EFCC Links Banks, Fintechs to N162bn Crypto Fraud, Recovers Funds

EFCC Links Banks, Fintechs to N162bn Crypto Fraud, Recovers Funds

The Economic and Financial Crimes Commission (EFCC) has implicated a new-generation commercial bank, six fintech companies and several microfinance banks in a large-scale financial fraud involving cryptocurrency transactions valued at ₦162 billion.

The disclosure was made on Thursday during a press briefing at the Commission’s headquarters in Abuja by the EFCC’s Director of Public Affairs, Mr. Wilson Uwujaren.

Uwujaren accused the affected but unnamed financial institutions of failing to carry out adequate customer due diligence, thereby allowing fraudsters to launder illicit funds through the financial system during the 2024/2025 financial year. He said the transactions violated established Know-Your-Customer (KYC) and anti-money laundering (AML) regulations.

According to him, EFCC investigations revealed serious weaknesses in internal control systems within the institutions, enabling criminals to convert proceeds of fraud into digital assets and transfer them to undisclosed destinations.

“A total sum of ₦18.1 billion was moved through the financial system without due diligence of customers by the banks,” Uwujaren said. “It is particularly worrisome that cryptocurrency transactions amounting to ₦162 billion passed through a new-generation bank without any form of due diligence.”

He further disclosed that investigators uncovered a case in which a single individual allegedly operated 960 bank accounts within one bank, all linked to fraudulent activities.

Describing the findings as troubling, Uwujaren said EFCC intervention had nonetheless yielded results, with the Commission recovering ₦33.62 million, which has already been returned to some victims.

The EFCC spokesperson explained that ongoing investigations uncovered two major categories of scams linked to the financial institutions.

The first involved an airline ticket discount scheme, in which a syndicate advertised heavily discounted foreign airline tickets. Victims were made to believe payments would be made directly to the airline through a specially designed payment module. However, once payment was completed, the entire funds in victims’ bank accounts were allegedly wiped out.

Uwujaren said more than 700 victims were defrauded under the scheme, with estimated losses of ₦651 million. He added that the operation was allegedly masterminded by a foreign national, while about ₦33 million has so far been recovered and refunded to victims.

The second scheme was linked to a fraudulent investment platform operating as Fred and Farid Investment Limited, popularly known as FF Investment. Uwujaren disclosed that over 200,000 Nigerians were defrauded through the platform, which generated approximately ₦18 billion by offering fake investment packages through multiple companies.

The companies allegedly involved 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, the scheme was orchestrated by foreign nationals working with three Nigerian accomplices, who have been arrested and charged to court. The foreign masterminds are currently on the run, with efforts underway to apprehend them.

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 regulators to suspend and hand over to the EFCC any deposit money banks, fintechs or microfinance banks found to be aiding fraudsters for investigation and possible prosecution.

He warned that negligence and failure to monitor structured or suspicious transactions expose the economy to serious systemic risks and must no longer be tolerated.

As part of its broader anti-corruption drive, the EFCC on Wednesday announced the recovery of ₦1.234 billion from Sujimoto Luxury Construction Limited, which has been returned to the Enugu State Government. The recovery followed a petition by the state government after the company allegedly failed to execute a contract for the construction of 22 smart schools, despite receiving over ₦2.28 billion in advance payments.