The unlicensed platforms, which have been banned or flagged in a number of European and Asian countries, are currently leveraging Facebook, Telegram and Instagram to advertise risky investment schemes to Nigerians through artificial intelligence-generated content.
A sophisticated unlicensed investment platform campaign is currently targeting Nigerians through Facebook and Instagram, leveraging AI-generated content, impersonated media personalities, and paid Meta ads.
On Friday, May 9, a Facebook advertisement leading to a Telegram channel offering forex trading advice to Nigerians surfaced on the platform, featuring an Arise TV correspondent Oseni Rufai. However, it was determined that the advertisement was misleading due to two clear signs of AI manipulation in the video: facial deformation and a lack of lip movement synchronisation. The promotion was later found to be a part of a bigger campaign to draw users to Pocket Option, a controversial, high-risk trading website. The campaign allegedly uses phoney success stories, free trading signal offers and manipulated testimonies to win participants’ trust and lure them into larger financial investments that often lead to significant losses.
The next day, Saturday, May 10, Facebook’s recommendation algorithm began displaying a lot of high trading related advertisements, and there were more than 20 distinct Facebook pages found, all of which led users to various Telegram channels claiming to provide trading advice and investment opportunities. The promotion was also found running on Instagram.
These adverts persist in breaking Meta’s advertising guidelines on spam and policies pertaining to fraud, among others.
The marketing strategy behind these Facebook, Instagram and Telegram accounts is both calculated and sophisticated. The main strategy is to entice users to join Telegram channels by promising them profit-guaranteed free trading signals. Because they promise high-reward, low-risk trades, these so-called “signals” are especially alluring to unsuspecting users.
To gain the trust of new members, the handlers of the Telegram channels share screenshots and fake success stories of people who are purportedly making large sums of money. These narratives aim to persuade subscribers that by heeding the platform’s guidance, they, too, can achieve financial success. Victims are often hooked by the small, seemingly genuine profits that come from initial engagements. They are gradually persuaded to invest more, which eventually results in large losses.
Once a new subscriber joins the Telegram channel, they are greeted with either a welcome video, text or digitally created image and several screenshots on the trading platform. In some situations, they are also urged to take part in a trading competition. The general plan is to make contact, either with a real account or a bot, and then provide the user with information about a trading platform called Pocket Option. Channel admins post screenshots and testimonies showing profitable trades and substantial payouts in an effort to appear more credible. The purpose of these “wins” is to build confidence and progressively coerce users into making riskier, bigger investments.
This strategy was first noticed on the Kai Trader Official Telegram channel with 151,108 subscribers, which was promoted by the Facebook account, Kai Off1 that was discovered on May 9. It used AI manipulated content featuring Rufai Oseni to advertise investment trading. New subscribers on the channel were directed to an admin account engaging in a one-on-one discussion that involved his success story in investment trading and showed off his alleged members’ wins. After much engagement, a link was sent not directly to Pocket Option but to a redirecting URL that ultimately led to the platform’s main website, where registration was required. Five Telegram channels were further examined, and the same approach was found: identical scripted messages that promised guaranteed profits and used high-pressure, time-sensitive language to pressure users into making quick financial commitments.
This ongoing campaign is a glaring illustration of the strategies deployed by investment scammers who defraud Nigerians by manipulating social proof, using AI tools, and employing high-pressure sales techniques.
A 2025 review by Investing in the Web, a company that focuses on helping people find, compare, and review investment platforms, reinforced these concerns, warning users against opening an account with Pocket Option due to multiple red flags uncovered during their investigation. The review highlighted serious problems such as questionable regulatory procedures and a lack of transparency. Additionally, the U.S. Commodity Futures Trading Commission (CFTC) and the UK’s Financial Conduct Authority (FCA) have warned Pocket Option about operating without permission in the past.
It is not uncommon to find complaints about Pocket Option on the Internet. One Reddit user on the r/binaryoptions forum described a troubling experience with Pocket Option, calling the platform a scam. The user claimed that over the course of a year, they deposited $10,000 but were only able to recover $4,000, raising suspicions about possible manipulation of the trading system. The user began by having a few successful trades and being able to make small withdrawals, but this early success quickly turned into consistent losses.
