The Economic and Financial Crimes Commission (EFCC) has revealed that a new-generation commercial bank, six fintech companies, and several microfinance banks have been implicated in a large-scale financial fraud scheme involving cryptocurrency transactions worth N162 billion.
During a press briefing at its Abuja headquarters on Thursday, the Commission accused the unnamed financial institutions of failing to carry out adequate customer due diligence.
This negligence, the EFCC said, enabled fraudsters to launder illicit funds through the financial system.
Wilson Uwujaren, EFCC Director of Public Affairs, stated that investigations revealed serious weaknesses in internal controls within the affected institutions.
He said these lapses allowed criminals to convert proceeds of fraud into digital assets and transfer them to undisclosed destinations.
According to Uwujaren, the institutions 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.
“A total sum of N18.1 billion was moved through the financial system without due diligence of customers by the banks,” he said.
He also expressed concern that cryptocurrency transactions amounting to N162 billion passed through a new-generation bank without any form of due diligence.
Uwujaren further disclosed that the Commission uncovered a case where a single individual operated 960 accounts within one bank, all allegedly used for fraudulent activities.
Despite the findings, Uwujaren said there was a silver lining: the Commission has recovered N33.62 million, which has already been returned to some victims.
The EFCC explained that 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.
“The syndicate advertised heavily discounted flight tickets for a foreign airline, convincing victims that payments would be made directly to the airline.
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“The payment module was designed to show that the victims’ payments appeared to be credited to the airline, but once payment was completed, the funds in the victims’ bank accounts were wiped out.
“Investigations showed that over 700 victims were defrauded under this scheme, with estimated losses amounting to N651 million”, he stated.
Uwujaren said the scheme was allegedly masterminded by a foreign national, while the Commission has recovered and refunded about N33 million to affected victims.
He added that the second scheme involved a fraudulent investment platform operating under the name Fred and Farid Investment Limited, popularly known as FF Investment.
The EFCC 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 reportedly 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.
Uwujaren said 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.
The EFCC urged financial regulators to enforce stricter compliance among financial institutions, particularly in the areas of KYC, Customer Due Diligence (CDD), and Suspicious Transaction Reports (STRs).
Uwujaren called on regulators to suspend and transfer to the EFCC any Deposit Money Banks, fintechs, and microfinance banks found to be aiding 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.
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