Amid growing concerns over the misuse of artificial intelligence in financial fraud, the Securities and Exchange Commission (SEC) has issued a stern warning to Nigerian investors, urging them to exercise heightened caution against a new wave of AI-generated scams sweeping through the country’s digital space.
![](https://thenigerialawyer.com/wp-content/uploads/2025/05/idrinstitute.png")
According to the SEC, the deceptive schemes often disguised as innovative investment platforms are using advanced AI tools, including deep fakes and algorithmic content generation, to create the illusion of legitimacy.
The SEC also stated that the fraudsters behind them lure unsuspecting victims with false promises of guaranteed returns, zero-risk investments, and fake endorsements from celebrities, public figures, and media personalities.
Platforms such as CBEX, Silverkuun, and TOFRO were flagged by the commission as recent examples of unregistered entities exploiting artificial intelligence to mislead the public.
Despite having no regulatory approval, these platforms marketed AI-powered trading systems that promised unrealistic profits, prompting the SEC to issue multiple disclaimers warning investors to steer clear.
“These platforms are not registered or regulated by the SEC, yet they continue to mislead the public with false claims of AI-driven investments.”
They posed serious risks to investors,” the commission noted.
The SEC raised particular concern over the growing use of deep fake videos, digitally altered content that can convincingly mimic public figures being circulated via social media platforms such as Facebook, Instagram, and Telegram.
The videos, often embedded in paid ads or viral reels, are designed to trick potential investors into believing that popular figures have endorsed the scam platforms.
“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.”
In response to these evolving threats, the SEC disclosed that it is deploying more advanced surveillance systems capable of detecting fraudulent activities in real time.
The commission is also deepening its collaboration with other regulatory bodies such as the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU), allowing for better data sharing and coordinated enforcement actions.
“We are moving from reactive to predictive oversight. This is essential in combating fraud and systemic risks in our market,” the SEC stated.
The regulator also confirmed it has initiated conversations with major social media platforms to curtail the spread of misleading ads and has cautioned influencers and online content creators against promoting unlicensed financial schemes.”
Those found complicit, it warned, could face regulatory sanctions or prosecution.
It also advised investors to verify the registration status of all financial platforms through the official SEC website, which provides a searchable database of licensed capital market operators.
“Any investment that guarantees unrealistic returns or uses manipulated videos of public figures should immediately raise a red flag,” the SEC reiterated.
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