Misinformation

Published On: August 4, 2025

Written by: Ben Atwater and Matt Malick

We have all come across financial information online, but much of it is inaccurate, unhelpful, or even created to lure unsuspecting consumers into scams.

The CFP Board, the governing body for the CERTIFIED FINANCIAL PLANNER™ designation, recently released Combating Online Financial Misinformation: A CFP® Professional’s Guide, highlighting common misleading financial content you might encounter online and offering advice on how to protect yourself.

Although the CFB Board created this advisory focusing on online scams, please be aware that many of these scams are not just online, but can be very personal in nature, utilizing community promotors who are well known individuals, particularly those strategies around guaranteed returns.

The CFP Board highlights ten common types of financial misinformation to watch out for:

1. ‘Guaranteed’ Returns and Risk-Free Investments: Be very wary of promises of high returns with little to no risk. If an investment sounds too good to be true, it most certainly is. All investments carry some level of risk, and a claim of “guaranteed” high profits often hides scams.

2. ‘Secret’ Tax Strategies and Loopholes: Do not fall for claims that wealthy people use hidden tax strategies that you can copy by paying for a course or product. These “secrets” often promote illegal tax evasion or one-size-fits-all approaches that will not work for your personal situation and could get you into trouble with the IRS.
3. Real Estate Myths and Overhyped ROI: Be skeptical of narratives that suggest real estate is always a guaranteed path to wealth, safer than other investments, or that you can get rich with “no money down.” Real estate involves significant costs, risks, and can be illiquid. It is not always a quick or easy way to get rich.
4. Cryptocurrency Meme Coin ‘Investments’: We are dubious about the true underlying value of nearly all cryptocurrencies. But regardless, they are certainly volatile and risky. Many rise in value quickly as the creators promote them (“pump-and-dump”) before crashing. Do not invest based on viral trends or fear of missing out (FOMO). Focus on understanding the underlying value and use case, if any, before considering any crypto investment.
5. Misleading Debt Relief and Forgiveness Ads: Be cautious of ads promising to “cancel” or “erase” your debt through hidden government programs or legal loopholes. These are often scams designed to steal your identity, charge you for non-existent services, or damage your credit. Legitimate debt relief options exist, but they do not involve “tricks.” Contact us if you need help with managing debt.
6. Dismissing Traditional Retirement Accounts as Ineffective or Obsolete: Do not believe claims that 401(k)s, IRAs, and pensions are outdated. These accounts offer significant tax advantages and often include employer contributions (like 401(k) matching), which is essentially “free money.” They are invaluable tools for long-term wealth-building.
7. AI-Generated Financial Advice and ‘Bots’: While AI tools can be helpful, be aware that AI-generated financial advice may lack context for your personal circumstances, make up data, or sound professional without actual human oversight.
8. Market-Timing Claims Tied to Events or Fear: Avoid making investment decisions based on short-term predictions, current events, or fear-driven headlines. Trying to “time the market” by buying low and selling high comes down to luck and most often leads to missing market rebounds, hurting your long-term returns.
9. Day-Trading and High-Frequency Strategies for Beginners: Be cautious of promotions for options trading, foreign exchange (forex), or day-trading as easy ways to make money, especially targeting beginners. These strategies are extremely risky and most people who attempt them lose money.

10. Misrepresenting Financial Credentials or Expertise: Always verify the credentials of anyone offering financial advice online (or otherwise). Many individuals present themselves as experts without proper licenses or certifications, or they may even fabricate their qualifications. Look for legitimate certifications like the CFP® mark and make sure advisory firms and their advisors are properly registered. Our SEC registration as a registered investment advisory (RIA) imposes a fiduciary duty, which is the best way to ensure that an advisor is acting in your best interest and working diligently to manage conflicts of interest.

To protect yourself online, remember these key takeaways:

• Verify Sources: Always check the credibility of the person or organization providing financial information.

• Be Skeptical of “Too Good to Be True” Claims: High returns with low risk, secret loopholes, or guaranteed profits are major red flags.
• Understand the Risks: All investments carry risk. If someone downplays or ignores risk, it is a warning sign.
• Beware of Pressure Tactics: Scammers often use urgent language to pressure you into acting quickly.
• Personalized Advice Requires a Professional: General online tips are not a substitute for personalized financial advice tailored to your unique situation by a qualified professional.
• Ask Us: If you encounter questionable financial content, especially if it triggers legitimate questions about your own financial plan, feel free to contact us.

By being aware of these common tactics and exercising caution, you can better protect your financial well-being in the online and offline world.