FCA (Financial Conduct Authority) was able to block over 10,000 misleading advertisements on Facebook and other social media platforms.
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A picture taken on October 12, 2021 in Moscow shows the US online social media and social networking service Facebook's logo on a laptop screen. (Photo by Kirill KUDRYAVTSEV / AFP)
The U.K.-based financial watchdog did this as a part of its effort to protect consumers from the so-called "fin-fluencers."
In its Feb. 3 report, FCA ordered Facebook, TikTok, YouTube, Instagram, and Twitter to amend or remove 8,582 ads in 2022.
The financial watchdog also posted more than 1,800 alerts.
FCA Concerned About Rising Fin-Fluencers?
According to The Guardian's latest report, fin-fluencers are increasing in various social media marketing channels.
(Photo : Photo by TONY KARUMBA/AFP via Getty Images)
A researcher browses an internet site with a job offer for a United Nations agency that has been flagged as a scam in Nairobi on June 30, 2022. - A report by Code for Africa revealed that in 2020 when job losses soared during the Covid-19 pandemic 33 scam recruitment Facebook accounts.
"'Fin-fluencers' have also been a growing concern for the regulator," said FCA via its official press release.
The financial watchdog said some people who are not authorized or qualified still share investments and other financial advice.
FCA added that they should stop their activities since they will be subject to regulations, which could lead to legal actions.
The organization further stated that they had already acted against fin-fluencers, such as a regulated firm director who used their personal profile to advertise unauthorized financial traders.
FCA's Efforts
Sarah Pritchard, the FCA Markets Executive Director, said that they expect financial promotions to be clear, fair, and not misleading.
She added that their approach to tackling misleading ads has changed.
Thanks to better technologies, FCA is now identifying and preventing misleading promotional content easier and faster.
"And where we find them, we're stepping in to make firms improve them or remove them entirely," the FCA official promised.
Pritchard further shared that they will continue tracking down those promoting illegal investments on Facebook and other social media platforms.
As of writing, FCA is still consulting on introducing stricter policies for tech firms, especially those that commonly approve financial ads.
Just click this link to learn more details about the latest FCA report about misleading ads on Facebook, Instagram, and other online platforms.
In other news, Metadream denied the Bondee scam allegations.
We also reported that DDoS attacks in the financial sector have increased by around 20% year-over-year.
For more news updates about financial ads and other related stories, keep your tabs open here at TechTimes.
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