Global regulators have joined forces to clamp down on unlawful finfluencers as young borrowers lean harder on social media and AI for guidance.
Australia’s corporate watchdog has stepped up a co-ordinated campaign against unlawful finfluencers, as new research and broker feedback show younger borrowers increasingly leaning on social media and artificial intelligence.
The Australian Securities and Investments Commission (ASIC) has confirmed it is working with 16 overseas regulators in a co-ordinated enforcement sweep targeting online financial promotion, in an effort to shut down misconduct through social media feeds.
As part of the push, the regulator has issued warning notices to four finfluencers suspected of giving financial product advice without a licence or using misleading tactics.
The watchdog has also launched a review of several Australian financial services licensees and how they monitor 15 finfluencers who operate under their licences.
ASIC’s surveillance has focused on content aimed at Australian investors who promote leveraged derivatives, share trading ideas, and exchange‑traded funds.
Commissioner Alan Kirkland said the decision to join forces with regulators across Asia, Europe, North America, South America, and the Middle East reflected how quickly online promotion could reach investors in multiple markets.
“Unlawful finfluencer activity doesn’t respect borders, which is why regulators are taking strong action together for a second year in a row,” he said.
Kirkland also pointed to the way platform algorithms formed what users viewed.
“What people see online is shaped by algorithms designed to drive clicks and engagement, rather than promoting accurate information,” Kirkland outlined.
He cautioned users against chasing grandiose promises and added that “if someone on social media is promising easy money or guaranteed returns, there is a real risk they’re breaking the law.”
Gen Z habits driving regulator concern
The tougher stance is underpinned by ASIC’s latest Moneysmart research into Gen Z, which found 63 per cent of Australians aged 18–28 use social media for financial information, with 30 per cent turning to YouTube and 18 per cent using AI platforms.
Trust in those sources is high, with 56 per cent saying they somewhat or completely trusted financial content on social media, while 64 per cent reported trusting AI platforms.
Kirkland urged young Australians to pause before acting on posts, videos, or AI outputs and to compare what they viewed with material from trusted sources.
Brokers increasingly dealing with social media-primed clients
Brokers said those trends were increasingly playing out in their day‑to‑day client meetings, with many borrowers arriving after weeks of scrolling social media and confiding in AI.
George Samios, mortgage broker and founder of Brisbane‑based Madd Loans, said the volume of online material meant conversations increasingly began with clients wanting to validate what they had seen on their phones.
“If anything, it just means the role of the broker becomes even more important. It’s about helping them cut through everything they’ve seen online, sense check it and turn it into a clear plan that actually works for them,” he said.
For Nicholas Hakim, founder and principal of Skyline Brokers, social platforms have become a default research tool for many younger clients, shaping both expectations and queries.
“There’s also been a noticeable shift in how this group gathers information and makes decisions. Many rely heavily on content from social media and AI,” Hakim said.
“A lot of my clients send through videos or posts from brokers offering general advice, or examples of buyers they believe are in similar positions.”
Hakim said those examples could be useful starting points – but often omitted underlying income, expenses, and risk settings.
“Social media can sometimes paint an overly optimistic picture, without showing the full financial position behind the outcome,” he said.
“That’s where professional advice becomes critical, ensuring each client receives guidance that is specific, realistic, and aligned with their circumstances.”
Trelos Finance director Nick Lissikatos said younger clients were arriving convinced they already understood lending products and strategies, having consumed hours of social media content.
“AI and socials absolutely dominate this generation, before they speak to a professional, they’ve already heard about it from social media, quizzed the AI and received all the information they need, so by the time they get to the professional, it’s usually just confirming the things they already know,” he said.
Lissikatos noted that this advanced research could shorten some discussions but also ran the risk of embedding misunderstandings that then needed to be carefully unwound.
“Sometimes we see some misinformation here, but that’s where it’s our role as professionals to educate and make sure they understand both sides of the equation,” Lissikatos said.
[Related: MFAA calls on ASIC for clearer broker guidelines in regulatory guide]
Want to see more stories from trusted news sources?
Make The Adviser a preferred news source on Google.
Click here to add The Adviser as a preferred news source.
