EU Pushes for Investment Amid Online Financial Malpractice Woes
The European Commission is pushing for EU citizens to invest more, but a report by Finance Watch highlights the dangers of online financial malpractices.
Data from the European Central Bank shows that 80% of households in the euro area don't own any stocks or shares in investment funds, with nearly €10 trillion in savings deposited in low-return bank accounts.
The study analyzed 24 financial institutions and identified numerous questionable techniques, including 'dark patterns' designed to manipulate users into making decisions against their will.
The report also found that 97% of popular applications in the EU feature at least one dark pattern, and that nearly 60% of finfluencers don't adequately disclose risks associated with investment products they recommend.