The Securities and Exchange Commission (SEC) has issued a fresh warning to Nigerians about the rising threat of AI-driven investment scams, citing platforms like CBEX, Silverkuun, and TOFRO as examples of fraudulent operations targeting unsuspecting investors.
In a statement released on Sunday, the Commission revealed that these platforms, which falsely claim to offer AI-powered trading systems with guaranteed returns, are not licensed or regulated by SEC.
“These platforms continue to deceive the public with false claims of AI-driven investments,” the Commission said. “They pose serious risks to investors, prompting us to issue multiple disclaimers about their activities.”
The SEC raised concerns about the increasing use of artificial intelligence tools, including deepfake videos and AI-generated content, to fabricate fake endorsements and manipulate public trust.
According to the Commission, scammers are circulating convincing videos of celebrities, politicians, and television presenters, often shared via Facebook ads, Instagram reels, and Telegram groups, to promote unlicensed investment schemes.
“These deepfakes are being used to impersonate well-known personalities, creating a false sense of legitimacy,” SEC warned.
“Traditional fraud detection methods are no longer sufficient in this environment, which is why we are turning to tech-enabled surveillance and regulation.”
To tackle the evolving fraud landscape, the SEC says it has deployed advanced surveillance tools designed to detect fraudulent financial activity in real-time. It is also intensifying cooperation with key agencies like the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) for data-sharing and joint enforcement actions.
“We are shifting from reactive enforcement to predictive oversight,” the Commission noted. “This approach is crucial for safeguarding market integrity and investor funds.”
As part of its broader clampdown, the SEC revealed it is working with social media platforms to remove misleading investment advertisements and warned influencers against endorsing unlicensed schemes.
“Influencers who promote these illegal platforms will face regulatory penalties, including possible prosecution,” the Commission said.
The SEC advised the public to be extremely cautious about any investment opportunity that promises: guaranteed or daily profits, zero risk and celebrity-backed endorsements
Such offers, the Commission said, are red flags for scams.
It also urged Nigerians to verify the licensing status of any investment platform via the official SEC website, which lists all registered capital market operators.
“Investors should cross-check registration numbers and avoid platforms that operate exclusively on Telegram or WhatsApp without a physical office or traceable contact information,” SEC added.
In light of the growing sophistication of online fraud, the Commission emphasized the need for financial literacy and digital skepticism. It reiterated its commitment to building a secure and transparent investment environment through innovation, enforcement, and investor education.
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