The Securities and Exchange Commission (SEC) has raised alarm over a surge in artificial intelligence (AI)-driven scams targeting unsuspecting investors with promises of guaranteed profits and manipulated celebrity endorsements.
In a statement on Sunday, the regulator listed CBEX, Silverkuun, and TOFRO among platforms illegally advertising AI-powered trading schemes that promise unrealistic returns.
“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 commission warned. “They pose serious risks to investors.”
According to SEC, fraudsters are now deploying deepfake videos and AI-generated content featuring politicians, celebrities, and TV hosts to make bogus platforms appear credible. These deceptive materials are widely circulated on Facebook ads, Instagram reels, and Telegram groups.
“Scammers are exploiting AI to fabricate endorsements and testimonials that look genuine,” the commission said. “This has weakened traditional fraud detection methods, making tech-enabled regulation and public awareness more critical than ever.”
To combat the growing menace, SEC said it is rolling out advanced surveillance tools to track fraudulent activity in real time, while strengthening partnerships with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) for data-sharing and joint enforcement.
The commission also revealed that it is engaging social media platforms to clamp down on misleading ads, while influencers promoting unlicensed investment schemes risk sanctions or prosecution.
Investors were cautioned to avoid platforms promising daily profits, zero risk, or endorsements from celebrities, stressing that such claims are red flags. Nigerians were further urged to verify the registration of any investment company through SEC’s website and ensure listed registration numbers align with the regulator’s database.