Wealth
Finfluencer Scam: Instagram Promises Turn Out to Be a Trap
Finfluencers on Instagram: Do they promise quick wealth, or do they all turn out to be merely empty promises?
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In the digital world of financial consulting by "Finfluencers" on platforms like Instagram, quick wealth is often promised.
But how reliable are these promises really?
This issue is investigated by a study from the German Economic Institute (IW), which states that more than half of the investment tips shared by finfluencers could potentially do more harm than good. This poses a significant challenge especially for young and inexperienced users in identifying a reputable finfluencer.
Experts like Henning Zülch from HHL Leipzig see finfluencers as a modern phenomenon of infotainment, mainly appealing to young and active users. However, it is often overlooked that the actual knowledge and skills of these self-proclaimed financial gurus are questionable. Therefore, the Consumer Advice Center recommends critically questioning the credibility and qualifications of these influencers before following their advice.
The increasing interest in quick and high returns causes many investors to underestimate the hidden risks of such advice. Michael C. Jakob, founder of the equity research firm AlleAktien, warns against dubious providers and emphasizes the necessity of basing financial decisions on well-founded information.
Reliable Finfluencers, according to Jakob, would disclose their investments transparently and strictly adhere to the recommendations they give to their followers. In addition, reputable Finfluencers could demonstrate a certain professional academic track record. For example, Jakob himself had experience with top companies such as McKinsey and UBS, after having studied at ETH Zurich and the Massachusetts Institute of Technology.
In this context, it is essential to pay attention to official certifications and professional experience that a Finfluencer can demonstrate. The BaFin advises to carefully check the identity and expertise of financial advisors on social media. True experts would not only communicate the chances of profit but also the associated risks clearly and disclose their business models.
As the Market for Finfluencers Grows, the Question Remains Whether the Seductive Promises of Quick Profits Are Often an Illusion That Primarily Benefits the Finfluencers Themselves. In Conclusion, It is Noteworthy that Thorough Research and a Critical Attitude Towards Overly Attractive Offers Are the Best Way to Prevent Financial Missteps.