Influencers and bloggers have been warned to stay away from promoting fake investment schemes or risk being sanctioned or prosecuted in accordance with the laws of the land.
This warning was given by the Securities and Exchange Commission (SEC), which raised an alarm over a rising wave of artificial intelligence (AI)-driven scams in Nigeria targeting unsuspecting investors with promises of guaranteed profits and fake celebrity endorsements.
In a statement on Sunday, the country’s apex capital market regulator noted that fraudsters are increasingly turning to deepfake videos and AI-generated content to lure victims, pointing that manipulated videos featuring politicians, celebrities, and TV hosts are being shared through Facebook ads, Instagram reels, and Telegram groups to give fraudulent platforms an air of credibility.
It made a reference to platforms like CBEX, Silverkuun, and TOFRO, operating illegally by advertising AI-powered trading systems that promise 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 stated in the statement.
“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 added.
To counter the growing threat, the SEC explained that it is adopting advanced surveillance systems capable of detecting fraudulent activity in real time, adding that partnerships with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) are being strengthened to enable data-sharing and joint enforcement actions.
“We are moving from reactive to predictive oversight. This is essential in combating fraud and systemic risks in our market,” the commission emphasized, saying it has also engaged social media companies to clamp down on misleading ads and cautioned 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 warned, urging Nigerians to take extra precautions before investing, stressing that any scheme promising daily profits, zero risk, or celebrity-backed endorsements should be treated with suspicion.
“Any investment that guarantees unrealistic returns or uses manipulated videos of public figures should immediately raise a red flag,” it stated, encouraging Nigerians to verify the registration status of any investment platform on its website, where a list of licensed Capital Market Operators is available.
It added that investors should confirm that registration numbers displayed on company websites match the details on the SEC portal and avoid platforms that only operate through Telegram or WhatsApp without a verifiable office address, adding suspicious platforms or fraudulent ads can be reported directly to the SEC via email at sec@sec.gov.ng, by phone at +234 9 462 1168, or through its online complaints portal.
