If you have ever scrolled through social media and found yourself mesmerised by a young Australian in a designer suit, sipping lattes in a luxury car, and promising to unlock the secrets to financial freedom—you are not alone.
But before you start dreaming of your own luxury lifestyle, the Australian Investments and Securities Commission (ASIC) has a stern warning: not all that glitters on social media is gold, especially when it comes to your hard-earned cash.
The rise (and risk) of the ‘finfluencer’
In recent years, so-called ‘finfluencers’—social media personalities who dish out financial tips and investment advice—have exploded in popularity.
With millions of followers hanging on their every word, these influencers often present themselves as self-made experts, offering everything from stock market ‘hacks’ to tax minimisation tricks.
But ASIC has just cracked down on 18 of these high-profile Australian finfluencers, warning that their advice could be not just misleading, but downright dangerous.
ASIC Commissioner Alan Kirkland did not mince words: ‘It’s important that consumers separate fun from fact when it comes to finfluencer content. Popularity does not equal credibility.’
In other words, just because someone has a slick social media feed and a legion of fans does not mean they know what they are talking about—or that they are legally allowed to give you advice.
What’s the problem?
The main issue is that many of these finfluencers are not qualified or licensed to provide financial advice.
Under Australian law, only those with an Australian Financial Services (AFS) licence can legally offer financial or investment advice.
Yet, some influencers are promoting high-risk, complex investment products, or encouraging followers to join exclusive online groups where even riskier—and less regulated—advice is shared.
ASIC’s investigation is part of a global crackdown, with authorities in the UK, UAE, Italy, Hong Kong, and Canada all taking action against unlicensed financial content creators.
The coordinated effort has already led to arrests, website takedowns, and warning notices, as well as new educational programs to help consumers spot dodgy advice.
The lure of the lavish lifestyle
One of the most effective tactics used by finfluencers is the promise of instant wealth.
They post photos of themselves living the high life—think luxury cars, designer clothes, and exotic holidays—all supposedly thanks to their investment strategies.
It is a powerful lure, especially for those looking to boost their income or make up for lost superannuation after a tough few years.
But as ASIC points out, these images are often more fantasy than fact.
The real risk is that followers, inspired by these glamorous posts, may invest in high-risk products or schemes that are not suitable for their needs—or worse, fall victim to outright scams.
Closed groups: The hidden danger
While much of the finfluencer content is public, ASIC is particularly concerned about private online communities.
These closed groups, often accessible only by invitation or payment, are where the most questionable advice is shared.
Because they are harder to monitor, it is easier for unlicensed finfluencers to make bold—and potentially harmful—claims without oversight.
Australian law: No licence, no advice
It is worth repeating: in Australia, if you are not licensed, you are not allowed to give financial or investment advice.
This is not just a technicality—it is a legal requirement designed to protect consumers from bad advice and financial harm.
ASIC’s latest crackdown is the first major action since 2022, when the regulator issued strict guidelines for content creators.
Since then, many finfluencers have either changed their tune or become licensed representatives, but the problem has not gone away.
Tax time traps: Don’t believe everything you hear
It is not just investment advice that is under scrutiny.
Certified Practising Accountant (CPA) Australia recently warned about misleading tax tips circulating on social media.
In one case, a finfluencer claimed you could claim your pet as a tax deduction by calling it a ‘guard dog’ if you work from home.
As CPA Australia’s Jenny Wong put it, ‘Some finfluencers exaggerate the potential for certain claims to garner attention and likes. This is not serious advice. It should be ignored.’
The bottom line? When it comes to your finances, there is no substitute for professional, licensed advice.
‘Having a large following on social media does not automatically make someone an expert on a particular subject, especially one as complex as the Australian tax system,’ Ms Wong said.
How to protect yourself
So, how can you stay safe in the wild world of online financial advice? Here are a few tips:
- Check credentials: Before acting on any financial advice, make sure the person giving it is licensed or authorised. You can search the ASIC register online.
- Be sceptical of ‘get rich quick’ schemes: If it sounds too good to be true, it probably is.
- Do not be swayed by lifestyle images: Flashy cars and holidays do not guarantee financial expertise.
- Avoid closed groups promising secret tips: These are often unregulated and high-risk.
- Consult a professional: For tax, superannuation, or investment advice, speak to a licensed financial adviser or accountant.
Your turn: Have you been burned by a finfluencer?
As we navigate the evolving landscape of financial advice on social media, it’s important to stay informed and cautious about the sources we trust.
With regulators stepping up to protect consumers, the conversation around finfluencers highlights the balance between accessible guidance and the need for qualified expertise.
What are your thoughts on the role of social media influencers in shaping financial decisions? Have you encountered advice online that you found helpful or concerning?
We invite you to share your experiences and perspectives in the comments below to help foster a well-rounded discussion.
Also read: Are you ready for a ‘deluge’ of tax scams? ATO warns ahead of June 30
