Abuja, Nigeria: In a bold move to counter the rising tide of AI-driven financial fraud, the Securities and Exchange Commission (SEC) has sounded the alarm on a new wave of investment scams powered by artificial intelligence. From deepfake endorsements to algorithmic trading promises, scammers are exploiting cutting-edge tech to deceive unsuspecting investors.
The SEC, in a statement on Sunday, said the commission had adopted an advanced surveillance system to detect fraudulent activities in real-time.
SEC said scammers were targeting unsuspecting investors with promises of guaranteed profits and fake celebrity endorsements.
The commission stated that fraudsters were increasingly using fake videos and AI-generated content to lure victims.
The commission stated that manipulated videos featuring politicians, celebrities, and TV hosts were being shared through Facebook advertisements, Instagram Reels, and Telegram groups.
The SEC stated that such platforms were neither registered nor regulated by them.
“The commission recalls that platforms such as CBEX, Silverkuun, and TOFRO were operating illegally by advertising AI-powered trading systems that promise unrealistic returns.
“They posed serious risks to investors, hence the commission issued a series of disclaimers against their activities.
“Scammers are exploiting AI to fabricate endorsements and testimonials that appear genuine.
” This has made traditional fraud detection methods less effective, hence the need for tech-enabled regulation and greater public awareness.
” We are moving from reactive to predictive oversight. This is essential in combating fraud and systemic risks in our market,” the commission said.
According to the SEC, the regulator engaged the services of social media companies to clamp down on misleading advertisements.
It also cautioned influencers against promoting unlicensed investment schemes.
“Any influencer or blogger found to be complicit in promoting illegal platforms will face regulatory sanctions or even prosecution,” the SEC said.
The commission urged citizens to take precautions before investing, stressing that any scheme promising daily profits, zero risk, or celebrity-backed endorsements should be treated with suspicion.The SEC stated that partnerships with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) are being strengthened to facilitate data sharing and joint enforcement actions.
