US Data Firm Blacklists Nigeria After Allegedly Paying Out Thousands of Dollars to Fraudsters
- US data firm, Kled AI, has suspended its services in Nigeria after detecting what it described as widespread fraudulent activity
- The company said users uploaded low-quality or manipulated content, including duplicate files and falsified identification documents
- Although access has been blocked for now, the company says it may return if it can build stronger systems to control fraud
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Kled AI, a US-based platform that pays users for uploading photos, videos, and other types of data, has pulled its operations out of Nigeria after uncovering what it described as widespread fraudulent activity.
The company, launched in 2025, operates as a marketplace connecting everyday users with artificial intelligence firms in need of quality training data.
Source: UGC
The ban was announced in a post made by the company's founder, Avi Patel, on X (formerly Twitter) on Monday, May 4, 2026.
Fraud concerns trigger ban
According to Patel, the company took the drastic step of removing its app from Nigerian app stores and blocking access from the country after discovering that nearly 95% of user activity from the region was fraudulent.
Patel said:
“We have removed Kled from the Nigerian app store and IP banned the entire region.
“After several months of uploads we found that Nigeria had a ≈95% fraud rate. Instead of real, usable data, users were uploading pictures of black screens, duplicate photos, internet generated images, AI generated images, etc. at an unimaginable scale."
He said the platform had already paid out hundreds of thousands of dollars within just four months before the abuse became too large to manage.
Patel explained that many submissions included blank images, repeated files, AI-generated content, and even manipulated identification documents during the Know Your Customer (KYC) process.
Some users reportedly uploaded fake Japanese passports with altered photos, raising serious concerns about the integrity of the data being submitted.
Kled compares Nigeria with other markets
The founder contrasted Nigeria’s situation with other countries such as Malaysia, Indonesia, and the Philippines, where fraud levels reportedly remained below 10% despite having larger user bases.
This sharp difference, he suggested, played a major role in the decision to suspend Nigerian operations entirely.
Kled's possible return amid mixed reactions
While the company has enforced a full restriction for now, Patel hinted that the move may not be permanent.
He noted that Kled AI could reconsider its presence in Nigeria if it develops stronger systems to detect and prevent fraud at scale.
Source: Twitter
The decision has sparked mixed reactions online. Some Nigerians acknowledged that misuse of online earning platforms is a recurring issue, while others questioned the accuracy of the claims, suggesting the figures may be overstated or part of a publicity strategy.
OKX ceases operations in Nigeria
In related news, Legit.ng earlier reported that OKX, a cryptocurrency exchange, has declared its departure from Nigeria.
The company linked its exit to increasingly strict regulatory conditions, which have followed a broader clampdown on digital asset platforms operating within Nigeria.
OKX explained that its decision was reached after carefully evaluating the evolving regulatory environment.
Source: Legit.ng
