In today’s digital world, social media is flooded with charismatic ‘finfluencers’ – financial influencers who promise quick profits, insider tips, and lavish lifestyles.
They may talk the talk and give the impression that they know their stuff, using their platforms to sell financial products or give advice.
But there’s growing evidence that these unregulated figures can lead you straight into financial trouble.
Last month, the Financial Conduct Authority (FCA) spearheaded a global week of action against rogue finfluencers. The operation led to several arrests and the requested removal of hundreds of pieces of content from social media accounts and websites operated by unregulated finfluencers.
A number of recent studies have highlighted how serious the issue is becoming.
Research by Barclays has confirmed that misinformation from finfluencers is rising, while a TSB investigation has also found many young UK consumers have lost money acting on finfluencer advice.
Meanwhile research by Fidelity found that nearly half of UK investors turn to unregulated sources like finfluencers or AI tools, with many making snap decisions within hours, often with poor results.
Finfluencers can be entertaining and even informative, but without FCA regulation, their advice may be inaccurate or dangerous.
Before following any financial advice online, check the reliability of the source.
Only trust advice from FCA-authorised professionals or regulated firms and question anything pitched as a ‘get rich quick’ scheme. The golden rule is that if something sounds too good to be true, it probably is.
Avoid acting impulsively. Take time to crosscheck sources and seek professional support before making any decisions that could put your finances at risk.
If you’ve lost money through an online scam, report it to Action Fraud on 0300 1232040 and contact your bank.
If you need help with budgeting or other financial concerns, you can contact charities like Citizens Advice. Homes Plus customers can also speak to our dedicated team, for confidential money advice. Please be aware that there is currently a waiting list for this support.