AI Investment Scams and Finfluencers in Australia in 2026: How to Protect Your Money
The Scam Problem in Australia Has Moved Into a More Dangerous Phase
Australian investors have always had to deal with hype. The difference in 2026 is that hype now arrives dressed up as professional video, fake credibility and algorithmic targeting.
The old scam template was often clumsy. Spelling mistakes, weak websites and absurd promises made it easier to spot. The newer scam template is cleaner. It uses polished video, copied brand language, fake endorsements, cloned news pages and apparently confident presenters. In many cases, artificial intelligence is making scam content faster to produce, cheaper to scale and harder to detect at a glance.
That is why ASIC escalated its public warnings in April 2026.
On 8 April 2026, ASIC said it was removing record numbers of harmful phishing and investment scam websites and warned that artificial intelligence was “super-charging” online scam threats. The numbers were ugly. Between 1 January 2025 and 31 December 2025, ASIC coordinated the removal of 11,964 phishing and investment scam websites, up 90% from 6,270 in the previous 12-month period. That works out to about 32 websites per day or 230 per week. Since the takedown service launched in 2023, more than 25,000 scam and phishing sites have been knocked out.
ASIC also said it took down more than 1,100 online investment scam advertisements on social media in 2025.
That would be alarming enough on its own. But ASIC then followed up on 24 April 2026 with another message, this time on finfluencers. It said it had issued warning notices to four finfluencers suspected of unlicensed financial advice or misleading conduct and had begun a review involving several AFS licensees and their supervision of 15 finfluencers operating under those licences.
Put together, the message is clear. Australian consumers are facing a two-sided problem.
One side is outright scams.
The other is financial promotion that may look educational or entertaining, but can drift into unlicensed advice, misleading claims or conflicted product promotion.
Why This Matters More in 2026 Than It Did a Few Years Ago
AI has raised the production quality of scams
ASIC’s examples of AI scam advertising show why this is dangerous. The scripts promise passive income, automatic trading, teenage millionaires and effortless gains while you sleep. The pitch is built to trigger urgency and envy at the same time.
Scammers no longer need a professional studio or large team. They can generate convincing voices, slick graphics, fake interviews, fabricated testimonials and synthetic celebrity-style endorsements quickly and cheaply.
Australians are already losing real money
| Scam loss indicator | Amount |
|---|---|
| Total scams reported by ASIC from National Anti-Scam Centre data for 2025 | $2.18 billion |
| Investment scam losses in 2025 | $837.7 million |
| Scam websites ASIC removed in 2025 | 11,964 |
| Social media investment scam ads removed in 2025 | 1,100+ |
An $837.7 million investment scam figure is not a niche issue. It is a systemic consumer harm problem.
Younger investors are heavily exposed to social finance content
ASIC cited Moneysmart research showing:
| Gen Z social finance behaviour in Australia | Result |
|---|---|
| Gen Z Australians relying on social media for financial information | 63% |
| Those who somewhat or completely trust financial information on social media | 56% |
| Those who somewhat or completely trust finfluencers | 52% |
That does not mean younger Australians are naive. It means the content pipeline is normalised. When financial information arrives through short video, algorithms and personality brands, the line between education, marketing and advice gets blurry fast.
The Difference Between a Scam, Promotion and Advice
This is where many Australians get caught out.
A scam is straightforwardly illegal deception
A scammer may:
- invent a fake investment platform
- impersonate a real company or licence holder
- clone a news site
- use fake celebrity or media endorsement
- promise impossible returns
- pressure you to transfer funds quickly
Promotion can still be dangerous even if it is not a pure scam
An influencer may promote a platform, share referral links, show trading screenshots or discuss leveraged products in a way that creates a strong impression of endorsement while claiming it is “not advice”.
That disclaimer does not always fix the legal issue.
Advice is regulated in Australia
ASIC’s April 2026 message was blunt. A finfluencer must either hold an Australian Financial Services (AFS) licence or operate as an authorised representative to legally provide financial product advice or arrange for followers to deal in financial products.
ASIC said an unlicensed influencer cannot legally offer financial advice in Australia and may face up to five years’ imprisonment or million-dollar fines.
The Red Flags ASIC Wants Australians to Notice
ASIC’s April 2026 media release highlighted a set of warning signs investors should take seriously.
