Easy to access and engaging, social media is flooded with financial advice.
But for a generation turning to the internet, following “finfluencers” — or financial influencers — is proving costly.
The Association of Superannuation Funds of Australia has found that trusting financial advice that comes via TikTok, X and Reddit can exacerbate the risks of cybercrime.
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ASFA CEO Mary Delahunty said young Australians were taking financial advice from people “who may not have their best interests at heart”.
Delahunty said criminals were posing as advisers to target superannuation.
“They help Australians get access to their money early, through an early release scheme,” she told 7NEWS.
“They’re stripping young Australians of their savings.”
Corporate regulator Australian Securities and Investments Commission is cracking down on “finfluencers” with tough penalties, but Delahunty said it was “very difficult to regulate this type of interaction”.
It comes as ASFA research shows about half of Australians across all age groups never consult an expert about superannuation or retirement.
“It doesn’t really matter when you start, getting good financial advice is a great time, any time,” Direct Wealth financial adviser Erin Truscott said.
“When you do start young, obviously you’ve got more opportunity to make the most of that plan.”
Truscott said there was no one-size-fits-all approach to financial advice.
“If you are looking on social media and you see things that pique your interest … what’s really important is for you to then seek financial advice,” she said.
