The Securities and Exchange Commission (Securities and Exchange Commission) has cautioned Nigerians against investing in unregistered online platforms being widely promoted on social media, warning that many of them operate as Ponzi-style schemes.
In a public alert shared via its official X account on Thursday, the commission said it has noticed a sharp increase in fraudulent investment advertisements circulating across platforms such as WhatsApp, Instagram, Facebook, Telegram, and TikTok.
According to the regulator, these schemes often lure the public with promises of unusually high or guaranteed returns, a hallmark commonly associated with Ponzi operations.
The commission explained that several of the operators behind these platforms are not licensed to provide investment services in Nigeria and are therefore acting illegally within the capital market space.
It further stressed that only entities registered and approved by the SEC are permitted to offer investment advisory or financial services to the public.
The regulator advised Nigerians to verify the legitimacy of any investment opportunity before committing funds, urging increased caution in the face of growing digital financial fraud.
It also warned that offers promising unrealistic profits typically expose investors to significant financial losses.
The SEC noted that the warning reflects ongoing concerns over the rise of online scams targeting unsuspecting individuals through social media and other digital channels.
The commission reaffirmed its commitment to protecting investors and maintaining confidence in Nigeria’s financial markets.
