The Securities and Exchange Commission (SEC) has warned citizens about the growing threat of artificial‑intelligence‑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, aiming to protect investors from schemes that promise guaranteed profits and use fake celebrity endorsements.
According to the SEC, scammers are employing 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 on social media sites such as Facebook, Instagram, and Telegram. The commission stressed that these platforms are not registered or regulated by the SEC, posing a significant risk to investors.
The SEC cited examples of illegal platforms—including CBEX, Silverkuun, and TOFRO—that advertise AI‑powered trading systems promising unrealistic returns. The commission had previously issued disclaimers warning investors of the potential risks associated with these sites. Because AI can fabricate endorsements and testimonials, traditional fraud‑detection methods have become less effective.
In response, the SEC is shifting from a reactive to a predictive oversight approach, using technology to combat fraud and systemic market risks. It has also engaged social‑media companies to clamp down on misleading advertisements and cautioned influencers against promoting unlicensed investment schemes. Citizens are advised to exercise caution when considering investments that promise daily profits, zero risk, or celebrity‑backed endorsements.
Finally, 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 preserve the integrity of the financial market.
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