The Securities and Exchange Commission (SEC) has raised the alarm over the rising wave of artificial intelligence (AI)-driven scams targeting unsuspecting investors with promises of guaranteed profits.
It gave the warning in a statement on Sunday, September 28, by its head of external relations, Efe Ebelo.
The SEC recalled that platforms such as CBEX, Silverkuun, and TOFRO were operating illegally by advertising 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 posed serious risks to investors; hence, the commission issued a series of disclaimers against their activities,” it stated.
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According to the SEC, fraudsters are increasingly turning to deepfake videos and AI-generated content to lure victims, pointing out that manipulated videos featuring politicians, celebrities, and TV hosts are 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. This has made traditional fraud detection methods less effective, hence the need for tech-enabled regulation and greater public awareness,” the commission stressed.
The commission hinted that it is adopting advanced surveillance systems capable of detecting fraudulent activity in real time to counter the growing threat.
It 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,” it explained.
The SEC stated further that it has engaged social media companies to clamp down on misleading ads and cautioned influencers against promoting unlicensed investment schemes.
“Any influencer or blogger found to be complicit in promoting illegal platforms will face regulatory sanctions or even prosecution,” it warned.
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It urged Nigerians to take extra precautions before investing, stressing that any scheme 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 said.
It also urged Nigerians to verify the registration status of any investment platform on its website, where a list of licensed capital market operators is available.
Suspicious platforms or fraudulent ads can be reported directly to the SEC via email at sec@sec.gov.ng, by phone at +234 9 462 1168, or through its online complaints portal, it added.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
