EFCC Claims Banks, Fintechs Enabled N162bn Crypto, N18.7bn Scams on Over 900,000 Nigerians
- The EFCC has accused banks and fintech firms of enabling large-scale fraud by failing to carry out proper KYC and customer due diligence
- Investigations uncovered two major schemes that collectively defrauded more than 900,000 Nigerians of over N18 billion
- The EFCC has arrested three accomplices and warned that complicit financial institutions may face suspension and prosecution
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The Economic and Financial Crimes Commission (EFCC) has accused several banks, fintech firms, and microfinance institutions of facilitating widespread fraud by neglecting basic customer verification procedures.
The allegation was made on Thursday, January 22, 2026, in Abuja by Wilson Uwujaren, the EFCC’s director of public affairs, during a media briefing where he revealed the outcome of investigations into two major fraud operations that affected more than 900,000 Nigerians nationwide.
Source: UGC
Uwujaren disclosed that probes uncovered serious lapses across a “new generation bank,” six fintech companies, and a number of microfinance banks.
According to him, these institutions bypassed standard banking safeguards, enabling fraud proceeds to be converted into digital assets and transferred to secure locations without raising alerts.
Uwujaren stated:
“A total sum of N18,739,999,027.35 passed through our financial system without due diligence by banks.
“It is particularly worrisome that cryptocurrency transactions amounting to N162 billion passed through a new-generation bank without any form of due diligence"
Another bank, he said, allowed one individual to operate 960 accounts, all allegedly used solely for fraudulent purposes.
Airline Ticket Scam and Crypto Laundering
One of the schemes uncovered involved an airline ticket discount scam, where unsuspecting victims were enticed with false promises of cheap flight tickets.
Payments were reportedly disguised as legitimate transfers to airline accounts, after which victims’ bank balances were completely drained.
Uwujaren said over 700 victims lost a combined N651.1 million to the scam. So far, only N33.6 million has been recovered and refunded.
Investigations revealed that the operation was orchestrated by foreign nationals who recruited young Nigerians and relied on cryptocurrency transactions, routed through the Bybit exchange, to move illicit funds.
Fake Investment Scheme Defrauds Thousands
The second fraud operation was linked to Fred and Farid Investment Limited (FF Investment) alongside eight other affiliated companies.
The EFCC said the scheme defrauded more than 200,000 Nigerians of approximately N18.08 billion through deceptive investment packages.
The companies 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.
According to the commission, three Nigerian collaborators have been arrested and arraigned, while the foreign masterminds behind the scheme are still on the run.
Uwujaren warned that any financial institution found to be complicit in fraud risks suspension and criminal prosecution.
He urged regulators to strictly enforce compliance with KYC standards, customer due diligence, and suspicious transaction reporting.
EFCC Identifies Various Bank Frauds
Meanwhile, Legit.ng earlier reported that the EFCC warned about the growing incidence of bank-related fraud and advised members of the public to remain vigilant to red flags.
The warning was issued during a recent edition of #EFCCCONNECT (Episode 145), where the commission drew attention to several fraudulent practices that are becoming increasingly common within the banking system.
According to the EFCC, these include accounting manipulation, cheque forgery and alteration, falsified loan applications, identity theft and impersonation, as well as money laundering activities.
Source: Legit.ng
