Over half of people who have acted on social media financial advice have lost money
0
Following the FCA's ongoing focus on finfluencers, TSB surveyed almost 2,000 people who use social media, finding that nine in 10 (90%) had seen an investment opportunity on social media, and over two-fifths (43%) would consider investing as a result.
Over half trusted the content and said they had either acted on advice or planned to do so - with 25-34s the most likely to act or have acted (73%), compared to just over a quarter (27%) of over 55s.
However, over two-fifths (42%) said they did not know how to check the credibility or credentials of online content.
As a consequence, over half (55%) of those who acted on advice lost money as a result.
TSB's internal customer data shows that over two-thirds (67%) of push payment investment fraud cases stem from social media platforms, which account for 71% percent of all investment fraud losses - at an average loss of £3,706 per case.
Almost two-fifths (36%) of these social media cases started on Facebook, followed by TikTok (17%), Telegram (17%), Instagram (14%) and WhatsApp (14%). However, Facebook and WhatsApp accounted for by far the biggest losses at 36 percent, and 35 percent respectively.
Surina Somal, director of everyday banking, TSB, says: 'While there could be useful sources of financial advice on social media platforms; there are also pitfalls through incorrect information and unregulated investments that could derail your finances.
The Financial Conduct Authority is calling on politicians to draft legislation to crackdown on Big Tech and finfluencers who promote unauthorised financial schemes.
Speaking at a Treasury Select Committee inquiry into the role of finfluencers in financial markets in May, Steve Smart, director of enforcement and Lucy Catledine, director of consumer investments at the FCA, lamented the failure of Big Tech firms to keep track of bad actors promoting unsuitable investments on their social media site.
Castledine said many finfluencers continued to operate even after the FCA requestesd that a social media account be closed down by simply switching to another acount.
Under current laws, social media influencers found guilty of acting illegally face up to two years in prison.
The FCA believes that this is an insufficent deterrent and is calling for legislation to be amended to extend the maximum term to five years.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Guardian
an hour ago
- The Guardian
Von der Leyen ducks Trump's trade blitz – but deal exposes EU's faultlines
There is no doubt that Ursula von der Leyen was under intense pressure on Sunday when she sat next to Donald Trump in the ballroom at his Turnberry golf course before what EU officials knew would be a gruelling round of trade talks. As the European Commission president emerged less than an hour later to announce that the worst of Trump's tariff threats had been avoided, the recriminations from inside the EU began almost immediately. Under the deal agreed in Scotland, an economically devastating trade war has been prevented. Still, European leaders are eyeing up the cost to the bloc from being locked in to tariffs of 15% on most EU exports to the US, when they had previously averaged 4.8%. French and German leaders, following in the footsteps of Hungary's prime minister, Viktor Orbán, focused on this outcome, rather than the potential damage that could have been inflicted by a US president with an intense dislike for the EU. The French prime minister, François Bayrou, was among leaders who thought Trump's threatened 30% rate could at least be lowered to match the 10% tariff deal secured by the UK. He said the EU had capitulated and described Sunday as a 'dark day'. The irony of one leader beset by factional warring berating another for failing to present a united front to the US was lost on Bayrou. There were many in Brussels who thought he might have taken a more emollient tone given that parliamentary infighting has prevented him from passing a long-delayed budget bill. And especially when Paris is often the cause of friction inside the EU's Brussels headquarters. On this occasion, Bayrou objected to the EU threat of tariffs on US bourbon, fearing that French wine and brandy producers might be caught in the crossfire. Some insiders asked how the commission president could go nose-to-nose with Trump when the EU was, and remains, divided, with member states seeking carve-outs for their own vulnerable industries. Von der Leyen can also say that most of the trade concessions, including a commitment to buy a large quantity of gas from US producers, matter little when the purchases were likely to be made anyway. She is also hopeful that the deal can circumvent Trump's obsession with the US pharmaceutical industry. The sector has been left out of all trade deals so far, which means no one yet knows what US tariffs on pharmaceutical imports will be. Ireland is especially fearful after accumulating much of the US offshore pharma industry in County Cork. Brussels is hopeful that 15% will also be the tariff on EU-based pharma exports to the US. David Henig, the director of the UK trade policy project at the European Centre for International Political Economy, said the result of Trump's actions would probably hit trade and economic growth on both sides of the Atlantic, but only marginally. 'Nobody wins, there are unlikely to be big trade shifts, but the world keeps turning,' he said. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion HSBC economists said the 15% tariff would be offset by a reduction in uncertainty hitting businesses that had been weighing heavily on trade, leaving the EU to face 'a fairly marginal impact'. There is also much left to negotiate on a deal, which at present is more like an impressionist painting than a clearcut photograph. As the summer turns to autumn, von der Leyen must hope the German chancellor, Friedrich Merz, and Italy's prime minister, Giorgia Meloni, refuse to join Bayrou in criticising the deal for fear of handing Trump even more negotiating power in the detailed phase. The obvious weakness in the EU's negotiating position may have the opposite effect by encouraging more leaders to consider changes put forward by the former Italian prime minister and European Central Bank chief, Mario Draghi, who estimated that internal trade barriers within the bloc amount to almost 50% on goods and 110% on services. Draghi's call for a collective endeavour on both investment and regulation is the best blueprint for leaders who know that pursuing sectional national interests is economically and socially illiterate. The problem is that von der Leyen's trade fudge – minimising the impact of Trump's threats – will allow the EU to continue muddling through, and leave Draghi's report to gather more dust.
