The Securities and Exchange Commission has warned Nigerians about artificial intelligence (AI)-driven scams targeting investors with promises of guaranteed profits and fake celebrity endorsements.
In a statement on Sunday, the commission recounted such platforms as CBEX, Silverkuun, and TOFRO as examples operating illegally by advertising AI-powered trading systems that promise unrealistic returns.
“These platforms are not registered or regulated by the SEC, yet they continued to mislead the public with false claims of AI-driven investments,” SEC said.
“They posed serious risks to investors hence the commission issued series of disclaimers against their activities.”
Advertisement
SEC said the fraudsters are increasingly using deepfake videos and AI-generated content to lure victims, with manipulated videos featuring politicians, celebrities, and TV hosts being shared through Facebook ads, Instagram reels, and Telegram groups to give fraudulent platforms an air of credibility.
“Scammers are exploiting AI to fabricate endorsements and testimonials that appear genuine,” SEC said.
“This has made traditional fraud detection methods less effective, hence the need for tech-enabled regulation and greater public awareness.”
Advertisement
To counter the growing threat, the SEC said it is adopting advanced surveillance systems capable of detecting fraudulent activity in real time.
The commission further said partnerships with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) are being strengthened to enable data-sharing and joint enforcement actions.
“We are moving from reactive to predictive oversight. This is essential in combating fraud and systemic risks in our market,” the regulator added.
SEC said it has engaged social media companies to clamp down on misleading ads and warned influencers against promoting unlicensed investment schemes, threatening regulatory sanctions or prosecution for non-compliance.
Advertisement
Also, the commission urged Nigerians to exercise caution when investing, warning that schemes promising daily profits, zero risk, or celebrity-backed endorsements are likely scams that should raise a red flag.
The commission further encouraged Nigerians to verify the registration status of any investment platform on its website, where a list of licensed capital market operators is available.
SEC added that investors should verify that registration numbers on company websites match the commission’s portal details and avoid platforms operating solely through Telegram or WhatsApp without a verifiable office address.
Advertisement
