Social media has transformed how we access information, including financial guidance. With the Australian Securities and Investments Commission (ASIC) recently taking regulatory action to warn “finfluencers” against acting illegally, it’s worth understanding how to evaluate the financial content you encounter online, so you can protect yourself against acting on unlicensed advice that could risk your money.
ASIC has had concerns about unlawful financial promotion on social media platforms for several years, and in April 2026 it issued warning notices to four social media influencers suspected of providing unlicensed financial advice, including making claims about guaranteed returns. This ASIC action is part of a coordinated global effort involving 17 regulators to address misleading online financial content.
The regulatory focus reflects growing reliance on social media for financial information, particularly among younger Australians. Research shows 63% of Gen Z Australians use social media for financial information, with over half expressing trust in content from financial influencers.
Understanding the difference between general information and personal advice helps you evaluate online content appropriately. Licensed financial advisers can provide recommendations tailored to your specific circumstances, goals and risk tolerance. They’re required to act in your best interests and maintain professional standards.
Social media content creators can share factual information about financial products and general educational content. However, they can’t legally provide specific recommendations about what you should buy, sell or invest in unless they hold appropriate licences or operate under the supervision of a licensed entity.
Certain characteristics of online financial content should prompt you to stop and evaluate carefully, including:
promises of guaranteed returns for your money, or risk-free investments;
pressure to act quickly on investment opportunities;
claims about easy money or get-rich-quick schemes;
specific product recommendations given without understanding your circumstances; and
content that downplays or ignores investment risks.
Remember that legitimate investments carry risk, and higher potential returns typically involve higher risk levels. Anyone promising otherwise may be providing misleading information.
Social media algorithms prioritise content engagement over accuracy. Content designed to generate views, comments and active sharing may not represent balanced or comprehensive financial guidance. Sensational claims often perform better algorithmically than measured, educational content.
This means the financial content you see may be skewed toward attention-grabbing rather than genuinely helpful information. Consider seeking out diverse perspectives and verified sources when making financial decisions.
Financial strategies cannot be one-size-fits-all. Your age, income, family situation, risk tolerance, existing assets and future goals all influence what approaches might work for your circumstances. What works brilliantly for one person could be entirely inappropriate for another.
Generic money-related advice found online simply can’t account for these individual factors. Even well-intentioned general guidance may not suit your specific situation.
Before acting on financial guidance from any source, verify the person’s qualifications and licensing status. ASIC’s professional registers allow you to check whether someone’s licensed to provide financial advice or operate as an authorised representative.
Licensed professionals are subject to ongoing education requirements, professional standards and regulatory oversight. They have professional indemnity insurance and must operate within established complaint resolution frameworks.
Social media can be a valuable starting point for financial education and awareness, but it works best as part of a broader approach to financial decision-making that includes professional guidance tailored to your circumstances.