The hidden danger of digital outreach without disclaimers
As a result of digital marketing, the process of finding, evaluating, and financing financially attractive projects has been changed to a great extent. To a lot of new investors, a social media ad or an email might be the first — or only — contact with an investment product. In case such communications do not have clear risk disclaimers, investors may be deceived into thinking that returns are guaranteed, or that risks are insignificant. The upshot is that the mis-selling practice becomes very easy to use in these situations.
The examples of recent events are pinpointing this danger very clearly. It is reported by the Central Bank of Nigeria (CBN) that financial fraud in general had a very phenomenal rise of about 45 % within a year in Nigeria, a country where online platforms have become the favorite investment means for many investors. What is more, 70% of the losses were linked to digital channels, such as the unregulated virtual-asset platforms, online ads, and other digital schemes, to which the Nigerian public had been exposed in that same year. (Nairametrics).
Additionally, the Securities and Exchange Commission Nigeria (SEC) has recently cautioned influencers, bloggers, and other online promoters who advertise unregistered investment schemes that it will take actions against them. The Commission points to the fact that the social-media marketing is being used in the most effective way to attract the investors who have no idea of what is going on. (The Guardian Nigeria).
These figures and the warnings issued are not just the background noise of the regulators — they signal a breakdown in communication of the safety measures. Investors who are not informed of the presence of risk disclaimers most of the time decide under the wrong or incomplete assumptions.
Digital Ads without disclaimers — The cost of omission
It’s been observed recently that Nigerians are being targeted by deceptive ads on social media. These ads, which often use artificial intelligence or fabricated celebrity endorsements, promote risky “investment” opportunities that promise unrealistically high profits. For example, in 2025, a Facebook ad directed people to a Telegram channel supposedly offering advice on foreign currency trading. However, the ads failed to properly explain the potential risks or disclose whether the operation was legitimately regulated. The people running the operation used altered videos, fake success stories, and persuasive language to entice people to invest.
Sadly, many people invested their entire life savings, influenced by the promises of large returns and supposedly risk-free trading tools. When these schemes inevitably failed, many people were left with significant financial losses, demonstrating the devastating consequences of missing warnings and misleading advertising.
Why uniform risk disclosure matters — Ethically and practically
● Investor Protection & Informed Decision-making
Disclaimers educate investors about the risks involved — volatility, liquidity risk, regulations, or loss of capital — help investors make a choice which is appropriate to their risk profile, financial capacity, and goals.
● Transparency and Trust
When brokers speak about their risks, they build trust. Long-term trust is built by communicating transparently where no information is hidden. Trust is lost and confidence eroded when problems arise and there is no communication or selective communication.
● Regulatory Compliance & Liability Mitigation
There is a growing focus by regulators across the globe and the same applies to Nigeria. By embedding disclaimers, recruiters mitigate their exposure to legal and compliance sides. The SEC’s recent action against fraudulent schemes confirms that both investors and intermediaries have an obligation to illegal advertising (The Guardian Nigeria).
● Systemic Market Stability
The problem of mis-selling is a significant problem that erodes the trust of the financial system. It has a negative impact on potential investors. The whole system is protected through effective risk distribution and transparency.
Instituting risk disclosures and disclaimers across all digital communication channels is more than a regulatory checkbox; it is an issue of ethics, accountability, and human dignity.
Ijibadejo is an award-winning Forex fund manager with over 15 years of experience as a Forex fund manager and business consultant. He’s currently the African Regional Director for SquaredFinancials, a leading trading platform in Nigeria and Africa.
