The dangers of finfluencers: Warning as half who follow 'get rich quick' social media advice lose money

The dangers of finfluencers: Warning as half who follow 'get rich quick' social media advice lose money
By: dailymail Posted On: July 10, 2025 View: 54

  • Experts reveal the signs you must be wary of and how to protect yourself

You may be tempted to turn to social media for free financial advice by bold claims of boosting your retirement nest egg or substantial guaranteed investment returns.

But blindly taking money advice from online content creators could cost you thousands of pounds, new research by High Street bank TSB warns.

It is urging people to beware of so-called ‘finfluencers’ – or financial influencers – who pop up on Instagram, Facebook and TikTok. And while younger generations are more than twice as likely to trust social media tips, parents and grandparents are being also reminded that all may not be as it seems.

More than half of adults who have made financial decisions based on social media advice have lost money, according to TSB. Some 31 pc who use social media have acted on financial advice they have seen – and 55 pc of them have lost money as a result, it found.

While some finfluencers may share correct information on how products such as Isas work, or dish out savvy budgeting tips, others spout illegal financial advice and misinformation to followers, and plug high-risk or fraudulent crypto ‘opportunities’.

Have you lost money to social media tips? Contact [email protected]

Tyson Scholz, a finance influencer whose social media account is filled with supercars and foreign holidays, had assets seized by a court in Australia last year after being accused of giving unlicensed financial advice. He is pictured with his wife

For example, one content creator could claim they have a super algorithm that makes them a great trader and they can send you their trading system in exchange for a fee. 

But Financial Conduct Authority (FCA) rules state that you must be authorised to do this. 

Last month, the FCA cracked down on finfluencers and asked for 650 items to be deleted from social media. The watchdog’s operation led to three arrests in the UK.

Scholz posted pictures of himself in the French Alps dog sledding and dining at high-end restaurants

On average, those who lost out due to advice from unqualified content creators ended up down £3,706, TSB says.

Jenny Ross, of consumer group Which?, said: ‘Having a large following on social media doesn’t mean that someone can be trusted to give financial advice.

‘In the worst cases, they may even be promoting scams.

‘Take the time to carefully consider any financial decisions, and don’t allow yourself to be pressured by what you see online. Always keep in mind that if an opportunity sounds too good to be true, it probably is.’

The high cost of financial advice may turn many to look at the information on mortgages, investments and retirement plans promoted by unqualified online finfluencers.

Neil Rayner, head of advice at wealth manager True Potential, says, ‘Financial advisers are regulated and there’s a reason why. There’s a level of qualification that goes into that.’

Often videos and posts showing financial tips are unsolicited and arrive as promoted posts in social media feeds.

TSB found more that four in five people who use social media have seen financial advice content they weren’t searching for.

Surina Somal, director of everyday banking at TSB, says: ‘While there could be useful sources of financial advice on social media platforms, there are also pitfalls through incorrect information and unregulated investments that could derail your finances. It’s important you verify the content first to ensure you’re making safe and informed choices.’

Any investment opportunities or products on social media could be a scam – use the FCA’s register to check if the firm is legitimate or not. See register.fca.org.uk/s.

Have you lost money to social media tips? Contact [email protected]

What is financial advice 

Financial advice and financial planning are regulated by the FCA and can only be given by qualified financial advisers and planners.

Independent advisers, known as IFAs, offer advice covering a full range of products and financial topics, and will not be biased to a particular set of providers.

Restricted advisers, on the other hand, only provide limited advice on specific areas, and may only offer financial products from the firm they work for, or ones that they have a  particular tie to. 

A restricted adviser still has a binding obligation to act in your best interests and any restrictions and tie-ups should be made clear.

Financial planning: The key difference between financial planning and financial advice, is that planning looks to address your longer term financial needs, as opposed to offering specific help to do something.

Like financial advisers, financial planners are required to be FCA registered.

To be qualified, a financial adviser must have reached level four or above of the national Qualifications and Credit Framework.

On top of this, advisers must sign up to a code of ethics under the Statement of Professional Standing. This includes the adviser completing a minimum of 35 hours of continued professional development each year.

A Statement of Professional Standing can only be issued by a body that has been accredited by the FCA.

To check if an adviser has an accreditation, you can consult the FCA's register, which lists advisers and firms by name, and can be sorted by location.

If you are considering financial advice, it might also be worth checking the name of your potential adviser or firm against the FCA's warning list, which indicates unauthorised firms that do not have FCA permission to offer advice.

> Essential guide: Financial planning and advice

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