By Bassey Udo
The growing incidence of artificial intelligence (AI)-driven scams in Nigeria is becoming alarming, the Securities and Exchange Commission (SEC) has said.
The Commission warned Nigerians to beware of the dangers of such scams targeted at unsuspecting investors with promises of guaranteed profits and fake celebrity endorsements.
The Commission recalled that platforms such as CBEX, Silverkuun, and TOFRO were operating illegally by advertising AI-powered trading systems that promised unrealistic returns until they went under.
“These platforms were 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 a series of disclaimers against their activities,” the Commission said in a statement at the weekend.
The Commission explained that fraudsters were increasingly turning to deepfake videos and AI-generated contents to lure victims, pointing out that manipulated videos featuring politicians, celebrities, and TV hosts were being shared through Facebook adverts, 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 said.
To counter the growing threat, the SEC explained that it was adopting advanced surveillance systems capable of detecting fraudulent activities in real time, adding that partnerships with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) were 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,” the Commission said.
The regulator said it has also engaged social media companies to clampdown 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,” SEC warned.
The Commission 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 Commission warned.
The Commission further encouraged Nigerians to verify the registration status of any investment platform on its website, where a list of licensed Capital Market Operators is available.
Besides, the Commission urged investors to confirm that registration numbers displayed on company websites match the details on the SEC portal and avoid platforms that only operate through Telegram or WhatsApp without a verifiable office address.
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.
