EFCC Indicts Banks, Fintechs in ₦162bn Fraud Scandals

 

The Economic and Financial Crimes Commission (EFCC) has indicted a new generation bank, six fintech firms, and several microfinance institutions in connection with financial scams that enabled fraudsters to launder ₦162 billion through cryptocurrency transactions in the 2024/2025 financial year.

EFCC spokesperson Wilson Uwujaren disclosed at a press briefing that the institutions compromised standard banking procedures, allowing criminals to convert illicit funds into digital assets and move them across borders undetected.

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He revealed that ₦18.1 billion was moved through the financial system without proper customer due diligence, while one bank permitted a single customer to operate 960 accounts, all used for fraudulent purposes. The Commission has so far recovered ₦33.62 million, which has been returned to victims.

The scams were executed in two major categories. The first involved an airline discount scheme where fraudsters lured unsuspecting passengers with discounted tickets. Payments were routed through airline accounts, but victims’ entire bank balances were subsequently drained. More than 700 victims lost ₦651 million in this scheme, allegedly masterminded by a foreign national. The EFCC has recovered ₦33 million from this fraud and returned it to affected customers.

The second scheme was a bogus investment racket operated by Fred and Farid Investment Limited (FF Investment) and eight other companies, which defrauded over 200,000 Nigerians. The syndicate raked in ₦18 billion through fake investment packages offered by firms including 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. EFCC investigations revealed foreign masterminds behind the operations, supported by three Nigerian accomplices who have been arrested and charged in court, while others remain at large.

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Uwujaren stressed that the Commission is calling on regulators to enforce strict compliance with Know Your Customer (KYC), Customer Due Diligence (CDD), and Suspicious Transaction Reports (STRs).

He warned that banks, fintechs, and microfinance institutions found aiding fraudsters should face suspension and prosecution.

He added that negligence and failure to monitor suspicious transactions must no longer be tolerated.

Cautioning the public to remain vigilant, Uwujaren reaffirmed EFCC’s commitment to combating money laundering and financial fraud. He urged financial institutions to strengthen operational safeguards to prevent leakages and compromises that continue to undermine Nigeria’s economy.