PETALING JAYA: The growing influence of financial influencers, or finfluencers, has raised serious concerns over consumer protection and market integrity, prompting calls for tighter regulation, stronger enforcement and greater public awareness.
The Malaysian Financial Planning Council (MFPC) welcomed the Securities Commission’s (SC) revised Advertising Guidelines, saying the move marked an important first step in addressing unregulated financial promotions on social media.
MFPC president Andy Ng Yen Heng said professionalism and accountability were crucial in maintaining trust in the financial system.
“Unlicensed advice erodes trust, but professionalism restores it. The MFPC will continue raising the bar for ethical and responsible financial guidance to protect the public and uphold the integrity of the profession,” he said in an interview.
Fraudulent or unlicensed online advice, said the MFPC, exposes consumers to significant financial risks and undermines investor protection, professional standards and overall market integrity.
It noted that the revised guidelines, which took effect on Nov 1, bring finfluencer-driven promotions within the regulator’s scope and help close regulatory gaps created by social media-based marketing.
“We have received both formal complaints and informal feedback over inaccurate, incomplete or poorly disclosed financial content shared by influencers, particularly content targeting young or first-time investors with ‘too good to be true’ claims.
“The speed and reach of social media can push people into making investment decisions before they fully understand the risks,” it said, highlighting a lack of accountability among unlicensed individuals offering financial guidance online.
“Unlike licensed financial planners, who are bound by professional codes of ethics, ongoing professional development and disciplinary processes, unlicensed content creators do not offer the same safeguards or recourse when things go wrong.”
The MFPC said the Malaysian Communications and Multimedia Commission is a critical first line of defence against scam finfluencers, with powers under the Communications and Multimedia Act to act against false or misleading online financial content and order swift takedowns.
“Under the Communications and Multimedia Act 1998 (CMA), particularly Sections 211 and 233, MCMC is empowered to act against false, misleading, or offensive online content,” it said.
Federation of Malaysian Consumers Associations (Fomca) vice-president Datuk Indrani Thuraisingham said complaints linked to finfluencers and social media-driven investment schemes have risen sharply, with many victims losing their entire savings.
She said Fomca has seen cases involving unlicensed forex and cryptocurrency platforms, expensive but ineffective “masterclasses”, and Ponzi-style schemes disguised as investment clubs or community trading groups.
“These schemes inevitably collapse because returns are paid using money from new investors,” she said.
Indrani said finfluencers often rely on psychological manipulation rather than sound financial fundamentals, using displays of luxury lifestyles, curated screenshots of alleged profits and scripted testimonials to project credibility.
“They are selling a dream, not a financial product,” she said, adding that closed messaging groups are commonly used to amplify fear of missing out while silencing dissent.
She said victims commonly include young, digitally savvy but financially inexperienced individuals, middle-income earners seeking higher returns amid rising living costs, and first-time investors who bypass regulated channels in favour of more accessible online advice.
Sharing a similar view, MCA Public Services and Complaints Department head Datuk Seri Michael Chong said self-proclaimed influencers have become increasingly sophisticated, using fake trading platforms, manufactured testimonials and closed group chats filled with accomplices to lure victims into repeatedly investing more money.
He said victims are often allowed to make small initial gains before being told their funds are locked and require additional payments to unlock larger withdrawals – money that can never be recovered.
“They use their own people to talk in the group, showing so-called profits to make others believe it is real,” Chong said, adding that many platforms impersonate legitimate companies through lookalike websites.
Warning against easy-profit narratives, he said, “Money never falls from the sky. If they are so smart to earn more, why do they need your money?”
