Nigerian SEC Warns Against AI-Driven Investment Scams

The Securities and Exchange Commission (SEC) of Nigeria has raised concerns over a surge in artificial intelligence (AI)-driven scams targeting investors. These scams promise guaranteed profits and use fake celebrity endorsements to lure unsuspecting individuals.

Platforms such as CBEX, Silverkuun, and TOFRO have been identified as operating illegally, advertising AI-powered trading systems with unrealistic returns. These platforms are not registered or regulated by the SEC, posing significant risks to investors.

The SEC highlighted the use of deepfake videos and AI-generated content by fraudsters to fabricate endorsements and testimonials that appear genuine. These manipulated videos often feature politicians, celebrities, and TV hosts, and are circulated through social media platforms like Facebook, Instagram, and Telegram.

To combat this threat, the SEC is adopting advanced surveillance systems for real-time detection of fraudulent activities. It is also strengthening partnerships with the Central Bank of Nigeria and the Nigerian Financial Intelligence Unit to enhance data-sharing and enforcement actions. Additionally, the SEC is working with social media companies to curb misleading ads and has warned influencers against promoting unlicensed investment schemes.

The Commission advises investors to verify the registration status of any investment platform on its website and to be cautious of schemes promising daily profits, zero risk, or celebrity-backed endorsements.