Australian Securities and Investments Commission Urges Gen Z to ‘Sense-Check’ Financial Advice on Social Media

The Australian Securities and Investments Commission (ASIC) has urged young Australians to verify financial information they encounter online, warning that social media and AI tools are increasingly shaping financial decisions among Gen Z.

New research from Moneysmart shows that 63% of Australians aged 18–28 use social media for financial information, while 30% rely on YouTube and 18% turn to AI platforms. More than half of respondents said they trust financial information shared on social media (56%) and by “finfluencers” (52%), while 64% reported trusting AI platforms.

Social Media’s Growing Influence on Financial Decisions

Despite Gen Z’s strong appetite for credible financial guidance, the study suggests many struggle to find reliable information online. Content seen on social platforms is often shaped by algorithms designed to drive engagement rather than accuracy.

ASIC warns that relying heavily on unverified sources can increase financial risk, particularly when markets and online investment trends move quickly. While 60% of respondents also said they consult professional or formal sources, social media remains a dominant influence on investment decisions.

Crypto Speculation Driven by Online Trends

The research found that nearly one in four Gen Z respondents (23%) currently own cryptocurrency. Among these investors, 66% said they take a short-term or speculative approach to at least some of their crypto investments.

In addition, 24% reported trying to identify the next popular token by purchasing newly launched coins, while 15% said they invest mainly for speculative purposes. The influence of social media marketing is also significant: 72% of respondents said they had seen crypto investment advertising online in the past year, and 41% reported being contacted by someone offering assistance with crypto investing.

ASIC Commissioner Alan Kirkland warned that speculative trading driven by online trends can expose young investors to substantial risks, particularly in volatile markets such as cryptocurrencies.

ASIC Encourages Balanced and Verified Information

ASIC is encouraging young Australians to pause and “sense-check” financial claims before acting on them, particularly when the information originates from influencers, promotional content, or AI-generated sources.

The regulator recommends comparing online advice with trusted, evidence-based information. Free and independent financial guidance is available through the Moneysmart website, which provides tools and resources on budgeting, investing, superannuation, and scam awareness to help Australians make informed financial decisions.