Investors are almost twice as likely to spot pressure tactics in horror films as they are when those tactics are used to promote an investment opportunity, new research from the Financial Conduct Authority has revealed.
Two thirds (65%) of 18 to 40-year-olds who own or are considering investments spotted ‘this is your only chance’ as a classic horror warning sign. However, faced with the same ‘last chance to buy’ investment opportunity, only 36% said it would make them more cautious, while 37% admitted they would feel pressure to buy quickly or risk missing out.
The regulator said the same pattern occurred among other pressure tactics. While 59% recognised that ticking clocks in films makes characters act rashly, just 5% said they would be suspicious of the pressure created by a rising investment price graph.
Additionally, only 12% said they were sceptical of a ‘groundbreaking new’ investment product, with one in 10 stating that it would make them more likely to invest.
According to the FCA’s data, peer pressure and hype also influenced attitudes towards investment. Three in 10 (29%) said excitement from friends or group chats about an investment would reassure them or make them trust the opportunity rather than doing their own research.
Lucy Castledine, director of consumer investments at the FCA, said: “Many people can spot a horror movie trap a mile off, but this survey suggests they’re far less likely to recognise the same tactics when they’re used to influence investment decisions.
“Hype, urgency and fear of missing out can all influence how people invest, so before acting on an opportunity, do your research and make sure it’s right for you.”
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