State warns about celebrity “finfluencers” and investment steering schemes – KDRV

SALEM, Ore. — The State of Oregon is warning investors about celebrity “finfluencers” and scams framed as financial education and guidance.

Oregon’s Department of Consumer and Business Services issued a warning today.

The Oregon Division of Financial Regulation (DFR) is warning investors to avoid “online scams promising impossible to achieve rates of return to make up for recent market- and crypto-related losses.”

It specifically notes that “finfluencers” are becoming more prominent in social media where DFR has discovered several online scams presented as education and guidance to investors “in what are actually steering schemes. These schemes make numerous misrepresentations about the investment and its rate of return through TikTok and Discord, making it difficult to later track down these misrepresentations and the individuals involved.”

DFR says investment offerings often target people who recently lost money on investments in cryptocurrency or stocks.  DFR Administrator TK Keen says, “Scammers are enticing investors with promises to make up for past losses.  Unfortunately, this has corresponded with the rise of finfluencers who may not be regulated by the state as financial professionals and may have undisclosed conflicts of interest.”

The North American Securities Administrators Association (NASAA) says “a finfluencer is a person who, by virtue of their popular or cultural status, has the capability to influence the financial decision-making process of others through promotions or recommendations on social media. They may seek to influence potential investors by publishing posts or videos to their social media accounts, often stylized to be entertaining so that the post or video will be shared with other potential investors.”

DFR notes cryptocurrencies are losing value from previous record high levels and some cryptocurrencies have completely failed and, “The volatility of these types of investments can make them risky choices for investors.”

Keen says, “The fundamentals of investing have not changed.  Do your homework, make sure you understand the investment and its risks, and do not be swayed by those promising unrealistic returns, no matter their status on social media.”

Consumers who have questions about these schemes can call the division’s advocates at 866-814-9710 (toll-free).  Oregon’s Division of Financial Regulation is part of the State’s Department of Consumer and Business Services which is Oregon’s largest business regulatory and consumer protection agency, with information at www.dcbs.oregon.gov, dfr.oregon.gov.​​