You’re scrolling during a quick break when a TikTok video stops you mid-thumb. A creator says a stock is “about to explode,” the comments are full of rocket emojis and someone drops a link to a private group where the real tips are shared.
It feels exciting and urgent, with just enough FOMO to make it seem like you might be missing something big – which, conveniently, is exactly how it’s designed to feel.
Social media has made investing more accessible than ever. You can learn about shares, ETFs, market trends, viral investing tips and strategies and even tax basics in the time it takes to drink a coffee. It also makes it much easier to blur the line between useful information, hype and content that’s… let’s just say motivated (sometimes very motivated).
If you’ve ever thought, “Does this seem a bit too good?”, you’re probably asking the right question – especially when it comes to social media investing.
Why social media and investing don’t always mix
Most social platforms are built to reward attention, so the content that spreads tends to be quick and bold, designed to grab attention and trigger emotion. Good investing content , on the other hand, is often none of those things (and definitely less likely to come with rocket emojis). It’s slower and more cautious, often full of caveats. It focuses on risk and trade-offs, and rarely promises outcomes.
So there’s a bit of a mismatch – and the algorithm is not on Team Sensible. The content that performs best isn’t always the content that’s most useful.
This doesn’t mean everything online is misleading; there are plenty of thoughtful creators who genuinely want to educate. But there are also people simplifying things too far or chasing engagement, sometimes earning money through referrals and promotions along the way.
In some cases, content can drift into territory that mirrors patterns flagged by regulators like ASIC .
What is a finfluencer, really?
“Finfluencer” (short for financial influencers) sounds official, but it’s not. It simply refers to someone who shares financial or investing content online. That could be a licensed professional explaining general concepts, an everyday investor documenting their journey, a marketer promoting a product or someone confidently sharing opinions with varying levels of experience.
The tricky part is that these can all look very similar in your feed, which is where things get confusing. A confident tone, polished editing and a decent following can create a sense of authority, but those things don’t necessarily reflect knowledge or credibility (unfortunately, neither does a ring light).
Here in Australia, the way content is presented can even determine whether someone needs a licence. For example, explaining how ETFs work is generally fine. But telling people to buy a specific stock or follow a strategy tailored to them can cross into regulated financial advice – something that usually requires an Australian Financial Services Licence (AFSL). It’s a small wording shift with a big difference behind the scenes, which adds another layer worth keeping in mind.
Education vs hype vs advice
A useful way to cut through the noise is to ask what a piece of content is actually trying to do. Some content is genuinely educational and helps you understand how something works. Some is commentary – opinions or analysis – which can still be useful as long as you treat it as one perspective.
Where things get murkier is when content shifts into promotion or advice. A video might start by explaining a concept, then gradually steer you toward a specific stock, platform or opportunity. The more it nudges you toward action, the more useful it is to pause and look a bit closer. That doesn’t automatically make it wrong, but it does mean it’s worth approaching with a bit more caution – think “curious but sceptical.”
12 social media red flags to keep an eye on
Most investing red flags don't arrive with a flashing warning sign. It’s usually a combination of small signals that don’t quite add up.
- “Guaranteed” or risk-free returns : If it’s guaranteed, it’s not really investing
- Pressure to act quickly : Urgency is great for engagement, less great for decision-making
- Screenshots instead of explanation : A green number without context doesn’t tell you much
- Only positive outcomes : If everything looks like a win, something’s missing
- No discussion of risk : Every investment involves trade-offs, even if they’re not mentioned
- “Secret strategy” claims : Most legitimate investing knowledge isn’t hidden behind a paywall
- Push toward private groups : Especially when paired with urgency or exclusivity
- Hidden incentives or referral links : If someone benefits from your action, that’s worth knowing
- Celebrity endorsements : Often edited, exaggerated or entirely fake
- Anti-establishment messaging : “Don’t trust anyone else” is rarely a reassuring sign
- Copying trades without understanding : Context matters more than it seems
- Missing or vague details : If you can’t clearly explain what’s being promoted, that’s important in itself
On their own, these might not mean much. But when a few appear together – especially alongside urgency – it’s usually a sign to slow things down.
Emotional investing (and why it’s so easy to fall into)
Even with the best intentions, investing decisions aren’t purely logical (despite what we like to tell ourselves). Social media content is often designed to tap into familiar emotional triggers, and it does it very well.
FOMO can make opportunities feel more urgent than they are (it’s very persuasive at 11pm). A sense of exclusivity can make information seem more valuable. Social proof – seeing lots of others take the same action – can create reassurance, even if the underlying idea isn’t strong. Add in lifestyle imagery or the suggestion of fast results, and it’s easy to see why some content feels so compelling.
Recognising these patterns doesn’t mean assuming something is wrong. It simply creates space to notice what’s influencing your reaction before making a decision.
