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Independent Singapore
2 days ago
- Business
- Independent Singapore
Gen Z and Millennials are confident in spotting scams, yet are the first to jump into new investments
Are Gen Z and Millennials too clever for their own good? While these risk-tolerant investors may feel the most confident about spotting scams, they're also the most likely to jump into new investment opportunities, sometimes without conducting proper due diligence . A recent survey by forex broker experts at BrokerChooser found that 76.22% of 25- to 34-year-olds are 'confident' they can spot investment scams, and 32.62% even said they are 'very confident.' Across all age groups, 60.20% of respondents felt confident spotting scams—but only 16.8% were 'very confident,' with that number dropping to just 8.67% among those over 55. At the same time, a striking 91% admitted they would act in ways that could expose them to fraud. When asked what they'd do when presented with a new forex investment platform 'pending regulation,' claiming to have 2,000 investors and offering returns of 15% to 20% per month, 35.67% of respondents aged 25 to 34 said they'd ask friends or family if they'd heard of it. According to the report, this is a form of social proof that scammers often exploit. Millennials (26.53%) and Gen Z (20.21%) said they would 'test' the platform by investing a small amount, compared to just 3% of Boomers, unknowingly exposing themselves to greater risk. This comes as investment scams surge worldwide. In 2024 alone, Infosecurity Magazine reported that fake investment domains jumped 25% compared to the previous year, with nearly 13,000 fake investment domains detected across more than 7,000 IP addresses. Globally, it is estimated that over US$1 trillion was stolen through scams, according to the Global Anti-Scam Alliance. Despite these, interest in investing among younger adults continues to rise. About 30% of Gen Z started investing while still in university or early adulthood—over three times more than Gen X (9%) and five times more than Boomers (6%). BrokerChooser also found that younger investors are more likely to be swayed by common scam tactics. Almost one in five Gen Zs (19.96%) said screenshots of profitable trades would convince them to invest, while 15.03% would trust celebrity or influencer endorsements. See also Is Cash Out Refinancing a Smart Financial Move? 'This is concerning given that two out of three forex customers typically lose money and the fact that 50% of fraud now involves the use of AI, which can be used to fake images,' it noted. Notably, OSC research found that people were 22% more likely to invest in AI-enhanced scams than in traditional ones. Meanwhile, 35.37% of Millennials said they would trust testimonials from so-called 'successful traders,' even though these could be easily faked or paid endorsements to create a false sense of credibility. One of the most common red flags, unregulated platforms claiming to be 'pending approval,' still manages to hook people. When asked how they would verify the legitimacy of a forex trading platform, 23.15% of respondents said they would ask the broker directly for copies of their licences and certificates. However, this can be risky, as it relies entirely on trusting the broker's word, who may provide forged or misleading documentation. See also Best fixed deposit rates in Singapore for Jan 2024 Krisztián Gátonyi, from BrokerChooser, said, 'It's critical that people learn to pause and verify, checking for official registration with financial regulators and scrutinising contact information.' He noted, 'A quarter of young investors admit to making impulsive decisions in order to keep up with current investment trends, often leaving little time to properly evaluate the risks. Amid a sharp rise in investment scams, this behaviour is particularly dangerous, especially as fraudsters grow increasingly sophisticated in how they present themselves.' 'With the rise of AI, we're now seeing realistic fake websites, chatbot 'advisors', and even deepfake videos of celebrities endorsing bogus schemes. It's becoming harder for even seasoned investors to separate genuine opportunities from high-tech fraud,' he added. /TISG Read also: Fraud and scams driven by generative AI are now among the biggest cyber threats in the financial sector
Scotsman
12-05-2025
- Business
- Scotsman
Investment in Aberdeen increases by over 10,000% in five years
BrokerChooser, a global platform specializing in brokerage analysis and comparison, recently released a new study that reveals investment trends across the UK, finding that Aberdeen has had the most dramatic growth in business investment in the last five years with an 11,590% increase. Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... While London still takes the top spot, several regional cities have shown significant growth in investment similar to Aberdeen, with Nottingham also seeing exponential increases compared to 2019. According to the latest data, London recorded an investment amount of £54.2 billion in 2024, a 174% increase from 2019. It also had the highest number of investors (61,594) and search volume (73,080), further cementing its position as the UK's financial powerhouse. Advertisement Hide Ad Advertisement Hide Ad Beyond London, Aberdeen saw an extraordinary 11,590% surge in investment compared to 2019, with funding rising from £3.2 million to £379.5 million, while Nottingham followed with a 7,388% increase. The top 10 cities for investment in the UK Meanwhile, some key UK cities experienced declines. Manchester, despite ranking second overall, saw a 9% drop in investment since 2019, now standing at £2.8 billion. Birmingham faced the most significant decline, with investment levels plummeting 97% to £59.1 million. Despite challenges in certain regions, the UK's investment landscape remains dynamic, with emerging cities experiencing rapid growth. The data suggests that while London retains its stronghold, shifting investment patterns highlight new opportunities across the country. For those looking to contribute to their city's investment landscape, understanding key investment strategies is essential. Whether based in a thriving hub like Aberdeen or Nottingham, where investment has surged in recent years, or in a city experiencing fluctuations like Manchester or Birmingham, making informed decisions can help maximise opportunities. Navigating the complexities of investing requires careful consideration of brokerage options, asset diversification, and long-term growth potential. With that in mind, BrokerChooser has outlined essential tips for individuals looking to start their investment journey with confidence. Advertisement Hide Ad Advertisement Hide Ad BrokerChooser's tips for people looking to get into investing: Before getting started, new investors should consider several key factors, including which types of assets matter most to them, potential broker fees, and how much they plan to deposit. BrokerChooser offers expert advice on what to watch for before diving into investing: Selecting a trusted and regulated broker is a key first step for those entering the market. This is especially important as the number of scam brokers has increased significantly in recent years. While there is no right time to start investing, historically, markets have shown that starting early has led to long-term growth despite short-term ups and downs, making it always the right time to start learning and exploring opportunities. Another key aspect of investing is diversification, which means spreading investments across different asset classes such as stocks, bonds, mutual funds, and index funds. Diversification is seen as a way to manage risk and navigate market fluctuations. 'There is definitely development and diversification in the UK's investment landscape, with impressive growth in areas that used to fly under the radar,' said Adam Nasli, Analyst Head, BrokerChooser. 'As individuals embark on their investment journey, securing a trustworthy brokerage partner is the most crucial step. This can be achieved only through transparent, uncomplicated comparisons of online brokers. There remains significant work to be done on this front to empower individuals to make sound financial choices and navigate the increasingly complex financial world.'
