 has warned Nigerians to remain vigilant against a growing wave of artificial intelligence, AI .){kind=link}
The Securities and Exchange Commission (SEC) has warned Nigerians to remain vigilant against a growing wave of artificial intelligence (AI)-driven scams, which are luring unsuspecting investors with promises of guaranteed profits and fake celebrity endorsements.
The Commission noted that platforms such as CBEX, Silverkuun, and TOFRO had been operating illegally, advertising AI-powered trading systems that promised 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 Commission stated.
It explained that fraudsters are increasingly exploiting deepfake videos and AI-generated content to deceive victims, with manipulated videos of politicians, celebrities, and television hosts being circulated via Facebook ads, Instagram reels, and Telegram groups to lend fraudulent schemes false credibility.
According to the Commission, “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.”
In response, the SEC said it is deploying advanced surveillance systems to detect fraudulent activity in real time, while strengthening partnerships with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) for data-sharing and joint enforcement measures.
“We are moving from reactive to predictive oversight. This is essential in combating fraud and systemic risks in our market,” the Commission emphasised.
The regulator further disclosed that it has engaged social media companies to take down misleading adverts and cautioned influencers against endorsing unlicensed investment platforms.
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“Any influencer or blogger found to be complicit in promoting illegal platforms will face regulatory sanctions or even prosecution,” SEC warned.
The Commission urged Nigerians to exercise extreme caution before investing, stressing that any scheme promising daily profits, zero risk, or celebrity-backed endorsements should be treated with suspicion.
It advised: “Any investment that guarantees unrealistic returns or uses manipulated videos of public figures should immediately raise a red flag.”
The SEC encouraged the public to verify the registration status of any investment company via its website, which carries a list of licensed Capital Market Operators.
Investors were also advised to cross-check registration numbers displayed on company websites with details on the SEC portal, and to avoid platforms operating solely on Telegram or WhatsApp without a verifiable physical office.
Suspicious platforms or fraudulent adverts can be reported directly to the SEC by email at sec@sec.gov.ng, by telephone on +234 9 462 1168, or through its online complaints portal.