Australia’s financial regulator has warned young investors about the risks of relying on social media and artificial intelligence for financial advice.
According to a study by the Australian Securities and Investments Commission, about 23% of young people in Australia now own cryptocurrency.
The study surveyed more than 1,100 people aged between 18 and 28. It found that many young investors depend on social media for financial information. Around 63% said they use social media for investment advice, while about 30% specifically use YouTube.
Regulators are worried that these sources may spread incorrect information or scams. Many financial influencers, also called “finfluencers,” promote risky investments without proper licenses.
ASIC has already taken action against several influencers suspected of illegally promoting financial products.
Authorities say some online promotions create unrealistic expectations about profits while hiding the risks of investing.
The regulator also raised concerns about AI tools that provide financial information. While AI can offer general knowledge, tools that give personal investment advice may need official licenses under Australian law.
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