Risky investment adverts are being shown to UK consumers on Facebook and Instagram, according to the latest data from Which? These findings come as there’s a surge in losses linked to investment scams.
Ads without a risk warning, or promising “sensational, life-changing returns”, were found on both platforms. These could lead consumers towards “poor and risky investment choices”, or even fraud.
According to Action Fraud, victims can lose over £45,000 on average to “clone” firm investment scams. In its last quarterly data publication for the three months to June, the Financial Ombudsman Service said investment scams were the fastest growing type of “authorised” scam.
Facebook investment scams
Which’s investigation was carried out in partnership with Demos Consulting and took place between October 2021 and August 2022.
It found 1,064 adverts on platforms owned by Meta (the parent of Facebook and Instagram), which is more transparent than other online platforms about the ads placed on its network.
Some 484 of which were investment related. Half of these were for investment products, while the rest offered investment tips, training or advice.
One in four of these was property related, while one in five were about cryptocurrency and non-fungible tokens. One in ten investment products offered high returns without clarifying how these would be obtained. The investigation found 89 adverts without a risk warning and claims of guaranteed…
