In this episode, we delve into the powerful role social media plays in amplifying and accelerating financial risks. We revisit the 2023 collapse of Silicon Valley Bank, a prime example of a social media fuelled bank run where $40 billion fled in hours after online doubt spread. Experts and regulators, including Janet Yellen, have highlighted how social media can endanger banks through rapid deposit flight.

We also explore how social media amplifies sows distrust in regulators, auditors and the justice system. The episode touches on how strategic leaks and rumours surrounding mergers and acquisitions amplified online.

The rise of finfluencers and their impact on investment decisions, particularly for Gen Z, is also examined. Regulatory bodies like the US SEC and UK FCA are actively addressing unauthorised financial promotions by these social media figures. Finally, we discuss the alarming statistic that 80% of financial fraud in the UK originates on social media, underscoring the urgent need for proactive measures and the implications of the UK’s Online Safety Act. 

Links:

Compliance Corylated, LinkedIN, Corlytics 

https://www.compliancecorylated.com/news/risk-managers-should-adapt-their-toolkits-for-social-media-shocks/

https://www.compliancecorylated.com/news/banks-need-active-social-media-response-to-viral-free-money%ca%bc-posts-misinformation/

https://www.compliancecorylated.com/news/meta%ca%bcs-focus-on-high-severity%ca%bc-violations-will-not-stop-organised-crime/

https://www.compliancecorylated.com/news/children-targeted-by-social-media-recruitment-ads-for-money-mules-financial-exploitation-linked-to-other-harms/

Wall Street Journal Report on Silicon Valley Bank: https://www.youtube.com/watch?v=QACGoKb48_0 

US FDIC report on the Silicon Valley Bank Twitter bank run: https://www.fdic.gov/analysis/cfr/bank-research-conference/annual-22nd/presentations/cookson-presentation.pdf 

Cambridge Disinformation Summit 2025: https://www.jbs.cam.ac.uk/events/cambridge-disinformation-summit-2025/4 

Jagolinzer's keynote speech on systemic risks of information pollution: https://www.linkedin.com/pulse/keynote-speech-systemic-risks-information-pollution-alan-jagolinzer-lqole/?trackingId=P0p87Z1DTIW6EsgTFnfr2w%3D%3D5 

FCA Primary Market Bulletin 54: https://www.fca.org.uk/publications/newsletters/primary-market-bulletin-5411 

CFA Institute report on finfluencer appeal: https://rpc.cfainstitute.org/research/reports/2024/finfluencer-appeal12 

YouTube targeted by deep fake: https://www.youtube.com/watch?v=P5N087Hdsc0 

Spyware on phones:

https://www.youtube.com/watch?v=WLbHs_S-Fzc 

https://www.theguardian.com/technology/2025/jan/31/whatsapp-israel-spyware 

Anti-DEI and airlines: https://www.youtube.com/watch?v=qdJLUH95CHA