The Securities and Exchange Commission (SEC) has issued a warning to Nigerians about the growing number of scams involving artificial intelligence (AI) that prey on unsuspecting investors by posing as celebrities and offering guaranteed earnings.
Platforms like CBEX, Silverkuun, and TOFRO were engaging in illegal activity by promoting AI-powered trading methods that promised unrealistic profits, according to the commission.
“Despite not being SEC-registered or regulated, these platforms persisted in misleading the public with exaggerated claims of AI-driven investments.” The commission issued a number of disclaimers against their operations because they presented significant dangers to investors, the agency said.
The SEC clarified that in order to give fraudulent platforms a sense of legitimacy, manipulated videos featuring politicians, celebrities, and TV hosts are being shared through Facebook ads, Instagram reels, and Telegram groups. The agency also noted that fraudsters are increasingly using deepfake videos and AI-generated content to entice victims.
The commission claims that scammers are using artificial intelligence (AI) to create fake testimonials and endorsements that seem authentic. This has reduced the efficacy of conventional fraud detection techniques, necessitating more public awareness and tech-enabled regulation.
The SEC clarified that in order to combat the escalating threat, it is implementing sophisticated surveillance systems that can identify fraudulent activity in real time. Additionally, it is strengthening its partnerships with the Nigerian Financial Intelligence Unit (NFIU) and the Central Bank of Nigeria (CBN) to facilitate data sharing and cooperative enforcement efforts.
