The Securities and Exchange Commission (SEC) has cautioned Nigerians and the investing public to beware of artificial intelligence scams luring investors with fake promises of guaranteed profits.
According to the commission, fraudsters are now deploying deepfake videos and AI-generated content to give their platforms false credibility.
The SEC recalled that illegal platforms like CBEX, Silverkuun, and TOFRO once operated in Nigeria, promoting AI-powered trading systems with unrealistic returns.
“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,” SEC said.
Fraudsters are also using fabricated endorsements from celebrities, politicians, and TV hosts to lure victims. Such content is often spread through Facebook ads, Instagram reels, and Telegram groups.
SEC Moves to Strengthen Surveillance
The commission warned that AI scams have made traditional fraud detection less effective.
“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,” it said.
To counter this, SEC disclosed it is adopting advanced surveillance systems to detect suspicious activity in real time.
It is also working with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) to share data and carry out joint enforcement actions.
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