Nigeria’s Securities and Exchange Commission (SEC) has issued a strong warning to the public about a surge in artificial intelligence (AI)-driven investment scams that are targeting unsuspecting Nigerians with promises of guaranteed profits and fake endorsements from celebrities and public figures.
The regulator highlighted platforms such as CBEX, Silverkuun, and TOFRO as examples of entities operating illegally by promoting AI-powered trading systems that promise unrealistic returns. These platforms are not registered or regulated by the SEC, yet they continue to lure investors with misleading claims. “They pose serious risks to investors, and the Commission has issued multiple disclaimers against their activities,” SEC stated.
According to the Commission, scammers are increasingly deploying deepfake videos and AI-generated content to lend credibility to fraudulent platforms. Manipulated videos of politicians, celebrities, and TV hosts are being circulated on Facebook ads, Instagram reels, and Telegram groups, giving investors a false sense of legitimacy.
Fraudsters are exploiting AI to create fabricated endorsements and testimonials that look genuine, making traditional fraud detection methods less effective. SEC stressed the need for more technology-enabled regulation and heightened public awareness to counter these evolving threats.
The regulator disclosed that it is working with social media companies to curb misleading advertisements and warned influencers and bloggers against promoting unlicensed investment schemes. “Any influencer or blogger found complicit in promoting illegal platforms will face regulatory sanctions or even prosecution,” the Commission cautioned.
SEC urged Nigerians to be vigilant and skeptical of any investment promising daily profits, zero risk, or backed by celebrity endorsements. “Any investment that guarantees unrealistic returns or uses manipulated videos of public figures should immediately raise a red flag,” it warned.
The Commission further advised investors to verify the registration status of any investment platform on the SEC website, where a full list of licensed Capital Market Operators is available. It also encouraged Nigerians to cross-check registration numbers displayed on company websites against those listed on the SEC portal and to avoid platforms that operate solely via Telegram or WhatsApp without a verifiable office address.
Suspicious platforms or fraudulent advertisements can be reported directly to the SEC through email at sec@sec.gov.ng, by phone at +234 9 462 1168, or via its online complaints portal.
For MSMEs, the growing wave of AI-powered scams poses a serious threat, especially as many small business owners seek digital investment opportunities to grow their capital. Falling victim to such schemes can result in significant financial losses and disrupt business operations. The warning underscores the importance of due diligence, regulatory verification, and digital literacy for entrepreneurs navigating online financial platforms.
