The Securities and Exchange Commission (SEC) has warned the public about the rise in investment schemes not registered on social media apps and websites like WhatsApp, Instagram, Telegram, Facebook, TikTok and other digital platforms.
The Commission today said the investment schemes showed features of Ponzi or illegal investment schemes, and some operators of such schemes also offer approved financial services to members of the public.
“The Commission, therefore, cautions the public to desist from investing or participating in any unregistered online investment platform or scheme that promises unrealistic or guaranteed returns.
“Members of the public are further cautioned against relying on investment advisories circulated through online platforms by persons or entities not registered by the Commission as such advisories may expose investors to significant financial losses and fraudulent schemes.
“The public is hereby reminded that in accordance with the provisions of the Investments and Securities Act, 2025. “Only registered entities by the Commission are allowed to promote investment services, provide investment advisory services or solicit funds from the public in the Nigerian capital market.”
The public was asked to examine the registration status of any platform, firm or organization offering investment opportunities on the Commission’s designated portals.
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