The Cyprus Securities and Exchange Commission (CySEC) has launched information and education initiatives addressing the challenges of today’s digital financial environment.
Among the themes promoted by the International Organisation of Securities Commissions, which organises the World Investor Week 2025, CySEC placed emphasis on AI.
The regulator is preparing to publish an Investor Guide for Safe Navigation in the Digital Financial World, focusing on the use of AI-powered tools in investing.
While AI-based applications are relied upon for investment suggestions and advice, they can also lead to wrong decisions and potential financial losses if not used cautiously, according to the CySEC.
As part of the campaign, CySEC launched outreach activities, including educational lectures in schools and universities in cooperation with the ministry of education, which will continue until the end of the year. It also contributed to television and radio programmes and supported the initiative with opinion pieces, interviews and other educational materials.
In addition, a Smart Investor Booklet was published to summarise the campaign’s messages and a social media campaign was rolled out featuring daily posts with practical advice and investor protection tips.
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“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,” states the guide.
“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,” said CySEC chair George Theocharides.
He added: “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.”
CySEC vice chair Panikkos Vakkou added: “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.”
