An average of £3,000 was lost by people as a result of financial investment fraud via social media platforms, according to a TSB survey. The warning comes as more people use unregulated advice via tech platforms and artificial intelligence (AI).
The findings also revealed that over half of people who followed financial advice from social media platforms lost an average of £700, with 56% of them losing money.
The 25-34 age group were most likely to act on financial advice on social media and to use AI for advice, according to the survey. Half of this group have done so in the past year, with 27% using it for advice on savings and 18% for investments.
It also found that around half of respondents (49%) said financial content on social media has even made them feel pressured to improve their finances, and 33% have considered changing their financial goals or career aspirations as a result.
Carys Barnes, head of current accounts and savings, at TSB said: “Social media and AI are changing the way people access financial information, making advice more accessible than ever. But not everything shared online is accurate, impartial or designed with your best interests in mind.
“Before acting on financial advice online, always take the time to verify the information using trusted sources – and it further demonstrates the importance of young people having access to financial education.”
UK financial services regulator, the FCA, took enforcement action against 74 “finfluencers” last year, as it continues to target unregulated individuals who use social media to give financial advice. Last year was the second year to see a steep rise in action against finfluencers, who use social media to offer financial advice, often without the necessary credentials.
According to figures from a freedom of information request by BrokerChooser, which matches traders with brokers, there were 74 enforcement actions in 2025 and 27 in 2024. This compares with just 11 in the previous four years combined. Enforcement actions include cease and desist letters, warning alerts, interviews under caution, criminal action and arrests.
Last year, warning alerts accounted for 50 of the 74 total enforcement actions, while there were three cases of criminal action and three arrests. In 2024, there were no warning alerts or arrests, but criminal action was taken in nine cases.
Social media platforms are unintentionally aiding scammers. Last week, the Royal United Services Institute (RUSI) said authorised payment fraud, often engendered through social media, has moved way beyond being a consumer protection issue.
In its latest report, defence and security think tank RUSI said the scam often known as authorised push payments (APP) – which involves victims being tricked into making payments – has “far-reaching consequences for institutional trust, economic stability and the integrity of the global financial system”.
RUSI said global losses from authorised payment fraud are estimated to be £329bn in 2025, with profits for criminals close to levels in the illicit drugs trade. “Fraud-related Interpol notices and alerts have risen by 54% globally since 2024,” added RUSI.
In its Authorised payment fraud: approaches to policy and governance report, RUSI said almost half of the world’s population is estimated to be targeted by a scammer each week: “Meanwhile, scam operations have become increasingly ‘polycriminal’ enterprises, spilling into organised criminality, corruption, human trafficking, cyber crime and even terrorism.”
