Nicosia: The Cyprus Securities and Exchange Commission (CySEC) marked its participation in the World Investor Week 2025 with a series of targeted initiatives aiming to raise awareness and educate people on the challenges of today’s digital financial environment.
According to Cyprus News Agency, financial education has long been a strategic priority for CySEC, as it serves as the first line of defence for investors and is critical for navigating the rapid technological advances that have increased the public’s access to investment options and products, some of which carry high risk.
Among the themes highlighted by the International Organization of Securities Commissions (IOSCO), which organises World Investor Week, CySEC placed particular emphasis on Artificial Intelligence (AI). The Commission prepares to publish an Investor Guide for Safe Navigation in the Digital Financial World, addressing the fast-growing use of AI-powered tools in financial investing. As more people rely on AI applications for investment suggestions or advice, the risk of unsuitable decisions and potential financial losses also increases.
The Guide cautions investors: ‘AI tools are not authorised to provide personalised investment advice, have no legal obligation to act in investors’ best interests, and do not tailor their recommendations to individual needs. In addition, the manipulated or inaccurate information often produced by AI-commonly referred to as ‘AI hallucinations’-can result in poor decisions and the loss of funds.’
As part of the campaign, CySEC has launched a range of outreach and awareness actions, including educational lectures in schools and universities, in cooperation with the Ministry of Education. These lectures, delivered by CySEC staff, will run until the end of the year. In parallel, CySEC contributed to television and radio programmes and supported the initiative with op-eds, interviews, and other educational materials. A concise Smart Investor Booklet was also published to summarise the campaign’s key messages. On social media, CySEC has been running a targeted campaign featuring daily posts with practical messages and tips to help inform and protect the public.
Marking CySEC’s participation in World Investor Week, CySEC Chair Dr George Theocharides underscored that digital financial literacy is becoming an essential skill for all citizens. ‘The ability to understand and assess investment choices-and to navigate the digital financial landscape safely-does more than protect investors from pitfalls and fraud. It supports their meaningful participation in capital markets in ways that benefit them personally, while also contributing to economic stability and growth,’ he said.
He added that ‘low levels of financial literacy, combined with easy access to markets and the growing influence of unfiltered messages on social media, leave citizens-especially young people-more vulnerable, creating heightened risks from increasingly sophisticated and persuasive forms of fraud.’
In an article about the challenges posed by AI, CySEC Vice-Chair Mr Panikkos Vakkou noted that relying solely on such technologies for financial decisions involves serious risks. ‘Opaque algorithms and economic incentives, lack of accountability, the use of incorrect or incomplete data, and risks to privacy and data security can all lead to poor choices. In the financial sector, where our decisions have serious consequences for our quality of life and our future, it is crucial that we stay in control and evaluate our options carefully,’ he said.
The new Investor Guide for safe navigation in the digital financial world, together with all supporting materials, will be available on CySEC’s Financial Education Portal on its website. The same portal also hosts CySEC’s recently launched online quiz, designed to help investors assess their ability to identify risks and avoid online pitfalls before making investment or other financial decisions.