Are younger investors becoming the new target?
Research suggests they are. Younger adults are now among the groups most likely to experience financial scams1, while UK Finance estimates fraud now costs individuals and businesses around £1.3bn every year.
Many scams no longer rely on obvious warning signs. Instead, they exploit familiarity, urgency and trust. If you’re used to researching online, using apps and making quick financial decisions, you’re exactly the type of person scammers hope to reach.
Is AI making scams more convincing?
AI has transformed the way fraudsters operate. Fake websites can now look almost identical to genuine ones. Emails and text messages are written in fluent English with convincing branding. Voice cloning technology can even imitate someone you know.
Some scams create a false sense of urgency, encouraging you to act immediately before you’ve had time to think. Others appear completely routine, perhaps a message from your bank, an investment platform or a parcel delivery company.
It’s becoming increasingly difficult to tell what’s genuine and what isn’t.
Can you trust financial advice on social media?
Social media has become a popular place to learn about investing and personal finance.
While some creators provide useful educational content, others promote high-risk investments or products that may not be suitable for their followers. The Financial Conduct Authority (FCA) has recently increased its action against illegal finfluencers, working with regulators around the world to tackle misleading financial promotions and protect consumers.
The key question isn’t whether someone has thousands of followers, it’s whether they’re qualified and authorised to provide financial advice.
How can you stay one step ahead?
Most scams succeed because they encourage people to react emotionally rather than think carefully.
Simple habits can make a real difference:
- Take time before making financial decisions
- Be cautious of unexpected messages or investment opportunities
- Double-check websites and payment details
- Verify anyone offering financial advice through the FCA Financial Services Register
- If something feels too good to be true, it probably is
- Seek advice before making significant financial decisions.
Why does professional advice matter?
There’s never been more financial information available, but there’s also never been more misinformation.
Good financial advice isn’t about chasing the latest trend or reacting to social media headlines. It’s about making decisions that are right for your circumstances and your long-term goals. Your financial planner provides something that AI, social media and online influencers can’t – personal advice based on your life, your priorities and your future.
That doesn’t just help you make better financial decisions. It can also help you avoid costly mistakes and reduce your exposure to increasingly sophisticated scams.
Confidence comes from knowing who to trust
Financial scams are evolving rapidly, but so are the ways to protect yourself. Taking a little more time, questioning unexpected opportunities and relying on trusted, regulated advice can go a long way towards protecting your money.
If you’re unsure about an investment opportunity, financial decision or something you’ve seen online, your Finli planner is there to help you separate fact from fiction and make confident decisions for the future.
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The value of investments can go down as well as up, and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
