The Securities and Exchange Commission (SEC) has warned citizens against the rising wave of Artificial Intelligence (AI)-driven scams.

In a statement on Sunday, the SEC said the commission had adopted an advanced surveillance system to detect fraudulent activities in real time.

SEC said scammers were targeting unsuspecting investors with promises of guaranteed profits and fake celebrity endorsements.

The commission said fraudsters were increasingly turning to fake videos and AI-generated content to lure victims.

The commission said the manipulated videos featuring politicians, celebrities, and TV hosts were being shared through Facebook advertisements, Instagram reels, and Telegram groups.

Recalling how CBEX, Silverkuun, and TOFRO operated illegally, the SEC said such platforms were not registered or regulated by them.

“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,” the commission said.

According to the SEC, the regulator engaged the services of social media companies to clamp down on misleading advertisements and cautioned influencers against promoting unlicensed investment schemes.

“Any influencer or blogger found to be complicit in promoting illegal platforms will face regulatory sanctions or even prosecution,” the SEC said.

The commission urged citizens to take precautions before investing, stressing that any scheme promising daily profits, zero risk, or celebrity-backed endorsements should be treated with suspicion.

SEC said 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. 

(NAN)