Scammers and finfluencers!

“Finfluencers” are social media influencers who share financial information and advice online; these days, they’re taking social media by storm with their clickbait headlines, easy-to-understand messages, and promises of quick wealth. But because finfluencers aren’t regulated, it means they can say whatever they want about any topic – from buy-to-let to Bitcoin – without any consequences. Some may even be scammers. As a potential investor, what do you need to be aware of when you see finfluencer content?  Peter Williamson of Avrio Wealth has three pieces of advice.

#1 Approach finfluencers with caution

Popularity does not equal success, so approach personalities with a healthy degree of skepticism. Just because a video has 100,000 or a million views does not mean it is advice worth following. If there are videos you think are valid or interesting, use them as a jumping-off point to do your own research.

#2 Get the full social media picture

If someone tells you they made 50% on a bitcoin investment in the last month, that may well be true. But it is also the case that the price of cryptocurrency has dropped by almost a third in the last four months.

As with any investment, it’s important to have all the information at hand in order to make sound decisions, especially when someone may suggest that they have a sure-fire way to make money quickly. It may not be that finfluencers are trying to deceive you, simply that there is not enough space in the video to tell the full story — or they don’t have all the information themselves.

#3 Ensure they’re not scammers

At a time when cyber fraud is a daily fact of life, scammers proliferate on social media. In 2019, Action Fraud said that more than £3m had been lost in 356 fraudulent “get rich quick” schemes on Instagram over a five-month period, with most of the victims aged between 20 and 30. Scammers promised high returns within hours of investing.

Being aware of the issues surrounding finfluencers makes you a savvier investor. Their promises of getting rich quick can be exciting but highly risky; however, earning returns more slowly, over time with considered investments, can truly transform your life.

Set up an online consultation for more solid financial information and to work out a long-term solution.

Brought to you by Avrio Wealth Pte Ltd
9 Battery Road, #28-01
9277 3442 | avriowealth.com
Email Peter on pwilliamson@avriowealth.com

Rebecca Bisset

Heading up Expat Living, Rebecca started off in photography and video. A bit of a nomad before Singapore, she likes to travel when she can but she finds looking at properties as exciting! One day she's going to build her own house...