Australia’s corporate regulator has sounded the alarm over a surge in misleading financial content online, issuing warning notices to 18 social media personalities suspected of breaching financial services laws.
The move is part of a coordinated global crackdown on so-called “finfluencers”—unlicensed influencers promoting risky investments or financial advice without proper qualifications.
The Australian Securities and Investments Commission (ASIC) joined regulators from eight other countries, including the UK, Italy, UAE, Hong Kong, and Canada, in a joint week-long enforcement push to rein in unlawful online financial promotion.
Who Are They, Why Are They Under Scrutiny?
Finfluencers—a term combining “financial” and “influencer”—are individuals who share financial tips, investment advice, or tax hacks online, particularly on platforms like TikTok, Instagram, and YouTube.While some are genuinely qualified professionals, many operate outside regulatory frameworks, potentially putting followers at risk of financial harm.
ASIC Commissioner Alan Kirkland said the global collaboration sent a strong message to social media influencers operating without a license.
“Regulators across the world have joined forces to disrupt unlawful finfluencer activity,” he said.
“It’s important that consumers separate fun from fact when it comes to finfluencer content. Popularity doesn’t equal credibility. Check their credentials and whether they’re licensed or authorised, before checking your money out.”
ASIC noted a decrease in unauthorised promotional content since it published guidance in 2022 on online discussions of financial products and services.
The regulator also observed increased compliance among finfluencers and financial services licensees.
Tax Experts Call Out Finfluencer Misinformation
The campaign comes amid growing concerns from tax experts over the volume of misleading advice shared on social media.In May, CPA Australia also warned against following unreliable tax tips from influencers, particularly as tax time approaches.
Jenny Wong, CPA Australia’s tax lead, expressed concern that Australians are mistaking social media content for professional advice.
“In many cases, the advice from these accounts is simply wrong,” she said. “In other cases, the claims have an ounce of truth but would apply only to a very small group of workers.”
She gave examples of finfluencers encouraging dubious tax deductions, such as claiming designer handbags or pet expenses under work-related deductions.
“Some finfluencers exaggerate the potential for certain claims to garner attention and likes. This is not serious advice. It should be ignored,” Wong said.
She added that just having a large following on TikTok doesn’t automatically make someone an expert on a particular subject.
Wong warned that following such advice could result in penalties, audits or prosecution.
“Making false tax claims could result in hefty fines, a criminal record or even imprisonment,” she said.
She also cautioned Australians against over-relying on artificial intelligence (AI) tools for financial or tax advice.
“AI tools are only as good as the information you put into them. It may be tempting to ask AI bots for tips, but they are simply not able to compute the nuances of the Australian tax system or your specific circumstances,” Wong said.
Wong urged taxpayers to take a careful and informed approach this tax season.
“Be thorough: take time to gather your receipts, logbooks and other evidence to support your work-related expense claims,” she said.
She added that taxpayers should check which expenses they’re eligible to claim, using the ATO’s detailed industry and occupation guides.
