As seven ‘finfluencers’ are fined, RSM UK calls for more joined up approach
As the FCA fines seven high-profile social media ‘finfluencers’ today, Erin Sims, Fraud Risk Services Director, RSM UK said: “While social media has opened the door to more accessible financial conversations, it has also created the perfect environment for misinformation to spread at scale. The FCA’s rise in enforcement action shows regulators are stepping up, but the reality is that enforcement alone can’t match the sheer volume and velocity of online financial content.
“A more joined up solution is required - one that combines stronger platform accountability, better digital financial education and continued regulatory intervention. Without this, we risk a growing divide between those who have access to trusted financial guidance and those who are relying on unverified, sometimes dangerous, advice online.
“There is a growing risk that consumers – particularly younger people facing ongoing cost of living pressures – are being drawn into overly simplistic ‘hacks’ or high risk schemes that aren’t properly explained and, in some cases, are outright fraudulent. The fact that so many of these videos are monetised through engagement only increases the incentive to prioritise virality over accuracy.
“Social media platforms have a critical role to play here. They must move beyond reactive content removal and implement proactive, risk based controls that identify unlawful or harmful financial promotions before they reach users. At the same time, consumers need clearer signposting to credible, regulated sources of advice.”