SEC Raises The Alarm Over AI-generated Investment Scams

The Securities and Exchange Commission (SEC) has warned Nigerians to beware of a rising question of artificial quality (AI)- driven scams targeting unsuspecting investors with promises of guaranteed profits and fake personage endorsements.

The Commission recalls that platforms specified arsenic CBEX, Silverkuun, and TOFRO were operating illegally by advertizing AI-powered trading systems that committedness unrealistic returns.

“These platforms are not registered oregon regulated by the SEC, yet they continued to mislead the nationalist with mendacious claims of AI-driven investments. They posed superior risks to investors hence the committee issued bid of disclaimers against their activities,” the Commission stated.

SEC explained that fraudsters were progressively turning to deepfake videos and AI-generated contented to lure victims, pointing retired that manipulated videos featuring politicians, celebrities, and TV hosts are being shared done Facebook ads, Instagram reels, and Telegram groups to springiness fraudulent platforms an aerial of credibility.

According to the Commission, scammers are exploiting AI to fabricate endorsements and testimonials that look genuine. This has made accepted fraud detection methods little effective, hence the request for tech-enabled regularisation and greater nationalist awareness.

To antagonistic the increasing threat, SEC explained that it was adopting precocious surveillance systems susceptible of detecting fraudulent enactment successful existent time, adding that partnerships with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) were being strengthened to alteration data-sharing and associated enforcement actions.

“We are moving from reactive to predictive oversight. This is indispensable successful combating fraud and systemic risks successful our market,” the Commission emphasised.

The regulator said it had besides engaged societal media companies to clamp down connected misleading ads and cautioned influencers against promoting unlicensed concern schemes. It said that “any influencer oregon blogger recovered to beryllium complicit successful promoting amerciable platforms volition look regulatory sanctions oregon adjacent prosecution.”

The Commission urged Nigerians to instrumentality other precautions earlier investing, stressing that immoderate strategy promising regular profits, zero risk, oregon celebrity-backed endorsements should beryllium treated with suspicion.

It stated, “any concern that guarantees unrealistic returns oregon uses manipulated videos of nationalist figures should instantly rise a reddish flag.”

The Commission further encouraged Nigerians to verify the registration presumption of immoderate concern level connected its website, wherever a database of licensed Capital Market Operators is available.

It added that investors should corroborate that registration numbers displayed connected institution websites lucifer the details connected the SEC portal and debar platforms that lone run done Telegram oregon WhatsApp without a verifiable bureau address.