CFP Board Survey Highlights Financial Risks of Online Misinformation

A recent survey by the CFP Board reveals a significant increase in reliance on online sources for financial advice among Americans, with nearly 60% admitting to making regrettable decisions based on misleading information found online. Despite the vast availability of financial content, fewer than 40% of respondents trust that the information serves their best interests, and over 60% spend more time verifying financial data than five years ago.

The financial impact of this misinformation is tangible; nearly 39% have lost at least $250, and 18% have lost over $1,000 due to poor financial decisions influenced by incorrect online advice. The survey highlights not only monetary losses but also delayed major financial decisions, such as home buying and retirement, and increased anxiety about financial futures. There is a notable generational split in trust and outcomes, with younger Americans (ages 25-45) more likely to trust and act on online financial advice, particularly from social media and AI sources, compared to older adults.

This demographic is also more prone to financial mistakes linked to this information, reflecting a shift in where and how financial guidance is consumed. Experts emphasize that misinformation poses risks such as inadequate insurance coverage and mismanaged investment portfolios, which can lead to substantial financial harm. Financial professionals are encouraged to bridge the gap between information overload and individual financial understanding by actively engaging clients, understanding their preferred information channels, and helping interpret and apply financial advice suitably.

The report underlines that despite widespread skepticism of online financial content, 75% of Americans maintain confidence in advice from certified financial professionals, underscoring the enduring value of expert guidance amid the digital information landscape. This survey was conducted in April 2025, sampling over 1,000 Americans aged 25-64 nationwide, providing pivotal insights into evolving consumer behaviors and the challenges posed by digital misinformation in financial decision-making.