The campaign aims to reach those tempted to invest in high-risk products, particularly younger investors.

The social media campaign videos warn young investors about the risks they would be taking if they invest in high risk products such as cryptocurrencies.

Before launching the £11m 5-year campaign the FCA surveyed 1,000 people age 18-40 who invest in high-risk investment products.

The survey found that 76% were driven by competition with friends, family and acquaintances and their own past investments. Over half (58%) said hype on social media and in the news lay behind their investment decisions.

Almost 7 in 10 of those surveyed likened investing in high-risk investments to gambling.

Just 1 in 5 respondents (21%) were considering holding their most recent investment for more than a year, and less than 1 in 10 (8%) for more than 5 years. This is despite 60% of those surveyed saying that they prefer more stable returns than investments that rise and fall dramatically, investments that typically come with lower returns requiring longer investment.

According to the regulator, over 1m UK investors increased their holdings, or bought a high-risk investment during the pandemic (April to October 2020).

The InvestSmart campaign targets those who are inexperienced at investing, possibly dipping their toe for the first time. The campaign aims to reach those investors through social media and online, where much of the hype around investment happens. It asks investors to consider their appetite for risk and to ignore the hype, directing them instead to advice available on the FCA’s website.

Sarah Pritchard, executive director of markets at the FCA, said: “We are seeing more people chasing high returns. But high returns can mean higher risks. We want to give consumers greater confidence to invest and help them to do so safely, understanding the level of risk involved.

“With our InvestSmart campaign we’re taking an innovative approach to reaching those tempted by high-risk products so that they can better understand the risks and where to get advice. We will be targeting people online and through social media, helping ensure inexperienced investors don’t get played. Together with a more assertive approach to finding and taking action against scammers, we hope InvestSmart will help people invest confidently.”

• Opinium surveyed 1,000 respondents aged between 18 and 40 who invest in one or more high-risk investment products on behalf of the FCA.