The Securities and Exchange Commission has raised alarm over a surge in investment scams that use artificial intelligence to dupe Nigerians with promises of guaranteed returns and fake celebrity endorsements.
In a statement on Sunday, the regulator said several online platforms, including CBEX, Silverkuun and TOFRO, are operating without SEC registration and have been promoting AI-powered trading systems that promise unrealistic profits.
The commission said the operators have been using deepfake videos and other AI-generated content to give fraudulent schemes an appearance of legitimacy.
It also warned that manipulated clips of politicians, celebrities and TV presenters are being circulated via Facebook ads, Instagram reels and Telegram groups to fabricate endorsements and testimonials.
According to SEC, this tactic makes it difficult to detect fraud using traditional detection methods.
“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,” SEC said.
However, the SEC explained that it is adopting advanced surveillance systems capable of detecting fraudulent activity in real time to counter the growing threat.
The commission added 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 emphasised.
The regulator said 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.
The Commission urged 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.
It stated: “Any investment that guarantees unrealistic returns or uses manipulated videos of public figures should immediately raise a red flag.”
The Commission further encouraged Nigerians to verify the registration status of any investment platform on its website, where a list of licensed Capital Market Operators is available.
SEC advised Nigerians to verify any platform’s registration on its website, ensure registration numbers on corporate sites match SEC records, and avoid services that operate solely through Telegram or WhatsApp without a verifiable office address.
Recall that at least 600,000 Nigerians who reportedly invested in the CBEX lost N1.3tn after the scheme collapsed in April 2025.
PUNCH reported that the promoters of the platform operated under a dubious company registered as ST Technologies International Limited.
ST Technologies was registered with the Corporate Affairs Commission on September 25, 2024, and the Economic and Financial Crimes Commission’s Special Control Unit Against Money Laundering on January 16, 2025.
At that time, the company remained active on CAC’s website, though information about its board of directors was not available.
EFCC is still investigating the case.
