Brits swindled out of thousands by unregulated online financial advice
People have lost thousands of pounds after acting on advice from online unverified sources, despite industry figures warning that their guidance can be misleading or incorrect.
Over 40 per cent of Brits admitted to taking advice from online sources, including ‘finfluencers’ and chatbots, without first verifying its legitimacy, according to the latest data from fintech Revolut.
Young people were discovered to be most at risk of falling victim to unregulated advice, with nearly 70 per cent of 25 to 34 year olds and 58 per cent 18-24 year olds confirming they took advice without fact checking the provided information.
This caused one in five to lose over £1,000, while a further 4 per cent lost a staggering £5,000 to unregulated sources.
Young people have been increasingly turning to the internet to get financial tips, particularly on investments, as the government urges more Brits to begin retail investing.
However, many are unable to access credible sources to get advice on how best to do so, citing it as inaccessible, expensive and overly complex.
Men more likely to lose money than women
A clear gender gap was also uncovered, with men more likely to lose money, despite expressing confidence that they could spot credible tips.
Eight in ten men said they were sure that they could recognise the difference between verified and unverified sources. But a quarter of men surveyed had lost over £1,000 as a result of taking on illegitimate information.
On the other hand, women were more cautious, with 63 per cent confirming they had never followed advice from sources they did not trust, with 59 per cent feeling confident that they could also spot it.
Yana Shkrebenkova, head of wealth and trading UK at Revolut, said: “It’s apparent that the internet has democratised access to financial information, but not necessarily financial wisdom.
“Too many people mistake confidence for credibility, and slick social media posts for sound investment advice, blurring the line between insight and influence.
“Sound financial decisions should be grounded in education and research, and advice should come with credentials not hashtags.”