The Financial Conduct Authority (FCA) is interviewing 20 social media influencers under caution, as it launches targeted action against these ‘finfluencers’ who may be pushing financial services products illegally.
The FCA has also issued 38 alerts against social media accounts operated by finfluencers which may contain unlawful promotions.
The FCA said: “Increasing numbers of young people are falling victim to scams, and finfluencers can often play a part.
“Nearly two-thirds (62%) of 18 to 29-year olds follow social media influencers, 74% of those said they trusted their advice and nine in 10 young followers have been encouraged to change their financial behaviour.”
Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: “Finfluencers are trusted by the people who follow them, often young and potentially vulnerable people attracted to the lifestyle they flaunt.
“Finfluencers need to check the products they promote to ensure they are not breaking the law and putting their followers’ livelihoods and life savings at risk.”