Around one in three people lack the confidence to be able to spot an investment scam.
Research by BrokerChooser revealed 91 per cent of people said they would act in a way that could expose them to fraud.
Those aged 45 to 54 were the age group with the least confidence in being able to spot a scam.
Meanwhile those aged 25 to 34 were most likely to overestimate their confidence in spotting an investment scam.
According to the data, nearly 27 per cent of millennials and 20 per cent of Gen Z were more than six times more likely than boomers to test a suspicious trading platform with a small amount.
In addition to this, 15 per cent of Gen Z said they would invest in a forex opportunity based on celebrity or influencer endorsements.
Krisztián Gátonyi, from BrokerChooser, said: “A quarter of young investors admit to making impulsive decisions in order to keep up with current investment trends, often leaving little time to properly evaluate the risks.
“Amid a sharp rise in investment scams, this behaviour is particularly dangerous, especially as fraudsters grow increasingly sophisticated in how they present themselves.
“With the rise of AI, we’re now seeing realistic fake websites, chatbot ‘advisers’, and even deepfake videos of celebrities endorsing bogus schemes.
It’s becoming harder for even seasoned investors to separate genuine opportunities from high-tech fraud.”
alina.khan@ft.com
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