The SEC warns Nigerians against AI scams using deepfakes and fake endorsements to promote unregistered investment platforms like CBEX, Silverkuun, and TOFRO.
The Securities and Exchange Commission (SEC) has issued a strong warning to Nigerian investors amid rising concerns about fraudulent investment schemes leveraging artificial intelligence (AI) to deceive unsuspecting victims.
What’s Going On
Fraudsters are increasingly using AI tools, including deepfakes and algorithm-generated content, to create the appearance of legitimacy and lure investors into fake platforms.
- Scammers are advertising so-called “innovative” investment platforms that promise guaranteed returns, zero risk, and endorsements from celebrities or public figures. Many of these claims are fabricated using AI.
- The SEC has flagged platforms such as CBEX, Silverkuun, and TOFRO for operating without registration. These entities reportedly use AI-powered trading systems to mislead investors.
- Deepfake videos and altered content featuring public figures are being circulated on Facebook, Instagram, and Telegram, often as paid ads or viral reels, to create false endorsements and build trust.
SEC’s Response
The SEC says it is strengthening its surveillance capabilities to track fraudulent activities in real time.
- The commission is working closely with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) to share data and coordinate enforcement actions.
- It is also engaging with major social media platforms to reduce misleading ads, particularly those promoting unverified investment schemes.
- Influencers and content creators are being cautioned against promoting unlicensed financial products, according to reports.
What Investors Should Watch Out For
The SEC has urged Nigerians to remain vigilant and take the following precautions:
- Verify registration: Always confirm if a platform is duly registered with the SEC by checking its official website.
- Question unrealistic promises: Be skeptical of any investment that guarantees unusually high returns, claims zero risk, or uses video endorsements from public figures.
- Beware of AI-driven claims: Treat offers that emphasize AI-powered trading systems or use AI-enhanced marketing with caution.
- Avoid “too good to be true” offers: If an investment sounds unrealistic, it likely is.
The SEC emphasized that protecting investors from fraudulent schemes remains a top priority, especially as scammers adopt new technologies like AI to exploit trust and spread misinformation.
