Social media can be a useful place to keep up with current trends and share ideas. However, when it comes to your money, it can also expose you to misleading information, unregulated “advice”, and scams.
This has been shown by a recent suspected TikTok scam.
According to FTAdviser, HMRC reported that two men had been arrested in connection with a suspected £153 million tax fraud. The criminals used social media to persuade people to hand over their personal tax details with the promise of quick, “risk-free” cash.
The details were then used to make fraudulent tax repayment claims.
This is an important reminder to always treat financial content on social media with caution.
Continue reading to learn how misleading social media advice could put your wealth at risk and the steps you can take to protect yourself.
Social media scams can make financial fraud feel normal
Scams don’t always start with obvious warning signs. In some cases, they may appear as:
- Short videos
- Adverts
- Direct messages
- Posts from someone claiming to have found a simple way to make money.
The offer might look informal and risk-free while using phrases such as “quick cash”, “tax refund”, or “guaranteed return”.
This can make the scam feel more like a tip from your friend rather than an attempt to access your money or personal information.
In the case of the suspected TikTok scam, HMRC warned that criminals sometimes use social media to trick people into sharing their personal or login details.
They can then use this information to make fraudulent claims in your name.
Importantly, HMRC states that it will never use social media to offer a tax rebate or ask for personal or payment information.
As such, if someone contacts you through social media offering money in exchange for your tax details, you should always treat it as a scam.
Misleading financial advice can also lead to costly mistakes
It’s important to remember that some content on social media may look educational but can still encourage poor financial decisions.
This is often due to so-called financial influencers, or “finfluencers”. These are social media personalities who will discuss financial products, investments, or tax.
While some may be acting responsibly, others might promote products or services without proper qualifications or understanding of your circumstances.
The Financial Conduct Authority (FCA) has been taking action against these influencers. Since April 2026, it has issued 34 warning alerts against unauthorised firms or individuals and requested the removal of 120 social media accounts hosting illegal finfluencer content.
Across these accounts, the FCA identified 1,267 illegal financial adverts that had reached at least 2.3 million UK accounts.
When you’re dealing with an unauthorised firm or individual, there’s a chance an opportunity could simply be a scam.
You may even lose access to protections such as the Financial Ombudsman Service and the Financial Services Compensation Scheme.
It’s vital to keep in mind that general online content isn’t the same as regulated financial advice.
A post may not consider your:
- Goals
- Income
- Tax position
- Family circumstances
- Existing investments
- Attitude to risk.
So, even if the information isn’t fraudulent, it can still be unsuitable for your unique situation.
There are simple ways to protect your money from misleading social media advice
Financial scams and misleading content can be sophisticated, but there are practical steps you can take to reduce the risk of making a mistake. Here are three.
1. Be sceptical about anything that sounds too good to be true
Many scams are built around a sense of urgency or excitement. Indeed, fraudsters may suggest you can make money quickly or access an investment opportunity that only a small number of people know about.
If something sounds too good to be true, it probably is. Some of the common red flags include:
- Promises of quick or guaranteed returns
- Pressure to act immediately
- Claims that the opportunity is free from risk
- Messages from unknown accounts
- Emotional language designed to make you feel excited or worried.
If you feel rushed or pressured, it’s worth taking a step back before you act.
2. Check whether a firm is authorised
Before acting on any financial advice, you should check whether the firm or individual is authorised by the FCA through its “Firm Checker” service.
It’s vital to check the contact details on the FCA register rather than relying on information provided in a social media post or direct message.
This is because scammers will sometimes clone genuine firms using similar names, logos, or websites to appear legitimate.
You can also check the FCA Warning List, which includes unauthorised firms or people that the regulator is aware of.
3. Speak to a financial planner
A financial planner can help you understand whether a decision is suitable for your circumstances and how it fits into your plans.
For example, your Engage Wealth Management planner could help you determine:
- Whether an investment aligns with your goals
- How much risk you would be taking
- If the opportunity is regulated
- Whether there are safer alternativesWhethre there
- If you’re being pressured into acting too quickly.
This second opinion can be invaluable if you’re considering a new opportunity after seeing it online.
Please email us at [email protected] or call 01273 076 587 to find out more.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
