SEC Warns of AI Investment Scams Targeting Nigerians

SEC warns Nigerians of AI driven investment scams using deepfakes. How the fraud works, platforms flagged and steps investors must take.

Atlantic Post

September 29, 2025

3–5 minutes

AI scams, CBEX, CBN, deepfakes, Financial Regulation, Investment Fraud, investor alert, NFIU, SEC Nigeria, Silverkuun, TOFRO

The Securities and Exchange Commission has sounded an urgent alarm on a new breed of financial predators. In a blunt public statement, the regulator warned that fraudsters are weaponising artificial intelligence. They build convincing investment scams that target ordinary Nigerians. These scams lure them with promises of guaranteed returns and fake celebrity endorsements.

For investigators the novelty is not the con. It is the technology. Fraudsters now use deepfake videos, voice cloning, and algorithmic content generation. They fabricate endorsements and create virtual trading platforms. These look, sound, and behave like legitimate businesses. These AI produced assets are then shared on social networks through paid ads. Viral reels help them reach millions with surgical precision.

Platforms Named and Shamed

The SEC singled out a clutch of unregistered operators that have been aggressively marketing AI powered trading systems. Among those named were CBEX, Silverkuun and TOFRO.

The commission made clear these platforms have no licence to operate in Nigeria. They continue to promise unreal returns and zero risk. Investors who responded were effectively giving money to mirror sites and synthetic endorsements.

How the Scam Works

First the fraudsters build credibility. They stitch together footage of a known presenter or a well liked celebrity using deepfake technology.

Next they embed the clip in an ad. The ad directs victims to a sleek website. The site claims to use proprietary AI that guarantees daily profits. The site often demands an immediate deposit via cryptocurrency or mobile transfers and offers fabricated testimonials from supposed early investors.

Once the money is sent, the platform will evaporate. Alternatively, it can start to roll out small token payments. These payments keep victims lured while extracting larger sums. The sophistication makes detection harder and recovery nearly impossible.

A Global Trend With Local Consequences

Nigeria is not alone. Regulators worldwide are beginning to tackle what is known as AI washing. They are also addressing the misuse of generative models in financial marketing.

Notably, the US Securities and Exchange Commission has pursued firms for false claims about AI driven investment processes. This development frames the Nigerian warning as part of a wider regulatory push to curb deceptive AI claims. That precedent underlines how regulators are shifting from public advisories to enforcement.

Regulatory Countermeasures

The SEC says it is no longer content to react. It has deployed advanced surveillance systems to detect suspicious market conduct in real time. The SEC is strengthening data sharing with the Central Bank of Nigeria and the Nigerian Financial Intelligence Unit.

The commission is holding talks with major social media platforms. They aim to stem the circulation of manipulated adverts. The commission is also warning influencers that promoting unlicensed schemes will lead to sanctions or prosecution.

The Human Toll and The Numbers

Quantitative evidence suggests this is a fast accelerating threat. Industry studies show a steep rise in deepfake incidents. Security reports show an increase in voice cloning attacks over the past two years. Analysts warn that fraud attempts leveraging deepfakes increase many times over as tools become cheaper and easier to use.

For a country already experiencing online investment fraud, these new threats have large-scale consequences. Their scale and synthetic credibility heighten the risk of wealth destruction.

What Investors Must Do Now

The SEC reiterated a handful of plain rules that blunt the impact of these scams.

Verify the registration status of any platform on the SEC website before transferring funds.
Treat any offer that guarantees returns or uses edited clips of public figures as inherently suspicious.
Avoid platforms that run solely via Telegram or WhatsApp and insist on physical addresses and verifiable corporate documents.
Report suspicious adverts and testimonials to both the SEC and to the social media platform where they appeared.

A Final Note for Editors and Policymakers

This episode should be a wake up call for the entire financial ecosystem. Tech enabled oversight is necessary but not enough.

Platforms must invest in ad verification. Banks must tighten onboarding checks for crypto flows. Law enforcement must prioritise cross border cooperation to seize funds and prosecute operators.

For journalists the duty is plain. Expose the operators naming the platforms and the networks behind them before another generation of investors is wiped out.