TikTok is proving to have a, somewhat surprisingly, big impact on the financial world as investment commentary is one of the more popular topics on the social media platform. Recent analysis on this showed youngsters, or generation Z specifically, may be damaged by this.
With national numeracy day quickly approaching, interactive investor highlighted recent research done by Darren Collins, the winner of interactive investor’s Personal Finance Teacher of the Year Award for 2020.
Darren warned of the problem currently facing children, specifically teenagers: “School children are learning more about personal finance and investment from TikTok than they are from school and risk being lured into get-rich schemes as young adults, like cryptocurrencies and GameStop, that set dangerous habits for life.
“With slick marketing to entice the inexperienced and gullible, a growing number of young adults are becoming amateur traders because they learnt it on TikTok.
“Videos with the hashtag #Investing have so far racked up over 2.3 billion views on the social media platform.
The Internet Society, a global non-profit which advocates for an open and secure internet, believed the bill, specifically its effects on encryption, would end up making children even more vulnerable to online dangers than they already are.
Robin Wilton, a Director of Internet Trust at The Internet Society, commented on this: “Encryption is an important technology that helps Internet users keep their information and communications confidential and secure.
“Preventing crime and keeping people safe – especially children – is a universal priority and the ultimate goal of encryption technologies.
“Weakening the security of messaging services would put children at far greater risk of falling victim to predators, by creating new opportunities for criminals to further victimise and exploit vulnerabilities in communications.
“This is because encryption backdoors can be opened by anyone who finds them – including criminals, terrorist organisations, and other hostile actors.”
Many of the investment commentary and recommendations found on TikTok concerns Bitcoin, Dogecoin and other cryptocurrencies.
These assets have received a lot of mainstream attention over the last year or so and in late-April, Martin Lewis was questioned on the legitimacy of such investments.
On the It’s All About The Money podcast, Martin was asked if he considered cryptocurrencies to be a good investment for the long term.
In responding, Martin stressed he does not usually address investment concerns but he also acknowledged this is an area deserving of commentary.
Martin acknowledged Bitcoin does have a legitimate place for some, but he went on to warn: “Now there are a couple of things that need to be said on the start of this.
“First of all, you need to be incredibly careful when you see adverts online or you get emails about Bitcoin, many of those adverts and many of those emails will have my face on them.
“You can report scam ads on Facebook but they’re everywhere else too these scam adverts, and not just with me in, with other people in as well.
“So most of those Bitcoin [and] Bitcoin type things which have famous faces or others in them, those ads are scams, they are nothing to do with Bitcoin, they are scams, scams is theft, people are trying to steal your money, it destroys life.”
Read More: TikTok alert: Your children may be targeted by ‘perilous’ investment scams – full