The user doubted the veracity of Pocket Option’s favourable internet reputation, having suffered monetary losses. They claimed that by offering bonuses to users who leave positive reviews on websites like TrustPilot, the platform may distort public opinion. According to the user, this tactic helps Pocket Option hide its risky and possibly dishonest business practices while making it seem legitimate to novice traders. The review acts as a warning, telling potential investors to check the veracity of online testimonials and to be cautious of platforms that make too-good-to-be-true claims.
Several reviews on Trustpilot, a Danish consumer company that operates a review website, also called Pocket Option a scam. According to Douglas Maringa from Zimbabwe, who wrote a Trustpilot review, Pocket Option refused to let him take out the $2000 he had earned from his $100 original investment.
A Quora discussion thread entitled ‘Has anyone made a consistent profit with Pocket Option?’ revealed a range of user experiences, many of which were warnings. According to several contributors, while early Pocket Option trades might result in modest gains, these initial gains frequently result in bigger losses over time. Users suggested that the platform’s design might encourage traders to engage in riskier trading practices, which could lead to serious financial losses.
Furthermore, some participants expressed doubts regarding the veracity of online reviews that were positive for Pocket Option. They speculated that some positive reviews might be faked or rewarded in an effort to draw in new users under false pretences.
Pocket Option appears to be the latest platform targeting Nigerians with investment and the promise of quick and higher gains.
Over the past decade, Nigerians have lost trillions of naira, falling for various investment scams. Among these fraudulent platforms are: MMM Nigeria, CrowdRising, 6Dollars Investment, Binomo, Donation Hub, Lion’s Share, CBEX Investments, and Get Help Worldwide Stand Out.
On April 14, 2025, thousands of Nigerians were devastated to learn that their money had been wiped from the CBEX, a digital asset trading platform. Videos of people sobbing were shared online, expressing their inability to withdraw their investments and their concern that their money had disappeared. Given the difficult economic times Nigeria is currently experiencing, many people are looking desperately for ways to increase their income.
An approach the digital trading platform had deployed was to promise investors a 100 percent return on investment within 30 days, a tactic often used to lure unsuspecting victims.
The collapse of CBEX occurred a few weeks after President Bola Ahmed Tinubu signed the Investments and Securities Act 2025 (ISA 2025) into law, which was intended to strengthen regulatory oversight over investment activities in Nigeria.
There are additional questions regarding Pocket Option’s legitimacy and the security of investors’ money after discovering that it lacks a license to operate or advertise investment opportunities in Nigeria through the Securities and Exchange Commission’s (SEC) company verification portal.
What is the story behind Pocket Option?
Pocket Option was founded in 2017 by Gembell Limited, a company based in the Marshall Islands in the central Pacific Oceania. It operates as a binary options broker, providing access to a range of assets, including commodities, stocks, cryptocurrencies, and forex pairs. However, according to Pocket Option’s website, Infinite Trade LLC is currently listed as the owner and operator of the Pocket Option brand. The company manages the platform’s international operations and is registered in Costa Rica.
It is unclear exactly when Pocket Option was listed under Infinite Trade LLC.
Also, the Mwali International Services Authority (MISA), an organisation under the Mwali autonomously governed island that is a part of the Union of the Comoros, suspended the licence of Infinite Trade LLC, which is currently listed as the owner of Pocket Option, on July 11, 2023.
MISA further said investors should avoid the companies it had suspended, which included Infinite Trade LLC, stating that the “unauthorised entities will pose a threat to public investment activities and will also affect the security and transparency of the world’s investment environment.”
In an April 2025 report, Trader Union, an online financial platform, warned against doing business with Gembell Limited because it lacks regulatory oversight.
Beginning in 2019, the governments of five countries—Spain in 2019 and 2020, Brazil in 2024, Italy in 2020, and Romania in 2024—issued warnings published by the International Securities & Commodities Alerts Network stating that Pocket Option and Gembell Limited lacked authorisation to offer investment services.
The address listed for Gembell Limited on the Financial Market Relations Regulatory Centre certificate is Ajeltake Road, Marshall Islands. This address is connected to some businesses that were involved in fraud made public in the 2016 International Consortium of Investigative Journalists report on the Panama Papers.
