Article Finfluencers: what you need to know about making money decisions from social media

You’ve likely seen influencers on social media before, possibly reviewing new products or showcasing holiday getaways. Influencers typically use social media platforms to build a large and engaged following in order to influence the purchasing decisions of others.

However, in recent years the ‘finfluencer’ has emerged on the scene, gaining attention from the Financial Conduct Authority (FCA) and Advertising Standards Authority about the impact they could have on the public’s financial wellbeing.

So, what is a finfluencer?

The name ‘finfluencer’ is short for financial influencer. They’re defined by FCA as people who share and promote ‘financial products, particularly investment and credit lending products’ on social media.¹

Finfluencers can engage their audiences by using bitesize videos, images and text through various social media platforms. But, this can mean that they could lack the screen time and word count needed to include the full information and terms and conditions that financial products and promotions are usually subject to. Sometimes promising a return on investment, some finfluencers can foster a ‘get rich fast’ message.

And while opening your phone to quick and accessible information may seem like an easy way to source financial tips and tricks, it’s important to be cautious. With 31% of adults currently investing and 18% of adults likely to start investing or planning to invest more,² it’s important to know how relying on finfluencers could end up negatively impacting your finances.

While many finfluencers aim to offer helpful insights, and are accessible to all audiences as they often offer their advice freely, it’s important to be aware that some may lack the expertise to give financial advice or guidance. Or, in some cases, the information provided could be a scam.

With 68% of investment scams originating online in 2023,³ this article breaks down this new era of online financial advice – and shares tips to help you keep your money safe.

What are the risks?

The rise of unregulated finfluencers

In today’s digital age, and due to a lack of regulation from social media platforms, anyone can set up an account online claiming to be a financial expert. While many may aim to help their audiences, some finfluencers don’t have the right qualifications or have knowledge of the regulations around offering the correct guidance or advice. Without training, unqualified finfluencers might not be aware they may be endorsing a fraudulent scam, or offering poor or incorrect financial advice.

If they’re speaking to a large and varied audience, it’s likely their recommendations or tips and tricks are not tailored to your personal financial circumstances. Citizens Advice has shared the qualifications advisers need when giving advice or guidance. Finfluencers who use short videos or character limiting platforms like TikTok or X also might not be sharing the product or scheme’s full terms and conditions too, which can vary.

Finfluencers can be paid to promote certain products

When tempted to follow advice seen online, it’s also important to consider that the finfluencer may have been paid or given an incentive by an individual or business to promote high-risk investment schemes. It’s important to stay vigilant and do your own research before making any financial decisions.

More regulatory actions for finfluencers

In recent years, the FCA has been increasing regulation for finfluencers. In 2023, they removed or actioned the changes to over 10,000 misleading adverts and promotions.⁴ Additionally in 2024 they released guidance on improving the way financial advice and schemes are promoted on social media.

And, with over a 275% year-on-year increase in 2024 of #FinTok video views on TikTok alone, it’s likely the demand for finfluencers will continue to grow.⁵

Tips to keep safe online

To help keep you safe from potential scams, here are a few tips you could follow before making an investment decision online:

1. Pause, take your time and don’t be rushed into making any quick financial decisions.
2. Never give out personal information, including your bank details.
3. Beware of accounts offering you quick cash. If it looks too good to be true it often is.
4. Always find out who you are dealing with by checking the FCA’s online Financial Services Register and list of unauthorised firms and individuals.
5. Check the FCA warning list online tool for known investment scams.
6. Get guidance or advice from a regulated financial adviser before investing.
7. Report any concerns your adviser, Action Fraud on 0300 123 2040, Police Scotland or the FCA consumer helpline on 0800 111 6768.

Want to read more about how to protect yourself from other types of scams? Read our online security and fraud protection resources for handy tips and make sure to get scam savvy to protect your finances. 

What to do if you think you’ve been scammed? 

If you think you might have been scammed on social media, here’s what you can do:

• If the scam is related to pensions, contact us as we may be able to stop a transfer that hasn't taken place yet.
• Report an unauthorised firm or scam to the Financial Conduct Authority, Action Fraud or Police Scotland.

There are also a number of support agencies you can reach out to:

• Citizens Advice — a national organisation offering free, confidential, impartial advice, to support victims of scams, particularly those who are struggling financially.
• Samaritans — When life is difficult, Samaritans are here – day or night, 365 days a year. You can call them for free on 116 123 or email them at jo@samaritans.org.
• Victim Support — an independent charity dedicated to supporting victims of crime and traumatic incidents.