Beware of investment advice on social media platforms!

Social media tips from influencers: 3 questions to ask yourself

More and more people are talking about money, budgeting, saving and, especially, investing on the Internet and social media platforms. With so many social media platforms, discussion forums and investment groups around, we are exposed to a constant barrage of information. While these opportunities for discussion can expand your investment knowledge, it’s important to ask yourself some questions about the intentions of people who offer advice on the Internet.

1. Does the person have the necessary qualifications?

Some of the people offering investment advice on the Internet don’t have the necessary qualifications. What’s more, they don’t have the proper training to guide you and aren’t authorized to offer you advice, especially when it comes to investing!

Anyone who offers investment advice must be registered with the AMF.

2. Is the person being paid to promote products and services?

Some influencers may also be receiving compensation for promoting financial products or services. They don’t necessarily know the product they’re promoting, and they probably haven’t invested in it themselves. Some of the products promoted on-line, including cryptoassets, can be very risky and aren’t a good fit for everyone. Discussions on social media platforms and influencer posts are not a substitute for professional advice!

3. Is there a risk of fraud?

Social media platforms and on-line discussion forums can also attract scammers! Some of them will promote fraudulent investment products or encourage you to invest by directing you to an illegal on-line trading platform so they can steal your money. Be on guard if an investment opportunity sounds too good to be true.

It’s better to be cautious and learn to recognize the signs of financial fraud.