ASIC has warned consumers not to confuse social media popularity with financial credibility after sending notices to 18 finfluencers, and the regulator has separately cautioned that AI-powered scam content is making investment pitches harder to detect. Together, those messages sharpen the case for skepticism around online market calls, especially in crypto and other high-risk segments.
The Australian Securities and Investments Commission said on June 12, 2025 that it had issued warning notices to 18 social media finfluencers suspected of unlawfully promoting high-risk financial products and providing unlicensed financial advice to Australians. ASIC said consumers should check whether people giving financial content are licensed or authorised before acting on what they see online.
That enforcement action does not amount to a blanket ASIC statement against all AI financial advice. But it sits alongside a separate Moneysmart warning published in August 2025, where ASIC said scammers are using AI-generated fake news articles and trading bot products to lure investors with unrealistic return claims.
ASIC’s warning is clear on finfluencers, and more cautious on AI
A finfluencer is a creator who shares financial opinions, product endorsements, or market commentary on social platforms. ASIC’s concern is that some of that content can move beyond general education and into regulated advice, especially when it promotes specific products or encourages followers to act.
ASIC Commissioner Alan Kirkland summed up the regulator’s message in a short line: “Popularity doesn’t equal credibility.” The point matters because reach, presentation quality, and audience size can make content look trustworthy even when the person behind it is not licensed to provide advice.
The AI angle needs more precision than the headline alone suggests. The evidence provided by ASIC supports a warning about AI being used to scale investment scams, not a direct statement that consumers should never listen to AI tools in any financial context. That distinction matters because regulators typically focus on licensing, disclosures, and misleading conduct rather than on the technology itself.
Key Takeaways
- ASIC sent warning notices to 18 finfluencers over suspected unlawful promotion and unlicensed advice.
- ASIC separately warned that scammers are using AI-generated content, including fake articles and trading bot pitches.
- For investors, the practical test is still the same: verify licences, disclosures, and source documents before acting.
Why online financial content can mislead retail investors
ASIC said 41% of young Australians seek financial information or advice from online sources such as social media, including finfluencers. That creates a large audience for content that may sound authoritative but does not come with the safeguards attached to licensed advice.
The line between education and advice is where much of the risk sits. Explaining how a blockchain works or how exchange-traded products are structured is educational content. Telling followers to buy a specific token, subscribe to a high-risk platform, or copy a trading strategy can move into regulated territory if it amounts to personal or product-specific guidance.
For crypto readers, that risk is sharper because volatile markets reward speed and confidence in the short term. A polished thread, short-form video, or AI-generated market summary can compress complex risk into a simple bullish or bearish call, even when the output is outdated, incomplete, or based on hallucinated information.
ASIC’s August scam warning showed how that problem is evolving. The regulator said scammers are using fake celebrity finance endorsements, fake news articles, and AI trading bot products that promise returns they cannot realistically deliver. The technology can make bad information look more tailored, but it does not make it regulated or reliable.
The financial damage from online investment deception is already substantial. ASIC cited National Anti-Scam Centre data showing Australians lost $945 million to investment scams in 2024, a reminder that misleading content is not just a compliance issue but a consumer-loss issue.
What investors can check before acting on finfluencer or AI-generated claims
ASIC’s first recommendation is practical rather than technical: check credentials. If someone is presenting financial guidance as more than general commentary, investors can verify whether that person or business holds an Australian financial services licence or is authorised to represent one.
The second step is to verify the underlying claim, not just the presentation. If a post cites a regulator, a listed company filing, a token announcement, or a market statistic, the primary document should exist and should say what the post claims it says. If it cannot be verified quickly, the content should be treated as unproven.
Urgency is another red flag. Claims built around guaranteed returns, limited-time opportunities, or pressure to act immediately are common in both influencer promotions and AI-assisted scams. That is particularly relevant in crypto markets, where fear of missing out can override basic due diligence.
The balanced reading of ASIC’s recent messaging is that not every online opinion is unlawful, and not every AI tool is inherently deceptive. The bear case is that unlicensed or fabricated guidance can spread faster than consumers can verify it. The bull case is that investors who treat online content as a starting point for research, rather than as decision-making authority, can reduce that risk materially.
ASIC’s June 2025 action drew a bright line around unlicensed finfluencer conduct, while its later scam alert showed how AI is becoming part of the same investor-protection problem. For readers navigating crypto and other speculative assets, the regulator’s message is less about rejecting technology outright and more about refusing to outsource judgment to hype, polish, or automation.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
