For regulators worldwide, the task of protecting, particularly millennial, investors from the pitfalls of taking investment advice from social media feels like a game of Whac-A-Mole.

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“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors,” said SEC chair Gary Gensler. “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”

But he is more likely preaching to the never-to-be converted.

And crypto currencies are an area of particular concern for regulators who are fighting a tidal wave of desire from people who view these products as modern-day get-rich-quick schemes - fuelled in large part by social media.

Kardashian’s 2021 Instagram post promoted EthereumMax - an asset which has fallen 83 per cent over the past year.

Australia’s corporate regulator, the Australian Securities and Investments Commission, has been waging its own war on unlicensed financial advice derived through social media.

It released the results of a survey that found 41 per cent of retail investors sourced information from social media.

ASIC has stepped up its focus on social media financial influencers, or “finfluencers”, this year as it attempts to crack down on unlicensed advisers, with warnings against paid promotions, sponsorships and investment opinions.

Survey data suggests many young people change their money habits after following finfluencers on platforms such as TikTok and Instagram, and ASIC is concerned some of this veers into the realm of financial advice.

Providing unlicensed advice can result in penalties of up to five years in prison or hefty fines. ASIC has also raised concerns about payments from investment platforms to “finfluencers” for promoting links to their followers.

Not all advice issued through social media platforms is uninformed and some is clearly educational.

Beyond the issues of uninformed advice, the hazard of social media and investing was demonstrated clearly a few years ago when the meme stocks using the accelerant of Reddit posts pushed a number of unloved shares into the stratosphere.

It was an unhappy end for many of the small investors who piled on at the top only to fall victim to the rollercoaster ride.

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