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.

In a circular released on Wednesday, the SEC emphasised that Silverkuun is not authorised to operate in any capacity within the Nigerian Capital Market.

“The Commission hereby informs the public that Silverkuun Investment Cooperative Society/Silverkuun Limited is NOT REGISTERED to operate in any capacity in the Nigerian Capital Market.”

The SEC urged Nigerians to avoid doing business with Silverkuun or any of its representatives, warning that transactions with unregistered and unregulated entities pose financial risks and potential loss of investment.

It also urged the public to verify the status of companies and entities offering investment opportunities via the Commission’s website before transacting with them.

This warning is part of the SEC’s efforts to educate and protect investors from financial fraud and Ponzi schemes, which have been on the rise, reinforcing its commitment to safeguarding and fostering transparency in the capital market.