EU Pushes for Investment Amid Online Scam Concerns

The European Commission is pushing for EU citizens to invest more in order to boost the region's competitiveness, but there are concerns about online scams and manipulative tactics.

According to data from the European Central Bank, 80% of households in the eurozone do not have any stock market shares or investment funds, representing a pool of nearly €10 trillion in savings deposited in low-return bank accounts.

A study by Finance Watch found that online banking services and financial advice are becoming increasingly popular, particularly among young people, with 72% of EU consumers using online banking services and 41% of French citizens between 18 and 24 years old citing social media as their main source of information on investment.

The study identified numerous questionable techniques used by financial institutions to manipulate users, including dark patterns and emotional language, and found that nearly 60% of financial influencers did not adequately disclose the risks associated with investment products they recommended.

Experts believe that new laws are needed to regulate these practices, and the European Commission is expected to present a proposal for the European digital fairness act by the end of this year.