Love it or hate it, social media is here to stay and its impact on our lives is only increasing. There were more than 54 million active social media users in the UK in early 2025, according to the most recent figures, equating to 79% of the population.
That’s not surprising — but it poses a big risk to our financial health. A recent survey commissioned by TSB found that of the 31% of respondents who had followed financial tips on social media, 55% said they had lost money as a result. The bank also found that 43% of respondents (including more than two thirds of those aged 16 to 24) felt worse about their financial situation after seeing money-related content on social media.
Meanwhile, Action Fraud’s 2024 figures show that 36% of all investment fraud was linked to social media. Whatsapp was the most referenced platform (40%), followed by Facebook (18%) and Instagram (14%). So, how can you keep yourself safe if you’re curious about investment opportunities you see on social media?
Beware of celebrity endorsements
The Financial Conduct Authority (FCA) is acting against so-called finfluencers — celebrities that have used Instagram and other social media platforms to promote and recommend high risk investments without being authorised to do so. It alleges that some of the individuals in question used an Instagram account to provide advice on buying and selling contracts for difference when they were not authorised to. CFDs are a high-risk investment product used to bet on the price of an asset. In this case, the price of foreign currencies.
The FCA says adverts across social media channels must be fair, clear and not misleading, with the right risk warnings so that people can make well informed financial decisions. It also warned firms they are on the hook for all their promotions and therefore have to ensure influencers they work with communicate to their followers in the right way. Its actions have led to the removal of hundreds of social media posts and websites run by financial influencers, with three arrests in the UK as of June 2025.
Be sceptical
Many unauthorised financial influencers use images of expensive lifestyles to attract attention, before linking their apparent wealth to investment schemes that promise guaranteed returns but which are often high risk or even fabricated opportunities.
As with any investment scam, it pays to remember that if something looks too good to be true, that means it almost certainly is. Investment returns in the double digits may be very attractive, but they’re also unrealistic. If you’re being offered returns that sound unusually high, the alarm bells should ring.
Stay up-to-date
Despite the FCA’s actions, investment scams on social media platforms continue to rise. They are also becoming more and more sophisticated. If one is shut down, several more pop up in its place shortly after.
So, before you act on an investment opportunity you’ve seen on social media, search the FCA’s Warning List to see if it’s been reported as an unauthorised investment or a potential scam. The regulator also provides the ScamSmart website, which offers information on how to spot and avoid the types of fraud that are being used by scammers right now.
Tread carefully on social media
Not all financial content on social media is bad. Indeed, many legitimate and respected financial services firms use platforms such as Instagram and Tik Tok in a bid to widen the appeal of investments and other products. There are also several knowledgeable ‘finfluencers’ who use social media to explain savings and investment terms in an easy-to-understand way, with the aim of helping people make more informed decisions.
But it really is a mixed bag. Finfluencers who don’t have the appropriate knowledge, or who are in the pay of disreputable firms, can spread misinformation or encourage high-risk behaviour, such as trading in high-risk stocks without fully explaining the risks.
In a report earlier this year, the FCA warned that ‘poor quality financial promotions on social media can lead to significant consumer harm due to their wide reach and the complex nature of many financial products and services’.
Choose your information sources wisely
With all the information available online from asset management companies, financial services providers and investment platforms, not to mention reputable news sources, there’s no need to use social media platforms to steer financial decisions. In fact, using social media to decide where to invest your hard-earned money, find debt solutions, access your pension, or anything else to do with your finances, could lead to substantial problems.
If you want information, advice or guidance, the advice is simple: use proper channels and check the regulator’s ScamSmart website. You can also use our free comparison tools to help you make informed decisions about which investment platform to use, while there’s loads of articles and educational materials on our website.
Report it
If you have been approached by an unauthorised firm you can contact the FCA’s consumer helpline report it. If you have been a victim of fraud, report it to Action Fraud.
Photo by Prateek Katyal on Canva
