SEC warns of AI celebrity scam in Nigeria

The Securities and Exchange Commission (SEC) has warned about an increase in investment scams utilizing artificial intelligence (AI). The regulator stated that deepfakes and AI-generated endorsements are being used by criminals to deceive unsuspecting investors. These acts are perpetrated using manipulated content to create an illusion of trustworthiness.

According to the SEC, scammers are creating legitimate-looking digital versions of politicians, celebrities, and media personalities in order to promote unlicensed platforms. These videos are shared through Facebook ads, Instagram reels, and Telegram groups, making dubious projects seem legitimate.

The regulator noted that AI-powered deception has undermined conventional detection methods. Manipulated testimonials often resemble genuine speech and body language, making it difficult for investors to distinguish between truth and forgery. The commission cautioned that offers promising no risk, regardless of how much you invest, with guaranteed returns or celebrity endorsements, are almost always a scam.

Scammers are exploiting AI to fabricate endorsements and testimonials that appear genuine. This has made traditional fraud detection methods less effective.

Nigeria’s SEC

SEC responds through cross-agency partnerships

To combat this trend, the SEC is utilizing advanced surveillance systems that can detect fraud in real-time. The regulator said it is shifting from reactive to predictive oversight – supporting the identification of scams before they spread.

Collaboration between the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) has led to the implementation of more stringent monitoring systems. These agencies are collaborating to mitigate systemic risks while engaging with social media companies to take down misinformation.

The SEC also issued a warning to influencers promoting unlicensed investment products, advising them that they may be subject to sanctions or prosecution. The commission advised Nigerians to verify investment platforms on its official website, which contains the list of licensed capital market operators.

Investors have been advised to verify that company registration numbers match those listed on the SEC portal and to be cautious of platforms that only use WhatsApp or Telegram and have no verifiable office address.

Rising AI-driven threats to global markets

The alarm comes as financial markets across the globe are facing unprecedented levels of fraud tied to AI. In the first half of 2025, AI crypto-related hacks and scams accounted for over $3.01 billion in stolen assets. 

According to reports, attackers are analyzing social media, forums, and blockchain activity with the help of AI, finding potential victims based on their behavioral patterns. In 2024 alone, the U.S. registered close to 160,000 fraud-related complaints related to cryptocurrencies. In South Africa, AI scams have increased 1,200% over the last year, and the banking and fintech industries have been the worst affected, according to TransUnion Africa.

Recently, New York officials seized over $300,000 in stolen cryptocurrency and closed over 100 fraudulent websites linked to a Vietnam-based organization that was targeting Russian speakers in Brooklyn with fake Facebook investment offers.