The Economic and Financial Crimes Commission (EFCC) has accused some banks, fintech companies and microfinance institutions of facilitating large-scale fraud by failing to carry out basic customer due diligence.
Speaking on Thursday at a media briefing in Abuja, the commission’s Director of Public Affairs, Wilson Uwujaren, said EFCC investigations uncovered serious lapses in two major fraud schemes that affected more than 900,000 Nigerians.
Uwujaren revealed that a “new generation bank”, six fintech firms and some microfinance banks compromised standard banking procedures, allowing fraud proceeds to be converted into digital assets and transferred to “safe destinations” without triggering red flags.
According to him, a total of ₦18,739,999,027.35 passed through the Nigerian financial system without adequate due diligence by financial institutions. He added that cryptocurrency transactions valued at ₦162 billion were processed through a single bank without proper Know Your Customer (KYC) checks, while another bank permitted a single customer to operate 960 accounts allegedly used solely for fraudulent activities.
The EFCC said the funds were linked to two major criminal schemes. The first was an airline discount fraud in which victims were lured with fake discounted ticket offers. Payments were structured to appear as transactions to legitimate airline accounts, after which victims’ bank accounts were emptied.
Uwujaren said over 700 victims lost a total of ₦651,097,755 in the scheme, but only ₦33.6 million has so far been recovered and returned. He noted that the fraud was masterminded by foreign nationals who recruited young Nigerians and used cryptocurrency, routed through Bybit, to move the proceeds.
The second scheme involved an investment fraud linked to Fred and Farid Investment Limited, also known as FF Investment, alongside eight other companies. The EFCC said more than 200,000 Nigerians were defrauded of ₦18.08 billion through multiple fake investment packages.
Other companies named 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.
The commission disclosed that three Nigerian accomplices have been arrested and charged to court, while the foreign masterminds behind the investment scheme are still at large.
Uwujaren warned that financial institutions found to be aiding or abetting fraud risk suspension and prosecution. He called on regulators to enforce strict compliance with KYC, customer due diligence and suspicious transaction reporting rules.
“Negligence and failure to monitor suspicious and structured transactions by banks should no longer be allowed,” he said, adding that the EFCC would intensify its crackdown on money laundering and the abuse of digital assets.