Cyprus financial regulator CySEC has issued the following guide entitled “The Dangers of Social Media and the Finfluencers”.
The regulator stated that TikTok, X (formerly Twitter) and Instagram have become the latest battleground to target potential investors, with an army of finance-focused influencers, known as finfluencers, earning money by touting advice on spending, saving and investing. In recent years, CySEC has seen these finfluencers post misleading information and poor advice, many of them amassing a huge following but with no professional financial advisory qualifications and failing to mention they’re being paid to endorse a particular product. As an indication of the rising popularity of these influencers, a survey by CySEC in 2022 found that nearly one in three (31%) investors had made investment decisions based on recommendations from finfluencers on social media.
This evolving landscape…
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