AI-Generated Investment Scams Target Nigerian Investors
Nigeria's Securities and Exchange Commission warned of a surge in investment scams using artificial intelligence, including deepfake videos and fabricated celebrity endorsements to deceive investors on platforms like CBEX, Silverkuun and TOFRO. The SEC said it is adopting advanced surveillance systems and strengthening partnerships with financial authorities to combat the schemes.
What happened
The Securities and Exchange Commission reported that online platforms including CBEX, Silverkuun and TOFRO are operating without SEC registration and promoting AI-powered trading systems that promise unrealistic profits to investors.
Scammers are using deepfake videos and AI-generated content to fabricate endorsements and testimonials, circulating manipulated clips of politicians, celebrities and TV presenters via Facebook ads, Instagram reels and Telegram groups.
Reported impact
The SEC stated that the use of AI to fabricate endorsements and testimonials has made traditional fraud detection methods less effective in identifying fraudulent schemes.
Index analysis
The SEC is adopting advanced surveillance systems capable of detecting fraudulent activity in real time and strengthening partnerships with the Central Bank of Nigeria and the Nigerian Financial Intelligence Unit to enable data-sharing and joint enforcement actions.
The commission has engaged social media companies to clamp down on misleading ads and warned that influencers or bloggers promoting unlicensed investment schemes will face regulatory sanctions or prosecution.
Governance controls
The SEC urged Nigerians to take extra precautions before investing and cautioned against schemes promising daily profits, zero risk, or celebrity-backed endorsements.
Classification
Sources and evidence
Sources not yet published
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