Ontario securities regulators are stepping up enforcement against so-called “finfluencers” — social media personalities promoting risky or misleading financial advice — as part of an international crackdown aimed at protecting investors from online scams.
In a report released Friday, the Ontario Securities Commission (OSC) confirmed its active role in the Global Week of Action Against Unlawful Finfluencers, a coordinated effort by financial watchdogs worldwide to investigate and disrupt predatory influencer activity in the investment space.
“International relationships are vital in countering this growing issue,” said Bonnie Lysyk, Executive Vice President of Enforcement at the OSC. “We are pleased to have played an important part in disrupting harmful finfluencer activity.”
As part of the campaign, the OSC investigated 87 individual finfluencers and 9 third-party entities that hired or endorsed them. Investigators found several cases where individuals were giving financial advice online without proper registration, a legal requirement for offering investment guidance in Canada.
Even more concerning, authorities found that some finfluencers were spreading false information about cryptocurrency and other high-risk investments, often to thousands of followers who lacked the financial literacy to assess the dangers.
Lysyk noted the urgency of addressing this new frontier of fraud: “The OSC’s research highlights the substantial influence social media personalities have on investor behaviour, underscoring the need for proactive intervention.”
With financial misinformation spreading faster than ever online, the OSC and its global partners say stricter regulation, enforcement, and digital literacy are all key to protecting everyday investors from being misled.