How to spot online 'finfluencer' scams

BE WARY OF INTERNET PROMISES OF EASY CASH, SAYS CAMILLA FOSTER

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AN increasing number of sharp-suited, seemingly successful financial influencers - often dubbed “finfluencers” - are flooding our social media feeds, appearing in countless posts, promising a fast-track to wealth through just a few easy steps.

Although these posts may seem like a quick and easy way to make money, more often than not they are scams that can leave you even more out of pocket.

A survey of 1,800 social media users, conducted by Censuswide in June and commissioned by TSB Bank, highlights growing concerns around financial advice on social platforms. It found that 31% of respondents had followed financial tips seen on social media - and of those, 55% reported losing money as a result.

The survey also showed that social media can negatively impact users’ perceptions of their finances, with 43% saying they felt worse about their financial situation after viewing wealth-related posts.

Younger users were especially affected: 67% of those aged 16 to 24 and 61% of those aged 25 to 34 said such posts made them feel worse, compared to just 22% of people aged 55 and over.

While some finfluencers may be acting legitimately, social media is unfortunately littered with an abundance of incorrect information and unregulated investments that could derail your finances.

Beth Harris, head of financial crime at the Financial Conduct Authority (FCA) explains how these scams work, and has highlighted some key red flags to look out for...