WHY SOCIAL MEDIA IS BAD FOR YOUR INVESTMENTS
11 March 2023
Love it or not, social media is here to stay. There are 45 million active social media users in the UK.
That’s 66% of the population, but it poses a big risk to our financial health.
There has been a sharp increase in fraud and scams over the past 18 months.
Often featuring cryptocurrencies, many appear on social media.
Regulator, the Financial Conduct Authority, has warned platforms like Facebook and Twitter about what it calls ‘dodgy’ investment adverts.
It expects social media platforms to become part of the solution rather than part of the problem, by blocking these ads.
The problem is widespread, with scams becoming more and more sophisticated.
The FCA has developed its ScamSmart showing how to spot scams and fraud, and companies to avoid.
Getting worse before it gets better
The regulator currently has 1,700 cases open against firms targeting consumers with high-risk investments or scams.
Last year people lost over half-a-billion pounds to fraud, triple that in 2018.
Beware of celebrity endorsements
A well-known US-based reality star was recently slammed by the FCA for promoting an untested cryptocurrency on Instagram, describing it as, ‘a speculative digital token created a month before by unknown developers.’ There is no way those viewing the ad could have known.
Choose your information source wisely
Information is readily available from asset management companies and investment platforms, and sources such as DIY Investor.net.
There is no need to use social media platforms to steer anything to do with your finances, and you could encounter serious problems.
Always use proper channels and check the ScamSmart website
Find much more financial education here >
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