The Australian Securities and Investments Commission (ASIC) is urging the generation Z demographic to seek confirmation from evidence-based sources of the validity of any financial information they see on social media.
“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,” ASIC commissioner Alan Kirkland said.
“Anyone considering making a financial decision based on information they have seen online should take a moment to sense check and compare it with trusted, evidence-based sources.”
The call follows ASIC Moneysmart research that found 68 per cent of gen Z respondents, individuals aged between 18 and 28, use social media for financial information and guidance, another 30 per cent reference YouTube and 18 per cent rely on artificial intelligence (AI) platforms.
Additionally, 56 per cent of survey participants indicated they somewhat or completely trust financial information on social media, with 52 per cent expressing the same sentiment towards finfluencers. With regard to AI, 16 per cent of the gen Z sample admitted to completely trusting it and 48 per cent said they somewhat trust it.
“Financial information on social media and accessed through AI tools can be incomplete, promotional or misleading. Relying on it alone increases the risk of making a decision you may later regret,” Kirkland warned.
The study also revealed 23 per cent of gen Z own cryptocurrency. Further, it was discovered 72 per cent of this cohort have seen social media posts encouraging them to invest in crypto-assets in the past year, while 41 per cent said they had been contacted by someone offering to help them invest in the area.
‘Short-term or speculative trading based on what’s popular online carries real risks, particularly in volatile markets like crypto,” Kirkland noted.
He encouraged gen Z to visit Moneysmart’s free website for “independent and reliable information that can help Australians of all ages make informed choices and avoid unnecessary financial risk”.
Moneysmart has recently refreshed its website to make it more engaging to ensure it continues to provide a trusted alternative to social media.
