'Confidence paradox' emerges as people lose thousands to unverified advice

New survey data commissioned by Revolut reveals that 41% of Brits have acted on unverified financial advice online without verifying its legitimacy, leading to thousands of pounds in losses.

The data uncovers a significant overconfidence gap, especially among men, as many believe they can spot illegitimate advice but fail to do so. 

The research found that young adults are most at risk, with 68% of 25-34 year-olds and 58% of 18-24 year-olds admitting to following unverified advice without conducting further due diligence. The financial toll is significant, with nearly one in five (19%) of those who followed online advice losing over £1,000, and a further 4% losing over £5,000 in relation to unverified advice.

A clear gender confidence gap was also identified. While 80% of men were confident in their ability to recognise credible advice, a quarter of them (25%) have lost over £1,000 as a result of following illegitimate recommendations. On the other hand, women appeared more cautious, with 63% confirming they’ve never acted on unverified advice, yet 59% felt confident in their ability to spot it.

The research shows Brits are clearly worried about financial risks, with 35% flagging scams and ponzi schemes as their biggest concern, followed by overhyped or misleading claims (26%). Yet despite this caution, only 17% of those surveyed consulted financial advisers prior to making decisions, and only 12% relied on educational tools available on investment platforms.

Yana Shkrebenkova, head of Revolut Wealth and Trading UK, commented: “It’s apparent that the internet has democratised access to financial information, but not necessarily financial wisdom. Too many people mistake confidence for credibility, and slick social-media posts for sound investment advice, blurring the line between insight and influence. Sound financial decisions should be grounded in education and research, and advice should come with credentials, not hashtags.”