Nigeria’s SEC Warns: AI Deepfakes Fueling Fraudulent Investment Schemes Across Social Media

Digital deception reaches new heights as Nigeria's Securities and Exchange Commission sounds the alarm.

The Deepfake Invasion

Artificial intelligence tools now generate convincing fake videos and audio clips—pushing bogus investment opportunities through every major social platform. These synthetic creations feature fabricated endorsements from celebrities and financial influencers.

Regulatory Response

The SEC's warning highlights sophisticated campaigns targeting Nigerian investors. Scammers bypass traditional verification methods using AI-generated content that mimics trusted figures.

Social Media Breeding Ground

Platforms struggle to contain the flood of AI-powered fraud. These schemes promise unrealistic returns while using deepfake technology to build false credibility.

Investor Protection Crumbles

Traditional due diligence methods fail against algorithmically-perfected deception. The SEC urges extreme caution toward any investment promoted through unverified social media channels.

Another case of technology outpacing regulation—while scammers continue proving they're early adopters too.

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.

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