TikTok users have been warned by the regulators for taking unregulated investment advice from social media influencers

TikTok users have been warned by the regulators not to take any type of high-return investment advice from the influencers because many people are posting fake videos regarding different types of investment plans with high return monthly, or yearly. Recently, a video was uploaded by someone who wrote a description of the video that, only future millionaires can watch this video. This video may attract many people because everyone wants to become a millionaire, but you should be careful of such a scam. The UK financial regulators have also warned the users of the TikTok app not to take any type of stock tips from the app and its gurus, otherwise, they may fall prey to some scammers.

UK's Financial Conduct Authority (FCA) has also given a warning to the users of the platform to stay away from the videos in which the scammers are trying to attract many people about promising high-return investment. There are number of unregulated pages on the social media platform trying to make people fool and taking a lot of money from different investors, resultantly, people accuse the platforms of not taking any serious actions. These pages or videos running by breaching the rules and regulation will soon be removed from the platform, FCA spokesperson told the BBC news reporter about their actions.

Social media has become a place of investment tips and advice from a number of people, many people get attracted to such pieces of advice, but they must be careful about whether the person giving advice is an authorized person or not. Reddit’s wall street bets subreddit hooped together and fueled sky-high on GameStop, AMC, and other types of investment plans. In the US, SEC and other regulators are discussing the unregulated investment scheme and they are investigating and monitoring the situation very closely.

Many videos regarding investment about GameStop, AMC, and other Reddit-fueled stocks got a lot of views including a hashtag about investing has got more than a billion view.

According to a report, one in every seven videos posted on TikTok provides fake information about investment plans to attract more people because many people follow just trend, they don’t even use their mind to check whether the person is authorized who is providing the information. Paxful said in a report that we have analyzed that more than 50 percent of the accounts of influencers are posting fake videos about investment advice, included a TikTok account with more than a hundred thousand followers posted fake information about the investment plan.

Users of the TikTok app should be very careful of fake advertisements and online advice that includes a fraud scheme. The platform is trying its best to take down such accounts.

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