By Sonny Iroche
Introduction
New social media-promoted investment schemes, that claim to use Artificial Intelligence (AI) strategies to create high yielding investment returns have emerged, claiming to use AI to generate guaranteed returns for users. This report highlights why some of these schemes are likely to be scams, outlines red flags, and provides actionable steps to protect unsuspecting investors and victims against financial fraud.
1. Overview of the Scam
– Claim: Some of the apps allegedly use “advanced AI” to automate investments, promising high returns with minimal effort.
– Target: Nigerians, particularly young adults and inexperienced investors seeking quick income.
– Platforms: Advertised via social media (Facebook, WhatsApp, Instagram) with flashy testimonials and referral links.
2. Red Flags of the AI Scams
– Too-Good-To-Be-True Returns: Promises of “risk-free” profits (e.g., “double your money in 24 hours”) contradict legitimate investment principles.
– Vague AI Claims: No technical details about how the AI works or proof of regulatory approval (e.g., SEC Nigeria). No mention of the names of management behind these schemes.
– Pressure to Recruit: Focus on recruiting others (Ponzi structures ), offering commissions for referrals.
– Upfront Payments: Requests for initial deposits, “activation fees,” or personal banking details.
– Anonymous Operators: No verifiable company address, team, or licenses.
3. Tactics Borrowed from Past Nigerian Scams
– Ponzi Schemes: Similar to MMM Nigeria (2016), CBex, Umana Umana, and Ultimate Cycler, which collapsed after recruiting stalled.
– Phishing Apps: Fake apps mimic legitimate platforms (e.g., fake crypto exchanges) to steal money/data.
– Social Media Hype: Use of paid influencers and fabricated success stories to lure victims.
4. How to Protect Yourself
– Verify Legitimacy:
– Check if the platform is registered with SEC Nigeria (sec.gov.ng) or CBN.
– Search for reviews or scam alerts online (e.g., app scam”).
– Avoid Suspicious Offers:
– Reject unsolicited investment offers or pressure to act quickly.
– Never share BVN, bank details, or OTPs.
– Educate Yourself:
– Legitimate AI tools (e.g., Microsoft, Google, Meta, Chatbot ) disclose risks and don’t guarantee returns.
– Consult licensed and reputable financial advisors and investment banks before investing. Bearing in mind that there is always a direct relationship between risk and return.
5. What to Do If You’ve Been Scammed
1. Stop Payments Immediately: Contact your bank to block transactions.
2. Report to Authorities:
– EFCC: efcc.gov.ng (https://efcc.gov.ng)
– SEC Nigeria: sec.gov.ng/complaints
– NCC (for app fraud): 622 (toll-free).
3. Warn Others: Share your experience on social media to disrupt the scam’s reach.
6. Legitimate Alternatives for AI-Driven Investments
– SEC-Approved Funds: Check the SEC Nigeria website for licensed options.
Conclusion
While AI is a legitimate tool in finance, scams a lot of these ponzi schemes, which have now commenced confusing unsuspecting victims with the claims of the use of AI, exploit its buzzword status to deceive Nigerians. Always prioritize due diligence and skepticism. Remember: If it sounds too good to be true, it likely is.
Stay Vigilant. Report Scams. Protect Your Community.
Report suspicious apps to EFCC (08000233522) or SEC Nigeria (09-4621060).
NB: Sonny Iroche is one of the leading AI experts in Africa
