Do you follow someone on Instagram or TikTok who gives you investing tips? Maybe they explain how to build wealth with $100, or which stocks to buy, or how crypto will make you rich. If you nodded yes, you’re not alone — and you’re probably making financial decisions based on advice from someone who isn’t qualified to give it.
More than half of people say they’ve made regrettable financial decisions based on misleading online information. That casual scroll through your feed might be costing you thousands.
Your Finfluencer Probably Isn’t a Financial Expert
While older generations turn to financial advisers, younger Americans increasingly rely on social media feeds for investment guidance. The problem starts here: anyone can call themselves a “money coach,” “wealth mentor,” or “finance expert” because none of these titles require licensing or oversight.
A 2025 study from CFA Institute surveyed 1,615 retail investors and reviewed 51 Indian finfluencers. Only 2% of influencers are SEBI-registered, yet 33% provide explicit stock recommendations. Even worse, 63% of influencers fail to adequately disclose sponsorships or financial affiliations. The person telling you what to buy is probably being paid to say it.
The Wrong People Have the Biggest Followings
A 2025 Swiss Finance Institute study discovered something counterintuitive: unskilled finfluencers typically have larger followings than skilled ones. The most popular finance creators aren’t the most knowledgeable — they’re just better at social media.
Georgia Tech researchers analyzed hundreds of YouTube videos from financial influencers and found something stunning: doing the opposite of what finfluencers recommend beat the S&P 500 by 6.8% annually. The “inverse strategy” of selling when they said buy outperformed simply following their advice.
Older Adults Are More Vulnerable
You might assume Gen Z falls for bad advice more easily, but over 8% of followers reported being duped by finfluencer advice, with those over 40 at higher risk — 14% reported being misled or experiencing fraud. Someone who would never trust a cold call might follow a polished TikTok account without questioning credentials.
When Kardashians Sell You Crypto
Remember when Kim Kardashian posted about EthereumMax tokens to her 225 million Instagram followers? The SEC fined her $1.26 million for failing to disclose she was paid $250,000 for that single post. The token she promoted has fallen more than 99% since its May 2021 peak.
This wasn’t isolated. The SEC has pursued multiple celebrities — Floyd Mayweather, DJ Khaled, Paul Pierce — for similar violations. But how many followers lost money before the settlements?
They’re Rewarded for Clicks, Not Accuracy
Social media rewards simplicity and speed, not nuance, explained financial influencer Tori Dunlap. Financial decisions are rarely universal, yet advice gets presented as one-size-fits-all because that’s what performs well algorithmically. Finfluencers make money through affiliate commissions, sponsorships, and view counts — your investment outcome doesn’t affect their paycheck, but your click does.
Red Flags Your Finance Account Is Sketchy
Watch for unrealistic promises like “Turn $500 into $50,000 in a year” — these are highly improbable and may indicate scams. Pressure tactics that push you to act immediately or play on fear of missing out are warning signs. If they’re constantly showing off luxury cars, watches, or cash, that’s about generating views, not offering sound advice.
What This Means for Your Money
The Financial Conduct Authority reports that 74% of young adults trust influencer advice and nine in ten changed their financial behavior based on influencer recommendations. That’s millions making consequential money decisions based on unqualified strangers.
Certified financial planners undergo extensive training, pass rigorous exams, and face professional consequences for bad advice. Finfluencers face none of these requirements. They can delete a bad take and move on while you’re stuck with the losses.
Before you buy that stock or follow that “wealth-building strategy,” ask yourself: would you hire this person as your actual financial adviser? If the answer is no, why are you taking their advice for free on social media?