The Securities and Exchange Commission (SEC) has warned Nigerians about a rise in artificial intelligence-powered investment scams that promise unrealistic profits through fake endorsements and manipulated videos.
In a statement on Sunday, the regulator identified platforms such as CBEX, Silverkuun, and TOFRO as unregistered operators using AI-generated content, including deepfake videos of celebrities and politicians, to lure unsuspecting investors.
“Scammers are exploiting AI to fabricate endorsements and testimonials that appear genuine. This has made traditional fraud detection methods less effective,” SEC stated.
The Commission said it has deployed advanced surveillance systems to detect fraud in real time and is working with the Central Bank of Nigeria and the Nigerian Financial Intelligence Unit for joint enforcement.
It also confirmed that discussions with social media companies are ongoing to curb misleading ads, while influencers promoting unlicensed schemes risk sanctions or prosecution.
“Any investment that guarantees unrealistic returns or uses manipulated videos of public figures should immediately raise a red flag,” the Commission warned, urging Nigerians to verify all investment platforms on its website.
The regulator recalled that more than 600,000 Nigerians lost N1.3 trillion when CBEX collapsed earlier this year, a scheme operated under ST Technologies International Limited, which remains under EFCC investigation.
