Australia Cracks Down on “Finfluencers” Spreading Money Advice

The rise of social media has transformed how Australians consume financial advice, but not all of it is trustworthy. A growing number of unqualified influencers, often referred to as “finfluencers,” are drawing scrutiny from regulators for disseminating questionable financial advice on wealth building. From claims about “money manifestation” to risky get-rich-quick schemes, these trends have sparked concern that they could mislead vulnerable audiences and jeopardize long-term financial stability.

The Australian Securities and Investments Commission (ASIC) has launched a crackdown on these practices, making it clear that providing financial advice is a regulated activity that requires proper licensing. Officials warn that influencers who cross the line from sharing personal experiences to offering investment or money-management recommendations without qualifications could face hefty penalties, including fines or even jail time.

Social media platforms like TikTok, Instagram, and YouTube have become hotbeds for financial content, especially among younger Australians eager to learn about saving, investing, and wealth creation. The problem, regulators argue, is that many self-styled finfluencers lack professional expertise. Instead of providing balanced or factual information, they often promote unverified shortcuts or push products in exchange for undisclosed sponsorship deals.

ASIC’s focus reflects a broader global challenge: how to protect consumers in the digital age without stifling online discussions about money. According to the regulator, the biggest risk is that young people may act on poor advice, making decisions that could harm their long-term financial security—such as taking on high-risk investments, mismanaging debt, or relying on unrealistic promises of overnight wealth.

The move also comes as Australians face mounting economic pressures. With cost-of-living challenges, rising rents, and inflation eroding household budgets, many people turn to social media for guidance on managing their finances. While there are credible educators online, distinguishing them from opportunistic or misleading voices can be difficult. This is why ASIC emphasizes the importance of financial literacy and encourages Australians to seek advice from licensed professionals or use verified government resources.

Consumer advocacy groups have welcomed the crackdown, noting that financial misinformation can be just as harmful as scams. They argue that finfluencers often exploit the trust of their followers, using relatability and aspirational lifestyles to promote risky ideas. Some influencers have already been investigated for recommending specific stocks or cryptocurrency investments without disclosing conflicts of interest.

For those seeking to build financial confidence, experts recommend consulting reputable sources, such as ASIC’s MoneySmart platform, certified financial planners, or established educational institutions. Social media, they say, can spark curiosity but should not be the sole source of financial decision-making.

The regulator’s warning sends a strong message: in the world of finance, good intentions are not enough. Misinformation—whether it comes in the form of catchy affirmations or complex investment pitches—can have real and lasting consequences. By tightening oversight, ASIC aims to protect Australians from misleading content while promoting more responsible financial education.

As ASIC’s enforcement ramps up, finfluencers will need to tread carefully, and everyday Australians are reminded to approach online financial advice with a critical eye. Ultimately, when it comes to finances, reliable guidance and sound strategies will always prevail over viral trends.