Forbes
10-05-2025
- Business
- Forbes
Shady ‘Finfluencers'—New Report Of 80% Misleading Advice On TikTok
Experts warn to not be swayed by illegitimate finfluencers, peddling potentially misleading ... More financial advice on TikTok. If you're a consumer who depends on financial influencers or 'finfluencers' on TikTok for financial advice or trading decisions, a new report recommends caution. Legitimate finfluencers, offer useful information on various financial topics like saving, investing, cryptocurrency and sometimes even quick ways to get rich. Typically, their advice is in quick and engaging, easy-to-digest videos. But they don't always provide all the information you might need to make a fully-informed decision. So, it could be financially disastrous to follow the advice of a shady influencer, financial scammer or a celebrity endorsing a sponsored post on a platform. Discover why a new study cautions that some finfluencer advice on TikTok is potentially misleading and harmful. Finfluencers exert a significant influence on retail traders' decisions. A notable 33% of traders have been influenced by finfluencers to make trading decisions, and 49% of consumers depend on finfluencer recommendations. Given the economic uncertainty we're living in today, more workers are seeking side hustles for extra money to make ends meet. And many of them are vulnerable to get-rich quick schemes that might be scams. A new analysis by BrokerChooser sought to uncover the percentage of forex (foreign exchange for short) broker advice that could be potentially misleading or harmful on Tiktok. The platform has forex brokers, acting as financial intermediaries that help you trade foreign currencies in the forex market. These brokers provide access to the market, execute trades, provide trading platforms and liquidity, offer leverage and margin trading and analytical and educational tools. BrokerChooser points out that reputable forex brokers are regulated by relevant financial authorities in their respective jurisdictions. Regulatory oversight helps ensure that brokers adhere to industry standards, follow ethical practices and provide a fair trading environment for their clients. Here's how the BrokerChooser experts conducted their analysis. They evaluated 100 of the top-performing videos on TikTok, across a range of relevant forex trading advice hashtags, including #forex, #forextrading, #forextrader #fxtrading and #fx. They deemed their meticulous selections as the most viewed within their hashtag categories, making them the most likely to appear to users actively searching for forex trading advice. The analysts reviewed and scrutinized each video on six criteria--questions all people should ask about finfluencers: The experts labeled finfluencers that scored negatively in three categories or more as providing 'potentially misleading' advice. The full dataset used in the study, correct as of May 2025, can be found here. The experts called what they uncovered 'alarming'--describing a major lack of disclaimers to a high volume of videos focused solely on flaunting wealth and lifestyle, with little to no trading context. They conclude that 80% of forex advice on TikTok is potentially misleading, and only six percent of forex advice encourages viewers to do their own research. Only one in seven forex finfluencers included financial disclaimers. Only 13% included relevant disclaimers, such as clarifying the risks involved in forex trading or stating that the content was not financial advice. The analysts state that this lack of transparency is particularly concerning given that one in five videos were actively promoting or selling a product or service, raising ethical concerns about the motivations behind the content being shared. The forex broker experts at BrokerChooser say one of the most disturbing findings is that 50% of TikTok's forex content was finflueners boasting about the money they made or their lavish lifestyle with no relevant or trading content. And only nine percent of the videos bragging about their money and lifestyle gave trading context on to how they achieved it. According to the experts, less than 23% of TikTok's forex-related content contained actual forex trading information. Instead, their analysis of the videos showed that they often focused on lifestyle imagery, vague motivational claims or promises of quick wealth. They added that this was frequently done without disclosing risks or from finfluencers without verifiable credentials, creating a misleading impression of forex trading as a guaranteed route to financial freedom as opposed to a complex, high risk activity. I spoke by email with Edith Balazs, content editor head at BrokerChooser. Balazs told me she's says deeply concerned about these findings. Most of the finfluencers didn't encourage viewers to conduct their own research nor did they provide meaningful trading information, indicating that the majority of TikTok's forex-related content is potentially misleading or harmful. 'Instead, it seems that the platform is saturated with individuals flaunting their wealth and lavish lifestyle without offering any transparency or context, which could leave viewers vulnerable to false expectations and financial risk,' Balazs points out. 'This is particularly concerning as a recent SEC report suggested that around 70% of retail forex day traders lost money each quarter and two out of three forex customers lose money overall.' Balazs cautions that if you're serious about learning to trade, TikTok is not the place to start. 'Reliable forex education should come from regulator accredited sources, such as financial institutions, professional trading platforms, or certified training providers, and not from finfluencers trying to sell you a dream,' she warns. "Always practice due diligence: question the source, verify credentials and never take financial advice at face value. Critical thinking, combined with research and regulated education, is the only safe way to approach financial markets.'
