Sponsored By Algorithms, Powered By AI: The New Digital Fraud Threat Facing Nigerians

For Many Nigerians, Hope Begins With a Click

WHEN Mohammed Yusuf resigned from his poorly paid teaching job in Ilorin, Kwara State, in October 2025, he believed starting a Point-of-Sale (PoS) business would provide a stable source of income amid Nigeria’s harsh economic realities. After weeks of fruitless job hunting, he borrowed money to establish the business, hoping it would sustain him and his family.

Like millions of Nigerians searching online for opportunities, Yusuf increasingly encountered sponsored advertisements on TikTok promising grants, business support packages, investment opportunities and interest-free loans.

One particular advert appeared highly convincing.

Bearing the branding of fintech company OPay and narrated in what sounded like an authentic Nigerian voice, the video claimed the company was offering free PoS terminals alongside a ₦200,000 grant to support operators nationwide.

Believing the promotion was genuine, Yusuf clicked the embedded link and entered his phone number alongside his OPay account details.

Hours later, someone claiming to represent OPay telephoned him, discussing delivery arrangements for the promised PoS machine before requesting a One-Time Password (OTP), allegedly to complete verification for the grant.

“It was a video of one of their staff members I saw on TikTok,” Yusuf recalled. “Everything looked genuine because it was even promoted as a sponsored advertisement.”

It was not.

Within hours, nearly ₦150,000—almost the entire capital sustaining his business—had vanished through betting voucher transactions.

“I was sweating and crying,” he said. “What hurt me most was when I called the number again and the man answered simply to tell me, ‘I have scammed you.'”

A Growing Investigation Into AI-Powered Fraud

Yusuf’s experience is one of several cases uncovered during an investigation into AI-generated scam advertisements circulating through TikTok’s paid advertising system.

The investigation found that fraudsters are increasingly exploiting artificial intelligence to impersonate trusted financial institutions, public officials, business leaders and celebrities using cloned voices, manipulated videos and deepfake technology.

The objective is simple: persuade unsuspecting users to surrender personal information, banking credentials or verification codes that ultimately give criminals access to their financial accounts.

Unlike traditional scams, these advertisements appear as sponsored content, giving them an additional layer of credibility.

How TikTok’s Advertising Infrastructure Is Being Exploited

TikTok has grown into one of the world’s most influential advertising platforms.

Between 2020 and 2025, its parent company, ByteDance, generated approximately $92.38 billion in advertising revenue, with Nigeria becoming one of Africa’s largest digital advertising markets and more than 37 million users on the platform.

The same sophisticated advertising technology designed to connect businesses with customers is now being manipulated by cybercriminals.

During five weeks of monitoring between April and May, investigators documented 130 deceptive advertisements using synthetic voices, AI-generated presenters and manipulated videos.

Many falsely claimed to originate from reputable organisations.

Among the most frequently impersonated was OPay, appearing in 28 documented advertisements.

Others falsely used the identities of United Bank for Africa (UBA), MTN, Airtel, Lagos State Governor Babajide Sanwo-Olu, Oyo State Governor Seyi Makinde, Osun State Governor Ademola Adeleke and respected business leaders including Aliko Dangote and Tony Elumelu.

Artificial Intelligence Makes Fraud More Convincing

Unlike older phishing campaigns characterised by poor grammar and suspicious websites, today’s AI-powered scams closely resemble legitimate corporate advertisements.

Using voice-cloning software and deepfake technology, fraudsters now produce polished promotional videos in English, Pidgin, Yoruba and Hausa, enabling them to target audiences across Nigeria.

Many advertisements repeatedly employ psychological triggers including urgency, scarcity and fear of missing out.

Phrases such as:

• “Apply now.”
• “Limited slots available.”
• “This is your last chance.”

are deliberately designed to pressure users into making immediate decisions before verifying authenticity.

Cybersecurity experts describe these tactics as modern social engineering rather than technical hacking.

Victims Span Different Backgrounds

Mohammed Yusuf was not alone.

Ahmad Wura, who had gradually built cryptocurrency savings worth nearly ₦1 million while serving in the National Youth Service Corps (NYSC), also became a victim.

After clicking a TikTok advertisement promoting cryptocurrency mentorship, he submitted his email address expecting investment guidance.

Instead, attackers compromised his email account before taking control of his Bybit cryptocurrency wallet.

By the time access was restored, every digital asset had disappeared.

“I was distressed,” he recalled.

Similarly, Meekness Victor, despite previously losing money in failed investment schemes such as MMM, Racksterli and SRA, invested ₦300,000 after watching TikTok advertisements promoting CBEX, an AI-powered investment platform promising a 100 per cent return within 30 days.

Weeks later, the Securities and Exchange Commission declared CBEX illegal after investors reportedly lost more than $1 billion.

Why Users Trust Sponsored Advertisements

According to cybersecurity expert Michael Ukachi, scammers deliberately exploit public confidence in platform advertising systems.

Many users naturally assume sponsored advertisements have undergone verification before publication.

Fraudsters understand this psychology.

Once a deceptive advertisement receives official promotion by a major platform, users lower their guard and become more willing to share sensitive information.

Ukachi warned that artificial intelligence has dramatically increased scammers’ ability to create realistic promotional materials at scale.

“These scams are no longer crude,” he observed. “AI allows fraudsters to produce believable content rapidly, test different messages and adapt much faster than many moderation systems.”

Warning Signs Hidden Behind Professional Presentation

Investigators discovered several common characteristics among the scam advertisements.

Most redirected users to websites unrelated to the companies they claimed to represent.

Many domains were registered outside Nigeria.

Advertiser accounts frequently had no previous posts, almost no followers and little identifiable information.

Comment sections were disabled, preventing victims from publicly warning others.

Some advertisements could not even be shared outside TikTok, suggesting highly personalised targeting.

Experts Call for Stronger Digital Governance

Digital technology researcher and lawyer Damilare Adenola warned that information harvested through fraudulent advertisements extends beyond immediate financial theft.

Personal data can later facilitate identity theft, account takeovers and sophisticated phishing attacks months after initial contact.

He argued that regulators and digital platforms must strengthen oversight of AI-generated content before the technology becomes even more widely abused.

“Nigeria needs proactive laws that hold platforms to higher moderation standards,” he said.

TikTok Responds, But Questions Persist

Responding to the investigation, TikTok’s Head of Communications for Sub-Saharan Africa, Keagile Makgoba, confirmed that advertisements identified by investigators had been removed.

She stated that TikTok prohibits deceptive advertising and continues investing in systems designed to detect fraudulent campaigns.

Nevertheless, investigators subsequently documented more than twenty additional scam advertisements still circulating on the platform.

Meanwhile, Nigeria’s National Information Technology Development Agency (NITDA) said digital platforms bear responsibility for implementing stronger advertiser verification systems, detecting fraudulent campaigns early and preventing harmful advertisements from reaching users.

For cybersecurity experts, the investigation illustrates a broader reality: as artificial intelligence becomes more accessible, digital fraud is evolving faster than many online platforms—and regulators—can effectively respond.