The Securities and Exchange Commission (SEC) has raised alarm over the growing use of Artificial Intelligence (AI) in scams, warning investors to beware of fake celebrity endorsements circulating on social media.
According to the SEC, fraudsters are now creating AI-manipulated videos of celebrities, politicians, and TV hosts to deceive unsuspecting investors into funding illegal schemes that promise unrealistic profits.
How Scammers Are Using AI to Deceive Investors
The regulator noted that these manipulated clips are being aggressively promoted through:
- Facebook advertisements
- Instagram reels
- Telegram groups
- Influencer promotions
These platforms, SEC emphasised, are not registered or regulated, making them unsafe for investors.
“Scammers are exploiting AI to fabricate endorsements and testimonials that appear genuine. This has made traditional fraud detection methods less effective, hence the need for tech-enabled regulation and greater public awareness,” SEC said.
Past Cases of AI-Powered Fraud
The SEC recalled that entities such as CBEX, Silverkuun, and TOFRO had previously operated illegally, using AI-powered trading systems to market fake opportunities with promises of guaranteed daily returns.
Investigations revealed they posed serious risks to investors, prompting the regulator to issue disclaimers and warnings against their activities.
SEC’s New Fraud Detection Approach
To combat these emerging risks, the SEC revealed that it has:
- Adopted an advanced surveillance system capable of detecting fraudulent activity in real time.
- Shifted from reactive regulation to predictive oversight to stay ahead of scammers.
- Strengthened collaboration with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) for data sharing and coordinated enforcement.
- Engaged social media companies to clamp down on misleading advertisements.
Warning to Influencers and Bloggers
The SEC also issued a stern warning to influencers and bloggers who promote unlicensed investment platforms.
“Any influencer or blogger found complicit in promoting illegal platforms will face consequences,” the regulator said, noting that sanctions or prosecution could follow.
Investor Advisory: How to Stay Safe
The SEC urged Nigerians to be vigilant and sceptical of investment opportunities that:
- Promise daily profits or zero risk
- Claim celebrity or political endorsements
- Operate without SEC registration
Genuine investments, the commission stressed, are always registered and regulated.
Final Thoughts
The rise of AI-generated scams shows how technology is being weaponised to deceive investors. By issuing this warning, the SEC aims to raise awareness, enhance surveillance, and crack down on fraudulent platforms before they cause widespread financial losses.
For Nigerians, the safest path remains simple: avoid schemes that sound too good to be true and always verify that an investment is registered with the SEC.
