Securities and Exchange Commission (SEC) has warned Nigerians against investing in unregistered online investment schemes being promoted across social media platforms, describing many of them as fraudulent and Ponzi-like operations.
In a public notice issued on Thursday via its official social media handle, the commission said it had observed a surge in the promotion of unregistered investment schemes on applications such as WhatsApp, Instagram, Telegram, Facebook and TikTok.
“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 commission stated.
SEC noted that many of the schemes attract unsuspecting investors with promises of unrealistic and guaranteed returns, which often result in financial losses.
According to the commission, several of the operators behind such platforms are neither registered nor authorised to operate within Nigeria’s capital market.
“Many of these investment schemes exhibit characteristics of Ponzi or prohibited investment schemes, while some operators also provide unauthorised investment services to members of the public,” the notice added.
The commission reiterated that only operators registered with the SEC are legally permitted to offer investment and advisory services in Nigeria.
It urged members of the public to verify the registration status of any investment platform or company before committing funds.
SEC further cautioned Nigerians to be wary of schemes offering unusually high or guaranteed profits, stressing that such promises are common red flags associated with fraud.
The warning comes amid growing concerns over the rise in digital financial scams and internet-based Ponzi schemes targeting Nigerians through social media and online platforms.
