Banks, fintechs enabled N162bn crypto, N18.7bn scam flows — EFCC

By Luminous Jannamike

ABUJA – The Economic and Financial Crimes Commission (EFCC) has uncovered widespread compromise within Nigeria’s financial system, revealing that banks, fintech companies and microfinance banks enabled the movement of N162 billion in cryptocurrency transactions and N18.7 billion in fraud proceeds without due diligence, facilitating scams that affected more than 900,000 Nigerians.

The Commission said the funds were laundered through financial institutions that failed to observe Know Your Customer (KYC) and Customer Due Diligence (CDD) requirements, allowing fraudsters, many of them foreign nationals, to convert illicit proceeds into digital assets and move them to offshore destinations.

The disclosures were made in Abuja on Thursday during a media briefing by the Director of Public Affairs of the EFCC and Commander of the EFCC, Wilson Uwujaren, who outlined major investigative breakthroughs recorded by the Commission as it began the 2026 operational year.

Uwujaren said the first scheme involved a syndicate that deployed a fake airline ticket discount system to defraud unsuspecting foreign travellers, using deceptive payment platforms designed to appear as legitimate airline accounts.

“The payment module is designed in such a way that their victims would be convinced that the payment is actually made into the account of the airline. No sooner the payment is made than the passenger’s entire funds in his bank account are emptied,” Uwujaren said.

He explained that while only seven victims initially reported the fraud, deeper investigations revealed that more than 700 victims had been affected, with total losses amounting to N651,097,755.

According to him, the Commission has so far recovered and released N33,628,000 to victims.

Uwujaren said investigations showed that the scheme was masterminded by a foreign national who recruited young Nigerians, provided them with laptops and specialised software, and used compromised accounts to execute the fraud, with proceeds converted into cryptocurrency and transferred through Bybit.

The EFCC also uncovered a second, far larger investment fraud linked to Fred and Farid Investment Limited, also known as FF Investment, which lured Nigerians into bogus investment packages.

He said more than 200,000 victims were defrauded in the scheme, with a total of N18,088,901,272.35 generated through nine companies offering various investment opportunities.

The companies 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.

Uwujaren said investigations again pointed to foreign nationals as the masterminds, noting that three Nigerian accomplices had been arrested and charged to court, while efforts were ongoing to apprehend the fleeing suspects.

A major concern raised by the Commission was the role played by financial institutions, with Uwujaren disclosing that a new-generation bank, alongside six fintech and microfinance banks, compromised standard banking procedures to enable the laundering of fraud proceeds.

“A total sum of N18,739,999,027.35 had been moved through our financial system without due diligence of customers by the banks,” he said.

He further described as troubling the discovery that cryptocurrency transactions worth N162 billion passed through a new-generation bank without due diligence, adding that another bank allowed a single customer to operate 960 accounts used solely for fraudulent activities.

“It is worrisome that investigations by the Commission showed that cryptocurrency transactions to the tune of N162 billion passed through a new generation bank without any due diligence,” Uwujaren said.

The EFCC called on regulatory authorities to compel full compliance within the financial sector, warning that institutions found to be aiding or abetting fraud would face sanctions, investigation and possible prosecution.

“Deposit Money Banks, Fintechs, Micro Finance Banks found to be aiding and abetting fraudsters should be suspended and referred to the EFCC for thorough investigation and possible prosecution,” Uwujaren said.

He added that negligence and failure to monitor suspicious and structured transactions would no longer be tolerated, stressing that financial institutions must strengthen their internal systems to stop leakages that continue to bleed the nation’s economy.

Uwujaren said the Commission would remain resolute in its fight against money laundering and financial crimes, insisting that protecting Nigeria’s financial system was critical to safeguarding public trust and economic stability.

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