SMFSC Launches Global Operation Against Financial Influencer Fraud

The San Marino Financial Standards Council (SMFSC) has initiated a coordinated international effort to combat investment fraud promoted through social media influencers. The operation brings together regulators from 15 jurisdictions to address the rising threat of digitally facilitated financial scams.

Overview and Objectives

Recent data analyzed by SMFSC reveals that investor losses linked to misleading financial influencer content grew by 240% in the past year, exceeding $1.2 billion worldwide. Fraudsters often use influencers to promote unrealistic returns and fake investment schemes, frequently targeting younger and digitally active audiences.

The initiative will prioritize enforcement against:

Undisclosed paid promotions of financial products

Fake performance screenshots and fabricated trading results

Unlicensed entities misrepresenting themselves as regulated platforms

Public Awareness Measures

As part of the campaign, SMFSC will roll out:

An official verification badge for compliant financial influencers

A multi-language investor awareness guide: Avoiding Social Media Investment Scams

A dedicated channel for whistleblowers and victim reporting

Advisory from SMFSC

Director General of SMFSC, Carlo Moretti, cautioned investors:

“Always validate the regulatory status of any recommended platform or product. No legitimate investment guarantees high returns with zero risk. When in doubt, seek independent and professional financial advice.”

The operation is expected to extend through mid-2025, with periodic public disclosures of enforcement outcomes. SMFSC urges social media users to report suspected fraud via its global reporting portal.