Research by TSB reveals that of the 31 percent of people who have acted on financial advice on social media platforms – over half (55%)1 lost money as a result.

Following the FCA’s ongoing focus on finfluencers, TSB surveyed almost 2,000 people who use social media as part of the bank's ongoing focus on keeping customers' money safe online.

TSB found that over two-fifths (42%) of 16-24-year-olds reported having used social media to access financial advice in the past 12 months, followed by 37 percent of 25-34-year-olds - and this declines to 11 percent for over 55s.

Acting on financial advice & levels of trust

Of those that had seen financial advice on social media platforms, over half (53%)2 trusted the content - with 25-34-year-olds the most trusting (70%), followed by 62 percent of 16-24s, and just over a quarter (27%) of over 55s.

In addition, over four fifths (83%) have seen financial advice content on social media that they weren’t searching for. 

Just over half (51%) of respondents said they had either acted on advice or planned to do so3 - with 25-34s the most likely to act or have acted (73%), compared to just over a quarter (27%) of over 55s.

Alarmingly, over half (55%) of those who acted on advice lost money as a result.

Investment opportunities

TSB found that nine in 10 (90%) had seen an investment opportunity on social media, and over two-fifths (43%) would consider investing as a result. 25-34-year olds were the most likely to invest (69%), followed by 16-24s (68%) - and just 18 percent of over 55s.

However, over two-fifths (42%) said they did not know how to check the credibility or credentials of online content.

TSB’s internal customer data shows that over two-thirds (67%)4 of push payment investment fraud cases stem from social media platforms, which account for 71% percent of all investment fraud losses - at an average loss of £3,706 per case.

Almost two-fifths (36%) of these social media cases started on Facebook, followed by TikTok (17%), Telegram (17%), Instagram (14%) and WhatsApp (14%). However, Facebook and WhatsApp accounted for by far the biggest losses at 36 percent, and 35 percent respectively.

Lifestyle

Polling also revealed that over two-fifths (43%)5 felt worse about their finances after seeing posts about wealth on social media. 16-24-year-olds felt the worst (67%), followed by 25-34s (61%) - and this reduced to just over a fifth (22%) of over 55s.  

Over half (53%) of 25-34-year-olds felt compelled to take out a product, or invest as a result; followed by almost half (49%) of 16-24s. Just 13 percent of over 55s felt the need to change behaviours and act.

Surina Somal, Director of Everyday Banking, TSB, said:

“While there could be useful sources of financial advice on social media platforms; there are also pitfalls through incorrect information and unregulated investments that could derail your finances.

"While it’s great that so many people are clearly seeking out financial advice, it’s important that you verify the content first to ensure you’re making safe and informed choices for your financial life ahead.”