It’s 2 a.m. and you’re doomscrolling TikTok. Between clips of cats knocking over glassware and someone prepping overnight oats, a smooth-talking influencer in a hoodie pops up. They promise the “secret to becoming a millionaire” with just three easy steps. Swipe up, they say. Click the link. Buy the course.

Welcome to the era of algorithmic finance, where the loudest voices in personal finance aren’t financial planners—they’re content creators. And their advice? It’s often not just incomplete—it’s dangerous.

“Everywhere you turn, an influencer is promising the ‘secret’ to financial success with a swipe-up link to their latest ‘game-changing’ strategy,” says Michael A. Scarpati, CEO of RetireUS, a fintech platform helping everyday Americans and federal employees navigate real-life financial decisions. “The problem is, social media algorithms don’t prioritize sound advice. They reward engagement, not accuracy.”

That’s more than just a snarky observation. It’s a warning. While the financial advice flooding your feed may look slick and confident, it’s often crafted by people with no formal training, no legal accountability, and no fiduciary duty to act in your best interest.

“It’s not a coincidence that most of these social media influencers—the voices gaining traction online—aren’t licensed or registered, and there’s a reason for that,” Scarpati adds.

In the world of licensed financial advising, every claim, recommendation, or strategy is governed by strict compliance laws to protect consumers from risky or predatory advice. If a certified financial planner (CFP) or registered investment advisor (RIA) tells you to cash out your 401(k) to invest in crypto, they risk losing their license, getting sued, or both.

But the same rules don’t apply to someone with a ring light, a Canva subscription, and a half-baked hustle narrative. As long as they don’t give “personalized investment advice,” they can say almost anything—often without disclosing the massive affiliate commissions they earn on the products they pitch.

The Securities and Exchange Commission has started to catch on. In 2023, the SEC charged several influencers involved in a $100 million securities fraud scheme for manipulating stocks through social media and misleading their followers. But enforcement remains spotty, and platforms like TikTok and Instagram continue to act more like content distributors than regulators. Meanwhile, the personal finance tag on TikTok has amassed more than 16 billion views.

And people are listening. According to a 2023 Credit Karma study, nearly a third of Gen Z and millennial respondents said they take financial advice from social media influencers. A quarter of them admitted they made financial decisions based on this advice—and regretted it.

Scarpati says he sees the fallout from this constantly—especially now, as mass layoffs roll through the federal government and retirement decisions are being forced on people earlier than expected.

To address the confusion, RetireUS launched Government Transition Decision HQ, a free, online resource center designed to help federal workers navigate layoffs, early retirement, and benefits transitions. It offers educational webinars, one-on-one consultations with licensed fiduciary advisors, and decision checklists tailored to federal benefits. Unlike influencer content, it’s built with compliance in mind—and with actual people’s livelihoods at stake.

Scarpati isn’t entirely anti-influencer. He acknowledges that democratizing financial conversations can be a good thing. But the current dynamic, he says, creates a system where people feel informed—without actually being protected.

And in an economy where retirement security is increasingly fragile, inflation is climbing, and income gaps are widening, the cost of bad advice isn’t just a few bucks—it could be your future.

So the next time someone on your feed promises “passive income in 30 days” or tells you to ditch your IRA for a flashier investment strategy, maybe pause before you double-tap. Ask yourself: is this advice—or is this content?

Because your future deserves better than a swipe-up link.