Doherty calls for European crackdown of online financial scams

Fine Gael MEP Regina Doherty has welcomed a European Parliament vote to introduce stronger standards for online financial influencers, as part of a wider effort to boost financial knowledge and tackle the growing threat of online financial scams.

The European Parliament voted on Thursday, 30th April, to pass new measures aimed at increasing access to accurate investment information online while addressing misleading financial content on social media, including hidden advertising, conflicts of interest and the rapid rise in scam activity. The report also places a strong emphasis on improving financial literacy across the EU and recognising the work of responsible financial advisers online.

Speaking after the vote, Doherty said:

“People are now making real financial decisions based on what they see and hear on social media, and while it is great to have access to more information and opportunities, there are also risks whenever that content is misleading or unregulated. Unfortunately, despite the positive opportunities that are there, too many people, particularly young people, are being misled or outright scammed.”

Doherty noted “we are seeing a surge in online financial scams where people are losing thousands of euros to individuals posing as trusted experts. This undermines trust and also hurts those people who are giving out responsible and correct information. It cannot continue.”

She said that the European Parliament vote is an “important step towards bringing order and accountability to what can sometimes be a high-risk and largely unregulated space.”

The Parliament’s position introduces minimum standards for financial influencers.

 The Fine Gael MEP said, “alongside stronger rules, we also need to prioritise financial literacy across Europe and in Ireland. People should feel confident in making financial decisions and have the tools to recognise misleading or harmful advice.”

“There must now be a real clampdown on scams. Scam artists cannot continue to profit from harmful financial content while ordinary people and honest financial influencers pay the price.”

She said that “clear rules, proper enforcement and accountability are essential to stop deceptive financial promotions and outright fraud.”

“This is about protecting consumers, encouraging responsible advice online, and ensuring people are not manipulated out of their hard-earned money.”