Nearly 3 in 4 Posts on Social Media With Financial Advice Are 'Misleading,' According to a New Report

Nearly 80% of young adults opportunity they move to societal media for financial advice. But possibly they should find different source.

A caller report by Social Capital Markets recovered that 71% of the financial proposal consumed by Gen Z and Millennials is misleading, and only 13% of influencers had the applicable qualifications and credentials to counsel connected finance matters. This past summertime successful the U.K., for example, several societal media influencers were charged pinch promoting financial schemes to millions of followers.

The study analyzed 2,470 TikTok, YouTube, and Instagram videos and applicable hashtags (#StockTok, #Investing, and #Stocktips), looking for "misleading" posts that person cardinal items, including nary disclaimer, encouraging viewers to put successful circumstantial assets, and implying guaranteed returns.

Related: Here's How Much an Influencer With 21 Million Followers Makes connected YouTube, Facebook, and TikTok

Of the videos analyzed, 83% lacked disclaimers and offered "a one-sided position of financial decisions," per the report. Meanwhile, 57% of banal contented implied guaranteed returns.

Social Capital Markets

TikTok, Instagram, and YouTube Had the Most Misleading Posts

According to the report, TikTok was named the No. 1 riskiest platform, pinch 91% of videos lacking disclaimers and 70% encouraging banal purchases.

Instagram was recovered to beryllium the 2nd astir problematic, pinch 88% of financial videos lacking disclaimers and 65% encouraging circumstantial banal investments.

YouTube came successful arsenic the 3rd level pinch the astir misleading posts, noted for being "aggressive successful pushing circumstantial banal picks," pinch 76% of posts failing to see a disclaimer and 75% promoting peculiar investments.

Related: How to Make TikTok Work for Your Business

Why Was TikTok Deemed the Riskiest Platform for Financial Advice?

In summation to the precocious number of videos that lacked disclaimers and encouraged banal purchases, the TikTok videos analyzed besides had a precocious percent (65%) of contented that implied guaranteed returns, while 50% encouraged viewers to put a peculiar proportionality of their income.