ASIC has Warned Against Listening to Finfluencers and AI Financial advice

Australia’s financial regulator, ASIC, has cautioned young investors about the risks of using social media influencers (“finfluencers”) and artificial intelligence (AI) chatbots for financial guidance. A recent study revealed that 23% of Gen Z Australians own cryptocurrency, with 29% of those making trading decisions based on social media and influencer content. ASIC found that Gen Z generally trusts these sources, with 64% trusting AI and 52% trusting finfluencers, despite recognizing that these sources are often unreliable. The regulator has previously taken action against influencers promoting high-risk financial products and is now closely monitoring AI-driven financial advice, emphasizing that licensing is required for personalized recommendations. ASIC also expressed concern about scams and unqualified advice regarding superannuation funds, highlighting the potential for significant financial harm.

(Source：Cointelegraph)