Nigeria's Securities and Exchange Commission (SEC) has issued a strong warning to Nigerians over a surge in artificial intelligence (AI)-powered scams targeting unsuspecting investors, including small businesses seeking alternative funding opportunities.
According to the regulator, unregistered platforms such as CBEX, Silverkuun, and TOFRO are exploiting AI tools to promote fake trading systems with "guaranteed" profits, often backed by manipulated videos of politicians, celebrities, and influencers to appear credible.
"These entities are not licensed by the SEC but continue to mislead the public with false claims of AI-driven investments. They pose serious risks to investors," the Commission cautioned.
The SEC noted that the rise of deepfakes and AI-generated endorsements has made traditional fraud detection methods less effective, making it easier for SMEs and individuals to fall prey while chasing quick capital inflows. To counter this, the regulator said it is adopting predictive surveillance systems and strengthening data-sharing partnerships with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) to detect and act against fraudulent schemes in real-time.
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The Commission also disclosed it is in talks with social media companies to clamp down on misleading ads and warned influencers against promoting unlicensed platforms, stressing that violators will face sanctions or prosecution.
It urged SMEs and the general public to:
- Verify platforms on the SEC's website before committing funds.
- Treat promises of zero-risk or daily profits as red flags.
- Avoid platforms that only operate on Telegram or WhatsApp without a verifiable office address.
Investors and business owners are encouraged to report suspicious platforms via the SEC complaints portal, email (sec@sec.gov.ng), or its hotlines.
By promoting awareness and predictive oversight, SEC said it aims to protect Nigeria's financial ecosystem and shield small businesses and investors from avoidable losses.
