Onome Amuge
The Securities and Exchange Commission (SEC) is stepping up its fight against a new breed of fraudsters exploiting artificial intelligence (AI) to target unsuspecting investors with fake endorsements, manipulated videos, and promises of guaranteed profits.
The Nigerian capital market regulator warned that AI-driven scams are proliferating across social media and messaging platforms, creating fresh challenges for regulators and undermining confidence in the country’s financial system.
In recent months, platforms such as CBEX, Silverkuun, and TOFRO were flagged by the SEC for operating illegally while advertising so-called AI-powered trading systems that promised unrealistic daily returns. Despite repeated disclaimers, the Commission said these firms continued to lure investors until enforcement action was taken.
“These platforms are not registered or regulated by the SEC, yet they misled the public with false claims of AI-driven investments. Fraudsters are exploiting AI to fabricate endorsements and testimonials that appear genuine. This has made traditional fraud detection methods less effective,” the regulator said in a statement.
The rise of AI-powered scams comes at a time when Nigerian investors are increasingly drawn to digital finance and speculative assets. Analysts warn that if unchecked, such schemes could further erode trust in formal financial institutions and discourage participation in the capital market.
To counter the threat, the SEC disclosed it is deploying advanced surveillance tools capable of detecting fraudulent activity in real time. It is also strengthening collaboration with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) for 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 stated.
The regulator has also engaged social media companies to curb misleading ads and issued a stern warning to influencers and bloggers promoting unlicensed investment schemes. “Any influencer found complicit will face sanctions or prosecution,” SEC cautioned.
The Commission encouraged Nigerians to verify the registration status of investment platforms on its website and avoid firms that only operate through Telegram or WhatsApp without a physical presence.
