Unauthorised crypto influencers exploit cost of living crisis

The UK’s financial watchdog is warning of the dangers of unregulated financial advice amid the cost of living crunch.

The Financial Conduct Authority (FCA) has become concerned over increasing volumes of trading and promotional material being targeted at householders, with chief of the regulator Nikhil Rathi commenting that investors should be prepared to lose “all their money” in speculative bets on digital assets, like crypto currency.

But some unregulated influencers on digital platforms like YouTube and TikTok have been looking to exploit the crisis to promote “trading academies” and suggest crypto trading can help people shield themselves from a financial squeeze.

The FCA advises that people should always be wary of any promotion made by someone who is unauthorised as you are very unlikely to have any protection if things go wrong.

The FCA said: “We have been working with the Government to ensure financial content is included within the Online Safety Bill.”

Personal finance analyst Myron Jobson, at Interactive Investor, said that trying to “trade your way out of a crisis” could “leave you short amid the rising cost of living”.

He added: “Always take investment advice on social media with a pinch of salt. It is important to use trusted sources when doing your research.”