Ponzi: SEC raises alarm over AI-generated investment scams

By Obas Esiedesa

Abuja-The Securities and Exchange Commission, SEC, yesterday warned Nigerians to beware of a rising wave of artificial intelligence, AI-driven scams targeting unsuspecting investors with promises of guaranteed profits and fake celebrity endorsements.

The commission in a statement, recalled that platforms such as CBEX, Silverkuun, and TOFRO were operating illegally by advertising AI-powered trading systems that promise unrealistic returns.

“These platforms are not registered or regulated by the SEC, yet they continue to mislead the public with false claims of AI-driven investments. They pose serious risks to investors hence the commission issued series of disclaimers against their activities,’’ the statement read.

SEC explained that fraudsters were increasingly turning to deepfake videos and AI-generated content to lure victims, pointing out that manipulated videos featuring politicians, celebrities and TV hosts were being shared through Facebook ads, Instagram reels, and Telegram groups to give fraudulent platforms an air of credibility.

“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, SEC explained that it was adopting advanced surveillance systems capable of detecting fraudulent activity real time, adding that partnerships with the Central Bank of Nigeria, CBN, and the Nigerian Financial Intelligence Unit, NFIU, were 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.

SEC said it had also engaged social media companies to clamp down on misleading ads and cautioned influencers against promoting unlicensed investment schemes.

It warned:  “Any influencer or blogger found to be complicit in promoting illegal platforms will face regulatory sanctions or even prosecution.’’

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 was available.

It added that investors should confirm that registration numbers displayed on company websites matched the details on the SEC portal and avoid platforms that only operate through Telegram or WhatsApp without a verifiable office address.

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