Same patterns, different platforms
The format might change, but the underlying patterns tend to stay the same. On TikTok and Instagram, content is short and confident, often with limited detail. On YouTube, it’s more polished, but that polish can sometimes gloss over gaps or bias. Forums and group chats introduce social proof, where lots of people agreeing can make something feel more credible than it is.
Private groups add another layer again, and often a bit of pressure to go with it (plus a dash of “you’re on the inside now”). The sense of exclusivity can make information feel more valuable simply because it appears limited. One pattern that comes up regularly is the pump-and-dump dynamic. This is where an asset – often smaller or lesser-known – is heavily promoted to drive demand before early promoters exit.
Not every enthusiastic post falls into that category. But when you see repeated hype, bold claims and little discussion of risk, it’s a good moment to take a step back.
A quick (hypothetical) example
Mia, 29, had been meaning to start investing for a while when she came across a post describing a small ASX company as an “undervalued gem.” The comments were full of excitement, with people sharing price targets and talking about getting in early.
Instead of jumping in, she paused. She looked up the company’s official announcements and checked a few independent sources, which helped her spot what wasn’t being said. There was very little discussion of downside risk and a strong push toward joining a private group.
So she left it alone. Instead, she spent time learning the basics – like how shares work , what ETFs are and why diversification matters . When she eventually started investing, it looked quite different from that original idea. The shift wasn’t dramatic, just a move from reacting to understanding, which tends to be where better decisions start. Less adrenaline, more clarity.
Simple ways to sense-check what you’re seeing
You don’t need to analyse everything in depth. Just run through a quick checklist before you act:
- Pause for a minute : Give yourself a short buffer before you act. Urgency is often part of the pitch, so a pause helps you think more clearly
- Check who’s behind it : Look for a real name, credentials and clear disclosures. If it’s hard to tell who they are or how they make money, treat that as a signal
- Follow the incentive : Ask how the creator benefits if you act (referral links, affiliate deals, paid groups, sponsorships, ad revenue, course sales)
- Verify the claim : See if you can find the same information from independent sources, not just repeats of the original post
- Go to the source : For specific companies or products, read official announcements or disclosure documents rather than summaries
- Sanity-check the pitch : Compare it with guidance from Moneysmart or Scamwatch to spot missing investing risks, unrealistic claims or common scam patterns
- Pressure test it : Ask yourself, would this still make sense without the hype or time pressure?
If a few of these checks raise questions, that’s usually a sign to slow down rather than dig in (and definitely not a cue to double down).
A quieter alternative
Social media tends to reward speed and certainty. Investing tends to operate on a different rhythm. A more measured approach might involve taking time to research and aligning decisions with longer-term goals, rather than reacting to individual opportunities.
It’s not particularly dramatic, and it definitely doesn’t make for viral content – no one’s going viral for “steady ETF contributions ”. But for many long-term investors, progress comes from consistency, patience and a willingness to stay the course through different market conditions .
What to do if something feels off
If something doesn’t feel quite right, creating distance is a good first step – no need to overthink that instinct. That might mean stopping engagement, avoiding sending money or personal information, and keeping a record of any interactions.
From there, contacting your bank or financial institution may help limit potential impact. Reporting the activity through Scamwatch or ReportCyber can also help raise awareness and reduce harm to others.
Common signs of social media scams include:
- Being asked to move the conversation off-platform (e.g. to WhatsApp/Telegram) and then pressured to act
- Payment requested via unusual methods (crypto, gift cards, wire transfer) or to personal accounts
- A “platform” that looks real but has small inconsistencies (misspelled URLs, no ABN/AFSL details, limited contact info)
- Being shown “live” profits or dashboards you can’t independently verify
- Having withdrawals blocked, delayed or requiring extra fees/taxes to “unlock” funds
- Being asked for remote access to your device or for sensitive details (codes, passwords)
- An offer that keeps changing – new fees, new deadlines, new reasons to send more money
If you spot any of these, stop engaging and don’t send anything further. Time pressure is part of the play; if you feel rushed, that’s the point. Learn more in our guide to protecting yourself against investing scams .
The takeaway (without the stock market hype)
Social media can be a useful place to learn about investing. There isn’t a single rule that applies to every situation. But one principle tends to hold up: the more urgent and certain something sounds, the more useful it is to slow down and take a closer look.
Long-term investing rarely stands out in fast-moving feeds. It’s quieter and more deliberate, often a bit less exciting. But over time, that steadiness is usually what makes the difference (even if it won’t trend).
Explore more with Pearler
If you’re looking to build your understanding of long-term investing, Pearler shares educational content across its social channels. From breaking down investing basics to exploring how everyday Australians approach building wealth over time, the focus is on helping you learn at your own pace.
You can find us on Instagram , YouTube and other platforms , where we share simple, practical insights designed to support a more thoughtful approach to investing.
General information disclaimer
This article is for general informational purposes only and does not take into account your objectives, financial situation or needs. Investing involves risk, including the risk of loss. Rules, products, and market conditions can change, so consider seeking advice from a licensed professional and checking relevant official sources before making decisions.
