Australia Issues Warning Over AI-Powered Finfluencers and Crypto Scams

The Australian Securities and Investments Commission (ASIC) has issued a warning about the growing risks of AI-powered 'finfluencers' and crypto scams among younger investors.

Gen Z Australians are increasingly turning to online sources for financial information, with 56% of Gen Z respondents in a recent survey saying they turn to social media for guidance on managing their finances. However, ASIC notes that these tools can be inaccurate or biased, and scammers are using AI claims and fake trading bots to market fraudulent investments.

The regulator has issued warning notices to 18 finfluencers suspected of promoting high-risk products and providing unlicensed advice. ASIC also warns consumers against relying on AI for investment decisions and advises them to verify whether a person is licensed before acting on online financial content.