The Securities and Exchange Commission (SEC) has issued a sharp warning to Nigerian investors amid rising concerns about investment scams leveraging artificial intelligence.
Fraudsters are reportedly using AI tools, including deepfakes and algorithm-generated content, to create the appearance of legitimacy and lure unsuspecting victims.
What’s Going On
- Scammers are advertising “innovative” investment platforms that promise guaranteed returns, no risk, and endorsements from celebrities or public figures. These claims are often fabricated using AI.
- Certain platforms, including CBEX, Silverkuun, and TOFRO, have been flagged by the SEC for operating without registration. These entities are using AI-powered trading systems to mislead investors.
- Deepfake videos or altered content showing public figures are being spread through social media channels, Facebook, Instagram, Telegram, often as paid ads or viral reels. These are used to create false endorsements to build trust.
SEC’s Response
The SEC says it’s boosting its surveillance capabilities to track frauds in real time.
It’s working more closely with other regulators, such as the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU), to share data and coordinate enforcement actions.
The commission is also engaging with major social media platforms to reduce misleading ads, especially those that promote unverified investment schemes. Influencers and content creators are being cautioned not to promote unlicensed financial products, according to The Guardian Nigeria report.
What Investors Should Watch Out For
- Always confirm if a platform is duly registered with the SEC by checking its official website.
- Be skeptical of any investment that promises unrealistically high returns, claims zero risk, or uses video endorsements with public figures.
- Be wary of “too good to be true” offers, especially when the messaging uses AI enhancements, or claims a platform uses AI-driven trading systems.
