of Gen Z crypto investors tried to “pick a winner” by purchasing newly launched coins, while 15% said they invested for a “bit of a punt”. Separately, 72% of respondents said they had seen social media advertising encouraging crypto investment over the past 12 months, and 41% reported being contacted by someone offering to help them invest in crypto.
ASIC said cryptocurrency differs fundamentally from other investments and may create unrealistic assumptions about returns, volatility and long-term performance.
The regulator urged younger Australians who rely on influencer content and online tools to cross-check what they see against evidence-based sources before acting, particularly where the platform or the person posting may benefit financially.
“Social media is part of everyday life, but when drawing upon it for important decisions it’s important to make sure it’s balanced by credible sources of information,” said ASIC commissioner Alan Kirkland (pictured right). “While Gen Z value credibility when seeking financial advice, what they see on social media is usually shaped by algorithms that are designed to drive clicks and views rather than providing accurate information.
“Anyone considering making a financial decision based on information they have seen online should take a moment to sense check and compare it with trusted, evidence-based sources. Financial information on social media and accessed through AI tools can be incomplete, promotional or misleading. Relying on it alone increases the risk of making a decision you may later regret.
“Short-term or speculative trading based on what’s popular online carries real risks, particularly in volatile markets like crypto. Luckily there is a place you can go for guidance you can trust. Moneysmart provides free, independent and reliable information that can help Australians of all ages make informed choices and avoid unnecessary financial risk.”
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