SEC Raises Alarm Over Rising Fake Online Investment Platforms Targeting Nigerians (Ponzi Scheme Warning)

The Securities and Exchange Commission (SEC) has issued a strong warning to Nigerians over the growing spread of unregistered online investment platforms circulating on social media, many of which it says are disguised Ponzi schemes designed to defraud unsuspecting investors.

In a public notice released on 8 May 2026 and shared via its official X account, the Commission said these platforms are being aggressively promoted across WhatsApp, Instagram, TikTok, Telegram, Facebook, and other digital spaces. According to the SEC, they often lure users with promises of quick, guaranteed, or unusually high returns that are not realistic in legitimate capital markets.

The regulator stressed that several of the operators behind these schemes are not registered or authorised to provide investment services in Nigeria. It added that many of them display typical characteristics of Ponzi operations, while others go further to offer illegal investment advisory services without regulatory approval.

The SEC also warned that Nigerians who engage with such platforms risk severe financial losses, noting that only firms registered and approved by the Commission are legally allowed to offer investment services in the country. It urged the public to always verify any investment opportunity through its official databases before committing funds.

Reaffirming its commitment to protecting investors, the Commission said the Investments and Securities Act 2025 gives it full authority to regulate capital market operators in Nigeria. It added that public awareness, caution, and proper due diligence remain the strongest tools in preventing financial scams in an increasingly digital investment landscape.

source: punch