In addition, the Marshall Islands Registry (IRI), a registry service provider, dissolved Gembell Limited as a corporation.
Pocket Option, in its privacy policy, discloses that it is operated by PO TRADE Limited, a cryptocurrency trading company. However, the Ukrainian National Securities and Stock Market Commission stated in 2024 that PO TRADE lacked the necessary licences and authorisations to conduct business in the nation. Also, it was observed that PO TRADE has the same features and user interface as the main Pocket Option website; it seems to serve as a backup domain for Pocket Option, most likely for regional access.
Apart from Pocket Option, another investment platform, IQ Option, was advertised through AI-generated content that had Nigerian influencer Ola of Lagos promoting the platform. Users are redirected to SQUAREDOPTIONS, a Telegram channel with more than 37,000 subscribers, by the advertisement.
In addition to not being listed on Nigeria’s SEC company verification portal, IQ Option is not subject to any recognised financial authority’s stringent oversight. It was also one of the 88 trading platforms India added to an alert list in 2024 that are unauthorised to operate in the country, and it was among 92 trading platforms Indonesian government blocked its website in 2022 after complaints from citizens that they were scammed.
Similarly, Quotex is another platform that is being advertised. Similar to Pocket Option, Quotex is a binary options-focused online trading platform that lets users forecast the price movement of a range of financial instruments.
Quotex is not on the Nigerian’s SEC company verification portal. In spite of this, a promotional article highlighting the purported advantages of trading with Quotex was published in May 2025 by This Day Newspaper (archived), a Nigerian media outlet. The Nation Newspaper also published a sponsored post in February 2025 promoting Binomo, a controversial trading platform, with allegations online linking it to scams.
In 2022, the Indonesian government banned Quotex after the platform was implicated in an investment scam that defrauded at least 142 victims. The scam reportedly resulted in losses exceeding $1 million, prompting regulatory authorities to take swift action against the platform.
Also, Quotex was mentioned in a 2022 Al Jazeera story that highlighted the extravagant lifestyles of two Indonesians connected to a financial scam that involved Telegram. According to the report, the two claimed that their extravagant wealth was the result of their alleged trading success on Quotex and Binomo, two binary options platforms that let users bet on whether the price of stocks will increase or decrease over a predetermined period of time with fixed payouts.
Several reviews on a broker review website, BrokerView, labelled Quotex a scam. According to a March 2025 review by Dennis Mwiti from Kenya in April, Quotex had blocked his account without explanation since January 24, 2025, and even after he submitted the required paperwork, the account has remained blocked.
Although it is unclear who owns Quotex, information that is readily available online shows that the platform is registered in the Seychelles and is not subject to strict regulation by any recognised financial authority. The platform was founded in 2019.
Quotex is presently run by ON SPOT LLC GROUP, according to its website. However, according to a Wayback Machine archived internet search, Maxbit LLC, a St. Vincent & The Grenadines-registered business, owned Quotex in 2021. At this time, Maxbit LLC’s registration with the Financial Services Authority of St. Vincent and the Grenadines (SVG FSA) has been revoked.
The platform has also occasionally been connected to another organisation called Awesomo Ltd. The exact timeline and reasons for the shift in ownership among these entities remain unknown.
The Italian financial regulator CONSOB banned Maxbit LLC’s operations in 2021 and put it on the investor warning list along with six other websites. According to the regulator, Maxbit LLC provided unauthorised financial services through the use of the domains, www.quotex.com and www.quotex.io.
Red flags regarding the platform’s legitimacy and regulatory status were further raised in January 2023 when the Portuguese Securities Market Commission (CMVM) issued a similar warning against both Quotex and Maxbit LLC.
An inquiry sent to the Head of Corporate Communications at the Securities and Exchange Commission (SEC) on WhatsApp, Efe Ebelo, and an email to the SEC official email address asking if Pocket Option and Quotex had applied for or been granted approval or registration with the Commission, as well as whether the SEC was aware of their activities or was looking into or keeping an eye on them, had yet to be responded to at the time of filing this report.
Both Pocket Option and Quotex also did not respond to the email inquiry found online purportedly linked to them on why they are operating in Nigeria without SEC operation licence.
