In this, the age of constant connectivity, the rise of so-called “finfluencers” has given everyday investors access to seemingly expert insights at the tap of a screen.
However, recent research from Barclays reveals the darker side of this trend which highlights how the pursuit of quick gains and social validation can expose consumers, particularly younger investors, to significant financial risk.
Some of the stats are quite shocking:
- 42% of people who have acted on social media investment content admit they have lost money as a result
- 53% of those seeking investment guidance online do not always verify the reliability of the content or its source
- 58% of Gen Z investors say they are more likely to follow influencers who appear to have made significant profits
- The data also shows that median investment scam claims have more than doubled over the past two years
The trend is especially pronounced among Gen Z (in the 18–27 age range) with almost half (48%) saying they feel compelled to act quickly on social media advice. Almost 58% also admit they are more likely to follow recommendations from influencers who appear to have made a lot of money.
Over half (53%) of those seeking financial guidance on social media consistently fail to verify the reliability of this content – putting their confidence and their finances at risk. This lack of due diligence often leads to financial losses among those who have acted on ‘finfluencer’ investment advice (33%) and 42% confess to losing money as a result.
However, 56% of investors believe they can spot untrustworthy influencers with the most commonly cited red flags including promises of “get rich quick” returns (44%), promotion of high-risk assets like cryptocurrencies and penny stocks (33%) and selling online courses on how to “follow in their footsteps” (24%).
The Barclays data shows that typical (median) investment scam claim values have more than doubled since 2023, from £1,600 to £3,400 in 2025. 77% of investors are aware of the dangers, recognising that social media investment advice can expose them to scams.
61% of investors say they would support the introduction of a verification system for ‘finfluencers’ to help distinguish credible voices from risky or misleading ones.
Andrew Gilmore, Associate Director & Chartered Financial Planner says: “At Active Chartered Financial Planners, we concentrate on gradual, steady wealth accumulation and capital preservation through diversified investments that have been researched by professionals. We regularly remind clients about the importance of investing for the longer term and that if something sounds too good to be true it likely is”
The increasing financial pressures in the UK are pushing individuals to look for quick fixes and therefore with online influencers providing social proof it is becoming increasingly tempting to trust these sources.
In this ever changing digital era, we always advise that you speak to a qualified and trusted financial adviser, to ensure you are confident with the financial decisions you are making.
If you would like to discuss your financial plans or find out how Active Chartered Financial Planners can help you, contact us today.
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Stats provided by Barclays
