The Economic and Financial Crimes Commission (EFCC) has implicated a new-generation commercial bank, six fintech companies, and some microfinance banks in large-scale financial fraud involving cryptocurrency transactions valued at N162 billion.
The Commission disclosed this on Thursday during a press briefing at its headquarters in Abuja.
EFCC Director of Public Affairs, Mr. Wilson Uwujaren, accused the unnamed financial institutions of failing to conduct adequate customer due diligence, thereby enabling fraudsters to launder illicit funds through the financial system.
According to Uwujaren, the compromised institutions allegedly allowed suspicious transactions to pass through their platforms during the 2024/2025 financial year, in clear violation of established Know-Your-Customer (KYC) and anti-money laundering regulations.
What the EFCC is saying
Uwujaren stated that investigations by the EFCC revealed serious weaknesses in internal controls within the affected institutions, allowing criminals to convert proceeds of fraud into digital assets and transfer them to undisclosed destinations.
“A total sum of N18.1 billion was moved through the financial system without due diligence of customers by the banks,” he said.
“It is particularly worrisome that cryptocurrency transactions amounting to N162 billion passed through a new-generation bank without any form of due diligence,” he added.
He further disclosed that the Commission uncovered a case where a single individual operated 960 accounts within one bank, all allegedly used for fraudulent activities.
“This is bad news,” Uwujaren noted, “but the good news is that following our intervention, the Commission has been able to recover N33.62 million, which has already been returned to some of the victims,” he said.
Two major fraud schemes uncovered
The EFCC spokesperson explained that the ongoing investigations uncovered two major categories of scams linked to the financial institutions.
The first involved a syndicate that used an airline ticket discount scheme to defraud unsuspecting victims.
According to Uwujaren, the syndicate advertised heavily discounted flight tickets for a foreign airline, convincing victims that payments would be made directly to the airline.
“The payment module was designed in such a way that the victims’ payments appeared to be credited to the airline,” he said.
“However, once payment was completed, the entire funds in the victims’ bank accounts were wiped out.”
- Investigations showed that over 700 victims have been defrauded under this scheme, with estimated losses amounting to N651 million.
- Uwujaren added that the scheme was allegedly masterminded by a foreign national, while the Commission has so far recovered and refunded about N33 million to affected victims.
The second scheme involved a fraudulent investment platform operating under the name Fred and Farid Investment Limited, popularly known as FF Investment.
- Uwujaren disclosed that more than 200,000 Nigerians were defrauded through the scheme, which generated approximately N18 billion by offering fake investment packages through multiple companies.
- The companies allegedly used include Credio Banco Limited, Deliberty Rock Limited, Liam Chumeks Global Service, Ngwuoke Daniels Technology, Icons Autos and Import Merchant, Newpace Technology Services Limited, Primepath Ways Ventures Limited, Kaka Synergy Network Limited, and Sunlight Tech Hub Services Limited.
- According to the EFCC, foreign nationals were behind the scheme, working with three Nigerian accomplices who have since been arrested and charged to court. The foreign masterminds are reportedly on the run, with efforts underway to apprehend them.
EFCC warns financial institutions
Uwujaren called on financial regulators to enforce stricter compliance among financial institutions, particularly in the areas of KYC, Customer Due Diligence (CDD), and Suspicious Transaction Reports (STRs).
He urged the regulators to suspend and transfer to the EFCC any Deposit Money Banks, fintechs, and microfinance banks found to be aiding and abetting fraudsters for thorough investigation and possible prosecution.
He stressed that negligence and failure to monitor structured or suspicious transactions must no longer be tolerated, warning that such lapses continue to expose the economy to systemic risks.
What you should know
As part of its fight against corruption in the country, the EFCC on Wednesday announced that it had recovered N1.234 billion from Sujimoto Luxury Construction Limited and returned it to the Enugu State Government.
The action followed a petition submitted by the Enugu State Government after the company failed to honor its contract to construct 22 smart schools, despite receiving over N2.28 billion in advance payments.
EFCC Please help us to recover our funds from Agropartners.