Technology
Teens turning to TikTok for dangerous ‘investing hacks’ – weeks after crypto promotion ban
TEENAGERS using TikTok are being encouraged to gamble with their savings by investing in cryptocurrencies.
They are being advised to take dangerous financial risks by influencers, experts fear.
GettyA rising number of teens are turning to TikTok for investment advice[/caption]
It follows a move by TikTok last month to ban stars from using their online clout to peddle dodgy virtual currencies to users.
According to The Times, accounts encouraging youngsters to buy cryptocurrencies have gained hundreds of thousands of followers.
The advice is often accompanied by flimsy promises of easy money and a catchy pop soundtrack.
One influencer, Adyn Schachtel, encouraged followers to invest in new cryptocurrency Shiba Inu but its price then fell eight per cent.
He posted: “You are going to be a millionaire very soon, just listen up.”
The video amassed 77,000 views and was liked more than 5,000 times.
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The Times reports that dozens of other accounts with thousands of followers churn out similar advice.
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Launched in 2016, TikTok is popular among Generation Z for its dance routines, lip-syncing videos and more.
A rising numbers of teens, however, are turning to the Chinese app for investment tips on the stock market and cryptocurrencies such as Bitcoin.
Videos on TikTok under the hashtag #investing have more than 3.3billion views.
While what the influencers are doing isn’t illegal, it puts people’s cash at risk, experts warned.
Investment consultant Mark Dampier told The Times: “What most of these youngsters are suggesting is gambling not investing.”
TikTok seemingly banned influencers from plugging cryptocurrencies in an update to its terms and conditions in July.
The new terms prohibit branded content from promoting financial services and products, including cryptocurrencies.
In April, DIY investors on TikTok, YouTube and Instagram were warned about cryptocurrencies and other high risk products.
The financial regulator said it may take action if social media sites continue to promote risky and sometimes fraudulent investments.
In a speech, Nikhil Rathi, chief executive of the Financial Conduct Authority (FCA), said online search and social media companies “need to take greater responsibility” for connecting consumers with these investment offers.
He said too many of the “investment opportunities” that people are finding online “prove too good to be true”.
Mr Rathi also reiterated an FCA warning on cryptocurrencies from January, saying: “If you invest, you should be prepared to lose it all”.
ReutersIt follows a move by TikTok last month to ban stars from using their online clout to peddle virtual currencies such as Bitcoin to users[/caption]
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