The Securities and Exchange Commission (SEC) has raised alarm over the rising wave of Artificial Intelligence (AI)-driven scams.
According to SEC, AI-driven manipulated videos of politicians, celebrities, and TV hosts are now being shared widely through Facebook advertisements, Instagram reels, and Telegram groups.
In a statement on Sunday, SEC said fraudsters are exploiting AI tools to create realistic videos and endorsements that appear genuine, targeting unsuspecting investors with promises of guaranteed profits.
The regulator noted that such platforms are not registered or regulated, making them a serious risk to the investing public.
What they are saying
According to SEC, the new wave of fraudulent activity relies on doctored videos to lure victims.
These manipulated clips are being promoted aggressively on social media platforms through paid ads and influencer promotions.
“The commission observed that manipulated videos featuring politicians, celebrities, and TV hosts were being circulated via Facebook advertisements, Instagram reels, and Telegram groups. These platforms are not registered or regulated by SEC,” the statement read.
The regulator recalled that entities such as CBEX, Silverkuun, and TOFRO had previously operated illegally by marketing AI-powered trading systems that promised unrealistic returns.
SEC said it had issued disclaimers against their activities after investigations revealed they posed grave risks to investors.
To combat these emerging risks, SEC disclosed that it has adopted an advanced surveillance system capable of detecting fraudulent activities in real time.
“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,” SEC said.
The commission stressed it is moving from a reactive stance to predictive oversight in order to stay ahead of fraudsters. “This is essential in combating fraud and systemic risks in our market,” it added.
Warning to influencers and bloggers
SEC also cautioned influencers and online promoters who partner with unlicensed investment schemes, warning that they risk regulatory sanctions and possible prosecution.
“Any influencer or blogger found complicit in promoting illegal platforms will face consequences,” the regulator stated.
The commission revealed it has engaged with social media companies to clamp down on misleading advertisements and is strengthening partnerships with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) to enable data-sharing and coordinated enforcement actions.
SEC urged Nigerians to be vigilant and skeptical of schemes that promise daily profits, zero risk, or endorsements by public figures. It emphasized that genuine investment opportunities are always registered and regulated.
