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Millions of UK consumers are turning to social media influencers for financial guidance without checking their credentials, potentially putting their credit health at risk, according to new researchi commissioned by TransUnion.
The survey found that 14% of consumers, around 7.7 million peopleii, have taken financial advice from a social media personality or online influencer with a quarter (25%) of these consumers, approximately 1.9 million peopleiii, admitting they did not check whether the influencer had any formal financial qualifications or credentials before acting on the advice.
Among Gen Z consumers (aged 18-24), the use of financial influences rises sharply to 29% – roughly 1.4 million young peopleiv with almost a third (32%) of 18-24 year olds admitting they did not check the influencers qualifications before acting on the advice.
While some younger consumers reported benefits, the findings underline clear risks. Among 18-24 year olds who followed influencer advice, 39% said they gained useful financial knowledge and 31% said it helped them choose a good credit or financial product. However, 15% said following financial influencer advice negatively affected their credit score, led to financial losses or resulted in them being scammed.
From: Almost Two Million UK Consumers Take Financial Advice from Influencers Without Checking Their Credentials.
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