It’s fair to say that most Britons use social media for a myriad of tasks. From staying in touch with friends and family, keeping up with the news, shopping, or finding a new job, the first port of call is to scroll social media or use an app.
One aspect of our enthusiasm for social media is the rise of ‘financial influencers’, otherwise known as ‘finfluencers’. According to FTAdviser, nearly a quarter of Britons now use finfluencers to receive financial guidance.
While you might think relying on a finfluencer might be more cost effective, it could cost you considerably more than you think. This is because the guidance provided by a finfluencer might reduce your wealth and may even jeopardise your financial security.
According to a study by Barclays, 42% of those who acted on a social media investment tip lost money as a result. So against this backdrop, read on to discover three powerful reasons using a finfluencer could be harmful to your wealth. Before you do though, let’s look at what a finfluencer is in more detail.
Finfluencers are media personalities that promote investments
According to the Financial Conduct Authority (FCA), a finfluencer is a social media personality who uses their platform to promote financial products and offer advice to their followers.
Often, they use engaging bitesize videos, images or social media text to provide their tips and insights, which can give the impression the finfluencer has in-depth knowledge into the world of finance. While in some cases this might be true, it’s important to remember that all too often it isn’t.
As a result, finfluencers may inadvertently be promoting investment scams or high risk products that could cost you dearly. While some finfluencers aim to offer helpful insights, you should always check the information with a qualified financial adviser.
With this in mind, let’s look at three risks you could be exposing your money to if you rely on a finfluencer.
1. The ‘advice’ isn’t tailored to your needs
Finfluencers speak to a large and varied audience and will not take your individual financial needs and circumstances into account. They do not consider your goals, financial situation or attitude to risk, which means you could follow a strategy that isn’t right for you.
One way this could happen, for example, is if the level of risk involved with the finfluencer’s suggestion is too high for your circumstances. This could result in you losing a significant amount of wealth, which in turn, could mean you have to reduce your standard of living.
In addition to this, as the finfluencer will not fully understand how your wealth is structured, their guidance may result in you facing a substantial tax charge. As a result, you may have to sell other assets to settle the liability.
2. Finfluencers may not be qualified to advise
Finfluencers are often very articulate and charismatic, and as such they can come across as extremely knowledgeable. In some cases, they might even claim to be an expert or ‘guru’, however the reality could be very different.
Finfluencers may not have the qualifications required to give good financial advice and may not realise when they’re providing incorrect information. If you then act on the guidance, you could become liable to a significant tax charge or suffer major losses, which could reduce your wealth.
Financial advisers, on the other hand, are highly trained professionals that must pass a series of demanding exams before being allowed to give advice. Furthermore, advisers must show that they’re maintaining and enhancing their knowledge through an ongoing Continuous Professional Development program.
Because of this, an adviser will be able to base their advice on the most up to date taxation or regulatory changes, as well as your personal circumstances. This minimises the risk of them making a mistake that could be damaging to your wealth.
3. The product being promoted could be a scam
In many instances, the finfluencer will have been paid or given incentives to promote a financial product, yet the finfluencer’s lack of experience and knowledge means they may not realise that they’re promoting a financial scam or high-risk investment, that isn’t suitable for you.
This is why it’s vital to talk to a financial professional before taking any action, as they will explain the risks and potential opportunities an investment could offer. They will also confirm whether it’s the right option for you and whether there are any alternatives you should consider.
This could help to protect you from significant losses and ensure your cash is exposed to as much growth potential as possible, while remaining at a level of risk you’re comfortable with.
Get in touch
When it comes to financial advice, it’s important to use an accredited professional who’ll take the time to understand your goals, circumstances and level of risk you’re happy to take.
In addition to this, financial advisers can explain your options using clear, jargon-free language, which means you’ll be better placed to make good decisions around your wealth.
If you would like to discuss investing, or other ways you could expose your money to greater growth potential, please contact us on 0333 010 0008 and we’d be happy to arrange a no-obligation initial meeting with one of our independent financial advisers.
26 January 2026