Reuters
an hour ago
- Reuters
Euro under pressure as US-EU trade deal fails to impress
SINGAPORE, July 29 (Reuters) - The euro struggled to recoup its steep losses on Tuesday as investors sobered up to the fact that terms of the trade deal between the U.S. and the European Union favoured the former and hardly lifted the economic outlook of the bloc. France, on Monday, called the framework trade agreement a "dark day" for Europe, saying the bloc had caved in to U.S. President Donald Trump with an unbalanced deal that slapped a headline 15% tariff on EU goods. German Chancellor Friedrich Merz said his economy would suffer "significant" damage due to the agreed tariffs. The euro slid 1.3% in the previous session, its sharpest one-day percentage fall in over two months, on worries about growth and as euro-area government bond yields fell. The common currency last traded 0.07% higher at $1.1594. "It hasn't taken long for markets to conclude that this relatively good news is still, in absolute terms, bad news as far as the near term implications for euro zone growth are concerned," said Ray Attrill, head of FX research at National Australia Bank. "The deal has been roundly condemned by France while others - including German Chancellor Merz, are playing up the negative consequences for exporters, and with that, economic growth." The slide in the euro in turn boosted the dollar, which jumped 1% against a basket of currencies overnight. The dollar held on to gains on Tuesday and knocked sterling to a two-month low of $1.3349. The yen edged marginally higher to 148.49 per dollar. The dollar index steadied at 98.67. "While the U.S. dollar's strength... may reflect the perception that the new U.S.-EU deal is lopsided in favour of the U.S., the U.S. dollar's strength may also reflect a feeling that the U.S. is re-engaging with the EU and with its major allies," said Thierry Wizman, global FX and rates strategist at Macquarie Group. Still, Trump said on Monday most trading partners that do not negotiate separate trade deals would soon face tariffs of 15% to 20% on their exports to the United States, well above the broad 10% tariff he set in April. Elsewhere, the Australian dollar eased 0.05% to $0.6518, while the New Zealand dollar was little changed at $0.5972. The offshore yuan was little changed at 7.1813 per dollar. Top U.S. and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving long-standing economic disputes at the centre of a trade war between the world's top two economies, seeking to extend a truce by three months. Apart from trade negotiations, focus this week is also on rate decisions from the Federal Reserve and the Bank of Japan (BOJ). Both central banks are expected to stand pat on rates, but traders will watch subsequent comments to gauge the timing of their next moves.
Daily Mail
2 hours ago
- Daily Mail
Southport, one year on: Seaside town still in mourning readies itself for an 'emotional day' as the first anniversary of horror killing spree that left three girls dead, families torn apart and all of Britain in shock arrives
Exactly a year ago sadistic Southport murderer Axel Rudakubana savaged children at a Taylor Swift-themed summer holiday dance class. Bebe King, six, Elsie Dot Stancombe, seven, and Alice da Silva Aguiar, nine, all died and eight more children aged between seven and 13 suffered knife wounds, as did dance teacher Leanne Lucas while trying to protect the children. To remember the devastating day, the Merseyside town will hold a three-minute silence and lower flags on public buildings. But the families of the three girls who were murdered have asked for no flowers to be left at schools or the scene of the killings and for no vigils or large public gatherings. To respect their wishes, public bodies will not call the day an anniversary. Patrick Hurley, the MP for Southport told The Guardian it would be a 'really emotional day' for the town which bore the 'long-lasting detrimental psychological and emotional impact of the attack.' He added: 'We know that what happened in July last year is always going to be a part of the town's history but there's so much more than that. 'It's a day to remember the girls who were killed and it's a day to remember the response of the community when everybody came out and supported everbody else.' In an attack that prosecutors described as a 'meticulously-planned rampage' the knife-wielding maniac knifed as many children as he could within 12 minutes. Businessman John Hayes, who rushed to the scene from his office nearby and attempted to overpower Rudakubana, was also stabbed. Others nearby who heard screams also hurried to the scene and police arrived, bringing the horrific incident to an end. One of the officers who was called was Sergeant Greg Gillespie. Describing his experience of the traumatic, he told the BBC about the 'fear' he saw in people's faces - even recalling seeing a little girl he thought to be dead. He said: 'I don't think there's any amount of training or experience that can quite prepare you to deal with something like that or to process it. 'Everyone now knows the sequence of events that occurred that day - that wasn't known to us at the time.' He added that all they knew was that a child had been stabbed and 'the offender was in the building.' Sergeant Gillespie, alongside PC Luke Holden and PCSO Timothy Parry all arrived at the scene but without any understanding of the scale of the stabbing. Sergeant Gillespie and PC Holden entered the building 'shoulder to shoulder' and were immediately faced with 17-year-old Rudakubana, who 'showed' them the blood-stained knife. All three officers were recognised at the Police Federation of England and Wales 2025 bravery awards. PC Holden told the BBC: 'My hyper-vigilance increased 1,000% and I was wary of everyone in every situation. 