The Securities and Exchange Commission (SEC) has raised concerns over the growing use of artificial intelligence (AI) tools by fraudsters to promote fake investment schemes.
In a statement on Sunday, the regulator said scammers are creating manipulated videos of politicians, celebrities, and TV hosts, which are being circulated through Facebook ads, Instagram reels, and Telegram groups. These clips are designed to lure unsuspecting investors with promises of guaranteed profits.
“The commission observed that manipulated videos featuring politicians, celebrities, and TV hosts were being circulated via Facebook advertisements, Instagram reels, and Telegram groups. These platforms are not registered or regulated by SEC,” the statement read.
The SEC recalled past cases involving unlicensed entities such as CBEX, Silverkuun, and TOFRO, which marketed AI-powered trading systems that promised unrealistic returns. The commission said it had issued warnings against their activities after investigations confirmed they posed grave risks to investors.
To combat such schemes, SEC said it has adopted advanced surveillance systems capable of detecting fraudulent activities in real time. It also warned influencers and bloggers who promote unlicensed investment platforms that they risk regulatory sanctions and possible prosecution.
The commission disclosed that it is working with social media companies, the Central Bank of Nigeria (CBN), and the Nigerian Financial Intelligence Unit (NFIU) to curb the spread of misleading advertisements and enhance enforcement.
SEC urged Nigerians to remain vigilant and skeptical of platforms promising daily profits, zero risks, or endorsements by public figures, stressing that only registered and regulated investments are safe.
