Nigeria’s SEC Warns of AI Deepfake Investment Scams

- Nigerian SEC flags rise in AI-driven investment scams using deepfakes and fake endorsements. - The commission partners with agencies to implement real-time fraud detection systems. On September 29, 2025, the Nigerian Securities and Exchange Commission (SEC) issued a warning about the growing use of artificial intelligence (AI) in fraudulent investment schemes. Scammers now exploit AI-generated deepfakes and endorsements to promote fake investment opportunities, often by fabricating realistic videos featuring endorsements from high-profile figures like celebrities and politicians. As a result, these scams, which are widespread on social media, are increasingly difficult for investors to identify as fraudulent. The SEC noted that AI scams have become highly sophisticated because the technology can replicate authentic speech and body language, making the schemes appear credible. In addition, many fraudulent schemes promote “zero risk” or guaranteed high returns, which the SEC emphasized are common red flags. The commission also flagged platforms such as CBEX, Silverkuun, and TOFRO, all of which lack proper licensing and falsely promise lucrative returns through AI-powered systems. In response, the SEC has partnered with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) to adopt a more predictive fraud-prevention model. This collaboration will deploy real-time fraud detection systems to curb these advanced schemes. The SEC is also working with social media platforms to remove misleading content and plans to hold influencers accountable for promoting unlicensed investment schemes, potentially pursuing legal action and sanctions against those involved. The SEC urged investors to verify the legitimacy of any investment platform on its official website, which provides a directory of licensed market operators. The commission also warned investors to be cautious when dealing with entities that lack verifiable physical addresses and rely solely on messaging apps like WhatsApp or Telegram. This warning comes amid a global surge in AI-driven scams across financial markets. Although the issue is global, the SEC emphasized the importance of protecting local investors and staying vigilant against these evolving threats.