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The dangers of TikTok finance – is it safe?

ended 08. August 2025

Money influencers, or ‘finfluencers’ as they're called, seem to be having a moment.

Financial education can only be a good thing, but are there dangers in taking advice from a 1minute video, particularly if you don't know if they're a qualified professional nor might they be disclosing their interests?

We'd like to here from you on what warning signs should people be looking out for when receiving financial advice on TikTok, Instagram or other?

Perhaps you have examples of customers running inaccurate information they've seen online past you, or worse making a decision based on that.

 

4 responses from the Newspage community

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Tony RedondoVerified
Founder at Cosmos Currency Exchange
If your pet pooch or cat was poorly, would you take advice from someone on TikTok or go to the vets? So why listen to TikTok and Instagram "finfluencers" when 87% of TikTok advice comes from unaccredited creators? Hidden sponsorships, affiliate links, and oversimplified tips can mislead, especially on high-risk investments like crypto. Warning signs include no credentials, missing risk warnings, promises of quick riches, or pushing products. Only 20% of investment advice includes disclosures, according to the CFA Institute. Examples include misleading pension opt-out tips or crypto scams, costing followers money. To stay safe, verify credentials on FINRA/SEC sites, cross-check with reputable sources, and consult licensed advisors for big decisions. Be sceptical of sensational claims and build your financial knowledge. While some finfluencers offer solid budgeting tips, always double-check advice to avoid costly mistakes.
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Kundan BhaduriVerified
Entrepreneur, Investor and Landlord at The Kushman Group
The digital oracles of TikTok, armed with ring lights and affiliate links, command audiences that would make Buffett envious, you know. Their qualifications typically extend no further than the ability to point enthusiastically at floating text boxes, yet TikTok influence is alarmingly real. Recent FCA data shows 52% of young investors have executed trades based solely on social media recommendations, while 71% could not identify basic warning signs of investment fraud.

The genius of TikTok lies in its ability to make terrible ideas appear credible through algorithmic repetition. Leveraged crypto trading becomes "passive income." Property speculation transforms into "guaranteed wealth building." Complex financial instruments reduce to simplistic hand gestures set to trending music. Meanwhile, the FCA maintains its laser focus on regulating traditional advisers, while an entire generation shamefully learns about compound interest from teenagers pushing referral codes. This is alarming.
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Scott Aitken0
Director | Mortgage & Protection Broker at Aitken Financial Services
The rise of ‘finfluencers’ is worrying. I regularly speak to clients who’ve seen misleading claims online, especially during TikTok Lives, that simply aren’t true.

I’ve watched some myself, and many walk a fine line when it comes to what’s acceptable under financial promotions rules.

The real concern is that it’s not just unqualified individuals doing this; it includes people who are qualified but still fail to communicate the risks or act in a compliant way.
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Patricia McGirrVerified
Founder at Repossession Rescue Network
The danger with ‘finfluencers’ is that they can serve up confidence without qualifications and solutions without substance. Following tips from a sixty second video is great if you’re baking banana bread but it’s bonkers if you’re planning your financial future. Yet many viewers fall into this trap. If you don’t know whether someone is regulated, if they’re being paid to promote a product, or if they’re oversimplifying something complex, it should be taken as ‘infotainment’ not advice. I’ve had clients come to me armed with TikTok ‘hacks’ that, in reality, could cost them thousands. Bursting their bubble is tough but necessary. Whilst many ‘finfluencers’ build credibility based on clicks, likes and views, advisers are left to re-educate or redirect consumers who’ve fallen foul of superficial and slick social media marketing.