CySEC Highlights AI Risks and Financial Literacy in World Investor Week Campaign

The Cyprus Securities and platform Commission (CySEC) has concluded a major public-awareness initiative marking its participation in World Investor Week 2025, with a strong focus on the challenges and opportunities presented by Artificial Intelligence (AI) in today’s digital financial environment.

The campaign forms part of CySEC’s broader mission to enhance financial literacy and protect investors through education — a long-standing strategic priority for the regulator, which views informed decision-making as the first line of defence in an increasingly complex market landscape.

Takeaway

Investor Education and Digital Resilience

The initiative aligned with global efforts coordinated by the International Organization of Securities Commissions (IOSCO), which organises World Investor Week each year to promote financial literacy and investor protection across member jurisdictions.

CySEC placed particular emphasis on AI this year, noting its growing influence in investment-related decision-making. The Commission is preparing to publish a new Investor Guide for secure Navigation in the Digital Financial World, addressing the rapid rise of AI-powered applications in financial investing.

The guide warns that while AI can provide analytical insights, its recommendations are not regulated investment advice and may expose users to hidden risks.

“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,” the guide cautions.
“In addition, the manipulated or inaccurate information often produced by AI—commonly referred to as ‘AI hallucinations’—can result in poor decisions and the of funds.”

Takeaway

Nationwide Outreach Campaign

CySEC’s 2025 campaign extended across schools, universities, and public media, combining in-person education with a robust digital presence.

In collaboration with the Ministry of Education, CySEC launched a series of educational lectures that will continue through the end of the year. These sessions, delivered by CySEC experts, aim to equip students and young investors with the skills needed to navigate online financial platforms securely and critically.

The Commission also contributed to national television and radio programmes, and published op-eds, interviews, and educational materials focused on responsible investing. A concise “Smart Investor Booklet” summarised key campaign messages, while social media outreach featured daily posts with practical securety tips on avoiding fraud, identifying misinformation, and understanding the .

Regulators Call for Vigilance and Digital Literacy

CySEC Chair Dr George Theocharides emphasized that financial literacy and digital awareness are now essential life skills, critical not only for individual investors but for the broader economy.

“The ability to understand and assess investment choices — and to navigate the securely — does more than protect investors from pitfalls and fraud,” said Dr Theocharides.
“It supports their meaningful participation in capital markets in ways that benefit them personally, while also contributing to growth.”

He warned that low levels of financial literacy, coupled with social media’s unfiltered influence, increase the vulnerability of citizens — especially younger generations — to fraudulent schemes and misleading online content:

“Low levels of financial literacy, combined with simple 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.”

Takeaway

AI, Accountability, and Investor Control

CySEC Vice-Chair Mr Panikkos Vakkou added that while AI offers unprecedented analytical capabilities, its unregulated nature introduces serious accountability and data-security concerns.

“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,” Vakkou noted.
“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.”

The comments reflect growing global concern among regulators about the use of AI-enhanced trading and to retail users. CySEC’s campaign highlights the need for human judgment, regulatory boundaries, and critical thinking in an era of algorithmic decision-making.

Educational Resources and Next Steps

The Investor Guide for secure Navigation in the Digital Financial World and all supporting campaign materials will soon be available on CySEC’s Financial Education Portal.

The portal also features CySEC’s newly launched online quiz, designed to assist investors test their awareness of financial risks, online fraud tactics, and responsible digital behaviour before making investment decisions.

Through sustained education initiatives and open public engagement, CySEC aims to build a culture of financial resilience, empowering citizens to participate confidently in evolving capital markets while maintaining vigilance against misinformation and technological overreach.