The Securities and Exchange Commission (SEC) has issued a stern warning to Nigerians about a surge in investment scams fueled by artificial intelligence, cautioning that fraudsters are increasingly exploiting AI to deceive unsuspecting investors. The commission highlighted that several platforms, including CBEX, Silverkuun, and TOFRO, were operating illegally while promoting AI-based trading systems that promise unrealistic returns.
In an official statement released yesterday, the SEC emphasized that these platforms are not registered or regulated by the commission but continue to mislead the public through exaggerated claims of AI-driven profits. “These platforms pose significant risks to investors. We have issued a series of disclaimers to alert the public against their activities,” the statement read.
The commission noted that scammers are now leveraging deepfake technology and AI-generated content to create the appearance of credibility. Videos featuring politicians, celebrities, and TV hosts are being circulated on social media platforms like Facebook, Instagram, and Telegram, falsely endorsing these fraudulent schemes.
“Scammers are using AI to fabricate testimonials and endorsements that appear legitimate. Traditional fraud detection methods are becoming less effective, making it essential to adopt technology-enabled regulation and enhance public awareness,” the SEC explained.
To tackle the growing threat, the SEC revealed that it is deploying advanced monitoring systems capable of detecting fraudulent activity in real time. The commission is also strengthening partnerships with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) to facilitate data-sharing and joint enforcement operations. “We are shifting from reactive to predictive oversight, which is crucial for managing fraud and systemic risks in our market,” the commission said.
SEC further reported ongoing engagement with social media companies to limit misleading advertisements and warned influencers against promoting unlicensed investment schemes. “Any influencer or blogger found promoting illegal platforms will face regulatory sanctions and potential prosecution,” the commission stressed.
Investors were urged to exercise extreme caution before committing funds, especially in schemes promising daily profits, zero risk, or endorsements from celebrities. “Any investment guaranteeing unrealistic returns or using manipulated videos of public figures should immediately trigger suspicion,” the statement warned.
SEC also advised Nigerians to verify the registration status of investment platforms through its official website, where a list of licensed capital market operators is available. Investors should ensure that registration numbers displayed on company websites match those on the SEC portal and avoid platforms operating solely via messaging apps such as Telegram or WhatsApp without a verifiable office address.
The warning comes amid rising concerns over AI-enabled financial scams, underscoring the urgent need for vigilance and verification by investors before engaging with any online investment opportunity.
