How to identify suspicious investment schemes on social media as SEC warns Nigerians about Ponzi scams 

• Securities and Exchange Commission warned Nigerians against investing in unregistered online investment platforms promoted on social media.

• The SEC said many of the schemes operating on WhatsApp, Instagram, Telegram, Facebook and TikTok show characteristics of Ponzi scams.

• The Commission cautioned that platforms promising guaranteed or unusually high returns could lead investors to lose their money to fraudulent operators.

• Nigerians were advised to verify the registration status of any investment company or promoter through the SEC verification portal before investing.

The Securities and Exchange Commission has warned Nigerians to be careful of suspicious investment schemes spreading rapidly across social media platforms, saying many of them operate like Ponzi scams designed to defraud unsuspecting investors.

In a public notice dated May 8, 2026, the Commission raised concerns over the growing number of online investment platforms promising unrealistic returns without proper registration or approval from regulators.

According to the SEC, many of these schemes are heavily promoted on social media channels such as WhatsApp, Instagram, Telegram, Facebook and TikTok, where operators use flashy advertisements and aggressive marketing tactics to attract investors.

“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, including WhatsApp, Instagram, Telegram, Facebook, TikTok and other digital platforms,” the SEC stated.

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The regulator explained that several of the platforms are not licensed to operate within Nigeria’s capital market, yet they continue to offer investment opportunities and financial advisory services to the public.

It warned that many of the schemes show clear signs commonly linked to Ponzi arrangements and illegal investment operations. These include promises of guaranteed profits, unusually high returns within a short period, and pressure on users to recruit more people into the scheme.

The SEC stressed that Nigerians who invest money in such platforms stand the risk of losing their funds entirely if the operators disappear or the schemes collapse.

It also advised members of the public not to rely on investment advice from individuals or companies that are not properly registered by the Commission.

“Only operators registered with the SEC are legally permitted to provide investment and advisory services within Nigeria’s capital market,” the Commission said.

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The agency further urged Nigerians to always verify the registration status of any company, digital platform or promoter before investing money.

“The investing public is advised to confirm the status of companies and entities offering investment opportunities through the Commission’s dedicated verification portal before transacting with them,” the SEC stated.

The warning comes amid rising concerns over online fraud and digital investment scams in Nigeria, especially on social media, where fraudsters often target young people and first-time investors with promises of fast profits.

Financial experts have repeatedly advised Nigerians to be cautious of any investment platform offering guaranteed returns or asking users to keep recruiting new members in order to earn profits.