00:04Defense stocks make millionaires 95% of the time.
00:08That's the claim being made in this TikTok video
00:11before it points viewers towards a handful of companies in the defense sector.
00:15It's just one example of financial advice social media users can encounter when scrolling online.
00:21Germany's financial regulator Buffin told us it sees a clear trend
00:26towards young people increasingly getting their investment tips from social media.
00:30But from tips on individual stocks and cryptocurrency to promises of getting rich quick,
00:35how much of this advice should you actually trust?
00:39Broker comparison website BrokerListings.com
00:42analyzed 150 popular finance-related TikTok videos,
00:46each with at least 100,000 views.
00:49It found that more than 70% of creators did not display a clear, relevant background
00:54in financial services or suitable qualifications.
00:58And more than 60% of videos didn't adequately explain the potential risks
01:02or downsides of what they were discussing.
01:05But that doesn't mean all financial content on TikTok is unreliable.
01:10Researchers also found useful videos about budgeting, saving and long-term investing,
01:16while established financial education channels use TikTok to explain investment products and concepts.
01:22So, how can you tell the difference between helpful and potentially unreliable advice?
01:27Experts say you should be cautious of creators who use displays of wealth,
01:31such as luxury cars or expensive hotels,
01:34to suggest an investment strategy that could bring similar rewards.
01:38Urgency is another red flag, such as claims a stock is about to soar or crash.
01:44And before putting your money at risk,
01:46check claims against established sources,
01:48including financial regulators, company information and trusted news organisations.
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