Sharon Gaffka teams up with FCA in influencer clampdown

The City watchdog has put an end to get-rich-quick schemes promoted by social media influencers – and has turned to a reality TV star for help.

The Financial Conduct Authority (FCA) and Advertising Standards Authority are working with Sharon Gaffka to warn financial influencers – known as “fin-fluencers” – about the risks associated with approving products such as crypto.

Regulators are concerned that minor celebrities are persuading people to put money into products that are unsuitable, high-risk or even fraudulent.

Gaffka, who starred in Love Island in 2021, said, “When you leave a show like Love Island, you are bombarded with opportunities to promote products and work with brands.

“If, like me, you’re new to this kind of work, it can be a bit overwhelming.”

Although Gaffka, 27, is best known for joining the Love Island mansion, according to her Linkedin profile, she spent several months at the Department for Transport and was a Brexit policy advisor at the Department for Environment, Food and Rural Affairs.

The regulators said they will contact influencers and their agents and provide information about what could be an illegal or misleading financial promotion.

The FCA recently revealed a record 8,582 misleading promotions that were blocked or changed last year – 14 times more than in 2021. It also issued more than 1,800 warnings to prevent savers from losing money to scams.

Reality star Kim Kardashian couldn’t say last year that she was paid more than £200,000 by crypto firm EthereumMax to publish an Instagram post about its tokens.

Kardashian, who has 344 million followers on Instagram and nearly 75 million on Twitter, was fined £1 million by US regulators.

Action movie star Steven Seagal and boxer Floyd Mayweather Jr have also been fined for flouting rules on crypto promotions.

Ex-footballer Michael Owen came under fire last year for saying a crypto investment could not fall in value.