Lost money after a finfluencer tip: bad luck or a scam?

What is the FCA doing about finfluencers?

The FCA has taken targeted action against finfluencers who may be promoting financial products illegally. Twenty finfluencers have been interviewed under caution, and the FCA issued 38 alerts against social media accounts that may contain unlawful promotions (FCA, press release). The FCA also warns that fraudsters advertise crypto investments on social media, often using images of celebrities (FCA, crypto investment scams).

A finfluencer is someone who shares tips about money and investing on Instagram, TikTok, YouTube, podcasts or Telegram groups. That in itself isn’t against the law. More and more of this content now sits behind a paywall, in private groups, paid courses and online communities. That makes it harder to see what you are really being steered towards.

Is it a finfluencer scam or just a bad tip?

Not every tip that goes wrong is a scam. Investments sometimes simply lose money, and a finfluencer may genuinely mean well. Broadly there are three situations: a poor investment with a genuine firm, a referral to a firm that isn’t authorised, or a deliberate set-up where the platform or the group exists to take people’s money. From the outside these three often look the same. The difference is in the money trail, and you usually can’t see that yourself.

Which red flags should you look out for?

None of these signs proves on its own that it is fraud. They are, however, the points Paucitas looks at closely in practice:

• The risks are played down. You mainly see profits and success stories, and investing looks like a way to get rich quickly.
• You are put under pressure. “Buy this now” or “don’t miss out”.
• It is unclear how the finfluencer makes money. Referral links, discount codes, their own courses or trading groups, without it being clear what they earn from you.
• The platform isn’t authorised. You can only reach the firm through a link, it isn’t on the FCA register, or there is already a warning about it.

Recognise one or two? That may be harmless. Recognise more, or does something just feel off? Then it makes sense to have someone look at it. If you were added to a WhatsApp group without asking, also read about crypto scams via social media, and how to recognise a fake crypto platform.

I invested through a link or group and can’t withdraw. What now?

Our advice: hold off on paying anything extra to release a withdrawal, and don’t put in any more for now. Keep what you have: the messages in the group, the link you were sent, screenshots, your payments and the name of the platform. Groups and accounts can go offline quite quickly.

Then the question that is probably on your mind most: is my money gone? Not necessarily. Sometimes it is a genuine firm that is simply slow, and it turns out not to be a scam at all. Sometimes there is still a balance somewhere you can reach yourself, for example because you still have technical access to your own wallet. Paucitas can then help you get to it again. And if the money has been moved on, Paucitas maps out where it went. Nobody can promise the outcome.

Also be careful about who gets in touch afterwards. After a loss, people are sometimes approached again with an offer to recover the money. Read more in scammed twice with crypto. Let Paucitas take a look, and you’ll have clarity instead of carrying on wondering.

What can you do with the Paucitas report?

The report shows whether there is still money available, or where it has gone, and what the next steps are. If it turns out to be a scam, that might be a report to Report Fraud in England, Wales and Northern Ireland, or to Police Scotland on 101. The Paucitas report is a strong attachment to that, because it sets everything out fully and clearly. It is also a solid basis for a conversation with your bank or a solicitor. You can also check yourself whether a firm is on the FCA Warning List.

What Paucitas does for you

Paucitas looks into the whole story, not just the transactions. Where did your money go, through which platform and which addresses, did payments from other group members pass through the same addresses, and did earlier payouts come from real returns or from other people’s deposits? Paucitas does all tracing itself, without tracing tools. On top of that, Paucitas reads through all the conversations, group messages, documents, emails and other communication, so you get a complete picture, with a timeline and where all the money went, step by step. You receive a report that anyone can follow and understand step by step.

You provide what you have: payments, wallet addresses, screenshots and messages from the group. You don’t need to have everything; Paucitas helps you gather it. Every investigation is tailored; you get a tailored quote in advance that we go through together, with no surprises. An investigation takes from the same day to around two weeks.

Sources: FCA, FCA cracks down on illegal finfluencers; FCA, crypto investment scams; FCA Warning List; FCA Financial Services Register; Report Fraud; Police Scotland, scams and frauds.