Red flag 1: guaranteed returns
If someone is promising “guaranteed” gains, particularly from shares, ETFs, forex, crypto or derivatives, that is a major problem.
Markets do not work that way.
Red flag 2: AI trading bots with effortless passive income
ASIC specifically warned about scammers claiming AI trading bots can generate passive income and unrealistic returns. That is one of the signature scam narratives of 2026.
Red flag 3: fake endorsements from prominent Australians
Scammers use AI-generated endorsements and fake news layouts because social proof still works. If the ad says a celebrity, banker, TV host or business figure made money quickly, treat that as a reason to slow down, not speed up.
Red flag 4: “licensed by ASIC” language
ASIC specifically warned that scammers may falsely claim they are certified or licensed by ASIC. Even where an Australian company number is used, it may belong to a different company.
Red flag 5: urgency and pressure
The language is almost always the same:
- limited spots
- get in before it closes
- don’t miss the next run
- ordinary people are becoming millionaires
- click now to get access
That emotional pressure is part of the mechanism.
What the Finfluencer Crackdown Means for Investors
The finfluencer crackdown is not just about punishing creators. It is about clarifying that online finance content can cause real harm.
ASIC is not only looking at influencers
It is also looking at the businesses behind them.
ASIC said it had contacted and met with three AFS licensees to review their supervision of 15 finfluencers operating as authorised representatives and to remind them that the licensee remains responsible for what representatives say and do online.
That matters because some influencers present themselves as independent while operating under a licence arrangement. Consumers often do not know the structure behind the content.
“This is not advice” is not a magic shield
If the substance of the content tells viewers what to buy, how to act, what returns to expect or where to move money, the legal risk can remain even if a creator flashes a disclaimer on screen.
Education is allowed, but the line is real
General financial education is not the same as personal financial product advice. The problem is that short-form online content often blurs the distinction for engagement.
A Practical Australian Due Diligence Checklist
Before you invest one dollar because of something you saw online, run this checklist.
Step 1: Check the licence
Search ASIC’s professional registers.
| What to check | Why it matters |
|---|---|
| Does the person hold an AFS licence? | Necessary to provide regulated advice directly |
| Are they an authorised representative? | If not, advice may be unlawful |
| Does the business name match the register? | Scammers often mix names, ACNs and brands |
| Does the website domain look genuine? | Clone sites often use lookalike URLs |
Step 2: Search the offer independently
Do not click only through the ad. Search the brand, the product and the promoter separately with terms like “ASIC warning”, “scam”, “review”, “complaint”, and “AFCA”.
Step 3: Check Moneysmart’s resources
ASIC specifically points Australians to:
- Moneysmart’s Check before you invest page
- Moneysmart’s investor alert list
Step 4: Question the return claim
Use simple arithmetic.
| Claimed result | Why it should trigger doubt |
|---|---|
| $500 turned into $1,247 in four days | That is a 149.4% gain in less than a week |
| Guaranteed 3% a day | That compounds to absurd annual returns |
| 85% accuracy “to the penny” | Markets do not offer that kind of certainty consistently |
| Passive income while you sleep with no risk | High return, low effort and low risk do not come together consistently |
Step 5: Never rush the funding step
If the ad or influencer pushes you to transfer money immediately, especially offshore or via unusual methods, stop.
How Real Investors Get Pulled In
The most effective scam ads are not aimed only at reckless people. They are aimed at ordinary Australians under financial pressure or looking for a shortcut.
That can include:
- someone worried they started investing too late
- a saver frustrated by high living costs
- a young worker hoping to build wealth faster
- a retiree wanting better income
- a borrower hoping to “trade out” of debt stress
The scam message speaks directly to that vulnerability. It says the system is stacked against you, but this tool, this insider, this bot or this secret strategy can level the field quickly.
That emotional hook is often stronger than the details of the investment itself.
How to Respond if You Think You Have Been Targeted
ASIC’s guidance is useful because it is practical.
STOP
Do not provide personal details or banking information. Do not continue because you feel embarrassed or committed.
CHECK
Search for warnings independently. Verify the licence or authorisation status. Treat screenshots, testimonials and social proof as unverified marketing unless confirmed elsewhere.
PROTECT
If you have transferred money or shared financial details, contact your bank immediately.
REPORT
Report suspicious conduct to:
- Scamwatch
- ASIC misconduct reporting channels
- your bank or card provider
The faster you act, the better your chances of limiting the damage.
