SEC Warns Nigerians Against AI-Generated Investment Scams

By Oluwakemi Kindness

The Securities and Exchange Commission (SEC) has raised alarm over a surge in artificial intelligence (AI)-driven investment scams in Nigeria.

It is warning the public to be vigilant against platforms offering guaranteed profits and fake celebrity endorsements.

The regulator in a statement on Sunday recalled that unlicensed platforms such as CBEX, Silverkuun, and TOFRO had lured unsuspecting investors with AI-powered trading schemes promising 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. They posed serious risks to investors, hence the commission issued series of disclaimers against their activities,” the SEC stated.

According to the SEC, fraudsters are now deploying deepfake videos and AI-generated content to promote fake investments. Manipulated clips of politicians, celebrities, and TV hosts are being pushed through Facebook ads, Instagram reels, and Telegram groups, creating the illusion of legitimacy.

“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 warned.

To counter the threat, the SEC said it is:

* Deploying advanced surveillance systems for real-time fraud detection.
* Strengthening partnerships with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) for data-sharing and joint enforcement.
* Engaging social media companies.to remove misleading ads.
* Warning influencers and bloggers.against promoting unlicensed investment platforms.

“Any influencer or blogger found complicit in promoting illegal platforms will face regulatory sanctions or even prosecution,” the SEC cautioned.

The Commission urged Nigerians to be cautious of schemes that:

* Promise daily profits or zero risk.
* Claim endorsements from celebrities or public figures.
* Operate only via Telegram or WhatsApp without a verifiable office address.

It advised investors to always confirm the registration status of platforms on the SEC website, where a list of licensed Capital Market Operators is available. Registration numbers on company websites should also be cross-checked against details on the SEC portal.

“Any investment that guarantees unrealistic returns or uses manipulated videos of public figures should immediately raise a red flag,” the Commission stressed.