The Cyprus Securities and Exchange Commission (CySEC) released an investor education booklet on Monday, focusing on digital financial literacy, investor protection and the risks of online investment scams.
The publication was prepared for the 10th World Investor Week (WIW), an international campaign organised by the International Organisation of Securities Commissions (IOSCO), and brings together social media graphics and public awareness messages designed to help investors make better-informed financial decisions.
The booklet centres on three main themes, encouraging investors to build the knowledge and confidence needed to manage risk and pursue long-term financial goals, recognise digital deception and identify potential investment fraud.
Artificial intelligence-generated fakes, deepfakes and impersonation feature prominently in the guidance, with investors encouraged to verify information and check the authenticity of sources before trusting anyone with their money.
The publication also addresses the dangers of misleading online content and investment opportunities promoted through social media, urging the public to distinguish genuine opportunities from fabricated claims.
Its daily guidance begins by highlighting the need to verify investment opportunities, particularly those that may have been fabricated using artificial intelligence, and to rely on credible information before committing money.
Another section addresses market volatility, advising investors to seek guidance from qualified professionals before deciding whether to sell investments or hold on to them during periods of global market turbulence.
The booklet also emphasises the importance of financial literacy, continuous learning and risk management, particularly for young people and first-time investors.
While starting to invest early can be beneficial, the guidance warns against making decisions based solely on trends, encouraging beginners to understand the fundamentals, plan carefully and verify information before acting.
A separate section focuses on deepfakes and other forms of digital deception, urging investors to cross-check information across sources and confirm identities before making financial commitments.
The publication also cautions against following online crowds or acting on social media hype, stressing that the decision to invest should be based on sound information rather than popular opinion.
Diversification is another key theme, with the booklet using the familiar principle of not putting all one’s eggs in one basket to explain why investors should avoid concentrating their money in a single investment.
The final area of guidance focuses on developing healthy and stable financial habits from an early age, highlighting the role of financial awareness in supporting long-term financial wellbeing.
CySEC said the booklet is available to the public through its financial education portal, where it can serve as an ongoing resource for investor guidance and awareness.