What Australian Families Should Discuss at Home
A useful but underused defence is family conversation.
Parents, partners and adult children should talk openly about:
- who in the family follows finance content online
- whether anyone has clicked investment ads recently
- which accounts or apps could be used for transfers
- how to verify a promoter before any money leaves an account
This matters because scam pressure often works in private. A quick second opinion can interrupt the process.
What Professional Advice Still Does Better Than Social Media
Professional advice is slower, more documented and less glamorous. That is exactly why it is safer.
A properly licensed Australian adviser or accountant can explain:
- the product risk
- tax consequences
- cash flow impact
- portfolio fit
- legal structure
- time horizon
- downside scenarios
A social media clip is usually built to maximise views, not suitability.
The Core Lesson for 2026
ASIC’s April 2026 actions tell us something important about the current market. The biggest risk is no longer only a fake website from an obvious scammer. It is the wider ecosystem of convincing, shareable and emotionally persuasive financial content.
Some of it is illegal from the start.
Some of it may be real content delivered unlawfully.
Some of it mixes education, entertainment, incentives and promotion so thoroughly that the audience cannot tell where one ends and the next begins.
That is why your first defence is not technical. It is behavioural.
Slow down.
Check the licence.
Question the return claim.
Never act because an ad made you feel late.
FAQs
How much did Australians lose to scams in 2025 according to Australian regulators?
ASIC cited the National Anti-Scam Centre’s latest Targeting Scams Report, which said Australians lost AUD 2.18 billion to scams in 2025. Investment scams alone accounted for AUD 837.7 million.
How many scam websites did ASIC remove in Australia in 2025?
ASIC said it coordinated the removal of 11,964 phishing and investment scam websites between 1 January 2025 and 31 December 2025. That was a 90% increase from the previous 12-month period, when 6,270 were removed.
Can a finfluencer legally give financial advice in Australia in 2026?
Only if they hold an AFS licence or operate as an authorised representative of an AFS licensee. ASIC said in April 2026 that an unlicensed influencer cannot legally provide financial product advice in Australia and may face up to five years’ imprisonment or million-dollar fines.
How many Gen Z Australians use social media for financial information in 2026?
ASIC cited Moneysmart research showing 63% of Gen Z Australians aged 18 to 28 rely on social media for financial information. It also said 56% somewhat or completely trust financial information on social media and 52% trust finfluencers.
How can Australians check if an investment promoter is licensed in 2026?
Australians can use ASIC’s professional registers search tool to check whether a person or business is licensed or authorised. They can also review Moneysmart’s Check before you invest page and the investor alert list.
What should an Australian do if they already sent money to an online investment scam in 2026?
Contact your bank immediately, stop all further communication with the promoter, preserve screenshots and transaction details, and report the matter to Scamwatch and ASIC. Speed matters because scammers often move funds quickly through multiple accounts.
If you want a second opinion from a real Australian professional before making a major money decision, start here: https://wealthworks.com.au/professionals
Frequently Asked Questions
How much did Australians lose to scams in 2025 according to Australian regulators?
ASIC cited the National Anti-Scam Centre’s latest Targeting Scams Report, which said Australians lost AUD 2.18 billion to scams in 2025. Investment scams alone accounted for AUD 837.7 million of those losses.
How many scam websites did ASIC remove in Australia in 2025?
ASIC said it coordinated the removal of 11,964 phishing and investment scam websites between 1 January 2025 and 31 December 2025. That was a 90% increase from the prior 12-month period, when 6,270 were removed.
Can a finfluencer legally give financial advice in Australia in 2026?
Only if they hold an Australian Financial Services licence or operate as an authorised representative of an AFS licensee. ASIC said in April 2026 that an unlicensed influencer cannot legally provide financial product advice in Australia and could face up to five years’ imprisonment or million-dollar fines.
How many Gen Z Australians use social media for financial information in 2026?
ASIC cited Moneysmart research showing 63% of Gen Z Australians aged 18 to 28 rely on social media for financial information. It also said 56% somewhat or completely trust financial information on social media and 52% trust finfluencers.
How can Australians check if an investment promoter is licensed in 2026?
Australians can use ASIC’s professional registers search tool to check whether a person or business is licensed or authorised. ASIC’s Moneysmart website also provides a Check before you invest page and an investor alert list for suspicious offers.
