FCA Identifies 38 Key Perpetrators in Surge of Financial Scams Targeting Adolescents

CoinWorld reported:
The Financial Conduct Authority (FCA) of the United Kingdom is cautiously interviewing 20 financial influencers. According to the regulatory agency, this action is part of its efforts to combat financial influencers who may be illegally promoting financial products.
In addition, the FCA has issued alerts regarding 38 social media accounts operated by financial influencers, which may contain illegal promotional activities.
Other regulatory agencies, including the Financial Industry Regulatory Authority (FINRA) and the U.S. Securities and Exchange Commission (SEC), have expressed concerns about the influence of social media influencers on investor behavior. The Federal Financial Supervisory Authority of Germany has also provided relevant data indicating concerns about potential risks associated with their influence on the financial market.
Ultimate influencers: Trust and responsibility
The increasing prevalence of scams targeting young people is becoming more and more concerning. Research shows that 62% of individuals aged 18 to 29 pay attention to social media influencers, and 74% of them trust their advice. Nine out of ten young followers have changed their financial behaviors based on this advice.
Steve Smart, Joint Executive Director of Enforcement and Market Oversight at the FCA, stated, “Ultimate influencers are trusted by those who follow them, often young people and potential vulnerable groups who are attracted to their flaunted lifestyles.”
He added, “Ultimate influencers need to scrutinize the products they promote to ensure they are not illegal and do not jeopardize the livelihoods and savings of their followers.”
Update: FINRA and SEC express concerns about social media financial influencers
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–Kohei Kurihara, Joint Privacy