The latest findings are in line with a recent survey by the Financial Conduct Authority (FCA), the City watchdog, which found that one in six investors used social media to either research investment, find new opportunities or get updates on existing investments – rising to half of all investors aged 18 to 24.
The FCA has launched a fresh crackdown on finfluencers, having previously issued guidance for influencers advertising financial products using memes, short videos, and gaming streams. It warned influencers that promoting a financial product without regulatory approval could be a criminal offence.
Sarah Coles, head of personal finance at investment platform Hargreaves Lansdown, said: “Crypto and other investment fraud is on the march, as fraudsters see the opportunity to fleece their victims of thousands of pounds. The criminals are using increasingly sophisticated approaches, including the emergence of deep fakes.
“Investment scams come in a number of guises, but they essentially involve the victim being convinced to hand their money over, in the belief it will be invested in a clever scheme to make them rich without risk.
“Criminals can use any asset to draw people in – including gold, property, cryptocurrency, carbon credits, land banks, wine, or lesser-known shares. In reality, these investments are not what they seem. Some are worthless, some are enormously risky, and some never existed at all.”
