The Securities and Exchange Commission (SEC) has issued a stern warning to Nigerians about a growing wave of artificial intelligence (AI)-powered scams targeting unsuspecting investors with promises of guaranteed profits and fabricated celebrity endorsements.
The Commission cited platforms such as CBEX, Silverkuun, and TOFRO, which operated illegally by promoting AI-based trading systems claiming unrealistic returns.
“These platforms are not registered or regulated by the SEC, yet they misled the public with false claims of AI-driven investments. They posed serious risks to investors, prompting the Commission to issue repeated disclaimers against their activities,” the SEC stated.
Fraudsters are increasingly leveraging deepfake videos and AI-generated content to lure victims. Manipulated videos featuring politicians, celebrities, and media personalities are being circulated via Facebook ads, Instagram reels, and Telegram groups, giving fraudulent platforms a veneer of legitimacy.
“Scammers are exploiting AI to fabricate endorsements and testimonials that appear genuine. This makes traditional fraud detection less effective, highlighting the need for tech-enabled regulation and increased public awareness,” the Commission explained.
In response, the SEC is adopting advanced surveillance systems to detect fraudulent activities in real time and is strengthening partnerships with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) for data-sharing and joint enforcement actions.
“We are moving from reactive to predictive oversight. This approach is essential to combat fraud and systemic risks in the market,” the SEC emphasized.
The regulator has also engaged social media platforms to curb misleading advertisements and warned influencers against promoting unlicensed investment schemes.
“Any influencer or blogger found complicit in promoting illegal platforms will face regulatory sanctions or prosecution,” the SEC cautioned.
The Commission urged Nigerians to exercise heightened vigilance, stressing that investment schemes promising daily profits, zero risk, or celebrity endorsements should be treated with suspicion.
“Any investment guaranteeing unrealistic returns or using manipulated videos of public figures should immediately raise a red flag,” the SEC advised.
Investors are encouraged to verify the registration status of any investment platform on the SEC website, ensuring registration numbers match official records. Platforms operating solely on Telegram or WhatsApp without a verifiable office address should be avoided.
Suspicious platforms or fraudulent advertisements can be reported to the SEC via email at sec@sec.gov.ng, phone at +234 9 462 1168, or through the Commission’s online complaints portal.
SEC warns Nigerians against AI-powered investment scams using deepfake videos and fake celebrity endorsements. Learn how to verify platforms and protect your investments.
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