Finfluencers, FOMO and Fraud:
The Hidden Risks of Social Media Investment Advice

Barclays’ 2025 research reveals that social media investment advice can be powerful but dangerous. The fear of missing out (FOMO) is real and can be easily manipulated. Combine this with an outwardly confident influencer, and it is easy to see how many individuals can end up losing out financially.

Key findings from Barclays include:

• 24% of investors feel pressured to act quickly on unsolicited advice from social media.
• Among Gen Z investors (18 to 27-year-olds), this figure rises to 48%, with 58% saying they are more likely to follow an influencer who appears wealthy.
• 42% of those who acted on social media investment advice admitted losing money.
• 53% of people do not always check whether online investment content is reliable.
• 56% of investors believe they can spot an untrustworthy influencer, even though many still fall victim.
• The most common ‘red flags’ include promises of ‘get rich quick’ returns (44%), promotion of cryptocurrency or ‘secret’ opportunities (33%), and selling paid-for investment courses (24%).
• 77% recognise that social media advice carries scam risks.
• Claim values from investment scams have doubled, with the typical claim reaching £3,400 in 2025, up from £1,600 in 2023.

Barclays’ Clare Francis noted that, while social media can boost financial confidence, too many investors are “putting themselves at risk in pursuit of aspirational lifestyles – which are often fictional, not reality.”

At TLW Solicitors we have repeatedly highlighted, and the Barclays’ research agrees: if an investment opportunity looks too good to be true, then it probably is.

Here are six key red flags to watch for when scrolling financial content online:

1. Overconfident claims of ‘guaranteed’ returns.
2. Heavy promotion of high-risk or unregulated products, such as cryptocurrency or ‘exclusive’ funds.
3. Time-limited offers accompanied by phrases like ‘don’t miss out’ or ‘act now’.
4. Focus on the influencer’s lifestyle rather than their qualifications or technical knowledge.
5. Lack of disclosure about sponsorships, payments, or regulatory status.
6. Requests for personal or banking details via DMs or unverified links.

There are many reputable sources of financial information online, but remember to:

• Always check credentials: is the person or firm authorised by the financial industry’s watchdog, the Financial Conduct Authority (FCA)?
• Use official tools like the FCA’s ScamSmart Checker and Financial Services Register.
• Take time to properly research before investing, including getting expert advice.
• Never act under pressure.
• Avoid copying other people’s investments, even your own family or friends, as your goals and risk tolerance may differ from theirs.

Reflecting on the research by Barclays, Sarah Spruce, Legal Director at TLW Solicitors, said:

“We see firsthand how quickly social media investment trends can lead to real financial harm. What begins as seemingly harmless advice can end in significant losses, especially when unregulated influencers promote high-risk schemes or misleading opportunities.

The scam team and I at TLW welcome Barclays’ call for greater oversight and investor education, including a possible verification system for financial influencers. However, when harm has already occurred, consumers need more than awareness – they need accountability and redress.

Whether the problem arises from unregulated investment platforms, poor advice, or outright scams, it’s vital that no matter how embarrassed victims might feel about being scammed, they should get early legal help. If you or a loved one has lost out to the ‘finfluencers’, contact our specialist team for a no-obligation and confidential review of your case. We can then explore whether you may be eligible to make a no-win, no-fee compensation claim.”

TLW Solicitors specialises in helping people who have lost money through:

• Mis-sold investments and unsuitable financial advice
• Unregulated investment schemes
• Pension and SIPP mis-selling
• Online and social media investment scams
• Cryptocurrency and FOREX frauds

Our experienced financial mis-selling team can assess your case, gather evidence, and handle the claim process on your behalf. We work on a no-win, no-fee basis for eligible clients and deal directly with financial firms, regulators, and the Financial Ombudsman Service (FOS), the UK’s independent arbitrator of financial disputes.

If you want peace of mind from someone who can explain any financial or legal jargon, give regular updates, and actively pursue your claim, please get in touch with TLW Solicitors.