'You start thinking worst case of every situation you deal with. All the officers said the attack changed their lives. Rudakubana was given a life sentence, with a minimum term of 52 years - one of the highest on record - after pleading guilty to the three murders and 10 attempted murders, plus other offences, including making the deadly toxin ricin, in January. Police intelligence officers are monitoring social media to look for any attempts to stir up disorder in or around Southport this week. They want to prevent a repeat of the anti-immigration riots that spread across England after the attack last summer. Meanwhile, Southport's town hall gardens are set to undergo a £10million renovation to commemorate the girls. Their families said they hoped the new square and community space would serve as 'a legacy inspired by our three beautiful amazing girls'. There is currently an inquiry investigating how various agencies, including the police, the courts, the NHS and social services, failed to spot the risk posed by Rudakubana, 18, in the run-up to the attack. Rudakubana had been referred to Prevent, the Government's counter-terror programme, three times but his case was closed prematurely because he did not have a clear political or religious motivation. He had also been caught repeatedly with a knife. Home Secretary Yvette Cooper told MPs that a review of his contact with the programme found he had 'admitted to having carried a knife more than ten times, yet the action against him was far too weak'. She said he was referred to Prevent repeatedly because he was 'expressing interest in school shootings, the London Bridge attack, the IRA, MI5 and the Middle East'. Tablet computers at his home showed he downloaded papers on historical violence by the Nazis, Genghis Khan and even relatively obscure conflicts in French colonies during the 17th century – plus footage of beheadings and torture. As well as the digital discoveries, a machete and scabbard, a set of arrows and a black holdall were found in Rudakubana's bedroom at the family home in Banks, Lancashire, a village five miles north of Southport. The Prevent review, conducted since the summer, has concluded that 'too much weight was placed on the absence of ideology' and that his case 'should not have been closed' by counter-terror police who were assessing whether he posed a threat. On the second day of the hearings, a series of moving impact statements from the parents of four of the girls who attended the holiday club, at the Hart Space, in the Merseyside seaside town, were read to a hushed council chamber at Liverpool Town Hall. Sir Adrian said Rudakubana perpetrated 'an almost unimaginable but nonetheless mercilessly calculated' killing spree at the Taylor Swift-themed dance club. The retired judge described the attack as 'one of the most egregious crimes in our country's history.' Sir Adrian said it was 'truly critical' that the inquiry secured answers for the families of Rudakubana's victims and made recommendations to prevent anything similar happening in the future. The hearings will examine why several agencies, including the police, the courts, the NHS and social services, who all had contact with Rudukabana, failed to identify the risk he posed. It will also investigate whether the attack could or should have been prevented. Sir Adrian said that one consideration for the inquiry would be whether courts should be allowed to impose restrictions on people suspected of planning serious violent offences, even if they have not committed any crime. It will look into whether measures, such as imposing curfews, electronic tags, internet bans or restrictions on social media use should be available in such circumstances. Sir Adrian said the inquiry will examine whether Prevent needs to be overhauled to address those drawn into extreme violence without a clear 'religious or political cause.' The chairman said there appeared to be several 'undisputed and troubling facts' that already suggested Rudakubana's attack was far from being 'an unforeseeable catastrophic event.' By July last year, he had been on the radar of various State agencies for several years, had a 'known predilection for knife crime' and posed a 'very serious and significant risk of violent harm,' Sir Adrian said. 'Furthermore, his ability, unhindered, to access gravely violent material on the internet, to order knives online at a young age, and then to leave home unsupervised to commit the present attack, speaks to a wholesale and general failure to intervene effectively, or indeed at all, to address the risks that he posed,' he added. Police discovered a sinister arsenal of weapons, including a bow and arrow, two machetes, two large kitchen knives, a sledgehammer, materials to make Molotov cocktail explosives and ingredients to make the deadly toxin ricin, at Rudakubana's home following the attack. The widespread rioting and civil unrest following the murders is not being examined by the inquiry. The hearings have been adjourned until September, when statements from the remaining relatives of victims and survivors are expected to continue.
