The Securities and Exchange Commission (SEC) has issued a warning to citizens about the increasing threat of Artificial Intelligence (AI)-driven scams. In a statement released on Sunday, the SEC announced that it has implemented an advanced surveillance system to detect fraudulent activities in real-time. This move is aimed at protecting investors from scams that promise guaranteed profits and utilize fake celebrity endorsements.
According to the SEC, scammers are using fake videos and AI-generated content to lure victims into investing in unregistered and unregulated platforms. These manipulated videos, featuring politicians, celebrities, and TV hosts, are being shared through social media platforms such as Facebook, Instagram, and Telegram. The SEC emphasized that these platforms are not registered or regulated by the commission, and therefore pose a significant risk to investors.
The commission cited examples of platforms such as CBEX, Silverkuun, and TOFRO, which have been operating illegally by advertising AI-powered trading systems that promise unrealistic returns. The SEC had previously issued disclaimers against these platforms, warning investors of the potential risks.
The use of AI to fabricate endorsements and testimonials has made traditional fraud detection methods less effective, according to the SEC. In response, the commission is shifting its approach from reactive to predictive oversight, utilizing technology to combat fraud and systemic risks in the market. The SEC has also engaged with social media companies to clamp down on misleading advertisements and has cautioned influencers against promoting unlicensed investment schemes.
Citizens are advised to exercise caution when investing, particularly in schemes that promise daily profits, zero risk, or celebrity-backed endorsements. The SEC is strengthening its partnerships with the Central Bank of Nigeria and the Nigerian Financial Intelligence Unit to enable data-sharing and joint enforcement actions. By working together, these regulatory bodies aim to protect investors and maintain the integrity of the financial market.
