Financial influencers, also known as “finfluencers,” have amassed a sizable following on social media in recent years. On platforms like YouTube, TikTok and Instagram, they provide advice on everything from savings to investing. These platforms are frequently used by many investors, especially Millennials and Gen Z, to find answers to their most important financial queries.
So, what exactly is a finfluencer? An finfluencer is someone who uses their social media following or presence to influence others’ financial and economic decisions. Through posts and videos, they provide recommendations as well as advice, and promote financial goods and services.
But it’s important to keep in mind that influencers and licenced investment advisers are not the same. And that finfluencers’ recommendations may not be appropriate for your particular financial circumstances.
Risks Of Following Social Media Financial Advice
While social media can be a convenient source of investment ideas, relying on financial advice from these platforms can be risky. Since social media is open to everyone, the information shared can often be inconsistent or misleading.
A CNBC survey of over 5,500 US adults in 2021 found out that more and more youngsters are relying on social media for investment ideas instead of seeking advice from traditional services.
In late 2025, another study released by online resource platform DayTrading.com found that around 70% of TikTok videos offering investment advice were misleading. The study looked at 10 finance videos, chosen for their view count, financial claims and variety of themes. These videos were evaluated for accuracy, disclosure, oversimplification and educational value.
As such, consumers should be cautious. Many finfluencers lack formal experience or qualifications, which means their guidance may not be suitable for everyone. Instead of acting on a viral TikTok or Instagram post, it’s important to do your own research before making financial decisions.
Celebrity Endorsements Don’t Guarantee Safe Investments
For example, in 2022, Kim Kardashian agreed to pay $1.26 million to settle Securities and Exchange Commission (SEC) charges that she promoted a cryptocurrency on Instagram. What she didn’t disclose though was that she had been paid $250,000 to do so. Kardashian was actually paid to publish a post on her Instagram account about EMAX tokens, a crypto asset security being offered by EthereumMax. Kardashian’s post contained a link to the EthereumMax website, which provided instructions for potential investors to buy EMAX tokens.
Examples like this serve as reminders that just because celebrities or finfluencers endorse an investment opportunity, it doesn’t mean the product is suitable for every investor, or even that it is legitimate.
Signs To Look Out For Before Putting Your Trust In Finfluencers
Before depending on financial advice from influencers, be aware of the red flags. Here are the few warning signs to watch out for:
Promises Of Rapid Wealth
Avoid influencers that promise rapid wealth, guaranteed returns, or get-rich-fast schemes. Phrases like “buy this now” that don’t address risk management or diversification are among the warning signs here.
Tips, But No Advice
Verify if posts are sponsored, risks and advantages are highlighted and whether authors cite reliable or authorised sources. While there are responsible influencers who can improve financial literacy, before making any decisions it is still important to confirm information with reliable sources.
One-Size-Fits-All Recommendations
Many finfluencers share their personal stories of success. But their recommendations may not align with your objectives, financial situation or ability to take risks. So, verify if the financial products they suggest are accessible on regulated platforms. Do your own research to make sure they meet your requirements.
Instant Investment Pressure
Influencers who pressure you to make a rapid investment or pay for services upfront should be avoided. Before making a choice, take a moment to speak with a family member, close friend or certified financial advisor.
Peer Pressure And Hype
The fear of missing out (FOMO) can be increased by social media, especially when others post about their quick and fast financial success. Stay away from making financial decisions influenced by peer pressure or hype. Careful research should be done when managing your finances.
How To Protect Yourself
Overall, before following a finfluencer, make sure their credentials are legitimate and recognised. Be wary of claims of huge profits. Seek evidence or data supporting the claims. Always conduct your own research before following financial advice from social media.
Avoid cash payments, only use funds you can afford to lose. Also, never take out loans to invest in high-risk assets like cryptocurrency.
Keep detailed records of your investments. It can come handy in case problems arise or you need to register a complaint.
By approaching social media financial advice carefully, verifying sources and conducting independent research, you can benefit without putting your money at unnecessary risk.