The Securities And Exchange Commission (SEC) has issued a strong warning to Nigerians about a surge in artificial intelligence (AI)-driven investment scams that lure unsuspecting investors with promises of guaranteed profits and fabricated celebrity endorsements.
According to Nigerian Tribune, a recent statement, the Commission recalled that several unregistered platforms, including CBEX, Silverkuun, and TOFRO, have been operating illegally by promoting AI-powered trading systems that promise unrealistic returns.
“These platforms are not registered or regulated by the SEC, yet they continue to mislead the public with false claims of AI-driven investments. They pose serious risks to investors; hence, the Commission issued a series of disclaimers against their activities,” the SEC stated.
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The regulator noted that fraudsters are increasingly leveraging deepfake videos and AI-generated content to deceive potential investors. Manipulated videos featuring prominent politicians, celebrities, and television hosts have been circulated through Facebook ads, Instagram reels, and Telegram groups, creating a false sense of credibility for these fraudulent schemes.
According to the SEC, “Scammers are exploiting AI to fabricate endorsements and testimonials that appear genuine. This has made traditional fraud detection methods less effective, hence the need for tech-enabled regulation and greater public awareness.”
To tackle the growing threat, the Commission revealed that it is deploying advanced surveillance systems designed to detect fraudulent activities in real time. It further disclosed that it is strengthening collaborations with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) to enhance data sharing and coordinate enforcement actions.
“We are moving from reactive to predictive oversight. This is essential in combating fraud and systemic risks in our market,” the Commission emphasised.
Additionally, the SEC stated that it has engaged with major social media platforms to curb misleading advertisements and has warned influencers and bloggers against promoting unlicensed investment schemes.
“Any influencer or blogger found to be complicit in promoting illegal platforms will face regulatory sanctions or even prosecution,” the regulator warned.
The Commission urged Nigerians to exercise heightened caution when approached with investment opportunities, stressing that schemes promising daily profits, zero risk, or celebrity-backed endorsements should be treated with suspicion.
“Any investment that guarantees unrealistic returns or uses manipulated videos of public figures should immediately raise a red flag,” the SEC stated.
The regulator advised the public to always verify the registration status of any investment platform on the SEC’s official website, where a comprehensive list of licensed Capital Market Operators is available.
It further cautioned investors to ensure that registration numbers displayed on company websites correspond with details on the SEC’s portal and to avoid platforms that operate solely through Telegram or WhatsApp without a verifiable office address.
