SEC alerts Nigerians against rising Ponzi schemes on social media

The Securities and Exchange Commission (SEC) has issued a critical public warning cautioning Nigerians against unregistered online investment platforms aggressively promoted across social media.

It noted that these illegal operations are spreading rapidly on applications like WhatsApp, Instagram, TikTok, Telegram, and Facebook, with many displaying classic characteristics of fraudulent Ponzi schemes.

The warning was contained in a public notice dated May 8, 2026, and published on the Commission’s official communication channels.

According to the apex capital market regulator, several of the online platforms promising guaranteed or unrealistic returns are neither registered nor authorised to operate within Nigeria’s capital market.

“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.

It added that many of the schemes display features commonly associated with Ponzi or prohibited investment arrangements, while some operators also provide unauthorised investment services to unsuspecting members of the public.

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The SEC warned that investors who patronise such platforms risk losing their funds to fraudulent operators, stressing that promises of unusually high or guaranteed returns should be treated as red flags.

The Commission urged Nigerians to avoid participating in unregistered online investment schemes and to refrain from relying on financial advice from unlicensed individuals or entities.

According to the regulator, only operators registered with the SEC are legally permitted to provide investment and advisory services within Nigeria’s capital market.

The Commission further advised prospective investors to verify the registration status of any investment company, platform or promoter before committing funds.

“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.

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