The Securities and Exchange Commission, SEC, has warned Nigerians against the flooding of the nation’s business space with Artificial Intelligence, AI-driven scams.
The Commission raised the red flag in a statement on Sunday made available to newsmen in Abuja. It, however, stated that SEC had adopted an advanced surveillance system to detect fraudulent activities in real time.
The Commission noted that scammers using AI were targeting unsuspecting investors with promises of guaranteed profits and fake celebrity endorsements.
SEC added that fraudsters were increasingly turning to fake videos and AI-generated content to lure victims.
It pointed out that the manipulated videos featuring politicians, celebrities, and TV hosts were being shared through Facebook advertisements, Instagram reels, and telegram group.
SEC maintained that such platforms were not registered or regulated by them.
The statement read: “The Commission recalls that platforms such as CBEX, Silverkuun, and TOFRO were operating illegally by advertising AI-powered trading systems that promise unrealistic returns.
“They posed serious risks to investors, hence the Commission issued series of disclaimers against their activities.
“Scammers are exploiting AI to fabricate endorsements and testimonials that appear genuine.
“This has made traditional fraud detection methods less effective. Hence the need for tech-enabled regulation and greater public awareness.
“We are moving from reactive to predictive oversight. This is essential in combating fraud and systemic risks in our market,” SEC said.
The Commission noted that it has engaged the service of social media companies to clamp down on misleading advertisements.
This is as SEC cautioned influencers against promoting unlicensed investment schemes.
It said, “Any influencer or blogger found to be complicit in promoting illegal platforms will face regulatory sanctions or even prosecution.”
SEC, therefore, urged Nigerians to take precautions before investing. The Commission emphasized that any scheme promising daily profits, zero risk, or celebrity-backed endorsements should be treated with suspicion.
The Commission stated that partnerships with the Central Bank of Nigeria, CBN, and the Nigerian Financial Intelligence Unit, NFIU, were being strengthened to enable data-sharing and joint enforcement actions.
source: NAN