Cyprus regulator steps up campaign against digital investment fraud

CySEC warns investors about AI-generated scams and false advice The Cyprus Securities and Exchange Commission (CySEC) has stepped up efforts to protect investors from online scams and artificial intelligence-generated investment fraud, as part of its participation in World Investor Week 2026, while continuing financial education programmes in schools across Cyprus until December. The regulator on Thursday announced that it took part in the international initiative for the eighth consecutive year, focusing on emerging digital investment risks, strengthening financial resilience and helping the public make informed investment decisions. World Investor Week is an initiative of the International Organisation of Securities Commissions (IOSCO), which seeks to raise awareness of investment risks and promote responsible investing. CySEC’s campaign placed particular emphasis on fraudulent practices involving misleading online advertisements, false investment recommendations and deceptive content generated using artificial intelligence (AI). The regulator stressed the importance of staying informed, carefully assessing investment opportunities and checking the credibility of investment service providers before committing money. Public awareness activities included daily targeted posts on CySEC’s social media accounts, as well as appearances on television news and current affairs programmes. The commission also encouraged the investment firms and other entities it supervises to help spread the campaign’s messages. As part of the initiative, CySEC produced a Smart Investor Booklet outlining the main messages of World Investor Week 2026, alongside an investor guide titled ‘Knowledge, Protection and Safer Investment Decisions’. Both publications form part of the regulator’s wider financial education programme. School lectures to continue until December Financial education for younger people remains a central element of CySEC’s work, with the sixth cycle of its school lectures already under way and scheduled to continue until December 2026. The commission is also planning lectures at universities, extending its educational activities beyond the annual World Investor Week campaign. The presentations cater for primary school pupils, lower and upper secondary school students, and those attending technical schools. To support the programme, CySEC has developed new educational material tailored to different age groups and educational levels, together with a presenter’s guide intended to ensure that key financial education messages are delivered consistently and effectively. The aim is to equip school and university students with essential financial knowledge and use practical examples to help them identify investment risks and protect themselves against potential fraud. The initiative also seeks to strengthen students’ critical thinking skills when evaluating information and investment proposals encountered online, where misleading claims and fraudulent offers can be difficult to distinguish from legitimate opportunities. CySEC said the educational programme had become an established part of its activities, with officials having visited 88 schools across Cyprus and provided financial education to more than 3,400 students during the previous five cycles of lectures. Education seen as essential to investor protection “Investment fraud is becoming increasingly sophisticated and difficult to detect,” said CySEC chairman George Karatzias, stressing that protecting investors required more than regulatory supervision. “This is why investor protection requires not only effective supervision but also continuous public awareness and education,” he added. “Through our initiatives, we aim to strengthen people’s ability to recognise risks and make informed decisions, while systematically investing in the financial education of the younger generation,” Karatzias continued. The regulator said financial education and investor protection remained longstanding priorities, with its initiatives aligned with Cyprus’ National Strategy for Financial Literacy. CySEC also actively contributes to the work of the Cyprus Financial Literacy and Education Committee (CyFLEC), which supports efforts to improve financial knowledge and understanding across the population. Information and educational resources, including the material developed for World Investor Week 2026, are available through CySEC’s Financial Education Portal.