Riskiest Social Media Platform for Financial Advice: Report

Nearly 80% of young adults say they turn to social media for financial advice. But perhaps they should find another source.

A new report by Social Capital Markets found that 71% of the financial advice consumed by Gen Z and Millennials is misleading, and only 13% of influencers had the relevant qualifications and credentials to advise on finance matters. This past summer in the U.K., for example, several social media influencers were charged with promoting financial schemes to millions of followers.

The study analyzed 2,470 TikTok, YouTube, and Instagram videos and relevant hashtags (#StockTok, #Investing, and #Stocktips), looking for “misleading” posts that have key items, including no disclaimer, encouraging viewers to invest in specific assets, and implying guaranteed returns.

Related: Here’s How Much an Influencer With 21 Million Followers Makes on YouTube, Facebook, and TikTok

Of the videos analyzed, 83% lacked disclaimers and offered “a one-sided view of financial decisions,” per the report. Meanwhile, 57% of stock content implied guaranteed returns.

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