The Securities and Exchange Commission (SEC) has warned citizens against the rising wave of Artificial Intelligence (AI)-driven scams.
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 said that fraudsters were increasingly turning to fake videos and AI-generated content to lure victims.
The commission said that the manipulated videos featuring politicians, celebrities, and TV hosts were being shared through Facebook advertisements, Instagram reels, and telegram groups.
SEC said such platforms were not registered or 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 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 SEC, the regulator engaged the service 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,” 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.
SEC said that partnerships with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) were being strengthened to enable data-sharing and joint enforcement actions.
