Tool raises awareness of misleading ads and fake investments

The Cyprus Securities and Exchange Commission (CySEC) on Monday launched a new quiz designed to help investors assess their ability to recognise investment fraud.

According to an official announcement, the initiative aims to raise awareness of deceptive online advertisements and misleading social media posts, while also providing advice to investors.

“Online investment scams are rapidly increasing, often promoted through deceptive ads and fraudulent posts promoting investments in foreign exchange, contracts for difference (CFDs), and crypto assets and promising high and quick returns to lure unsuspecting investors,” the commission said.

“CySEC’s new quiz assists investors to evaluate their skills in identifying the scams and strengthens their ability to protect themselves effectively,” it added.

The commission has stressed that its mission is to safeguard investors’ interests and ensure confidence in the market.

Guides on financial education are already available through a dedicated section on the CySEC website, and the latest initiative builds on these efforts.

The quiz also aligns with the main themes of this year’s World Investor Week, which will take place from October 6 to October 12, 2025, and will address fraud and scams ranging from phishing to so-called ‘pig butchering‘.

Pig butchering refers to a type of financial scam where a fraudster builds a relationship with the victim, often online, and then ‘fattens’ them up with trust and affection before ‘butchering’ or financially exploiting them for their money.

The development comes at a time when the European Commission is discussing potential new obligations for social media platforms and financial institutions to curb financial fraud.

In May, the European Securities and Markets Authority announced that it had written to several social media companies, urging them to take proactive steps to prevent the unauthorised promotion of financial services online.

CySEC has confirmed that the quiz will be supported by a comprehensive awareness campaign across traditional media outlets and its official social media channels in order to maximise public outreach.

At the same time, the financial literacy quiz will be disseminated to universities and other relevant domestic institutions.

It will also be shared with the European Securities and Markets Authority (ESMA) as well as other national competent authorities, underlining the importance of international cooperation and the exchange of best practices in promoting financial literacy.

“Regulators have responsibility to foster a culture of security awareness,” said George Theocharides, chair of CySEC.

“It is not only important to highlight risks and improve fraud detection but also to ensure investors benefit from the digital economy,” he added.

“With this new quiz, CySEC provides investors with a practical and accessible tool to assess their knowledge while becoming familiar with the warning signs and risks of online scams,” he explained.

“There is an obligation on CySEC-supervised firms to proactively embrace innovation in fraud management and integrate advanced fraud prevention mechanisms,” Theocharides concluded.