SEC Warns Against Surge In Illegal Online Investment Schemes On Social Media

The Securities and Exchange COMMISSION (SEC) has warned Nigerians against investing in unregistered online investment schemes being promoted across social media platforms and websites.

In a public notice posted on its official X handle, the commission said its attention had been drawn to the increasing promotion of illegal investment platforms on applications such as WhatsApp, Instagram, Telegram, Facebook, TikTok and other digital channels.

The apex capital market regulator stated that many of the schemes displayed the characteristics of Ponzi or prohibited investment operations, while some operators were allegedly providing unauthorized investment services to members of the public.

According to the commission, members of the public should refrain from investing or participating in any online investment platform that promises unrealistic or guaranteed returns.

It also cautioned Nigerians against relying on investment advice circulated on social media by individuals or entities not registered by the commission, warning that such activities could expose investors to fraud and severe financial losses.

“The public is reminded that, under the provisions of the Investments and Securities Act, 2025, only entities registered by the commission are authorised to promote investment services, provide investment advisory services or solicit funds from the public in the Nigerian capital market,” the notice stated.

The commission further urged prospective investors to verify the registration status of any company, platform or entity offering investment opportunities before committing funds.

It advised Nigerians to use the commission’s dedicated verification portal to confirm whether an investment operator is duly registered and authorised to operate within the country’s capital market.

The warning comes amid growing concerns over the rise of digital investment scams and Ponzi schemes targeting unsuspecting Nigerians through social media and online channels.

Over the years, several fraudulent investment platforms operating in the country have collapsed after attracting thousands of investors with promises of high and unrealistic returns, leading to huge financial losses for victims.

The commission has repeatedly maintained that investor protection and market integrity remain key priorities in its regulatory oversight of Nigeria’s capital market.