A FINRA report finds most 18-34-year-olds make investment decisions based on social media, increasing fraud exposure risks.
A Financial Industry Regulatory Authority report reveals 61% of social media users aged 18 to 34 have made investment decisions based on advice from online personalities. These investors also report higher fraud exposure and victimization rates compared to others.
The report highlights misleading claims, such as expectations of 20% annual stock market returns, despite long-term averages closer to 10%. Social Security advice on platforms often misrepresents benefit reductions, with some posts inaccurately stating a fixed $500 monthly loss for early claims.
FINRA warns that much of the financial guidance on social media lacks credibility and may lead to poor financial outcomes for inexperienced investors.