The Economic and Financial Crimes Commission (EFCC), has accused banks, fintech firms and microfinance institutions of fuelling large-scale fraud by failing to carry out basic customer due diligence.
The allegation was recently made in Abuja by Wilson Uwujaren, EFCC director of public affairs, during a media briefing on investigations into two major fraud schemes that affected more than 900,000 Nigerians.
Uwujaren said EFCC findings revealed that a “new generation bank”, six fintech companies and several microfinance banks compromised standard banking procedures, allowing fraud proceeds to be converted into digital assets and moved to “safe destinations” without triggering red flags.
According to him, about N18.74 billion flowed through the financial system without proper checks.
He further disclosed that cryptocurrency transactions valued at N162 billion were processed through a single bank without adequate Know Your Customer (KYC) verification, while another bank allowed one customer to operate 960 accounts allegedly used solely for fraudulent activities.
The EFCC said the funds were traced to two large criminal operations. The first was an airline discount scam, where victims were enticed with fake offers of discounted flight tickets. Payments were structured to look like transfers to legitimate airline accounts, but victims later discovered their accounts had been emptied.
Uwujaren said over 700 victims lost N651.1 million to the scheme, although only N33.6 million has been recovered and returned so far. Investigations showed the fraud was orchestrated 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 N18.08 billion through multiple fake investment packages.
The companies 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.
Uwujaren said three Nigerian accomplices had been arrested and charged to court, while the foreign masterminds behind the investment scheme remain at large.
He warned that financial institutions found to be aiding or abetting fraud risk suspension and prosecution, urging regulators to enforce strict compliance with KYC, customer due diligence and suspicious transaction reporting.
“Negligence and failure to monitor suspicious and structured transactions by banks should no longer be allowed,” Uwujaren said, adding that the EFCC would intensify its crackdown on money laundering and digital asset abuse.
