SEC Warns Nigerians Against AI-Powered Investment Scams
The Securities and Exchange Commission (SEC) has sounded the alarm over a rise in fraudulent investment schemes that deploy artificial intelligence to mislead unsuspecting Nigerians with false promises of guaranteed profits and fabricated endorsements.
In a statement issued on Sunday, the regulator named platforms such as CBEX, Silverkuun, and TOFRO as examples of unregistered operators luring investors with claims of AI-driven trading systems capable of delivering unrealistic returns.
The Commission noted that the fraudsters are relying on deepfake technology and other AI-generated content to give their schemes an air of credibility. Manipulated videos featuring politicians, celebrities, and television presenters have been shared through Facebook ads, Instagram reels, and Telegram groups to create the illusion of legitimate endorsements.
According to SEC, this tactic has made it increasingly difficult to identify scams through traditional methods. “Fraudsters are leveraging AI to fabricate endorsements and testimonials that look authentic.
This has reduced the effectiveness of conventional detection systems, hence the need for technology-driven regulation and stronger public awareness,” the Commission stated.
To counter the trend, SEC disclosed that it is adopting advanced surveillance systems designed to detect fraudulent activities in real time. It also highlighted closer collaboration with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) to improve data sharing and strengthen 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 stressed.
In addition, the Commission said it is working with social media platforms to take down misleading advertisements and warned influencers against promoting unlicensed schemes. “Any influencer or blogger found complicit in marketing illegal platforms will face regulatory sanctions or even prosecution,” SEC cautioned.
Nigerians were urged to exercise vigilance when approached with investment offers. The regulator advised the public to treat any scheme that guarantees daily profits, carries no risk, or claims celebrity backing with extreme caution. “Any investment that promises unrealistic returns or circulates doctored videos of public figures should immediately raise suspicion,” the statement added.
The SEC further reminded citizens that a list of licensed capital market operators is available on its website and encouraged investors to verify the registration status of any platform before committing funds.
