Abuja: The Securities and Exchange Commission (SEC) has warned citizens against the rising wave of Artificial Intelligence (AI)-driven scams. SEC, in a statement on Sunday, said the commission had adopted an advanced surveillance system to detect fraudulent activities in real time.

According to News Agency of Nigeria, scammers are targeting unsuspecting investors with promises of guaranteed profits and fake celebrity endorsements. The commission highlighted that fraudsters are increasingly turning to fake videos and AI-generated content to lure victims. Manipulated videos featuring politicians, celebrities, and TV hosts are being shared through Facebook advertisements, Instagram reels, and Telegram groups.

SEC noted that these platforms are not registered or regulated by them. The commission recalled that platforms such as CBEX, Silverkuun, and TOFRO were operating illegally by advertising AI-powered trading systems that promise unrealistic returns. These activities posed serious risks to investors, prompting the commission to issue a series of disclaimers.

Scammers are exploiting AI to fabricate endorsements and testimonials that appear genuine, reducing the effectiveness of traditional fraud detection methods. This situation necessitates tech-enabled regulation and increased public awareness. SEC emphasized the shift from reactive to predictive oversight as essential in combating fraud and systemic risks in the market.

According to SEC, the regulator has engaged the services of social media companies to clamp down on misleading advertisements. It also cautioned influencers against promoting unlicensed investment schemes, warning that any influencer or blogger found complicit will face regulatory sanctions or prosecution.

The commission urged citizens to take precautions before investing, advising skepticism towards any scheme promising daily profits, zero risk, or celebrity-backed endorsements.