Australia Cautions Gen Z on AI and Finfluencers Amid Rising Crypto Use

TLDR

• ASIC survey finds 23% of Australians aged 18–28 own cryptocurrency.
• 63% of Gen Z use social media and 18% use AI for financial information.
• 66% of Gen Z crypto holders report using short term or speculative strategies.
• 29% of Gen Z crypto investors trade based on influencer or social media advice. 

Australia’s financial regulator has warned young investors to verify financial information found online. The warning follows new research showing that social media influencers and artificial intelligence tools shape many financial decisions among Gen Z. The Australian Securities and Investments Commission (ASIC) released the findings from a survey conducted by its Moneysmart program. 

The study involved 1,127 Australians aged 18 to 28 between November and December last year. The results show that 23% of Gen Z respondents own cryptocurrency. Among those investors, many take short-term trading approaches and rely on social media content when making decisions. ASIC said the trend increases risk because online platforms often promote engagement and views rather than accurate financial guidance.

Social Media and AI Emerge as Major Sources of Financial Advice

The study found that 63% of Gen Z respondents use social media for financial information and guidance. Around 30% said they use YouTube, while 18% reported using artificial intelligence platforms. Trust levels in these sources remain high among many respondents. 56% said they somewhat or completely trust financial information on social media. 

Around 52% reported similar trust in financial influencers, often called “finfluencers.” AI tools recorded the highest trust level in the survey. About 64% of respondents said they trust financial information generated by AI platforms.

At the same time, many young Australians still consult traditional sources. Another 60% said they use professional or formal financial sources. Half also said they seek guidance from family and friends. ASIC said the combination shows that social media remains a dominant influence, even when users recognize its limits.

Crypto Trading Trends Among Gen Z Investors

The survey showed that cryptocurrency ownership among Gen Z has grown in Australia. About 23% of respondents said they hold digital assets. Among those investors, 66% said they take a short-term or speculative approach to some of their crypto trading. 

Another 29% reported trading based on advice or recommendations from social media content or influencers. Other patterns also emerged in the study. Around 24% said they try to identify promising projects by buying newly launched coins. Another 15% said they invest mainly for speculative reasons.

Exposure to crypto marketing online appears widespread. Nearly 72% of respondents reported seeing social media advertising promoting crypto investments during the past year. The survey also found that 41% had been contacted by someone offering help to invest in crypto. ASIC noted that some of these approaches may involve scams or misleading promotions.

ASIC Urges Young Investors to Verify Online Financial Content

ASIC said financial information on social media and AI platforms may be incomplete or promotional. The regulator warned that relying on a narrow range of sources can increase financial risk. “Social media is part of everyday life, but when drawing upon it for important decisions it’s important to make sure it’s balanced by credible sources of information,” said ASIC Commissioner Alan Kirkland.

Kirkland said platform algorithms often promote attention-grabbing content, which may not always provide accurate or suitable financial information. He warned that volatile assets like cryptocurrencies can create unrealistic expectations about returns. Kirkland advised individuals to pause and sense-check financial claims seen online and compare them with trusted, evidence-based sources before making financial decisions.

ASIC also pointed young Australians to the government’s Moneysmart website. The platform offers free information on budgeting, investing, superannuation, and financial scams. The regulator said independent sources can help individuals make better financial choices and reduce unnecessary risk.

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