Finance in the age of AI and social media: 4 reasons to be sceptical of online advice
In the 20th century, the internet brought us into the “Information Age”. Knowledge became digitalised, connected, and accessible.
Fast forward to 2026, and reliable information isn’t always so easy to identify. In fact, with social media and AI tools making it more difficult than ever to discern fact from fiction, some might say we’re now in the age of misinformation.
When you’re looking for financial tips and guidance, false information or ill-intentioned advice can be dangerous. Indeed, research by TSB found that 55% of people who have acted on financial advice from social media have lost money as a result.
Read on to learn four reasons you should always question the validity of online financial advice and how you can help keep your finances safe from misinformation.
1. Social media influencers may not be qualified to give advice
Giving someone advice about their money is a huge responsibility.
Unlike financial planners, finance influencers (or “finfluencers”) do not need any qualifications to offer advice. Yet, TSB found that 31% of people surveyed had acted on financial advice from social media.
Anyone can set up a social media account and start sharing financial tips and tricks. In some cases, finfluencers may have outdated or irrelevant qualifications. In others, they may have no qualifications or experience (outside of their personal finances) at all.
Ultimately, many finfluencers look and sound the part but lack the training and accreditations to offer reliable financial advice. By contrast, financial planners must achieve Level 4 or above of the Qualifications and Credit Framework, as well as maintain a Statement of Professional Standing (SPS) through at least 35 hours’ training a year.
2. Finfluencers and AI tools are generally unregulated by the Financial Conduct Authority
Not only are many social media influencers unqualified, but they are also often unregulated.
Financial planners must adhere to the strict regulations laid out by the Financial Conduct Authority (FCA). These help ensure recommendations are fair, clear, and suitable for the consumer – with planners acting in clients’ best interests, rather than their own.
What’s more, financial planners sign a code of ethics as part of their SPS, helping to ensure they offer guidance with integrity.
Finfluencers, however, are usually bound by no such rules or ethical frameworks and are generally not held accountable if someone acts on their bad advice.
Similarly, AI tools are not typically covered by financial regulations. Platforms such as ChatGPT, Gemini, and others may draw information from regulated sources (such as a financial planner’s website), but they are not accountable if they misrepresent information in their outputs.
What’s more, some AI tools draw from unregulated sources, such as Reddit or personal blogs, making it difficult to discern credible information from online opinion. In some cases, AI can even “hallucinate” information, filling in the gaps of what’s available online with assumptions and falsehoods.
3. Recommendations may be fraudulent or motivated by a conflict of interest
In one way or another, most finfluencers offer advice for personal gain. Of course, their earning a profit isn’t necessarily a problem. It’s how they earn it that may be questionable.
For example, some finfluencers may:
- Have a stake in the products or investments they’re promoting
- Hope to drive online engagement by making unachievable guarantees
- Upsell a guide by baiting their audience with exaggerated claims.
Some finfluencers may promote investment opportunities that are actually fraudulent. TSB found that over two-thirds of investment fraud cases stem from social media.
Often, finfluencers promise exceptional returns, sometimes pointing to their own supposedly luxurious lifestyle as evidence of their credibility. In one case earlier this year, the FCA reported that seven social media influencers had pleaded guilty to issuing unauthorised financial promotions.
The advancement of AI has made identifying fraudulent opportunities even more difficult. Scammers can now use “deepfake” technology to impersonate sources you trust. For example, scammers used a deepfake of financial journalist Martin Lewis to defraud one investor out of £76,000, as BBC News reports.
4. Advice isn’t tailored to your circumstances and goals
Finances are deeply personal. What works for one person might not be suitable for another. So, even if the advice you find online comes from a qualified, regulated individual with honest intentions, that doesn’t necessarily mean it’s right for you.
Good financial planners will usually invest a lot of time in getting to know their clients’ needs, preferences, goals, concerns, and risk appetite. This enables us to define a financial plan perfectly suited to you.
Advice found on social media or through AI is usually generic. Recommendations can vary from basic (such as “invest more” or “spend less”) to hugely exaggerated promises and guaranteed outcomes. In either case, the suggestions are unlikely to be tailored to you.
5 questions to avoid falling foul of online advice
Even without seeking it out, you may come across financial advice on social media. TSB’s survey found that 83% had seen financial advice on social media, without searching for it.
If you do see some tips or opportunities that pique your interest, asking yourself these questions can help you avoid falling foul of bad advice:
- “Who has posted this advice?” You might look for signs that they are qualified, regulated, and experienced in UK financial services.
- “How are they profiting from this content?” For example, could they have a conflict of interest?
- “Have I verified this opportunity?” Before acting on any advice, be sure to consult with your financial planner to check that the opportunity is legitimate.
- “Does this sound too good to be true?” Remember, promises of quick wins or exceptional outcomes are very rarely what they seem.
- “Is this right for me?” There could be multiple reasons the advice is unsuitable. A financial planner can help you determine if it meets your needs.
If in doubt, you’re welcome to reach out to our team for support. Our financial planners are proud to be fully qualified, regulated, and committed to supporting our clients in building towards their goals.
Get in touch
To find out more about how we can help you, get in touch.
- Marnel Stafford: email Marnel.Stafford@fosterdenovo.com or call 07305 970959
- Ryan Edwards: email Ryan.Edwards@fosterdenovo.com or call 07591 758136
Alternatively, you can call our office on 0207 469 2800.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
