The Securities and Exchange Commission (SEC) has issued a fresh warning to Nigerians over the growing spread of Artificial Intelligence (AI)-powered scams targeting unsuspecting investors.
In a statement released on Sunday, the regulator disclosed that it had deployed an upgraded surveillance system designed to identify fraudulent investment activities in real time.
According to the SEC, fraudsters are increasingly using AI-generated content and manipulated videos to deceive potential victims. Many of these fake clips feature fabricated endorsements from well-known politicians, celebrities, and media personalities, which are being widely circulated via Facebook ads, Instagram reels, and Telegram channels.
The commission specifically pointed out that several unregistered platforms, including CBEX, Silverkuun, and TOFRO, have been operating illegally. These platforms promoted AI-driven trading schemes that promised unrealistic returns, prompting SEC to issue multiple disclaimers against their activities.
“Scammers are exploiting AI to create false testimonials and endorsements that appear authentic,” the commission stated. “This has reduced the effectiveness of traditional fraud detection methods, which is why we are adopting predictive oversight to strengthen investor protection.”
To combat the trend, SEC revealed it is working with social media companies to clamp down on misleading advertisements. The regulator also warned influencers and bloggers to desist from promoting unlicensed investment products, adding that anyone found complicit will face sanctions or prosecution.
The SEC urged Nigerians to be cautious, stressing that any scheme offering daily profits, zero risks, or celebrity-backed endorsements should immediately raise red flags.
It further noted that collaborations with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) are being reinforced to improve data sharing and joint enforcement operations.
