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Godswill Michael
The Securities and Exchange Commission (SEC) has raised alarm over a surge of artificial intelligence (AI)-powered investment scams in Nigeria.
In a statement on Sunday, it warned that fraudsters are using deepfakes, fake endorsements, and manipulated videos to deceive unsuspecting investors.
The Commission recalled that unlicensed platforms such as CBEX, Silverkuun, and TOFRO operated illegally by advertising AI-driven trading systems with promises of unrealistic profits.
“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,” it stated.
Fraudsters, the SEC explained, are increasingly using AI-generated content to lure victims, including videos that falsely feature politicians, celebrities, and TV hosts. These manipulated clips are being circulated through Facebook ads, Instagram reels, and Telegram groups to give fraudulent platforms 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.”
To address the threat, the SEC said it is deploying advanced surveillance systems capable of detecting fraudulent activity in real time. It is also strengthening partnerships with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) to enable data sharing and joint enforcement.
“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 has also engaged social media companies to clamp down on misleading ads and warned 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 cautioned.
Nigerians were advised to take extra care before investing in any scheme that promises daily profits, zero risk, or celebrity-backed endorsements.
“Any investment that guarantees unrealistic returns or uses manipulated videos of public figures should immediately raise a red flag,” the Commission stated.
The SEC further encouraged the public to verify the registration status of investment platforms through its website, where a list of licensed Capital Market Operators is available. Investors were also advised to cross-check registration numbers on company websites with those on the SEC portal and avoid platforms that only operate through Telegram or WhatsApp without verifiable addresses.