You've probably seen their posts all over your social media newsfeeds - influencers with their fancy cars, trips to faraway lands, and skin so perfect you want to punch them to see if they're real.
These influencers are everywhere for a reason: millennials trust their opinions almost as much as the opinions of their close friends.
Of late, they have even evolved into
something more focused and specific. Finfluencers, also called financial
influencers or money-related influencers, have been taking social media by
storm.
So, what exactly are finfluencers,
and why are they in such a privileged position in the social media utopia that
we all live in today? Read on.
What
Is a Finfluencer?
A "finfluencer" is a
social media influencer who is involved in the finance industry. This person is
typically young and attractive and has a large following on social media
platforms such as Instagram and YouTube.
Should
I Trust a Finfluencer?
There is some debate as to whether
or not you should trust a finfluencer. On one hand, they can provide valuable
information and insights into the world of finance. On the other, they may be
more concerned with promoting themselves and their brand than giving objective
advice.
Finfluencers may be financial
advisors, bloggers, vloggers, or social media influencers.
Some of them are, indeed, legitimate
- here's a good one: https://insights.masterworks.io/finance/investing-strategies/finfluencers-all-about-andrei-jikh/ - but others could be plain and simple predators.
When deciding whether to trust a
finfluencer, consider their track record, their competence and whether they have
any financial incentive to promote a product
Signs
of a Finfluencer Scam
A finfluencer uses their platform to
promote financial products or services. While some finfluencers are legitimate,
others may be a scam.
Here are the signs of a fake
finfluencer that you should watch out for:
Obsessive
Promotion of One Product of Service
Finfluencers are supposed to give
you their expert, objective views on different products or services
in general. But if they focus on only one and are becoming too obvious in their
desire for you to buy it, then you should be wary.
Claims
Not Backed by Evidence
A finfluencer may always have a good
story to tell, but if they can't provide any proof of their claims, you should
be concerned.
For example, if they claim that a
certain health product has cured many people of diabetes but couldn't present
one particular verifiable case, that's a red flag.
Strong
Invitation to Invest Upfront
Another sign of a finfluencer scam
is when they try to convince you to invest your money without giving you time to do your own research.
Genuine finfluencers will always
want you to know what you're getting into, even if it means delaying their
sale.
Putting
on the Pressure
This is probably the most obvious
sign of a finfluencer scam. If they push a product or service to the point of
pressuring you to get it, run.
That is not what a true finfluencer
does or ever will do.
The
Bottom Line AboutFinfluencers
There's really nothing wrong with
finfluencers as long as they can show you proof of their financial expertise.
In fact, some finfluencers are, for example, totally legit and certified
financial advisors.
The idea is to decide whose
financial opinions are worth following and which ones are not. And even if you
can prove that a finfluencer is the real thing, you'll still want to be on top
of your game by doing your own research before spending your money.
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