Riskiest Social Media Platform for Financial Advice: Report

Date:

Share post:


Nearly 80% of young adults say they turn to social media for financial advice. But perhaps they should find another source.

A new report by Social Capital Markets found that 71% of the financial advice consumed by Gen Z and Millennials is misleading, and only 13% of influencers had the relevant qualifications and credentials to advise on finance matters. This past summer in the U.K., for example, several social media influencers were charged with promoting financial schemes to millions of followers.

The study analyzed 2,470 TikTok, YouTube, and Instagram videos and relevant hashtags (#StockTok, #Investing, and #Stocktips), looking for “misleading” posts that have key items, including no disclaimer, encouraging viewers to invest in specific assets, and implying guaranteed returns.

Related: Here’s How Much an Influencer With 21 Million Followers Makes on YouTube, Facebook, and TikTok

Of the videos analyzed, 83% lacked disclaimers and offered “a one-sided view of financial decisions,” per the report. Meanwhile, 57% of stock content implied guaranteed returns.

Social Capital Markets

TikTok, Instagram, and YouTube Had the Most Misleading Posts

According to the report, TikTok was named the No. 1 riskiest platform, with 91% of videos lacking disclaimers and 70% encouraging stock purchases.

Instagram was found to be the second most problematic, with 88% of financial videos lacking disclaimers and 65% encouraging specific stock investments.

YouTube came in as the third platform with the most misleading posts, noted for being “aggressive in pushing specific stock picks,” with 76% of posts failing to include a disclaimer and 75% promoting particular investments.

Related: How to Make TikTok Work for Your Business

Why Was TikTok Deemed the Riskiest Platform for Financial Advice?

In addition to the high number of videos that lacked disclaimers and encouraged stock purchases, the TikTok videos analyzed also had a high percentage (65%) of content that implied guaranteed returns, while 50% encouraged viewers to invest a particular proportion of their income.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related articles

To begin your coverage, make sure you pay your premium

Published on December 21, 2023To start your new 2024 Marketplace coverage, pay the first premium. This is...

Forget The S&P 500 – Here Are 3 Low-Risk, High-Quality Dividend Bargains I Like

Going forward, analysts expect 4% growth in 2024, potentially followed by 11% growth in both 2025...

Part 1 – Financial Crimes

This post is part of a series sponsored by...

12 Common Reasons People Change Careers — and You Can Too

Editor's Note: This story originally appeared on FlexJobs.com.You’re struggling with burnout. The career you once loved is...