Economic and Financial Crimes Commission (EFCC) has linked a new-generation commercial bank, six fintech companies, and several microfinance banks to a massive financial fraud involving cryptocurrency transactions worth ₦162 billion.
The allegation was revealed on Thursday during a press briefing held at the Commission’s headquarters in Abuja.
Addressing journalists, EFCC Director of Public Affairs, Wilson Uwujaren, accused the unnamed financial institutions of neglecting basic customer verification procedures, a failure that allegedly allowed fraudsters to move and launder illicit funds through Nigeria’s financial system.
Lapses in KYC and AML Compliance
Uwujaren disclosed that EFCC investigations uncovered widespread weaknesses in internal controls across the affected institutions, particularly during the 2024/2025 financial year.
According to him, suspicious transactions were processed without proper Know-Your-Customer (KYC) checks, resulting in at least ₦18.1 billion moving through the banking system without adequate customer due diligence.
“It is deeply concerning that cryptocurrency transactions valued at ₦162 billion were processed by a new-generation bank without any form of due diligence,” Uwujaren said.
He also revealed that investigators discovered an extreme case in which a single customer allegedly operated 960 accounts within one bank, all reportedly linked to fraudulent activities.
EFCC Recovers Funds, Returns Money to Victims
While describing the findings as alarming, Uwujaren noted that the Commission has recorded some success in asset recovery.
“Following EFCC’s intervention, we have recovered ₦33.62 million, which has already been refunded to some of the victims,” he said.
Two Major Fraud Schemes Uncovered
The EFCC spokesperson explained that investigations so far have identified two major scam operations connected to the implicated financial institutions.
Fake Airline Ticket Discount Scheme
The first involved an organised syndicate that defrauded victims through a fake airline ticket discount offer.
According to the EFCC, the fraudsters promoted heavily discounted tickets for a foreign airline and convinced victims that payments were being made directly to the airline.
“The payment platform was structured to make it appear that funds were credited to the airline,” Uwujaren explained.
“However, once the transaction was completed, the victims’ bank accounts were completely emptied.”
Investigations revealed that more than 700 victims fell prey to the scheme, with total losses estimated at ₦651 million. The EFCC said the operation was allegedly coordinated by a foreign national and confirmed that about ₦33 million has so far been recovered and returned to victims.
FF Investment Fraud Case
The second scheme involved a fraudulent investment platform operating under the name Fred and Farid Investment Limited, widely known as FF Investment.
The EFCC said investigations into the platform’s operations, financial flows, and collaborators are ongoing, with more recoveries and possible arrests expected.
Further Enforcement Actions Expected
Uwujaren stressed that the EFCC will intensify enforcement actions and ensure that any financial institution found to have enabled fraud, whether through negligence or deliberate non-compliance, faces appropriate sanctions under the law.
