‘Investment websites’ invest $6 billion in ‘fake news’
Investors are investing $6.9 billion into “fake news” websites, according to a report released Monday by the Investment Industry Regulatory Authority.
The report said the companies involved include “influencers,” “fake sites” and “distributed social media platforms” — and the average transaction price was $8.3 million.
In a statement, Investopedia, which tracks the growth of the investment industry, said it is “extremely disappointed” by the results of the study and said it “stands firmly against any and all forms of fake news.”
The study’s authors said they looked at “millions of dollars of investment from nearly 150 investment companies” as part of a larger effort to figure out “how much real and fake content consumers are exposed to.”
The report’s authors also cited studies that found that fake news can increase the likelihood of violence, even if the content is “objective and factual.”
The company behind the study, Adrienne Vickers, said the investment was meant to “address a growing trend of fake content and misleading content” and said the study showed that the “overwhelming majority of the investments were made by reputable companies.”
“We’re confident that investing in these sites will increase consumer confidence, enhance trust, and promote a better consumer experience,” she added.