EFCC has indicted Banks and Fintechs over N162bn Crypto Fraud and warned of tough sanctions.
NewsOnline Nigeria reports that the Economic and Financial Crimes Commission (EFCC) has indicted a new generation commercial bank, six fintech firms, and several microfinance banks for their alleged roles in major financial scams involving large-scale money laundering.
The EFCC’s Director of Public Affairs, Mr. Wilson Uwujaren, disclosed this on Thursday during a press briefing at the commission’s headquarters in Abuja.
According to Uwujaren, the affected financial institutions allegedly allowed cryptocurrency transactions worth over ₦162 billion to pass through their systems during the 2024/2025 financial year without conducting proper customer due diligence.
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He said investigations revealed that banking procedures were grossly compromised, enabling fraudsters to convert illicit funds into digital assets and move them to undisclosed destinations.
“A total of ₦18.1 billion was moved through the financial system without adequate customer due diligence by some banks,” Uwujaren said.
“It is deeply concerning that cryptocurrency transactions amounting to ₦162 billion passed through a new generation bank without any form of due diligence. In another case, a single customer operated 960 accounts in a separate bank, all of which were used for fraudulent activities.”
Uwujaren noted that following EFCC intervention, the commission recovered ₦33.62 million, which has since been returned to some of the victims.
He explained that the scams were uncovered under two major schemes. The first involved a syndicate that used an airline discount scheme to defraud victims by advertising discounted flight tickets of a foreign airline.
“The payment system was designed to make victims believe they were paying directly to the airline. However, after payment, the victims’ entire bank balances were wiped,” he said.
According to the EFCC, more than 700 victims have lost about ₦651 million through this scheme. Investigations indicate that the operation was masterminded by a foreign national, while ₦33 million has already been recovered and refunded to affected victims.
The second scheme involved a company identified as Fred and Farid Investment Limited (FF Investment), which allegedly lured Nigerians into a fake investment platform.
Uwujaren disclosed that over 200,000 victims were defrauded, with about ₦18 billion generated through nine companies offering fictitious investment packages. 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.
He stated that while the schemes were largely driven by foreign nationals, three Nigerian accomplices have been arrested and charged to court, adding that efforts are ongoing to apprehend the masterminds who are currently on the run.
Uwujaren called on regulatory authorities to enforce strict compliance with Know Your Customer (KYC), Customer Due Diligence (CDD), and Suspicious Transaction Reporting (STR) requirements.
“Deposit Money Banks, fintechs, and microfinance banks found to be aiding and abetting fraudsters should be suspended and referred to the EFCC for thorough investigation and possible prosecution,” he warned.
He added that negligence and failure to monitor suspicious and structured transactions by financial institutions would no longer be tolerated.
The EFCC also urged members of the public to remain vigilant, assuring Nigerians that the commission would continue its crackdown on money laundering and financial crimes.
Uwujaren further called on financial institutions to strengthen their internal controls and operational frameworks to curb leakages and protect the Nigerian economy.
