Regulator Raises Alarm Over Rising Online Investment Fraud
The Securities and Exchange Commission has cautioned Nigerians against investing in unregistered schemes promoted on social media platforms.
The commission issued the warning in a public notice shared on its X handle on Thursday.
According to the SEC, fraudsters now use WhatsApp, Instagram, Telegram, Facebook, and TikTok to attract unsuspecting investors.
SEC Flags Ponzi-Style Investment Platforms
The commission stated that many of the schemes promise unrealistic profits and guaranteed returns to lure the public.
“The attention of the Securities and Exchange Commission has been drawn to the increasing promotion of unregistered online investment schemes on social media applications and websites,” the notice stated.
The SEC explained that some operators also provide investment services without approval from regulators.
It added that many of the online platforms do not have authorisation to operate within Nigeria’s capital market.
Nigerians Urged to Verify Investment Companies
The commission advised Nigerians to confirm the registration status of investment firms before sending money to them.
It also urged the public to avoid financial advice from individuals and organisations without SEC licences.
“Only SEC-registered operators are authorised to provide investment and advisory services in Nigeria,” the commission said.
In addition, the regulator warned that investment platforms promising quick and guaranteed profits often expose users to fraud and financial losses.
Social Media Scams Continue to Spread
The SEC linked the warning to the growing number of digital Ponzi schemes targeting Nigerians through online platforms.
Many of the operators use aggressive marketing strategies and false promises to attract victims.
The commission reaffirmed its commitment to protecting investors and strengthening confidence in Nigeria’s financial market.
