The Securities and Exchange Commission (SEC) has raised concerns over a new wave of artificial intelligence-driven scams sweeping through Nigeria’s investment space, warning that fraudsters are exploiting emerging technology to entrap unsuspecting citizens. The warning comes months after the collapse of CBEX, an unregistered investment platform that left at least 600,000 Nigerians counting losses of about N1.3 trillion.

In its latest statement, SEC identified platforms such as CBEX, Silverkuun and TOFRO as operators pushing AI-powered trading systems that promise guaranteed profits but have no registration with the regulator. These schemes, according to SEC, rely heavily on manipulated videos of celebrities, politicians and television presenters which are circulated on Facebook, Instagram and Telegram to create false endorsements and give the appearance of credibility.

The Commission noted that scammers are now fabricating endorsements and testimonials that appear genuine, a tactic that has made traditional fraud detection methods less effective. It said the threat requires tech-enabled regulation and stronger public awareness to protect Nigerians.

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To counter the schemes, SEC disclosed that it is deploying advanced surveillance systems to track fraudulent activity in real time, while also working with the Central Bank of Nigeria and the Nigerian Financial Intelligence Unit to strengthen intelligence sharing and joint enforcement. The Commission explained that this approach marks a shift from reactive measures to predictive oversight, which is essential for tackling systemic risks in the market.

As part of its clampdown, SEC said it has engaged social media companies to take down misleading adverts and has cautioned influencers and bloggers against promoting unlicensed schemes. It warned that any individual found complicit could face sanctions or prosecution.

The regulator advised Nigerians to be wary of investment opportunities that promise daily profits, zero risk or that rely on manipulated celebrity endorsements. It urged the public to verify the registration status of platforms on its website and to avoid services that only operate through Telegram or WhatsApp without a verifiable address.

The renewed warning echoes lessons from the CBEX scandal, which was run under ST Technologies International Limited, a shell company registered with the Corporate Affairs Commission in September 2024 and listed with the EFCC’s Special Control Unit Against Money Laundering in January 2025. Despite its registration, the firm collapsed in April 2025, wiping out investments across the country. EFCC’s investigation into the case is still ongoing.

With operators growing more sophisticated through AI, SEC stressed that vigilance is now critical as Nigerians look to secure their savings and investments.

Meiza Nigeria