The Economic and Financial Crimes Commission (EFCC) has sounded a major alarm over a massive breach in the country’s financial security, revealing how some banks and Fintech companies have allegedly helped fraudsters siphon over N18.7 billion from unsuspecting Nigerians. During a press briefing in Abuja on Thursday, the Commission’s Director of Public Affairs, Wilson Uwujaren, detailed two sophisticated scams that have left thousands of victims in financial ruin.
The first scheme targets international travelers through fake airline discount offers. Fraudsters advertise heavily discounted tickets for specific foreign airlines, using a payment system that looks legitimate enough to convince travelers they are paying the airline directly.Once a victim makes a payment, the scammers gain access to their bank details and empty their accounts. So far, more than 700 people have fallen for this trap, with total losses exceeding N651 million. While the EFCC has managed to recover and return about N33.6 million to some victims, Uwujaren warned that the criminals are quickly converting their loot into cryptocurrency through platforms like Bybit to move the money out of reach.
The second and much larger fraud involves a company known as Fred and Farid Investment Limited, or FF Investment. This firm allegedly lured over 200,000 Nigerians into bogus investment plans, raking in a staggering N18.08 billion. Investigators found that nine different companies were used to offer these various “investment packages,” effectively fleecing nearly a thousand Nigerians through what the EFCC describes as the active connivance of certain financial institutions.
The Commission was particularly critical of the role played by one new-generation bank and six Fintechs and Microfinance banks. EFCC directors Abdulkarim Chukkol and Michael Wetcas explained that these institutions ignored basic banking procedures, allowing fraudsters to move billions without proper “Know Your Customer” (KYC) checks. In one shocking discovery, a single customer was allowed to operate 960 different accounts in one bank, all of which were used for fraudulent activities. Furthermore, investigators found that N162 billion in cryptocurrency-related transactions passed through the same bank without any due diligence.
Moving forward, the EFCC is calling on regulatory bodies to take a harder line against financial institutions that fail to monitor suspicious transactions. The Commission is advocating for the suspension and prosecution of any bank or Fintech found to be aiding and abetting these crimes. By tightening operational standards and enforcing strict compliance with financial regulations, the EFCC believes the nation can plug the leakages currently bleeding the economy and better protect the hard-earned money of Nigerian citizens.
