The Securities and Exchange Commission (SEC) has issued a fresh warning to Nigerians about the rise of AI-driven investment scams, highlighting the use of deepfake celebrity endorsements to deceive investors.
The commission flagged CBEX, Silverkuun, and TOFRO as examples of unlicensed platforms exploiting artificial intelligence to promote unrealistic profits through manipulated ads.
“These platforms are not registered or regulated by the SEC, yet they continue to mislead the public with false claims of AI-driven investments,” the regulator said. “They pose serious risks to investors, hence the commission issued a series of disclaimers against their activities.”
The watchdog warned that fraudsters are increasingly using deepfake videos of politicians, celebrities, and TV hosts across Facebook ads, Instagram reels, and Telegram groups to give false credibility to their schemes.
“Scammers are exploiting AI to fabricate endorsements and testimonials that appear genuine,” SEC said.
To counter the threat, SEC said it has deployed real-time surveillance systems and strengthened partnerships with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) for joint enforcement.
“We are moving from reactive to predictive oversight. This is essential in combating fraud and systemic risks in our market,” the regulator added.
The commission also revealed ongoing engagements with social media platforms to clamp down on misleading ads and warned influencers against promoting illegal schemes, threatening sanctions or prosecution.
Nigerians were urged to verify investment operators on the SEC portal, confirm registration numbers, and avoid platforms that promise “guaranteed profits,” operate solely on Telegram or WhatsApp, or lack verifiable office addresses.
