Most Brits following online financial advice without checking risks

The majority of Brits are acting on financial advice from social media, AI tools, and other unregulated sources without properly verifying the information or understanding the risks involved, a new study from Zable has found.

The research revealed the growing scale of the problem in an age where social media and AI are starting to influence consumer behaviour.

It found that 83 per cent of consumers had sought financial guidance from non-regulated sources, including social media platforms, online forums, AI chatbots, podcasts, and advice from family and friends.

Younger adults were the most likely to rely on these channels, with 93 per cent of people aged 25-34 and 92 per cent of those aged 35-44 saying they had used unregulated advice.

Despite the growing influence of online 'finfluencers' and AI-powered guidance, many consumers are failing to carry out basic checks before making financial decisions.

More than two-thirds (68 per cent) said they do not check the risks involved before acting on financial advice, while only 24 per cent would verify a financial expert’s credentials.

Just 22 per cent said they would investigate whether advice may be influenced by sponsorships, commissions, or other conflicts of interest.

Salary and wage-related guidance was the most common area where people sought informal advice, with 54 per cent admitting they turned to non-regulated sources for earnings and pay-related information. Savings advice followed at 49 per cent.

The study also examined the growing use of AI tools for personal finance guidance.

Around one in 10 respondents said they already use AI platforms for advice on budgeting, investing, insurance, and other financial topics. Zable tested four major AI tools — Google Gemini, xAI Grok, OpenAI ChatGPT, and Anthropic Claude — by asking them common personal finance questions relevant to UK consumers.

According to the research, most tools struggled to provide accurate UK-specific guidance, often defaulting to US-focused information such as references to 401(k)s, FDIC insurance, and American savings products.

Claude achieved the strongest results with six passes, while Grok failed all nine questions tested. ChatGPT recorded two passes and Gemini three.

The findings also showed the financial consequences of poor advice. Nearly a third (29 per cent) of respondents said they had lost money because of bad credit card advice, while 28 per cent reported financial losses linked to investment guidance.

Mortgage-related guidance produced some of the largest reported losses, with many respondents saying they lost between £500 and £1,000.

Zable senior product manager for UK credit cards, Arielle Rogers-Jenkins, said consumers should prioritise regulated and official sources when making important financial decisions.

“When searching for financial advice, starting with regulated or official sources such as financial advisers, banks, building societies, and government-backed guidance services is key, as these organisations are held to specific standards and accountability in the UK,” she said.

“While AI tools, forums, podcasts, YouTube videos, and social media can be useful for building financial understanding, this type of content is often generalised and should always be researched further before acting on the advice.

"A lot of advice online, particularly on social media, could be linked to sponsorships, commissions, or product promotions, so it’s important to seek clarification and avoid making financial decisions under pressure."

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