Finfluencers Promote Shady Apps, 80% of TikTok Forex Advice Misleading

Social media platforms like TikTok and Instagram have become central to how young people access information, including financial advice. This popularity has created opportunities for creators to build careers, but it has also opened the door to deceptive practices. Some influencers, often referred to as “finfluencers,” promote shady investment apps that promise quick wealth but can lead to significant financial losses. These influencers may not be genuine, using tactics to mislead followers, particularly in regions where financial literacy is limited.

Fake influencers present themselves as successful investors or financial experts to gain trust. They use several deceptive tactics to promote shady investment apps. Many influencers fail to disclose that they are paid to promote investment apps, blending advertisements with personal advice. This lack of transparency violates advertising regulations but often goes unpunished due to weak enforcement. Some show fabricated profits, claiming success from apps to entice followers. An X post from 2023 described influencers using “fake funds” to demonstrate gains, a tactic that misleads users into believing the apps are legitimate. Influencers earn commissions for each sign-up or transaction through their referral links. This financial incentive drives them to promote apps, even if they are risky or unverified. To appear credible, some buy followers or use bots to inflate their audience size. These tactics exploit the trust that followers, especially young people, place in social media personalities. The promise of quick wealth is particularly appealing in regions facing economic challenges.

The African social media landscape is vibrant, with TikTok and Instagram leading as platforms for entertainment and information. However, this popularity also makes these platforms fertile ground for scams. Lower financial literacy in some regions increases vulnerability. A 2025 article found that 80% of forex advice on TikTok is potentially misleading, with only 13% of videos including disclaimers. In regions where access to regulated financial education is limited, such content can have a significant impact. Additionally, 33% of traders reported being influenced by influencers, and 49% of consumers rely on their recommendations. Economic pressures further amplify the risk. Many people, particularly young individuals, seek financial opportunities to improve their lives, making get-rich-quick schemes promoted by influencers especially tempting. African creators often rely on brand sponsorships for income, which can include promoting financial products, some of which may be questionable.

Regulatory bodies are beginning to address these issues, but challenges remain. A prominent case involved a bank that was fined for a TikTok post by an influencer who described loans as “investments”. Another case involved suspects who were arrested after they were linked to a scam that allegedly raked in hundreds of millions from students. The influencer’s misleading claims show the dangers of unregulated financial promotions on social media. This incident, however, shows that authorities are starting to scrutinise finfluencer activities, but enforcement is still inconsistent. Another example comes from a Reddit post describing a TikTok-related scam, where users were asked to pay money to follow accounts on Telegram for promised returns. In Nigeria, a recent case exposed how shady investment apps can deceive people through social media. The Crypto Bridge Exchange, known as CBEX, was promoted by individuals who lured people with promises of high returns, leading to an alleged fraud. They advertised the platform widely, convincing people to invest in cryptocurrencies, only for victims to find themselves locked out and unable to withdraw funds. The court rejected bail for three of these promoters, citing strong evidence of fraud.

The risks of falling for these scams are significant, particularly for young people. A article noted that 70% of retail forex day traders lose money quarterly, a risk amplified by misleading influencer advice. In regions where economic opportunities may be scarce, the promise of quick wealth can lead to substantial financial losses. Young users, who form the majority of TikTok’s audience, are especially vulnerable due to their trust in social media personalities. A article reported that 36% of adults use social media for financial information, a trend likely mirrored in regions. Without proper financial education, users may not recognize the risks of unverified investment apps, leading to potential debt or loss of savings.

To avoid falling victim to fake influencers promoting shady investment apps, consider these practical steps: Be sceptical of quick riches. Promises of easy money are often too good to be true. Legitimate investments typically involve risk and require research. Check for disclosures. Look for clear statements that the content is sponsored. Influencers who hide payments are likely untrustworthy. Verify app legitimacy. Use regulated sources to check if an investment app is legitimate. Avoid apps promoted solely by influencers. Spot red flags. Be cautious of influencers who showcase lavish lifestyles without explaining their strategies or who push multiple paid promotions. Low engagement or suspicious follower demographics may indicate fake accounts. Seek trusted advice. Supplement social media advice with guidance from certified financial advisors or reputable institutions to ensure informed decisions.