The Financial Sector Conduct Authority (FSCA) in South Africa has taken a bold step to address a growing concern: unregulated financial influencers, or “finfluencers,” dispensing advice on platforms like TikTok, Instagram, and YouTube. As of April 2025, the FSCA is scrutinizing whether these influencers are breaking the law by offering financial guidance without proper authorization. This move underscores a critical reality—social media, while a powerful tool for information, is a risky place to seek financial advice.
The rise of finfluencers reflects a broader trend. In 2021, over half of UK investors turned to social media for investment tips, with one in five relying solely on platforms like X or TikTok. South Africa is following suit, but the FSCA’s intervention highlights a key issue: these platforms amplify the loudest voices, not the most qualified. Finfluencers often lack the credentials of regulated financial planners, yet their polished content—promising quick wealth or market-beating strategies—draws in eager followers. Some are paid to push products without disclosure, while others peddle outright scams.
Recent observations reveal how sophisticated these scams have become. With AI’s help, fraudsters craft convincing impersonations and brands, preying on fear of missing out (FOMO). In the UK, social media scams cost investors over £60 million in a single year. South Africa risks similar losses without tighter oversight. High-profile cases like the GameStop saga further illustrate the danger—hype can lead to chaos, leaving latecomers with heavy losses.
While AI enhances financial tools, it can’t replace the human touch of a qualified advisor who understands personal goals and risks. The FSCA’s crackdown is a timely reminder: use social media to learn, not to decide. For your financial future, trust expertise over influencers.