AI Fraud on the Rise, SEC Issues Warning

Nigeria’s Securities and Exchange Commission (SEC) has sounded an alarm over the growing number of artificial intelligence–powered scams in the country. Fraudsters are using advanced tools to trick investors with fabricated endorsements, deepfake videos, and promises of guaranteed profits.

The Commission identified platforms such as CBEX, Silverkuun, and TOFRO as unlicensed operators. These groups are allegedly promoting AI-driven trading systems that claim to deliver unrealistic returns. “They pose serious risks to investors, and the Commission has issued multiple disclaimers against their activities,” SEC said in a statement.

SEC: Fake Endorsements and Deepfake Dangers

Investigations show that scammers are increasingly relying on manipulated content to lend legitimacy to their schemes. Videos of politicians, celebrities, and television hosts are being altered with AI and circulated widely on Facebook, Instagram, and Telegram. These deepfakes, combined with fabricated testimonials, give victims a false sense of credibility.

SEC warned that traditional fraud detection methods are struggling to keep up with these tactics. It stressed that investors should be wary of platforms offering “zero risk” or “guaranteed daily profits.” “Any investment that guarantees unrealistic returns or uses manipulated videos of public figures should immediately raise a red flag,” the regulator cautioned.

Influencers Under Scrutiny

The Commission is also turning its attention to online influencers and bloggers. It disclosed that it is working with social media platforms to stop misleading adverts and issued a stern warning to those promoting unlicensed schemes. “Any influencer or blogger found complicit in promoting illegal platforms will face regulatory sanctions or even prosecution,” the statement added.

To protect investors, SEC advised Nigerians to verify the registration of any investment company on its official website. A list of licensed Capital Market Operators is publicly available, and users can cross-check company registration numbers against those records. Platforms operating only through Telegram or WhatsApp without a physical office address were described as especially suspicious.

The Commission also provided channels for reporting scams, including its email address (sec@sec.gov.ng), official phone line (+234 9 462 1168) and its online complaints portal.