The Securities and Exchange Commission (SEC) has warned Nigerians against the growing menace of Artificial Intelligence (AI)-driven investment scams, even as it announced the adoption of an advanced surveillance system to detect fraud in real time.

In a statement issued on Sunday, the commission said fraudsters were increasingly targeting unsuspecting investors with false promises of guaranteed profits and fabricated celebrity endorsements.

It noted that scammers were using AI-generated content and manipulated videos featuring politicians, celebrities, and television hosts. These were being circulated through Facebook adverts, Instagram reels, and Telegram groups, many of which operate outside regulatory oversight.

The SEC recalled that unregistered platforms such as CBEX, Silverkuun, and TOFRO had lured investors with supposed AI-powered trading systems that promised unrealistic returns. The commission said these posed serious risks, prompting repeated public disclaimers against their activities.

“Scammers are exploiting AI to fabricate endorsements and testimonials that appear genuine. This has rendered traditional fraud detection methods less effective, hence the need for tech-enabled regulation and greater public awareness,” the statement read.

The commission explained that it was moving “from reactive to predictive oversight” to tackle fraud and systemic risks in the market.

According to the SEC, it is working with social media companies to clamp down on misleading adverts and has cautioned influencers against promoting unlicensed investment schemes. “Any influencer or blogger found complicit in promoting illegal platforms will face regulatory sanctions or even prosecution,” it warned.

The regulator further advised citizens to exercise extreme caution, stressing that any scheme guaranteeing daily profits, zero risk, or celebrity-backed endorsements should be treated with suspicion.

It added that partnerships with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) were being strengthened to facilitate data-sharing and coordinated enforcement actions.