Over half of social media users who followed financial advice online have lost money, but the real scandal is how government regulators and big banks are positioning themselves as saviors—while the platforms and “finfluencers” run wild, unchecked, and unaccountable.
At a Glance
- More than 50% of people who acted on social media financial advice reported losing money, according to TSB’s survey.
- The UK’s Financial Conduct Authority (FCA) has launched an aggressive crackdown on “finfluencers” who promote investments without authorization.
- Despite mounting losses and government action, social media platforms remain slow to remove misleading or illegal content.
- This debacle exposes the risks of trusting unqualified online personalities over traditional financial experts.
Over Half of Social Media Financial Advice Leads to Losses
TSB’s latest research puts a spotlight on a trend that should infuriate anyone with an ounce of common sense: more than half—yes, half—of those who have followed financial advice from social media “finfluencers” have lost money. The average loss sits at a gut-punching £3,706 per case. Young people, the same crowd politicians claim to want to protect, are most at risk. Over 43% said they felt worse about their finances after seeing social media posts flaunting wealth—a predictable outcome when unregulated, self-anointed experts are given a louder megaphone than actual professionals.
Instead of stepping up to demand real accountability, tech giants drag their feet on removing dangerous content, while banks and government regulators posture for the cameras. It’s the usual story: the people pay the price while the platforms rake in advertising dollars and the government promises “action” but delivers little more than press releases.
Regulators Finally Wake Up, But Will It Matter?
After years of watching the problem metastasize, the Financial Conduct Authority and its international partners finally mounted a coordinated “week of action” against illegal financial promotions in June 2025. The FCA made three arrests, launched criminal proceedings, hauled in “finfluencers” for questioning, and issued over 650 takedown requests in a single week. Steve Smart of the FCA thundered, “They must act responsibly and only promote financial products where they are authorised to do so – or face the consequences.” But let’s be honest: this should have happened two years ago, not after financial harm already hit families and retirees.
TSB’s own Surina Somal drove the point home, urging people to verify any financial advice they find online. But why should law-abiding citizens have to double-check everything when the government and social media platforms are supposedly keeping us safe? The answer is as obvious as it is frustrating: Big Tech and government agencies are too slow, too bureaucratic, and too eager to shift blame.
The Real Cost: Trust Destroyed, Families Harmed
The FCA’s crackdown is a start, but the horse has already bolted. Young consumers, who are most likely to take financial advice from social media, are left holding the bag. Over half who acted on that advice lost money. Trust in financial guidance has eroded, anxiety about personal finances is skyrocketing, and the average citizen gets to watch as regulators and banks scramble to patch a hole that responsible governance would have prevented in the first place.
Meanwhile, the platforms—whose algorithms shove this garbage advice in front of vulnerable users—face little more than a slap on the wrist. Finfluencers, many with no qualifications, are still only a click away, and the cycle of hype, loss, and hollow “protection” continues.
Who Wins? Not the Public
Let’s call this what it is: a perfect storm of government overpromise and private sector underperformance. The FCA hammers out press releases, banks commission surveys, and tech companies keep cashing in. The young and the vulnerable lose their savings. The so-called experts who pushed meme stocks and crypto pipe dreams have done more harm than a generation of Wall Street sharks. The government’s new Online Safety Act and its latest “crackdown” sound tough, but anyone who’s watched bureaucracy in action knows that by the time the dust settles, another scam will be trending and another group of families will be digging out from under financial ruin.
If you want to protect your family, be skeptical of any “advice” that comes with a hashtag and a selfie. The only thing more dangerous than a finfluencer with a hot tip is a regulator with a press conference and no real plan.
