“Before acting on financial advice online, always take the time to verify the information using trusted sources.”
– Carys Barnes – TSB
New data from TSB, which surveyed 2,000 UK adults, found that 32% of respondents have acted on financial advice from social media platforms in the last year, but almost 6 in 10 regret it.
Of those who had taken online advice, 56% lost money as a result, marginally increasing from the previous year’s figure of 55%, with an average loss of almost £700.
25-34-year-olds were the most likely to have acted on social media financial advice at 49%, with savings (27%) and investment (18%) the most common types of advice acted on by this age group. In contrast, 22% of 45-54-year-olds and 18% of over 55s had acted on social media advice.
Of those who had seen financial advice on social media platforms, 56% said they trusted the content, rising to 72% of 25-34-year-olds. However, 46% said they are unaware of how to check the credentials of someone giving investment advice online.
In the worst-case scenario, this can lead to significant losses, where people lose £3,000 on average per case to investment fraud, according to UK Finance.
TSB also found that one in four respondents have used artificial intelligence (AI) for financial advice, rising to 43% of 25-34-year-olds. However, 51% said they are not confident they can identify AI-generated financial content, suggesting a growing challenge around distinguishing trustworthy financial guidance from misleading or inaccurate online information.
Social media’s influence extends beyond day-to-day money management. 49% said financial content has made them feel pressured to improve their finances, while a third have considered changing their financial goals or career aspirations because of content they have seen online.
The findings come as social media platforms and AI-powered tools continue to transform how consumers discover financial information, which TSB says makes it increasingly important for people to verify advice before making decisions that could affect their financial wellbeing.
Carys Barnes, head of current accounts and savings, TSB, said: “Social media and AI are changing the way people access financial information, making advice more accessible than ever. But not everything shared online is accurate, impartial or designed with your best interests in mind.
“Before acting on financial advice online, always take the time to verify the information using trusted sources – and it further demonstrates the importance of young people having access to financial education.”
