Unverified online financial advice is costing Brits thousands – how to stay safe

More and more people are losing money after taking financial advice from unverified online sources, often without even realising they’re at risk.

A new survey commissioned by Revolut found 41% of Brits have acted on financial advice they found online without checking whether it was legitimate first.

Who’s most at risk?

The research shows younger people are the most vulnerable when it comes to unregulated financial tips.

• 68% of 25-34-year-olds and 58% of 18-24-year-olds admitted to following online financial advice without doing any background checks
• men were also more likely to lose money than women, even though they were more confident in their ability to spot fake advice

In fact, 80% of men said they believed they could tell the difference between credible and non-credible sources. Yet one in four men (25%) reported losing over £1,000 after acting on illegitimate information.

Women, on the other hand, were more cautious:

• 63% said they had never followed advice from an untrusted source
• 59% felt confident they could spot dodgy advice

How much are people losing?

The financial damage can be severe.

• one in five people have lost more than £1,000 by following bad advice
• 4% reported losses of over £5,000

This trend mirrors similar findings from a separate Aqua study, which showed 18% of Brits now use social media for financial advice, almost as many as those who turn to professional financial advisers (21%) or news websites (24%).

With the rise of ‘finfluencers’ and chatbots giving quick money tips, it’s easy to see how people can be tempted. But such tips can come with a hefty price tag.

Why it happens

Many online sources promote high-risk investments like cryptocurrency or forex trading, often promising quick or guaranteed returns. But the problem is, these recommendations aren’t always based on sound financial principles, and the people sharing them may not be qualified or regulated.

Even if someone has thousands of followers, that doesn’t make them a financial expert.

How to protect yourself from bad financial advice

If you’re planning on following financial advice online, these steps can help keep your money safe:

Check for FCA accreditation

Before acting on any advice, check whether the person or company is regulated by the Financial Conduct Authority (FCA).

FCA-regulated professionals must meet minimum standards, so you can be confident their guidance is in your best interest.

You can find out if a financial adviser or firm is authorised on the FCA website.

Do your own research

If an influencer is promoting a certain financial product, don’t rely on their post alone. Look for independent reviews and reputable news coverage before deciding.

Be wary of high-risk investments

If something sounds too good to be true, like guaranteed returns or ‘risk-free’ profits, it probably is.

High-risk investments can wipe out your savings if they go wrong.

Getting professional, regulated advice can help you make informed decisions and avoid costly mistakes.

Check out our guide on getting financial advice to find out more.