The Economic and Financial Crimes Commission (EFCC) has raised the alarm over deposit banks, Fintechs, and microfinance banks allegedly aiding fraudsters to defraud Nigerians, calling for their suspension and prosecution.
Speaking in Abuja, EFCC’s Director of Public Affairs, Wilson Uwujaren, revealed that the commission uncovered massive compromise in the financial sector, involving a cryptocurrency fraud of N162 billion and an investment scam worth N18.7 billion. According to him, one new-generation bank, six Fintechs, and some microfinance banks failed to follow proper procedures, allowing fraudsters to launder their proceeds.
Uwujaren disclosed shocking findings, including a single customer maintaining 960 accounts in one bank, all used for fraudulent purposes. He said these institutions “clearly compromised banking procedures” and facilitated the transfer of illicit funds into digital assets.
The scams included an airline discount scheme, which tricked unsuspecting travelers into making payments they thought were going to legitimate airlines. Over 700 victims lost N651.1 million through this method. Another scheme, run by Fred and Farid Investment Limited (FF Investment), defrauded more than 200,000 Nigerians of N18.1 billion through bogus investment packages.
The EFCC has successfully recovered N33.63 million for victims and urged regulatory bodies to enforce strict compliance with KYC, Customer Due Diligence, and Suspicious Transaction Reports. Uwujaren also cautioned Nigerians to stay vigilant, noting that foreign nationals, aided by three arrested Nigerians, orchestrated these scams.
