Over three quarters of British credit card holders are trusting social media financial advice without verifying credentials, according to provider Zable.
Zable also claimed this approach costs over 10 million cardholders money, in a study of 2,000 cardholders on areas in which Brits are turning to non-regulated sources for financial guidance.
It noted that even in more complex financial areas, consumers are still relying on informal guidance rather than regulated professional support. For pensions this was 48 per cent of respondents, 45 per cent with investing, and 36 per cent with mortgages.
As a result, the research also found that 29 per cent of the respondents reported losing money through their approaches, with 21 per cent (nearly 7.5m) reporting losses of £100 or more in the past 12 months.
As part of the study Zable asked four major AI services – Gemini, Grok, ChatGPT, and Claude – common personal finance questions. The results showed that most tools defaulted to US-focused advice even when the data was requested for UK savers. This included references to 401(k)s, FDIC insurance, and American savings guidance.
Arielle Roger-Jenkins, senior product manager at Zable, says: “While AI tools, forums, podcasts, YouTube videos, and social media can be useful for building financial understanding, this type of content is often generalised and should always be researched further before acting on the advice. A lot of advice online, particularly on social media, could be linked to sponsorships, commissions, or product promotions, so it’s important to seek clarification and avoid making financial decisions under pressure.”
The study also showed that mortgage-related advice carried even greater financial consequences, with the most common reported loss range being £500-£1,000.