The Securities and Exchange Commission (SEC) has cautioned Nigerians to be wary of artificial intelligence (AI)-driven scams luring unsuspecting investors with fake celebrity endorsements and promises of guaranteed profits.
In a statement, the Commission cited illegal platforms such as CBEX, Silverkuun, and TOFRO, which advertised AI-powered trading systems offering unrealistic returns. It said the platforms were neither registered nor regulated by the SEC, adding that several disclaimers had been issued against their activities.
The regulator warned that fraudsters are increasingly deploying deepfake videos and AI-generated content to deceive the public. Manipulated videos of celebrities, politicians, and TV hosts have been circulated via Facebook ads, Instagram reels, and Telegram groups to give fraudulent schemes an appearance of legitimacy.
“Scammers are exploiting AI to fabricate endorsements and testimonials that appear genuine,” the SEC noted, stressing that such tactics have made traditional fraud detection less effective and underscored the need for tech-enabled regulation.
To address the threat, the SEC said it is adopting advanced surveillance systems for real-time detection of fraud and strengthening partnerships with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) for joint enforcement actions. It has also engaged social media platforms to clamp down on misleading ads and cautioned influencers against promoting unlicensed investment schemes.
“Any influencer or blogger found complicit in promoting illegal platforms will face regulatory sanctions or prosecution,” the SEC warned.
The Commission advised Nigerians to treat any scheme that promises daily profits, zero risk, or relies on manipulated videos as a red flag. It urged investors to always verify the registration status of investment platforms on its website and ensure displayed registration numbers match SEC records.
