EFCC Implicates Bank, Fintechs in N162bn Cryptocurrency Fraud
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.
Speaking at the briefing, EFCC Director of Public Affairs, Wilson Uwujaren, accused the affected financial institutions—whose identities were not disclosed—of failing to conduct adequate customer due diligence, thereby enabling fraudsters to launder illicit funds through the Nigerian financial system.
Weak KYC Controls Enabled Large-Scale Fraud
According to Uwujaren, investigations revealed that the institutions allowed suspicious transactions to pass through their platforms during the 2024/2025 financial year, in violation of established Know-Your-Customer (KYC) and anti-money laundering regulations.
He stated that a total of ₦18.1 billion was moved through the banking system without proper customer verification.
“It is particularly worrisome that cryptocurrency transactions amounting to ₦162 billion passed through a new-generation bank without any form of due diligence,” Uwujaren said.
The EFCC also uncovered severe lapses in internal controls, including a case in which one individual allegedly operated 960 accounts within a single bank, all linked to fraudulent activities.
Funds Recovered, Victims Refunded
Uwujaren described the findings as troubling but noted that the Commission has made progress in recovering stolen funds. “Following our intervention, the Commission has been able to recover ₦33.62 million, which has already been returned to some of the victims,” he said.
Two Major Scam Schemes Identified
The EFCC spokesperson explained that investigations uncovered two major categories of scams linked to the implicated institutions.
Airline Ticket Discount Scam
The first involved a syndicate that used a fake airline ticket discount scheme to defraud unsuspecting victims.
According to the EFCC, the fraudsters advertised heavily discounted flight tickets for a foreign airline and convinced 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,” Uwujaren explained.
“However, once payment was completed, the entire funds in the victims’ bank accounts were wiped out.”
Investigations showed that over 700 victims were defrauded under the scheme, with estimated losses of ₦651 million. The EFCC said the operation was allegedly masterminded by a foreign national, adding that about ₦33 million has so far been recovered and refunded to victims.
Fraudulent Investment Platform
The second scheme involved a fraudulent investment platform operating under the name Fred and Farid Investment Limited, popularly known as FF Investment. The Commission said investigations into the platform and its financial flows are ongoing, with further arrests and recoveries expected.
Ongoing Investigations
Uwujaren stressed that the EFCC will continue its investigations and hold accountable any financial institution found to have facilitated fraud through negligence or deliberate non-compliance with regulatory standards.
