Why Social Media is Costing Investors Money
Social media is full of money advice—fast tips, crypto hype, “how to get rich” threads.But behind the likes and shares, many people are quietly losing money. New research shows more than half of those who acted on financial advice from platforms like TikTok, Instagram, Facebook, and WhatsApp ended up worse off.
What the Numbers Reveal
31% of people have followed financial advice they saw on social media
Of those, 55% lost money
90% had seen finance-related content online
43% said they’d consider acting on it
Younger people are the most affected:
70% of 25–34-year-olds trusted online money advice
62% of 16–24-year-olds trusted it
Just 27% of over-55s did
This isn’t just a generational divide, it’s a growing risk.
Where It Goes Wrong
No fact-checking: 42% admit they don’t know how to verify if an advisor is credible
Emotional pressure: 43% felt worse about their money after seeing social content
That rises to 67% for people aged 16–24
High fraud risk: 67% of investment fraud cases began on social media
These made up 71% of total investment losses
Average loss per person: £3,706
The Most Problematic Platforms
Fraud cases were most common on:
Facebook – 36%
WhatsApp – 35%
TikTok – 17%
Telegram – 17%
Instagram – 14%
Facebook and WhatsApp caused the biggest losses.
Why It Happens
People fall for this content because:
It looks polished
It feels personal
It spreads fast
It preys on urgency and fear of missing out
But most of the people behind it have no qualifications.
Some are scammers. Others just repeat what they’ve seen.
When it goes wrong, you're the one who pays.
A Call to Think Before You Act
Before you act on financial advice online:
Ask who’s giving it
Check if they’re qualified or regulated
Look for evidence, not opinion
Don’t act on impulse
Don’t invest in what you don’t understand
Regulators in many countries are beginning to crack down on unauthorised advice. But rules vary by region, and enforcement often lags behind the content.Until stronger global protections are in place, the responsibility is on you to stay informed and cautious.
The Bottom Line
Social media is not your financial advisor. What sounds like an opportunity could be a trap. You won’t see the people who lost money; they’re not posting. Take a step back. Ask real questions. Get advice from trusted sources. Quick wins rarely build lasting wealth. Real financial growth comes from planning, discipline, and long-term thinking. The investors who succeed focus on fundamentals, not trends. They take time to understand where their money goes, and why. Be cautious. Be curious. And invest with purpose, not pressure.
If you want to avoid the common pitfalls in investing and growing your wealth, get in touch to learn more about our Advisory Service.
