A recent survey conducted by British bank TSB finds that a large proportion of adults who followed financial advice found on social media experienced losses. Nearly one third of respondents (32 percent) said they had acted on financial tips from social-media platforms in the past 12 months. Of those who acted, 56 percent reported losing money, with an average loss of £690.46 (the article notes an approximate equivalent of £690.46 as about HUF 292,000).
A significant share later regretted their decision: 59 percent of those affected said they regretted acting on the social-media advice.
Age groups and trust
The most affected age group was 25–34-year-olds: 49 percent of people in this cohort had followed financial advice originating from social media. Within this group, savings (27 percent) and investments (18 percent) were the most impacted areas. By comparison, 22 percent of 45–54-year-olds and 18 percent of those aged over 55 reported acting on such advice.
Trust in online content was notable: among respondents who encountered financial advice on social media, 56 percent trusted the content’s authenticity. That trust rose to 72 percent in the 25–34 age group.
Artificial intelligence in financial advice
The TSB survey also examined the role of artificial intelligence (AI). Twenty-five percent of respondents said they had used AI for financial advice, and this rate reached 43 percent among younger adults. At the same time, 51 percent of respondents did not feel confident they could recognise AI-generated financial content.
TSB commented that the findings highlight how difficult it can be to distinguish reliable financial guidance from misleading or inaccurate online material, and they underscore the need for improved financial education among young people.
The information in this article is based on the TSB bank survey and reporting by FT Adviser. The cover image is illustrative.
