SEC Warns Nigerians About AI-Powered Scams Using Fake Celebrity Endorsements

The Securities and Exchange Commission (SEC) has issued a strong warning to Nigerians about a rising wave of Artificial Intelligence (AI)-driven scams designed to mislead unsuspecting investors.

According to the regulator, AI-generated videos featuring manipulated endorsements from politicians, celebrities, and TV hosts are now being aggressively promoted through Facebook advertisements, Instagram reels, and Telegram groups.

In a statement released on Sunday, SEC said fraudsters are exploiting AI tools to create convincing but fake endorsements and testimonials that appear genuine, luring investors with promises of guaranteed profits.

“These manipulated clips are not only deceptive but also distributed on platforms that are neither registered nor regulated by the SEC,” the statement noted.

Previous Illegal Schemes Identified

The Commission recalled that unlicensed entities such as CBEX, Silverkuun, and TOFRO had previously marketed AI-driven trading systems promising unrealistic returns before their operations were declared illegal.

Regulatory Response

To combat these risks, SEC announced it has deployed an advanced surveillance system capable of detecting fraudulent activities in real time. The regulator said it is moving from a reactive stance to predictive oversight to stay ahead of fraudsters.

SEC also warned influencers, bloggers, and online promoters against partnering with unlicensed platforms, stressing that those found complicit will face sanctions and possible prosecution.

The Commission further disclosed that it is working with social media companies, the Central Bank of Nigeria (CBN), and the Nigerian Financial Intelligence Unit (NFIU) to clamp down on misleading ads and strengthen enforcement actions.

Investor Advisory

SEC urged Nigerians to remain cautious and skeptical of any scheme that promises daily profits, zero risk, or endorsements by public figures, emphasizing that genuine investment opportunities must always be registered and regulate