EFCC Alerts Public on N18.7bn Fraud, Blames Banks and Fintechs for Lapses

The Economic and Financial Crimes Commission (EFCC) has disclosed that negligence and compromise by several financial institutions enabled fraudsters to steal over N18.7 billion from Nigerians through two major schemes.

According to the Commission’s Director of Public Affairs, Wilson Uwujaren, a new-generation bank and six fintech and microfinance banks failed in their compliance duties, allowing criminals to operate freely. The schemes involved a fraudulent airline discount platform and a bogus investment company known as Fred and Farid Investment Limited (FF Investment).

The airline scam, targeting foreign travelers, led to over 700 victims losing N651 million. The second and larger scheme, run through FF Investment, defrauded more than 200,000 Nigerians of approximately N18.1 billion by offering fake investment packages.

Officials revealed that investigations uncovered severe lapses, including a case where a single customer maintained 960 accounts in one bank, all used for fraud. Furthermore, cryptocurrency transactions worth N162 billion passed through a bank without due diligence.

The EFCC has recovered and returned N33.6 million to some airline scam victims and has arrested three Nigerian accomplices working with foreign actors. The Commission is urging regulatory bodies to enforce strict compliance with Know Your Customer (KYC) and anti-money laundering protocols, warning that erring institutions will face suspension and prosecution.

“Financial institutions must firm up their operational dynamics and help save the nation from leakages,” Uwujaren stated, reaffirming the EFCC’s commitment to pursuing the investigations to a logical conclusion.