Skip to main content Skip to chat

How to tell financial fact from fiction

November 14, 2025

Written by Ariel Teplitsky

Animated illustration showing messages on a conveyor belt being fed into a “fact checking machine.”

Key takeaways

  • According to a recent study, investors who relied on advice from financial influencers were 12 times more likely to fall victim to social media scams.
  • But there are some steps you can take to help discern financial fact from fiction.
  • Look out for proper credentials, conflicts of interest, and promises that sound too good to be true.
  • Check for a second opinion … or second fact.

How to tell financial fact from fiction

The streets are slick with financial chatter—some of it clean, some of it dirty. Half-truths, outdated numbers, and crafty cons dressed up like facts.

It’s a jungle of fictions and fairy tales, see? Some of it put there for a singular purpose: to pry your money from your warm, live hands.

So grab your monocle, detectives. It’s time to become a financial fact sleuth.

How big a case are we dealing with here? According to the Canadian Anti-Fraud Centre, in 2024, Canadians reported more than 4,000 instances of investment fraud, totaling more than $310 million in losses. This is believed to be a significant under-reporting of the true total.

And that’s just one kind of misinformation. There are many more cases today of unqualified individuals sharing financial tips on social media, sometimes without disclosing any conflicts of interest. According to a recent study by the Ontario Securities Commission, investors who relied on advice from financial influencers were 12 times more likely to fall victim to social media scams.

Whether you’re following a “finfluencer,” getting tips from an AI chatbot, listening to an investment podcast, reading the news, or gleaning tips from a money blog, there are some steps you can take to help discern financial fact from fiction.

READ MORE: #FinTok: The good, bad and straight-up wrong

Here are seven few questions to ask yourself.

1. What is the source of the financial information?

  • Who’s giving you this information? What are their qualifications? Try to confirm their credentials.
  • What are other people saying about them? The comments can sometimes be revealing.

👉Did you know? When Tangerine pays for sponsored content with a financial influencer on social media, we thoroughly vet their credentials first and decide whether they’re a good fit. As a general rule, we use influencers for general lifestyle and money stories (for example, “how I cut my monthly spending”) rather than specific financial advice like stock market picks.

2. Is there something they’re not telling me?

Check for conflicts of interest. Influencers have faced sanctions and fines in recent years for not disclosing conflict of interest before dispensing advice online. A common practice for credentialed financial journalists is to disclose if they own shares of any company they’re writing about. Influencers don’t necessarily meet the same standard.

👉Did you know? Influencer content that has been vetted by Tangerine will clearly indicate that it’s “sponsored” or a “paid ad.”

3. Does what they’re promising seem too good to be true?

Spoiler alert: it probably is. Beware of potential pump-and-dump scams, Ponzi schemes or other situations where you may be promised unreasonably high “guaranteed” returns in exchange for a low-risk commitment. Be extra wary if you’re being pressured to buy. That’s your cue to say “bye.”

4. Could I get in trouble for following this advice?

In some cases, the financial “advice” being offered can prompt followers to do something illegal, as in the infamous “Chase ATM” TikTok trend in 2024 in which participants unwittingly perpetrated cheque fraud. 

5. Could I lose money? How much?

If you’re treating an investment the way you would a bet in a casino, you need to know how much you’re willing to lose.

6. Can I get a second opinion—or second fact?

Before diving in—and committing any cash—do your research using reputable sources to confirm that the advice is sound.

7. Does it pass the CRAAP Test?

You can make these questions part of your routine, by using a technique called lateral reading to evaluate information as you’re consuming it.

“The CRAAP Test” is not just a great term for checking whether something is a load of bull. It’s also a meaningful acronym for Currency, Relevance, Authority, Accuracy and Purpose.

  • Currency: How recent is the information? Check the publication date.
  • Relevance: Is the info applicable to your needs?
  • Authority: Is the publication trustworthy? What are the author’s credentials?
  • Accuracy: Where does the information come from? Can it be verified?
  • Purpose: What are the motives behind the publication or author of the information? Is it intended to educate, persuade or entertain? Is it being presented as opinion or fact?

Our commitment to you

All articles and videos on The Juice and Tangerine’s social channels are created and reviewed by our approved team of writers and subject matter experts. We aim to ensure our content is relevant, accurate, and up to date. Each article shows when it was published or last revised, and where available, you can find out more about the author and reviewer by clicking their names. If you notice an inaccuracy, please let us know at thejuice@tangerine.ca.

This article or video (the “Content”), as applicable, is provided for information purposes only. It is not to be relied upon as financial, tax or investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained in this content, including information relating to interest rates, market conditions, tax rules, and other investment factors are subject to change without notice and Tangerine Bank is not responsible to update this information. References to any third party product or service, opinion or statement, or the use of any trade, firm or corporation name does not constitute endorsement, recommendation, or approval by Tangerine Bank of any of the products, services or opinions of the third party. All third party sources are believed to be accurate and reliable as of the date of publication and Tangerine Bank does not guarantee its accuracy or reliability. Readers should consult their own professional advisor for specific financial, investment and/or tax advice tailored to their needs to ensure that individual circumstances are considered properly and action is taken based on the latest available information.

Tangerine Investment Funds are managed by 1832 Asset Management L.P. Tangerine Investment Funds Limited is the principal distributor of Tangerine Investment Funds. Tangerine Investment Funds Limited and 1832 Asset Management L.P. are wholly owned subsidiaries of The Bank of Nova Scotia. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.